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Power Integrations, Inc.

Rank #216Capital Return

POWI · Nasdaq · Technology

Power Integrations, Inc. (POWI) — Rank #216 by gross profitability (GP/assets 0.31) · ROE 3.2% · Piotroski F-Score 6 / 9.

As-of 2026-09-15 · CIK 0000833640 · all metrics point-in-time as of the filing date.

About

Power Integrations, Inc. designs, develops, manufactures, and markets analog and mixed-signal integrated circuits, and other electronic components and circuitry used in high-voltage power conversion.

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It provides a range of alternating current to direct current power conversion products that address power supply up to approximately 500 watts of output for consumer appliances, utility meters, LCD monitors, tablets, smartphones, computers, TVs, consumer and industrial applications, and LED lightings; and power conversion in high-power applications comprising industrial motors, solar and wind-power systems, electric locomotives, and high-voltage DC transmission systems. The company also offers InnoSwitch IC for electric vehicles; high-voltage gate-driver products used to operate high-voltage switches, such as insulated-gate bipolar transistors and silicon-carbide MOSFETs under the SCALE and SCALE-2 product-family names; and SCALE-iDriver for use in powertrain and charging applications for electric vehicles. In addition, it provides motor-driver ICs for use in refrigerator compressors, ceiling fans, air purifiers, and circulation pumps, as well as pumps and fans used in appliances, such as dishwashers, laundry machines, and boilers. The company serves communications, computer, consumer, and industrial markets. It sells its products to original equipment manufacturers and merchant power supply manufacturers through direct sales staff, as well as a network of independent sales representatives and distributors in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Power Integrations, Inc.

was incorporated in 1988 and is headquartered in San Jose, California.

Industry
Semiconductors
Sector
Technology
State
CA
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
power.com

Price History

POWI-49.4% · -12.7% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$2.66B

P/E (annual)

121.9

P/S (annual)

6.0

P/B

3.9

P/OCF (annual)

23.8

Shareholder Yield

3.2%

Employees

877

Industry

Semiconductors

Exchange

Nasdaq

Signal Flags

2 green1 red
Revenue growth acceleratingGrowth rate increasing year over year
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Operating margin decliningOperating margin lower than prior year

Quality Profile

Profitability

1/1 pass
GP / assets
0.31
Return on equity
3.2%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.14
Current ratio
7.07×
Net cash
$262.61M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
8.9%

Growth

2/2 pass
Revenue growth
5.9%
Piotroski F-Score
6 / 9
Share dilution
-1.4%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

13.6%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -1.4% — per-share value needs a total required return of 12.1% once share-count change is priced in.

vs. own 6-year median revenue growth: 0.1%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

8.9%

r = 10% (base)

13.6%

r = 12%

17.6%

Net debt / market cap: -9.8%

Base FCF: $87.1M3Y mean FCF: $65.3M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

121.4xExpensive
8.0xmed 35.5x121.4x

P / S

Price / revenue per share

6.0xFair
2.5xmed 6.7x10.7x

P / B

Price / book value per share

4.0xFair
2.0xmed 4.3x6.7x

P / GP

Price / gross profit per share

11.0xFair
5.0xmed 12.4x21.5x

P / FCF

Price / free cash flow per share

30.6xFair
7.7xmed 28.3x102.0x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.31

Primary signal (Novy-Marx).

10th of 17 SIC 3674 peers

Return on equity

3.2%

Gross margin

54.5%

7th of 17 SIC 3674 peers

Revenue growth (YoY)

5.9%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-12.0%

Revenue CAGR (5Y)

-1.9%

Earnings CAGR (3Y)

-49.4%

FCF CAGR (3Y)

-20.9%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.14

2nd of 16 SIC 3674 peers (best = lowest)

Current ratio

7.07×

3rd of 17 SIC 3674 peers

Quick ratio

4.34×

Net cash

$262.61M

Cash & equivalents minus total debt.

Recession resistance

Revenue through recessions

Worst single-year YoY revenue decline, 17 years of history

Strong
2008-2009 (GFC)
6.9%Grew through it
2020 (COVID)
16.1%Grew through it
Worst year on record(any fiscal year, not recession-limited)
-31.7%Significant decline

Cash-flow health

Free cash flow

$87.12M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

2.94

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

8.9%

Stock-based comp intensity.

Dividend safety

Composite score

2.5 / 5

Fair
Payout ratio
213.5%0/5 Weak
FCF coverage
1.85×3/5 Good
Dividend growth streak
10 yr5/5 Strong
Balance-sheet health
D/E 0.14 · IC N/A2/5 Fair

Piotroski F-Score

F-Score

6 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Capital Return
Hypergrowth
Value
Decline
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