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Power Integrations, Inc.

Rank #210Capital ReturnWatchlistCompare with other stocks

POWI · Nasdaq · Technology

Power Integrations, Inc. (POWI) — Rank #210 by gross profitability (GP/assets 0.31) · ROE 3.2% · Piotroski F-Score 6 / 9.

As-of 2026-10-30 · 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

Company Snapshot

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

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

877

Industry

Semiconductors

Exchange

Nasdaq

11/12

Flags passed

POWI fails 1 critical flag

Passes 11 of 12 quality flags

  • FAIL
    Operating margin declining

    Operating margin lower than prior year

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

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%

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

Profitability

Does it make money well?

Warning: Operating margin declining · GP/assets 50th percentile of 21 SIC 3674 peers

Gross profitability (GP / assets)

0.31

Primary signal (Novy-Marx).

50th pctl of 21 SIC 3674 peers

Return on equity

3.2%

Gross margin

54.5%

55th pctl of 21 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%

Cash Flow Health

Is the cash real?

No warning flags · FCF 294% above net income

Free cash flow

$87.12M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

294.3%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

8.9%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net cash $262.61M, F-Score 6/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.14

95th pctl of 20 SIC 3674 peers (best = lowest)

Current ratio

7.07×

85th pctl of 21 SIC 3674 peers

Quick ratio

4.34×

Net cash

$262.61M

Cash & equivalents minus total debt.

Piotroski F-Score

6 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

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

Capital allocation quality

Composite score

3.0 / 5

Good
Share count trend(net buybacks)
-1.4%3/5 Good
Buyback timing
N/AN/A
Dividend growth consistency
10 yr5/5 Strong
Net debt trajectory
-6.5%1/5 Weak

Lifecycle Phase History

20202025
Capital Return
Hypergrowth
Value
Decline

Price History

POWI-51.0% · -13.3% CAGRSPY+82.9% · +12.8% CAGR

View full financial statements →

Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports