Power Solutions International, Inc.
$40.42
-0.42%Power Solutions International, Inc. designs, engineers, manufactures, markets, and sells engines and power systems in the United States, North America, the Pacific Rim, Europe, and internationally. The company offers alternative-fueled power systems for original equipment manufacturers of off-highway industrial equipment and on-road vehicles; and large custom-engineered integrated electrical power generation systems. It also provides basic engine blocks integrated with fuel system parts, as well as complete packaged power systems, including combined front accessory drives, cooling systems, electronic systems, air intake systems, fuel systems, housings, power takeoff systems, exhaust systems, hydraulic systems, enclosures, brackets, hoses, tubes, packaging, telematics, and other assembled components. In addition, the company offers compression and spark-ignited internal combustion engines that run on various fuels, such as natural gas, propane, gasoline, diesel, and biofuels in the energy, industrial, and transportation markets. Further, it provides standby and prime power generation, demand response, microgrid, renewable energy resiliency, arbor equipment, and combined heat and power; forklifts, wood chippers, stump grinders, sweepers/industrial scrubbers, aerial lift platforms/scissor lifts, irrigation pumps, oil and gas compression, oil lifts, off road utility vehicles, ground support equipment, ice resurfacing equipment, and pump jacks; and light and medium duty vocational trucks and vans, school and transit buses, and terminal and utility tractors. The company has a strategic collaboration agreement with Weichai Power Co., Ltd. Power Solutions International, Inc. was founded in 1985 and is headquartered in Wood Dale, Illinois.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is compressed (P/E 8.2).
Valuation inputs: P/E 8.2, earnings yield +12.2%, momentum -0.4%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is strong (ROE +63.8%, ROIC +30.5%).
Profitability stack: net margin +15.8%, ROE +63.8%, ROIC +30.5%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile looks controlled across current risk inputs.
Risk factors: liabilities/assets +59.8%, momentum -0.4%, net margin +15.8%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Power Solutions International, Inc. Market vs Earnings Trajectory
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Power Solutions International, Inc. Fair Value Envelope
Power Solutions International, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.
Operating Margin
Healthy operating margins demonstrate effective cost control and strong business fundamentals.
Net Profit Margin
Strong net margins indicate efficient operations and favorable tax/interest management.
Effective Tax Rate
Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.
Profitability Insight
Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.
Power Solutions International, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Weak cash conversion. Significant portion of earnings not converting to cash—review working capital trends and capital intensity.
CapEx Intensity
Capital-intensive operations require significant reinvestment. Monitor whether CapEx is maintenance or growth-oriented.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.
Cash Flow Quality Insight
Deteriorating cash generation: Both declining FCF and weak conversion rate signal fundamental challenges. Investigate margin pressure, rising costs, or working capital issues.
Power Solutions International, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Power Solutions International, Inc. Street Expectations Map
Wall Street analysts project that PSIX stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 107.00, with estimates ranging from a low of 107.00 to a high of 107.00.
The consensus 1-year price target stands at 107.00, with estimates ranging from a low of 107.00 to a high of 107.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
Power Solutions International, Inc. Insider Positioning
During the last 12 months, insiders have sold $618K worth of PSIX shares, with no buying activity reported.
3 Months
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3-6 Months
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6-9 Months
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9-12 Months
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Top Buyers
No buying activity
Top Sellers
Weichai America Corp.
10 Percent Owner
$618K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $618K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Insider Participation
1 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.
No Dividend Yield Data
PSIX has not reported any dividend yield values in the available annual periods.
psix Dividend History
Learning Layer
Related Guides
Build conviction on PSIX by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.