Power Integrations, Inc.

Valuation Analysis

About the Company

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. 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 s

Power Integrations, Inc. Stock at a Glance

Power Integrations, Inc. (POWI) is currently trading at $78.38 with a market capitalization of $4.4B. The trailing P/E ratio stands at 261.27x, with a forward P/E of 42.21x. The 52-week range spans from $30.86 to $89.00; the current price is 11.9% below the yearly high. Year-over-year revenue growth stands at +2.6%. The net profit margin stands at 3.72%.

💰 Dividend

Power Integrations, Inc. pays an annual dividend of $0.86 per share, representing a yield of 1.1%. The payout ratio stands at 281.67%. The elevated payout ratio reflects a mature dividend policy.

📊 Analyst Rating

5 analysts rate Power Integrations, Inc. (POWI) on consensus: Buy. The average price target is $73.60, implying -6.1% from the current price. Analyst price targets range from $46.00 to $90.00.

Power Integrations, Inc.: The Investment Case in Detail

Power Integrations, Inc. (POWI) operates in the Technology — specifically Semiconductors — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bear Case

Revenue growth has slowed to just 2.6%, which is below nominal GDP — the business is no longer outgrowing the broader economy. With a net margin of just 3.72%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. A trailing P/E above 50 combined with revenue growth below 20% is a dangerous combination — the market is paying a steep growth multiple for what is, by the data, only moderately fast expansion.

Valuation in Context

The EV/EBITDA multiple of 82.31x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

What to Watch Next

• The forward P/E of 42.21x is meaningfully below the trailing 261.27x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to above-average price swings, elevated short interest (11.62%).

Trading Data

💵 Dividend Info

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