Is POWL a high-quality business?

AlphaMadera's AlphaQuality grade scores Powell Industries, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how POWL compares to a Buffett-style quality bar.

What is Powell Industries, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to POWL based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes POWL a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

POWL - Powell Industries, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $237.67 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

B 71.6 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 25%

B+ 77.7

5yr Avg ROIC 11.6% 68/100
Operating Margin Trend +5.53 pp/yr 100/100

Capital Efficiency

Weight: 15%

B- 63.7

5yr Avg ROE 12.5% 72/100
5yr Share-Count CAGR 0.8% 49/100

Growth Quality

Weight: 25%

A+ 96.0

5yr Revenue CAGR 23.8% 100/100
5yr EPS CAGR 308.4% 100/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 20%

D 34.2

5yr FCF Margin 8.1% 62/100
5yr FCF/NI Conversion -9.72x 0/100

Balance Sheet

Weight: 10%

A+ 100.0

Net Debt / EBITDA -1.97x 100/100
Interest Coverage (EBIT/Int) 30.00x 100/100
Altman Z-Score 15.97 100/100

Stability

Weight: 5%

D 36.7

EPS Volatility (σ/μ) 1.33 0/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 1/5 80/100

3 of 3 gurus held; 1 added; 2 trimmed.

Holders: 3
Avg Δ position: +96.4%
New buys: 0
Full exits: 0

Cooperman increased +338%
Wood decreased -34%
Greenblatt decreased -15%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (25%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (25%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (5%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.