POWER INTEGRATIONS INC

POWIdata completeness 88%18 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

POWER INTEGRATIONS INC earns about 13% on invested capital, comfortably above its ~9% cost of capital, and has bought back 8% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $10.25 and $17.25 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$703.3M1$651.1M2$444.5M3$419M3$443.5M3
Net income$164.4M4$170.9M5$55.7M6$32.2M6$22.1M6
Operating cash flow$230.9M7$215.3M8$65.8M9$81.2M9$111.5M9
Capital expenditure$47.3M10$39.2M11$20.9M12$17.3M12$24.4M12
Free cash flow (derived)$183.6M7$176.1M8$44.9M9$63.9M9$87.1M9
Total debt
Cash & equivalents$158.1M13$105.4M14$63.9M15$51M16$58.8M16
Diluted shares61.5M58.4M57.6M57.1M56.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$119.46
your share of equity
Profit it earned you last year
$3.92
Free cash flow it threw off
$15.47
Debt you’d be carrying

10 shares is a claim on $119.46 of net worth that earned you $3.92 and generated $15.47 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
13% avg · 5y
FY21 22%FY22 26%FY23 7%FY24 4%FY25 3%

It earned about 13% on invested capital against a ~9% cost of capital — comfortably above the cost of funding, a moderate advantage.

seeing a moat in the numbers →
Management signal · capital allocation
−8% shares · 5y

Share count is down 8% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $10.25 and $17.25 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$16.03
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$63.9M
DCF · Growth Exit 5Y
$17.25
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$63.9M
Earnings Power Value
$10.25
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$55.7M
  • growthAssumed0.0%
Graham Number
$10.24
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $17.25
The three cases
Bear0.0%$17.25
Base0.0%$17.25
Bull5.0%$21.17

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000833640-24-000030 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0000833640-25-000043 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0000833640-26-000037 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0000833640-24-000030 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0000833640-25-000043 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0000833640-26-000037 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0000833640-24-000030 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0000833640-25-000043 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0000833640-26-000037 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0000833640-24-000030 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0000833640-25-000043 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0000833640-26-000037 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0000833640-23-000025 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-12-31 · accession 0000833640-24-000030 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-12-31 · accession 0000833640-25-000043 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2024-12-31 · accession 0000833640-26-000037 (CashAndCashEquivalentsAtCarryingValue)