Start here if you're new
what it is
It makes chips that turn ugly high-voltage electricity into the exact power your devices and machines can use.
how it gets paid
Last year Power Integrations made $444M in revenue. consumer was the main engine at $164M, or 37% of sales.
why it's growing
Revenue grew 5.9% last year. Industrial revenue dropped 23% sequentially after two strong quarters.
what just happened
The quarter's whole story was the $0.23 EPS result, far below the $0.38 estimate.
At a glance
B+ balance sheet — decent shape, but not bulletproof
45/100 earnings predictability — expect surprises
37.7x trailing p/e — you're paying up for this one
1.9% dividend yield — cash in your pocket every quarter
14.5% return on capital — nothing to write home about
xvary composite: 48/100 — below average
What they do
It makes chips that turn ugly high-voltage electricity into the exact power your devices and machines can use.
Power chips are tiny parts that can wreck an entire product if they fail. That is the moat. You do not swap out the power-conversion brain lightly when your charger, appliance, or factory gear depends on it. The company also keeps spending on design, with R&D at 5.8% of sales, while gross margin stayed at 55.0% in the latest reported period.
How they make money
$444M
annual revenue · their business grew +5.9% last year
consumer
$164M
+4.0%
industrial
$133M
+15.0%
communications
$67M
+15.0%
computer
$49M
+2.0%
other
$31M
+1.0%
The products that matter
high-voltage power-conversion chips
High-Voltage Power Conversion ICs
$444M revenue · 100% of sales
this is the whole business: $444M in annual revenue, up 30.3% last year, with a 17.8% net margin riding on how well this one category sells.
the whole story
Key numbers
37.7x
trailing p/e
P/E → price-to-earnings → how much you pay for each dollar of profit. So what: you are paying a growth-stock multiple for a company with a 2.3% operating margin.
$68
18-month target
That is about 44% above $47.15 today. So what: the upside case exists, but it requires earnings to catch up fast.
57%
china sales
Geographic concentration → too much revenue in one place → one market can move your whole year. So what: more than half the business sits in China.
2.3%
operating margin
Operating margin → profit left after running the business → the real cushion. So what: this cushion is thin for a company trading at 37.7x earnings.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 40 / 100
- net profit margin 16.9% — keeps 17 cents of every dollar in revenue
- return on equity 14% — $0.14 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in POWI 3 years ago → it's now worth $5,990.
The index would have given you $14,540.
source: institutional data · total return
What just happened
missed estimates
The quarter's whole story was the $0.23 EPS result, far below the $0.38 estimate.
Industrial revenue dropped 23% sequentially after two strong quarters, and management said the mix turned unfavorable. Communications was the bright spot, up 15% sequentially on 5G broadband buildout in India.
$340M
revenue
$0.23
eps
55.0%
gross margin
the number that mattered
The 23% sequential drop in industrial revenue mattered most because it dragged the revenue mix lower and exposed how fragile current earnings still are.
-
power integrations continued to face challenges in the 2025 fourth quarter.the consumer segment remains under pressure by tariff-related distortions and a weak housing market in the u.s and china.
-
industrial segment revenues declined 23% sequentially following two strong quarters (up 15% relative to the prior year).management noted this was a result of variability in order patterns, as bookings reached a multi-year high.
-
this resulted in an unfavorable revenue mix that weighed heavily on earnings.
-
communications revenues expanded 15% sequentially, thanks to the buildout of 5g broadband in india.
-
we are cautiously optimistic about near-term dynamics.
source: company earnings report, 2026
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What could go wrong
the #1 risk is consumer demand weakness tied to tariff disruption and soft housing in the u.s. and china.
high
consumer demand weakness
management explicitly called out tariff-related distortions and weak housing markets in the u.s. and china. those are real end-market headwinds, not spreadsheet risks.
with all $444M of revenue tied to one product category, a weak consumer backdrop can hit sales and mix at the same time.
med
industrial order volatility
industrial revenue fell 23% sequentially after two strong quarters, even though bookings hit a multi-year high.
that gap means you can be right about demand and still get an ugly quarter. timing matters here more than investors usually like.
med
unfavorable revenue mix
management said the quarter's mix weighed on earnings. that tells you not every revenue dollar carries the same margin.
a company earning $0.23 in the quarter does not have much room for mix surprises before sentiment turns.
low
premium multiple on uneven earnings
the stock trades at 37.7x trailing earnings with a 45/100 predictability score.
that is a fine setup when the recovery is intact. it is a bad setup if results stay noisy for another few quarters.
37.7x earnings, 45/100 predictability, and net institutional selling for two straight quarters is not a disaster. it is a reminder that this stock still needs execution to justify the multiple.
source: institutional data · regulatory filings · risk analysis
Pay attention to
trend
whether communications can stay hot
communications revenue rose 15% sequentially on 5g broadband buildout in india. if that keeps running, it can offset some of the consumer softness.
metric
industrial revenue versus bookings
revenue fell 23% sequentially while bookings hit a multi-year high. you want those two lines moving back toward each other.
risk
consumer end-market pressure
u.s. and china housing weakness plus tariff distortion were explicit management callouts. if those conditions linger, the recovery story stays delayed.
calendar
next quarter's revenue mix
the last quarter showed how quickly mix can pressure earnings. with a 37.7x trailing p/e, the next print matters more than usual.
Analyst rankings
short-term outlook
below average
momentum score 4 — analysts see underperformance risk from here. in human-speak, the street is not paying up for near-term momentum.
risk profile
average
stability score 3 — this looks like a middle-of-the-pack risk profile, not a bunker stock and not chaos either.
chart momentum
average
technical score 3 — the chart is not screaming breakout or breakdown. you are mostly waiting for fundamentals to do the talking.
earnings predictability
45 / 100
earnings are harder to model here than the margin profile suggests. that is the entire reason this story feels choppier than the profitability headline implies.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 109 buyers vs. 122 sellers in 4q2025. total institutional holdings: 57.9M shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$36
$100
$47
current price
$68
target midpoint · +44% from current · 3-5yr high: $75 (+60% · 14% ann'l return)
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