PSIXPower Solutions International, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.0×), margins widening, and elite returns on assets.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 57% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is PSIX?
Power Solutions International, Inc. earns 50% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 41 points above what the capital costs: growth creates value
- Operating margin
- 13%
Operating margin · Specialty Industrial Machinery median 14% · 12 months to Q2 2026
- Cash conversion
- 1.02×
Cash conversion · 0.87× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.02%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | −5.2% |
| FY2021 | −9.1% |
| FY2022 | 5.1% |
| FY2023 | 9.7% |
| FY2024 | 17% |
| FY2025 | 15% |
Details›
- Gross margin12 months to Q2 2026
- 24%
- Operating margin12 months to Q2 2026
- 13%
- Net margin12 months to Q2 2026
- 10%
- Free cash flow margin
- 9.9%
- R&D as % of revenue
- 2.8%
- Revenue, trailing twelve months
- $676M
- Free cash flow, trailing twelve months
- $67M
- Net income, trailing twelve months
- $68M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 50%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Specialty Industrial Machinery
Ranks #2 of 33 by RyuScore