Power Integrations

POWI

Semiconductors · Technology

Price

$55.18

+0.34 (+0.62%)

Market Cap

$3.07B

Exchange

NASDAQ

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Weak

Cash Flow

Exceptional

Stability

Good

Valuation

Good

Dividends

Weak

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Share count falling — buybacks

−8.4% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 61.5M (2021) → 56.3M (2025)

Winston Score History

The full picture

Power Integrations makes tiny computer chips that control how electricity flows inside everyday devices. Its chips are used in power supplies — the parts that convert wall outlet electricity into the right voltage for phones, appliances, TVs, and industrial equipment. The company is best known for its EcoSmart technology, which helps devices waste less energy when they are plugged in but not fully in use.

Power Integrations earns money by selling these chips to electronics manufacturers around the world, with a heavy concentration of production and customers in Asia. The company generates roughly $500–600 million in annual revenue and competes in a specialized corner of the semiconductor market where its integrated circuit designs are difficult to copy quickly. Its main growth opportunity is the expanding market for electric vehicle chargers and renewable energy systems, but it faces ongoing risk from customer concentration in consumer electronics and cyclical swings in chip demand.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+2.7% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+640.7% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$101M/ year

→ Flat (+0% vs prior year)

22.8% of revenue

1.5x the sector average (15%)

Steady R&D investment year-over-year

Insider Activity

1.7%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$263M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Power Integrations is growing revenue at 3% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

54.3%

Healthy — 54.3% gross margin

Profit after running costs

Operating Margin

7.5%

Modest — 7.5% operating margin

Return on the money invested

ROCE

5.2%

Weak — 5.2% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+1.6%

Nearly flat sales (+1.6% YoY)

Profit growth

EPS YoY

-22.1%

Earnings shrinking (-22.1% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

471%

Turns 471% of profit into real cash

Spare cash per sale

FCF Margin

21.6%

Converts sales into free cash efficiently (21.6%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

N/A

Data not available

Covers its interest

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

121.2x

Expensive — P/E 121.2

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+73.8

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (121.2 → 47.5)

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Dividends

Dividend

Dividend Yield

1.34%

Small dividend — 1.34% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+2.4%

Dividend flat

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