| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 39.84 | -44 |
| Intrinsic value (DCF) | 1372.37 | 1812 |
| Graham-Dodd Method | 16.61 | -77 |
| Graham Formula | 35.47 | -51 |
Power Solutions International, Inc. (NASDAQ: PSIX) is a leading designer, manufacturer, and marketer of advanced alternative-fueled engines and power systems, serving industrial, energy, and transportation markets globally. Founded in 1985 and headquartered in Wood Dale, Illinois, PSIX specializes in high-performance engines that run on natural gas, propane, gasoline, diesel, and biofuels. The company provides integrated power solutions for off-highway industrial equipment, on-road vehicles, and large-scale electrical power generation systems. With a strategic collaboration with Weichai Power Co., Ltd., PSIX strengthens its technological and market reach. The company operates in North America, Europe, and the Pacific Rim, catering to diverse applications such as forklifts, buses, oil & gas compression, and microgrid energy solutions. As industries shift toward cleaner energy, PSIX’s expertise in alternative-fuel engines positions it as a key player in sustainable power solutions.
Power Solutions International (PSIX) presents a compelling investment case due to its niche focus on alternative-fuel engines and power systems, benefiting from global decarbonization trends. The company’s revenue of $476M (FY 2024) and net income of $69.3M reflect strong profitability, supported by a diversified industrial and transportation customer base. However, risks include exposure to cyclical industrial demand and reliance on key partnerships like Weichai Power. With no dividend payout, investors must rely on capital appreciation. PSIX’s moderate beta (1.09) suggests market-aligned volatility, while its $890M market cap indicates mid-cap growth potential. Positive operating cash flow ($62.4M) and manageable debt ($146M) underscore financial stability, but competition in clean-energy engines remains intense.
Power Solutions International (PSIX) competes in the specialized niche of alternative-fuel engines, differentiating itself through vertically integrated power systems and multi-fuel adaptability. Its collaboration with Weichai Power enhances R&D and global distribution, particularly in Asia. PSIX’s competitive edge lies in custom-engineered solutions for industrial and transportation applications, where emissions regulations drive demand for cleaner engines. However, it faces stiff competition from larger industrial engine manufacturers with broader scale and resources. PSIX’s focus on natural gas and propane engines aligns with North American and European emission standards, but rivals with stronger electrification portfolios may challenge long-term relevance. The company’s ability to innovate in biofuels and hybrid systems will be critical to maintaining its position. While PSIX’s profitability metrics are solid, its smaller size limits economies of scale compared to industry giants.