Power Integrations, Inc. (POWI) Stock Grade

About Power Integrations, Inc.'s fundamentals

Power Integrations generates $2.0 billion in market value with a P/E ratio of 90.2, indicating investors are pricing in significant future growth expectations relative to current earnings. The company's revenue grew 5.9% year-over-year, though this is modest for the semiconductor sector, while its net profit margin of 5.0% reflects relatively thin profitability on each dollar of sales. With a return on equity of just 3.3%, the company is generating minimal returns on shareholder capital, though it does offer a 2.4% dividend yield for income-oriented investors.