Positioning no disclosures inside 60 days, left as found
Options no verdict drawn today, left as found
Ethical screen not yet scored
Price50.39 USD
Fair value47.91
Ethical score70.0/100
Our investment reviews on this name
2026-08-09Read Distribution58.98-14.6% to today ✓
2026-07-02Read Markup78.38-35.7% to today
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Power Integrations, Inc. holds its Distribution at $50.39. Elevated stress, defensive posture warranted, held for 2 days.
As held on the ledger · 2026-09-18
Phase
Distribution · caution
Quantitative state
Elevated stress, defensive posture warranted, held for 2 days
Price at the screen
$50.39
Valuation
114.52 trailing · 26.90 forward price to earnings
Values screen
Not scored· score 70.0
Beta
1.53
The Workings
Five Screens, Shown in Full
This security has not been fully scored against the values screen yet.
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
Excluded
Below 33%
Interest-bearing debt is of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
24.70%
Below 33%
Cash held in interest-bearing accounts and securities is 24.7% of assets, under the one-third limit.
Pass
Receivables
9.97%
Below 49%
Money owed to the company is 10.0% of assets, under the 49% limit.
Pass
Revenue purity
0.00%
Below 5%
Only 0.0% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
Fair value range in USD, drawn from the 2026-09-18 screen. The gold marker is the market price at the same screen. The price runs 4.9% above the base estimate.
Third-party analyst targets: 4 covering, consensus Buy. The average target sits +59% from the screen price.
Reading the gap · Our more conservative model reads it as fully-to-richly valued here, while the Street is more bullish: a quality-at-a-fair-price name rather than a deep-value one.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-09-18 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Everyday Gadget Chips but Weak Returns Ahead
Every phone charger and industrial motor relies on high-voltage conversion chips to keep humming, yet Power Integrations shows little ability to turn that demand into reliable profit. The shares trade at 70 dollars against a fair value nearer 50, with a forward multiple of 38 times on revenue growth of just 3 percent, profit margins of 4 percent and return on equity at 2 percent. In a cyclical semiconductor business that already carries an unknown moat, those figures point to a valuation that prices in far more stability than the numbers support.
This is the classic cyclical value trap in action. Low multiples can look tempting when earnings sit near a peak, yet here the multiple stays elevated while growth and returns stay depressed. The ethical screen clears, but that alone does not create an investment case when the underlying economics remain thin.
Margin pressure from inventory swings and customer concentration can hit hard in downturns, and any rebound may prove fleeting once the cycle turns again. Analysis, not advice.
The risks · The things to watch: it already moves more than the market on an average day.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
POWI trades on Nasdaq. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-09-09Distribution$54.63-7.4%Entry 5
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 7.4% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 85% above its long-term trend line with momentum reading overbought. Over the past year the shares are up 30%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (4 analysts) rates it none, with a mean price target of $70.
The framework has shifted from markup to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 24.8% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 85% above its long-term trend line with momentum reading overbought. Over the past year the shares are up 30%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (4 analysts) rates it none, with a mean price target of $70.
2026-07-18Markup$78.38+0.0%Entry 3
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 85% above its long-term trend line with momentum reading overbought. Over the past year the shares are up 30%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (4 analysts) rates it none, with a mean price target of $70.
2026-07-03Markup$78.38+0.0%Entry 2
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows modest positive risk-adjusted returns.
2026-07-02Markup$78.38Entry 1
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows modest positive risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
