PWR Holdings Ltd PWH

Morningstar Rating
A$10.00 −0.04 (0.40%)
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Company Report

PWR Is Investing Ahead of Future Growth in Aerospace and Defense

PWR Holdings is poised for further growth in advanced cooling. We expect the company's strong earnings growth to continue, principally driven by its competitively privileged position in high-performance automotive cooling. Its narrow economic moat is underpinned by the significant brand equity, intellectual property, and entrenched customer relationships it enjoys in this niche market. The company has a presence across practically all major motorsport competitions—notably Formula One, where PWR supplies every car on the grid. These competitive advantages also allow PWR to command top-tier aftermarket pricing and position itself as a trusted supplier for high-performance, low-volume production of supercars and hypercars with vehicle manufacturers.

Price vs Fair Value

PWH is trading at a LOCK|wqt<t^& premium.
Price
A$10.00
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

PWR enjoys a virtuous cycle in Formula One, where its intellectual property is supported by its brand, and vice versa.

Bears

While PWR's highly tailored solutions are a good fit for low-run vehicle production, it may not be able to scale to win high-volume contracts.

Trading Information

Previous Close Price
A$10.04
Day Range
A$9.95–10.14
52-Week Range
A$7.09–12.50
Bid/Ask
A$9.82 / A$10.10
Shares Outstanding
100.57M
Market Cap
A$1.01B
Volume/Avg
122,175 / 222,680

Key Statistics

Price/Earnings (Normalized)
51.55
Price/Sales
5.89
Dividend Yield (Trailing)
0.80%
Dividend Yield (Forward)
0.80%
Dividend Payment Schedule
Mar, Sep
Total Yield
0.80%

Company Profile

PWR Holdings is a designer, manufacturer, and supplier of cooling solutions for motorsports and the performance automotive industry. PWR produces aluminum radiators, intercoolers, heat exchangers, oil coolers, and other cooling accessories for motorsports, performance automotive original equipment manufacturers, the automotive aftermarket, and aerospace and defense sectors. The motorsports segment generates the majority of revenue, while OEMs and aftermarket constitute over a third of the income stream. PWR's products are primarily sold in North America and Europe.
Sector
Consumer Cyclical
Industry
Auto Parts
Stock Style Box
Small Growth
Total Number of Employees
451

Competitors

Valuation

Metric
PWH
RACE
ARB
Price/Earnings (Normalized)
51.5535.5518.94
Price/Book Value
8.9216.311.98
Price/Sales
5.898.012.09
Price/Cash Flow
27.2722.4714.17
Price/Earnings
PWH
RACE
ARB

Financial Strength

Metric
PWH
RACE
ARB
Quick Ratio
0.811.301.30
Current Ratio
1.621.803.93
Interest Coverage
6.7363.4256.85
Quick Ratio
PWH
RACE
ARB

Profitability

Metric
PWH
RACE
ARB
Return on Assets (Normalized)
8.80%16.65%10.01%
Return on Equity (Normalized)
16.80%43.28%11.95%
Return on Invested Capital (Normalized)
12.24%24.33%11.46%
Return on Assets
PWH
RACE
ARB

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