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PSIX, Power Solutions International Inc.

Industrial Machinery capital-intensive Cyclical

Power Solutions International Inc. provides highly engineered, comprehensive solutions designed to meet specific customer application requirements and technical specifications, including those imposed by environmental regulatory bodies, including the U.S.

The Company's products include both sourced and internally designed and manufactured engines that are engineered and integrated with associated components.

The Company's business is diversified across end markets and applications and also includes extensive aftermarket and service parts programs.

Latest annual: FY2025 10-K

PSIX · Power Solutions International Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$722M

+51.8% YoY · 12% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $716M 5-yr avg $519M

Gross margin 24% 5-yr avg 21%

Operating margin 13.5% 5-yr avg 7.6%

ROIC 40% 5-yr avg 27%

Owner-earnings margin 4% 5-yr avg 3%

Free cash flow margin 4% 5-yr avg 2%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is Power Systems (81%), Industrial (16%) and Transportation (3%).
Situation: Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
What moves the needle: Operating margin has reached 17% at its best but run negative through the cycle (median −4.3%) on a 14% gross margin — so the question is which reading is truer: whether the median was pulled below zero by one-off charges, by the cycle, or by spending it is still growing into, and whether it settles back at a profit. Inventory runs near 21% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. Read this kind of business on the capital-goods cycle and the aftermarket. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has run in the teens (median 15%, above 15% in 5 of 9 years). Owner earnings, the cash-based check, have been thin too. Returns like these are solid but short of clear franchise economics; whether they hold is what the 10-K settles, not the multiple.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

Power Systems is 81% of revenue, with Industrial the other meaningful line at 16%.

Revenue by product line, FY2025

Power Systems81%$586M
Industrial16%$115M
Transportation3%$21M

By geographyUnited States93%Pacific Rim3%North America, Excluding United States3%Europe0%Other0%

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$339M	$417M	$496M	$546M	$418M	$456M	$481M	$459M	$476M	$722M	$716M	RevenueRevenue
9%	12%	12%	18%	14%	9%	18%	23%	30%	26%	24%	Gross marginGross mgn
6%	5%	6%	5%	6%	5%	4%	4%	4%	3%	3%	R&D / revenueR&D/rev
($25M)	($18M)	($37M)	$17M	($22M)	($42M)	$25M	$44M	$82M	$110M	$96M	Operating incomeOp. inc.
−7.5%	−4.3%	−7.4%	3.2%	−5.2%	−9.1%	5.1%	9.6%	17.2%	15.2%	13.5%	Operating marginOp. mgn
($47M)	($48M)	($55M)	$8M	($23M)	($48M)	$11M	$26M	$69M	$114M	$102M	Net incomeNet inc.
—	—	—	5%	—	—	3%	3%	1%	—	—	Effective tax rateTax rate
											Cash flow & returns
$32M	($8M)	($6M)	$18M	($8M)	($61M)	($9M)	$71M	$62M	$24M	$34M	Operating cash flowOp. cash
$5M	$5M	$5M	$5M	$5M	$5M	$5M	$4M	$4M	$4M	$5M	DepreciationDeprec.
$74M	$35M	$41M	$4M	$10M	($18M)	($25M)	$40M	($11M)	($94M)	($73M)	Working capital & otherWC & other
$4M	$5M	$4M	$4M	$2M	$2M	$1M	$5M	$5M	$10M	$8M	CapexCapex
1.1%	1.2%	0.7%	0.7%	0.6%	0.4%	0.3%	1.1%	1.0%	1.4%	1.2%	Capex / revenueCapex/rev
$28M	($13M)	($10M)	$14M	($10M)	($63M)	($10M)	$67M	$58M	$20M	$30M	Owner earningsOwner earn.
8.4%	−3.1%	−2.0%	2.7%	−2.4%	−13.9%	−2.1%	14.5%	12.2%	2.8%	4.2%	Owner earnings marginOE mgn
$28M	($13M)	($10M)	$14M	($10M)	($63M)	($10M)	$65M	$58M	$14M	$26M	Free cash flowFCF
8.4%	−3.1%	−2.0%	2.7%	−2.4%	−13.9%	−2.1%	14.3%	12.2%	2.0%	3.6%	Free cash flow marginFCF mgn
$0	$0	—	—	—	—	—	—	—	—	$0	AcquisitionsAcquis.
-17%	-17%	-79%	19%	—	-25%	15%	36%	62%	47%	40%	ROICROIC
-117%	-148%	—	29%	-377%	—	—	—	106%	64%	55%	Return on equityROE
−117%	−148%	—	29%	−377%	—	—	—	106%	64%	55%	Retained to equityRetained/eq
											Balance sheet
$1M	$342K	$54K	$3K	$21M	$6M	$24M	$23M	$55M	$41M	$45M	Cash & investmentsCash+inv
$45M	$64M	$86M	$105M	$60M	$65M	$90M	$67M	$69M	$90M	$74M	ReceivablesReceiv.
$140M	$97M	$106M	$109M	$108M	$142M	$121M	$85M	$94M	$127M	$129M	InventoryInvent.
$43M	$67M	$85M	$76M	$32M	$93M	$76M	$67M	$58M	$48M	$43M	Accounts payablePayables
$142M	$94M	$107M	$138M	$137M	$114M	$134M	$85M	$105M	$170M	$160M	Operating working capitalOper. WC
$192M	$184M	$216M	$223M	$203M	$230M	$255M	$205M	$254M	$291M	$275M	Current assetsCur. assets
$67M	$113M	$221M	$182M	$239M	$283M	$319M	$248M	$228M	$92M	$80M	Current liabilitiesCur. liab.
2.9×	1.6×	1.0×	1.2×	0.8×	0.8×	0.8×	0.8×	1.1×	3.2×	3.4×	Current ratioCurr. ratio
$30M	$30M	$30M	$30M	$30M	$30M	$30M	$30M	$30M	$30M	$35M	GoodwillGoodwill
$295M	$263M	$290M	$314M	$284M	$301M	$320M	$284M	$328M	$425M	$431M	Total assetsAssets
$81M	$54M	$55M	$56M	$1M	$181M	$211M	$145M	$120M	$97M	$103M	Total debtDebt
$79M	$54M	$55M	$56M	($20M)	$175M	$187M	$122M	$65M	$55M	$58M	Net debt / (cash)Net debt
-2.3×	-1.7×	-4.8×	2.2×	-3.8×	-5.7×	1.9×	2.6×	7.1×	16.4×	14.4×	Interest coverageInt. cov.
$41M	$32M	($19M)	$28M	$6M	($42M)	($30M)	($4M)	$65M	$179M	$186M	Shareholders’ equityEquity
0.5%	0.1%	0.5%	0.2%	0.1%	0.1%	0.1%	0.0%	0.0%	0.1%	0.1%	Stock comp / revenueSBC/rev
											Per share
10.9M	13.8M	18.6M	21.5M	22.9M	22.9M	22.9M	23.0M	23.0M	23.1M	23.1M	Shares out (diluted)Shares
$31.06	$30.22	$26.69	$25.36	$18.26	$19.92	$20.97	$19.98	$20.68	$31.32	$31.03	Revenue / shareRev/sh
$-4.34	$-3.45	$-2.94	$0.38	$-1.00	$-2.12	$0.49	$1.15	$3.01	$4.94	$4.43	EPS (diluted)EPS
$2.60	$-0.93	$-0.53	$0.67	$-0.44	$-2.77	$-0.44	$2.90	$2.51	$0.86	$1.29	Owner earnings / shareOE/sh
$2.60	$-0.93	$-0.53	$0.67	$-0.44	$-2.77	$-0.44	$2.85	$2.51	$0.61	$1.13	Free cash flow / shareFCF/sh
$0.35	$0.37	$0.20	$0.17	$0.11	$0.09	$0.06	$0.22	$0.20	$0.43	$0.37	Cap. spending / shareCapex/sh
$3.72	$2.33	$-1.00	$1.32	$0.27	$-1.83	$-1.32	$-0.17	$2.83	$7.74	$8.06	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+0.1%/yr	+11.4%/yr
Owner earnings / share	−11.5%/yr	—
Capital spending / share	+2.2%/yr	+32.7%/yr
Book value / share	+8.5%/yr	+96.2%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

23Mpeak FY2025

ROIC

47%low FY2018

Gross margin

26%low FY2016

Net debt ÷ owner earnings

2.8×peak FY2019

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$20Mowner earningsvs.$114Mnet incomelow FY2021

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business earned $20M of owner earnings, the operating cash left after the $4M it takes just to hold its position. It put $6M more into growth; free cash flow, after that spending, was $14M.

Reported net income$114M

Owner earnings$20M · 3% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$114M	$69M	$26M	$11M	($48M)
Depreciation & amortizationnon-cash charge added back	+$4M	+$4M	+$4M	+$5M	+$5M
Stock-based compensationreal costnon-cash, but a real cost	+$427K	+$89K	+$151K	+$385K	+$394K
Working capital & othertiming of cash in and out, other non-cash items	−$94M	−$11M	+$40M	−$25M	−$18M
Cash from operations	$24M	$62M	$71M	($9M)	($61M)
Maintenance capital expenditurethe spending needed just to hold position and volume	−$4M	−$5M	−$4M	−$1M	−$2M
Owner earnings	$20M	$58M	$67M	($10M)	($63M)
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$6M	—	−$1M	—	—
Free cash flow	$14M	$58M	$65M	($10M)	($63M)
Owner-earnings marginowner earnings ÷ revenue	3%	12%	15%	-2%	-14%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $4M, roughly its depreciation, the rate its assets wear out). The other $6M of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows. The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $427K), owner earnings is nearer $20M.

Much of fiscal 2025's profit didn't arrive as operating cash; it sits in “working capital & other” above. That can be a real inventory or timing swing, or profit that doesn't run through operating cash at all: a heavy tax year, equity-method earnings, or investment income booked through investing. For a year like this, owner earnings understates the cash earned; the full cash-flow statement carries the rest.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 16.4×

Comfortable

Operating income $110M ÷ interest expense $7M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? $55M · 0.5× operating profit

Modest net debt

Cash $41M − debt $97M

What this means
Netting $41M of cash and short-term investments against $97M of debt leaves $55M owed, about 0.5× a year's operating profit (0.9× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 99d

Long (60+ days)

DSO 46 + DIO 86 − DPO 33 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital 15%

High through the cycle

9-yr median, range -79%–62%; 47% latest = NOPAT $110M ÷ invested capital $234M

Industry peers: median 6%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 9 years (it ran 47% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 3%

Thin, recently turned positive

latest $20M = operating cash $24M − maintenance capex $4M; positive each of the last 3 years, after an earlier loss stretch (10-yr median -2%)

Industry peers: median 6%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 3% of revenue this year, a -2% median across 10 years. Treating stock comp as the real expense it is (less $427K of SBC) leaves $20M.
Are earnings backed by cash? 0.21×

Thinly cash-backed

Cash from ops $24M ÷ net income $114M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 21%

Reinvests most of it

Dividends + buybacks $4M ÷ Owner Earnings $20M

What this means
Of $20M Owner Earnings, $4M (21%) went back to shareholders, $0 dividends, $4M buybacks. Net of $427K stock comp, the real buyback was about $4M. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 2.39×

Expanding

Capex $10M ÷ depreciation $4M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 2 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $722M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 3.15×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $97M vs $199M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (10-yr record) · 5 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $3.03/share (latest year $4.95), the averaged base the calculator's gate runs on, and book value is $7.75/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 5 of 10

What this means
Lost money in 5 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 5 of 9 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin −6% → 14% (3-yr avg ends)

In the filing’s words The record and the words agree: the margin widened and the filing attributes the gain to its own pricing, not volume alone.

What this means
Through the cycle the operating margin widened — about −6% early to 14% lately, median −4% — pricing power intact or improving.
Reinvestment, incremental ROIC —

What this means
The reinvested base moved too little against the change in profit to read a reliable return on it here — the figure would be a small-denominator artifact, not a moat. Judge this one on the owner-earnings record and the cash it returns instead.
Owner earnings growth +19%/yr

What this means
Owner earnings grew about 19% a year over the record.
Worst year 2021 · −9.1% op. margin

What this means
Operations went underwater in 2021, understand why before trusting the good years.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$275M

Cash & short-term investments$45M
Receivables$74M
Inventory$129M
Other current assets$27M

Current liabilities$80M

Debt due within a year$2M
Accounts payable$43M
Other current liabilities$36M

Current ratio3.42×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.81×stricter: inventory excluded

Cash ratio0.56×strictest: cash alone against what's due

Working capital$194Mthe cushion left after near-term bills

Debt due this year vs. cash$2M due · $45M cash covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2026 balance sheet

Revenue, latest quarter vs. a year ago−5.1%the freshest read on whether the business is still growing

Current ratio, recent quarters0.9× → 3.4×

Deeper floors

Tangible book value$149Mequity stripped of goodwill & intangibles

Net current asset value$30MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$70M$63M of it operating leases

Deferred revenue$4Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2016–2025

Over the record, the business generated $116M of operating cash; how management split it reads as a cash builder, a large share of cash simply built up on the balance sheet.

Reinvested$42M · 36%
Retained (debt / cash)$74M · 64%

Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span debt rose $23M and cash and short-term investments rose $44M.
Net change in share count111.0%
The diluted count rose from 11M to 23M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
Return on what it retained590%
Of the earnings it kept rather than paid out ($8M over the span), annual owner earnings (first three years vs last three) grew $46M, so each retained $1 added about 5.90 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2023	Xykis	$1.4M	$1.3M	$67M
2024	Xykis	$1.2M	$2.7M	$58M
2025	Xykis	$2.4M	$3.2M	$20M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership<1%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$427K
The slice of the business handed to employees in shares this year, 0% of revenue, equal to 0% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Power Solutions International Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

1 of the 6 tests turned up something to look into; the other 5 came back clean.

Look hereDid the share count rise anyway?111.0%
Diluted shares grew 111.0% over 2016–2025. Owners were diluted on net; each share owns less of the business than it did. Read the buyback line beside this one, not on its own.

And these came back clean

Is it less profitable than it was?
Did debt outgrow the business?
Did reported profit become cash?
Did receivables and inventory outpace sales?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

Peers, Industrial Machinery

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
FETForum Energy Technologies Inc.	$791M	25%	-14.0%	-7%	0%
SXIStandex International Corporation	$790M	37%	11.9%	11%	7%
CECOCECO Environmental Corp.	$774M	33%	4.7%	6%	2%
PSIXPower Solutions International Inc.	$722M	16%	-0.6%	15%	0%
GRCGorman-Rupp Company (The)	$682M	26%	11.0%	11%	11%
OISOil States International Inc.	$669M	22%	-10.5%	-5%	6%
VECOVeeco Instruments Inc.	$664M	40%	5.2%	-1%	6%
PLOWDouglas Dynamics Inc.	$656M	27%	12.6%	12%	9%
Group median	—	26%	5.0%	9%	6%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Power Solutions International Inc. has delivered.

Power Solutions International Inc.’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, Power Solutions International Inc. earns about $2M on its 0.3% median owner-earnings margin. This year’s 2.8% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.

Base Normalize · through-cycle ($2M) Net of stock comp (−$698K) Steady-state · maintenance capex ($30M)

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The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’16→’25+18%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $26M on 23M shares outstanding, per the 10-Q cover, as of 2026-05-04; net debt $58M. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. Capex ($8M) runs well above depreciation ($5M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $30M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh PSIX against another business →

Cite: Owner Scorecard, "Power Solutions International Inc. (PSIX), the owner's record," https://ownerscorecard.com/c/PSIX, data as of 2026-07-09.

Manual order: ← PSA its page in the Manual PSKY →

Industry order: ← PNR the Industrial Machinery chapter RBC →