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PSIXPower Solutions International, Sell5.2·$36.41-1.81%
SellModerate Confidence
Investment thesis

Power Solutions International offers large analyst-implied upside of 52% and trades at an attractive 11.9x forward earnings with a 76% return on equity, but a confirmed death cross pattern, declining revenue of -5%, and a market cap below the $1 billion investable minimum exclude it from the current actionable universe.

Thesis pillars

  • High Roe Attractive ValuationStable
  • Death Cross Hard Block DowntrendStable
  • Revenue Declining Negative FcfStable
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Power Solutions International, (PSIX) Stock Analysis

Inst Constrain edge

SellVALUE-TRAP 2/5Moderate Confidence

Industrials · Specialty Industrial Machinery

Sell if holding. Engine safety override at $36.41: Risk below floor (2.9 < 3.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10 and A.R:R 5.4:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 14%; Elevated put/call ratio: 5.30; Below long-term trend.

Power Solutions International designs, engineers and manufactures emission-certified engines and power systems that run on natural gas, propane, biofuels, gasoline, and diesel, serving global OEMs across power generation, industrial, and transportation end markets as a single... Read more

$36.41+63.1% A.UpsideScore 5.2/10#34 of 58 Specialty Industrial Machinery
QualityF-score3 / 9FCF yield-0.02%
Stop $35.11Target $59.81(analyst − 15%)A.R:R 5.4:1
Analyst target$70.37+93.3%3 analysts
$59.81our TP
$36.41price
$70.37mean
$79

Sell if holding. Engine safety override at $36.41: Risk below floor (2.9 < 3.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10 and A.R:R 5.4:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 14%; Elevated put/call ratio: 5.30; Below long-term trend. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.2/10, moderate confidence.

Passes 7/10 gates (positive momentum, favorable risk/reward ratio, clean insider activity, news events none recent, earnings proximity 32d clear, semi cycle peak clear, materials cycle peak clear). Suitability: speculative.

10-K grounded · weekly refresh

About Power Solutions International,

About Power Solutions International,

Power Solutions International sells emission-certified engines and power systems across three end markets — Power Systems, Industrial, and Transportation — to global OEMs building standby generators, forklifts, agricultural equipment, and vocational trucks, operating as a single reportable segment. The company's largest customer accounted for 20% of consolidated net sales in 2025, and an estimated $193.9 million of that year's net sales traced to products used in the oil and gas industry.

Power Solutions International earns revenue by designing and manufacturing engines and integrated power systems that OEM customers choose to outsource rather than build in-house, supplemented by aftermarket service-parts programs. The company sources engines and components from a limited number of key third-party suppliers, most significantly HD Hyundai Infracore, Shenyang Packson Technology, Chongqing Duchengrongfeng Mechanic Manufacture, and Weichai Power, the last of which also owns 46.0% of Power Solutions' outstanding common stock and holds an extended strategic collaboration agreement through March 2026 covering R&D, manufacturing and distribution. Manufacturing runs out of facilities in suburban Chicago and Darien and Beloit, Wisconsin, with roughly 1,000 full-time employees, and the company has faced tariff-related cost pressure on components sourced from China, along with prior supply disruptions tied to Uyghur Forced Labor Prevention Act enforcement that forced it to re-source certain engines to CDM and SPY.

Show full overview

Power Solutions International carries two concentrations that reinforce each other: its largest customer alone represented 20% of 2025 consolidated net sales, and the 10-K separately warns that the Company is dependent on certain key third-party suppliers, where losing even one could cause supply shortages. Those supplier relationships include Weichai Power, which both supplies engines and owns 46.0% of Power Solutions' common stock — giving Weichai voting control sufficient to block a change in control while its collaboration agreement, last extended through March 2026, remains under renegotiation with no formal extension executed as of the filing date.

See also: Industrials · Specialty Industrial Machinery

From Power Solutions International, 's most recent 10-K filing, extracted July 6, 2026.

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Aug 6, 202632d to earnings· next earnings call

Thesis

Rewards
No bull case signals
Risks
Risk below floor (2.9 < 3.0)
Value-trap signals (2/5): Margin compression (op margin 4.2%), Material insider selling (27 sells, 0.12% of cap)

Key Metrics

P/E (TTM)8.4
P/E (Fwd)11.2
Mkt Cap$855M
EV/EBITDA9.6
Profit Mgn14.3%
ROE75.7%
Rev Growth-5.1%
Beta2.00
DividendNone
Rating analysts9

Quality Signals

Piotroski F3/9

Options Flow

P/C5.30bearish
IV101%elevated

Concentration Risks(10-K Item 1A)

  • LOWCustomerlargest customer20%
    10-K Item 1: 'The Company's largest customer represented 20% of consolidated net sales in 2025.'
  • MEDIUMSupplierkey third-party suppliers
    10-K Item 1A: 'The Company is dependent on certain key third-party suppliers...could result in supply shortages.'

Material Events(8-K, last 90d)

  • 2026-05-13Item 5.02HIGH
    CEO Constantine "Dino" Xykis resigned from all positions effective May 12, 2026, after serving since April 24, 2023, under a Resignation Agreement providing bonus payments and SAR settlement. No successor named in the disclosed portion of the filing.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

Show full disclosure ▾

About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.

Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers·1 ceiling hit

Revenue shrinking — -5.1% YoY. Growth thesis broken unless recovery story develops.static

Earnings Growth
0.0
Revenue Growth
1.2
Declining revenue: -5%

Volatile — 5.8% daily ATR makes tight stops impractical. Position-size conservatively.static

Volatility
0.0
Put Call
0.0
Implied Vol
0.0
Short Interest
3.0
Beta
3.3
Debt Equity
5.5
Days To Cover
8.2
Elevated put/call: 5.30High IV: 101%
GatesMomentum 5.3<5.5 (soft — BUY_NOW allowed but watch)Death cross (50MA < 200MA)Executive change: officer departure/appointmentMomentum 5.3>=4.5A.R:R 5.4 ≥ 1.5Insider activity: OKNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 32d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Speculative
RSI
34 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $36.20Resistance $43.23

Price Targets

$35
$60
A.Upside+64.3%
A.R:R5.4:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Risk below floor (2.9 < 3.0)
! Value-trap signals (2/5): Margin compression (op margin 4.2%), Material insider selling (27 sells, 0.12% of cap)

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-08-06 (32d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is PSIX stock a buy right now?

Sell if holding. Engine safety override at $36.41: Risk below floor (2.9 < 3.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10 and A.R:R 5.4:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 14%; Elevated put/call ratio: 5.30; Below long-term trend. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $35.11. Score 5.2/10, moderate confidence.

What is the PSIX stock price target?

Take-profit target: $59.81 (+63.1% upside). Prior stop was $35.11. Stop-loss: $35.11.

What are the risks of investing in PSIX?

Risk below floor (2.9 < 3.0); Value-trap signals (2/5): Margin compression (op margin 4.2%), Material insider selling (27 sells, 0.12% of cap).

Is PSIX overvalued or undervalued?

Power Solutions International, trades at a P/E of 8.4 (forward 11.2). TrendMatrix value score: 8.8/10. Verdict: Sell.

What do analysts say about PSIX?

9 analysts cover PSIX with a consensus score of 4.1/5. Average price target: $70.

What does Power Solutions International, do?Power Solutions International designs, engineers and manufactures emission-certified engines and power systems that run...

Power Solutions International designs, engineers and manufactures emission-certified engines and power systems that run on natural gas, propane, biofuels, gasoline, and diesel, serving global OEMs across power generation, industrial, and transportation end markets as a single reportable segment. The company's largest customer represented 20% of consolidated net sales in 2025, and Weichai Power, its strategic collaborator, owns 46.0% of its outstanding common stock.

Related stocks: AMSC (American Superconductor Corpora) · CXT (Crane NXT, Co.) · BW (Babcock & Wilcox Enterprises, I) · CSW (CSW Industrials, Inc.) · MIDD (The Middleby Corporation)
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