A forensic read on Power Integrations Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
B · Sound & dependable
Forensic grade
Safe
Financial health
13.3
Distress distance
Clean
Earnings quality
2
Forensic signals
3.1%
ROE
5.9%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Power Integrations Inc earns a B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 13.3, placing it in the Safe zone. 2 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
1.3%
FY2025
Return on invested capital.Return on invested capital is 1.3% in the latest fiscal year and slipping across FY2023–FY2025 from 4.5%. After-tax operating profit was $32M in FY2023 and $9M in FY2025, with operating income at 7.9% of revenue in FY2023, 4.3% in FY2024 and 2.3% in FY2025. The capital base behind it went from $707M in FY2023 to $683M in FY2025 (-3%), while the revenue it carried went from $445M to $444M. $220M of the $683M base at FY2025 is short-term investments (32.2%) — securities held beside cash, which the base keeps because only cash is subtracted from it; they earn the balance sheet's yield, which is not in the operating profit above, so this rate understates what the operating capital earns.
167% of FCF
FY2025
Shareholder returns.Returned $145M to shareholders (buybacks + dividends) in FY2025 — 167% of free cash flow. That is $58M (67%) more than free cash flow covered, and more than operating cash flow as well. It came out of the balance sheet's own liquid holdings, not new debt: cash and short-term investments fell $50M over FY2025 — $50M of the $58M. The FY2025 cash-flow statement filed $64M of investments purchased; $150,000 from sales of property and equipment; net cash provided by investing activities of $36M; net cash used in financing activities of $140M. A payout past free cash flow draws the balance sheet down in every year it continues, which isn't sustainable indefinitely. Counting the $40M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 212%.
Key fundamentals
Latest Revenue$443.5M
Revenue Growth YoY+5.9%
Revenue CAGR (2yr)-0.1%
Net Margin5.0%
Free Cash Flow$87.1M
Return on Equity3.1%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Power Integrations Inc's actual 10-K/10-Q/8-K filings?