Forensic Analysis · Industrials / Manufacturing / Defense · as of Aug 11, 2026
Power Solutions International, Inc. (PSIX)
A forensic read on Power Solutions International, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
9.3
Distress distance
Watch
Earnings quality
4
Forensic signals
9.2
P / E (ttm)
63.8%
ROE
$1.0B
Market cap
51.8%
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 (red flags, auditor quality, say on pay, board independence). 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 Solutions International, Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 9.3, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+172.6%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +172.6% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The build is led by inventory up +36% against +60% in cost of sales and receivables up +31% against revenue +52%. The cash-flow cross-check agrees: reported earnings ran ahead of operating cash by 122% of net operating assets.
FCF ($3M)
FY2011
Shareholder returns.Returned $4M to shareholders (buybacks + dividends) in FY2011, but free cash flow was ($3M) after capex — there was no free cash flow to fund the payout from at all, and operating cash flow itself was negative or zero that year too. The entire return is coming from debt or cash reserves, not cash the business itself generated — a harder case than returns merely running ahead of free cash flow, since here there was none to run ahead of.
0.75×
FY2023–FY2025
Cash conversion.Over FY2023–FY2025, operating cash flow was 0.75× cumulative net income. Cash is lagging reported profit. The shortfall is profit tied up in working capital rather than collected — the accrual and receivables lines below show where.
+0.2%/yr
FY2022–FY2025
Share count.Diluted share count changed +1% over the last 3 years to FY2025 (+0.2%/yr). Roughly flat — the count is neither shrinking nor growing meaningfully. Per-share value isn't being meaningfully helped or hurt by the count.
Key fundamentals
Latest Revenue$722.4M
Revenue Growth YoY+51.8%
Revenue CAGR (3yr)+14.5%
Net Margin15.8%
Free Cash Flow$14.1M
Return on Equity63.8%
Debt / Equity0.54x
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 Solutions International, Inc.'s actual 10-K/10-Q/8-K filings?