Summary: ON SALE
Score: 16/20
MOS: 92%
Share Price: $122
Sticker Price: $1,620
Is Power Integrations a good buy?
Power Integrations is a Silicon Valley-based supplier of integrated circuits that enable compact, energy-efficient AC-DC power supplies for smartphones, TVs, PCs, appliances, smart utility meters, LED lights, and numerous industrial applications.
I read an article about the CEO, Balu Balakrishnan, on how he reached that “aha” moment. In 1997 he read an article on how billions of dollars are wasted on energy each year by computers, TVs and other electronic devices that are plugged in but NOT IN USE. One of the culprits behind this “standby” waste was the power supplies that convert the high voltage from a wall outlet into the lower voltage needed by most electronics.
Power Integrations developed a new power-supply chip called TinySwitch™, featuring an innovative switching technique that enabled high efficiency at reduced levels of output. All of their AC-DC power-conversion chips have included this technology, known as EcoSmart™. By the beginning of 2020 they had shipped more than 15 billion chips with EcoSmart technology, generating estimated savings of more than 125 billion kilowatt-hours of electricity and millions of tons of CO2 emissions. This was accomplished without adding cost, and without any change in behavior on the part of the end user.
Power Integrations is helping companies run more efficiently as well as helping improve the environment. This is a one-two punch that should not be overlooked. With a score of 16/20, they have proven to have very strong financials. With a share price of $122 and a sticker price of $1,620, this stock may just be getting started.
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