PWR: This high flyer hits speed humps

I last wrote about PWR Holdings (ASX:PWH) over 18 months ago. It has been a bumpy ride since. At the time the share price was $8.60. It rose to $12.98 in February 2024 before halving to $6.10 in November. At the time of writing it is $7.80. So why the roller coaster?

At the time of the previous article, I referred to a screen built by Stockopedia contributor Roland Head that identifies quality stocks that are strong compounders. (Building a screen to find Compounding Quality stocks). PWR met the criteria for this screen at the time. It still does.

CriteriaThresholdPWH Jun 23PWH Jan 25QualityRank809296Long-term ROCE18%31.5%30.7%TTM ROCE15%30.2%30.0%Operating margin 5 yr avg10%28.7%27.4%Operating margin TTM10%26.4%25.2%Net margin 5 yr avg8%20.9%19.6%Net margin TTM8%19.5%17.8%OCF / EPS0.80.91.3Avg FCF (long term) / Assets8%14.6%13.8%Sales CAGR 5 yr0%16.0%16.3%Sales TTM / Sales Prior TTM5%23.5%17.8%Debt to assetslt;50%16.7%11.4%Interest cover10x100x121x

Whilst most metrics have...