Espey Mfg & Electronics (ESP) AI Stock Analysis

• Market Cap: $73.22M
• Dividend Yield: 3.44%
• Average Volume (3M): 13.42K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.91
• Revenue Growth: 18.62%
• EPS Growth: 34.63%
• Country: US
• Employees: 148
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial Goods
• EPS (TTM): 2.45
• Shares Outstanding: 2,796,758
• 10 Day Avg. Volume: 12,259
• 30 Day Avg. Volume: 13,419
• PEG Ratio: 0.30
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.62
• Price to Cash Flow (P/CF): 3.30
• P/FCF Ratio: 4.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Espey Mfg & Electronics scores well due to its strong financial performance with no debt and robust cash flows. While technical analysis shows some bearish signals, the company's solid valuation with a low P/E ratio and attractive dividend yield provides a counterbalance. The stock's overall stability and growth potential make it a compelling option, though technical indicators suggest caution in the short term.

Espey Mfg & Electronics Business Overview & Revenue Model

Company Description

Espey Mfg & Electronics Corp. (ESP) is a U.S.-based company specializing in the design, development, and production of custom power supplies and electronic equipment. Founded in 1928 and headquartered in Saratoga Springs, New York, Espey serves various sectors, including military, industrial, and transportation. The company is known for its high-reliability products that cater to the needs of complex and demanding environments.

How the Company Makes Money

Espey Mfg & Electronics makes money primarily through the manufacturing and sale of custom-designed power supplies, transformers, and electronic components. Their revenue model is built on serving long-term contracts with military and industrial customers, ensuring a steady stream of income. Espey’s products are often integrated into larger systems used in defense applications, which require high reliability and performance. The company also benefits from partnerships with defense contractors and industrial firms, contributing significantly to its earnings. Espey's focus on niche markets with specific needs allows it to maintain a competitive edge and secure repeat business in its core sectors.

Espey Mfg & Electronics Financial Statement Overview

Summary

Overall, Espey Mfg & Electronics showcases robust financial health with strong profitability, no leverage risk, and efficient cash flow management. The consistent revenue and profit growth in combination with a high equity ratio and zero debt position the company well in the industrial goods sector. The high margins and cash flow ratios further emphasize its stability and growth potential. Continuous monitoring of capital expenditures will be essential to maintain this trajectory.

Income Statement

Espey Mfg & Electronics demonstrates strong profitability with a consistent increase in total revenue over the years, showing a growth rate of approximately 13.4% from the previous annual report. The TTM data reveals a robust gross profit margin of 25.57% and a net profit margin of 14.64%, indicating efficient cost management. EBIT and EBITDA margins are also healthy at 15.87% and 16.36%, respectively. The company's ability to maintain high margins alongside revenue growth suggests a competitive position in the market.

Balance Sheet

The company maintains a strong financial position with zero total debt, resulting in an impressive debt-to-equity ratio of 0. The equity ratio is robust at 74.45%, indicating a solid foundation of equity financing. Return on equity stands at 14.35%, reflecting effective utilization of shareholder funds. The absence of leverage risk and the high equity ratio underscore the company's financial stability.

Cash Flow

Cash flow generation is strong, with a free cash flow growth rate of 50.65% compared to the previous annual period. Operating cash flow to net income ratio is 1.78, demonstrating efficient cash conversion. The free cash flow to net income ratio is 1.27, indicating substantial free cash available after capital expenditures. These metrics highlight the company's robust cash flow management, although capital expenditures have increased, which should be monitored for sustainability.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
43.92M	38.74M	35.59M	32.10M	27.73M	31.53M
	Gross Profit
11.23M	10.65M	8.05M	5.47M	3.36M	5.56M
	EBIT
6.97M	6.54M	4.30M	1.53M	-426.14K	1.17M
	EBITDA
7.19M	6.99M	4.78M	2.02M	93.67K	1.74M
	Net Income Common Stockholders
6.43M	5.82M	3.68M	1.27M	-181.54K	1.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
28.29M	23.23M	14.71M	11.81M	9.89M	10.54M
	Total Assets
60.19M	56.54M	47.50M	39.90M	37.98M	38.21M
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-8.03M	-4.35M	-2.75M	-8.10M	-6.80M	-5.40M
	Total Liabilities
15.37M	15.27M	11.62M	7.80M	7.65M	6.98M
	Stockholders Equity
44.82M	41.27M	35.88M	32.10M	30.33M	31.23M
Cash Flow		Free Cash Flow
8.18M	5.43M	3.39M	1.92M	551.44K	5.75M
	Operating Cash Flow
11.42M	10.60M	3.90M	2.22M	595.00K	5.97M
	Investing Cash Flow
-6.37M	-7.84M	-8.77M	-918.34K	2.01M	326.01K
	Financing Cash Flow
-624.93K	-1.15M	-489.27K	0.00	-1.20M	-2.36M

Espey Mfg & Electronics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 26.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESP, the sentiment is Neutral. The current price of 26.18 is below the 20-day moving average (MA) of 26.70, below the 50-day MA of 27.92, and above the 200-day MA of 25.84, indicating a neutral trend. The MACD of -0.60 indicates Positive momentum. The RSI at 44.39 is Neutral, neither overbought nor oversold. The STOCH value of 23.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ESP.

Espey Mfg & Electronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESP	75 Outperform	$73.22M	10.37	15.49%	3.44%	18.62%	34.63%
LHX	71 Outperform	$39.98B	27.66	7.85%	2.13%	9.82%	22.33%
CW	67 Neutral	$11.71B	28.88	16.95%	0.27%	9.69%	14.65%
Sector *	62 Neutral	$8.16B	12.85	0.64%	3.04%	3.83%	-15.83%
MRCY	61 Neutral	$2.54B	―	-6.10%	―	-1.21%	-4.63%
AVAV	59 Neutral	$3.50B	106.07	3.94%	―	5.21%	―
KTOS	52 Neutral	$4.44B	272.61	1.40%	―	9.57%	―

Espey Mfg & Electronics Corporate Events

Espey Mfg & Electronics Secures Key Leadership Roles

On March 7, 2025, Espey Mfg & Electronics entered into new employment agreements with Jennifer Pickering, Chief Human Resources Officer and Corporate Secretary, and Kaitlyn O’Neil, Principal Financial Officer and Treasurer. These agreements, which automatically renew annually, outline their duties, compensation, and severance terms, indicating a strategic move to secure key leadership positions and potentially impacting the company’s operational stability.

Espey Mfg & Electronics Appoints New Financial Officer

On February 15, 2025, Espey Mfg. & Electronics Corp. announced the retirement of its Chief Financial Officer and Treasurer, Katrina Sparano, who had served the company for 20 years, and the appointment of Kaitlyn O’Neil as the new Principal Financial Officer and Treasurer. Kaitlyn O’Neil, a Certified Public Accountant with over 10 years of experience in finance, joined the company on January 6, 2025, and was previously employed by Octo Telematics North America, LLC. Her financial expertise is expected to support the company’s continued business growth and success in a dynamic market.