Electro-Sensors (ELSE) AI Stock Analysis

• Market Cap: $13.97M
• Dividend Yield: N/A
• Average Volume (3M): 53.20K
• Price to Earnings (P/E): 37.5
• Beta (1Y): 0.03
• Revenue Growth: 9.56%
• EPS Growth: 61.85%
• Country: US
• Employees: 40
• Sector: Technology
• Sector Strength: 80
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.02
• Shares Outstanding: 3,449,021
• 10 Day Avg. Volume: 13,660
• 30 Day Avg. Volume: 53,202
• PEG Ratio: N/A
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 178.20
• Enterprise Value/Market Cap: 0.28
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 0.86
• Enterprise Value/Ebitda: 2.83
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ―

Electro-Sensors exhibits a solid financial structure with strong revenue growth and profitability, bolstered by a debt-free balance sheet. However, the technical analysis indicates a neutral market position and the valuation suggests the stock might be overvalued, impacting its attractiveness. The absence of notable recent corporate events and earnings call updates places emphasis on the existing financial and technical data.

Electro-Sensors Business Overview & Revenue Model

Company Description

Electro-Sensors, Inc. engages in the manufacture and sale of industrial production monitoring and process control systems. The company manufactures and sells various monitoring and control systems that measure machine production and operation rates, as well as regulate the speed of related machines in production processes. Its speed monitoring systems include a line of products that measure production counts or rates, such as parts, gallons, or board feet; and alarm systems, tachometers, and other devices that translate impulses from the sensors into alarm signals, computer inputs, or digital displays. The company's temperature application products consist of bearing, gear box, and motor temperature monitoring sensors. It also offers production monitoring devices that include a belt alignment and slide gate position monitors; vibration monitoring products; and tilt switches. In addition, the company provides hazard monitoring systems, such as Electro-Sentry, which integrates its sensors for monitoring temperature, belt alignment, and shaft speed with programmable control logic; HazardPRO, a wireless hazard technology monitoring system; and HazardPRO site system manager software. It serves grain/feed/milling, bulk material, manufacturing, food product, ethanol, power generation, and other processing industries. The company sells its products through internal sales team, manufacturer's representatives, and distributors in the United States, Canada, Mexico, Brazil, Chile, Guatemala, Germany, Peru, United Kingdom, Ukraine, Egypt, Saudi Arabia, the United Arab Emirates, South Africa, Tunisia, India, Australia, China, the Republic of Korea, Vietnam, Malaysia, the Philippines, Thailand, and Singapore. Electro-Sensors, Inc. was incorporated in 1968 and is headquartered in Minnetonka, Minnesota.

How the Company Makes Money

Electro-Sensors generates revenue through the sale of its industrial monitoring systems and products. These products are typically sold to manufacturers and operators of industrial equipment across a variety of sectors, including manufacturing, mining, and processing industries. The company may also offer related services such as installation support, maintenance, and technical support, which can contribute to its revenue streams. Key revenue streams include the direct sales of sensors and systems to end-users, as well as potential sales through distribution partners or resellers. Additionally, Electro-Sensors may engage in strategic partnerships or collaborations with other firms in the automation and industrial equipment sectors to expand its market reach and enhance its product offerings.

Electro-Sensors Financial Statement Overview

Summary

Electro-Sensors shows strong financial health with consistent revenue growth and improved profitability. The balance sheet is robust with no debt, indicating financial stability, though there is potential to enhance operational efficiency and cash flow generation.

Income Statement

Electro-Sensors has demonstrated a positive revenue growth trend with a 9.57% increase from 2023 to 2024. The gross profit margin is strong at 48.87%, indicating efficient cost management. The net profit margin improved to 4.76% in 2024, showcasing enhanced profitability. However, the EBIT and EBITDA margins are relatively low at 4.69%, suggesting room for operational efficiency improvements.

Balance Sheet

The company maintains a solid financial position with no debt and a high equity ratio of 96.29%. The return on equity improved to 3.11%, a positive sign for investors. The absence of debt and strong equity position reflect financial stability and low leverage risk, though the company could benefit from leveraging debt for growth opportunities.

Cash Flow

The operating cash flow to net income ratio is 0.29, indicating moderate cash generation relative to net income. Free cash flow improved to $78,000, but the free cash flow to net income ratio remains modest at 0.17. While free cash flow growth is positive, the company should focus on enhancing cash flow generation relative to earnings.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
9.37M	8.55M	9.03M	8.61M	7.62M
	Gross Profit
4.58M	4.25M	4.84M	4.68M	3.93M
	EBIT
-4.00K	-28.00K	73.00K	441.00K	-169.00K
	EBITDA
528.00K	473.00K	218.00K	755.00K	191.00K
	Net Income Common Stockholders
446.00K	275.00K	100.00K	410.00K	-124.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.00M	9.93M	9.68M	9.77M	9.13M
	Total Assets
14.88M	14.45M	14.04M	13.89M	13.32M
	Total Debt
0.00	0.00	6.00K	12.00K	18.00K
	Net Debt
-9.95M	-9.87M	-7.64M	-6.70M	-1.07M
	Total Liabilities
552.00K	690.00K	630.00K	703.00K	545.00K
	Stockholders Equity
14.33M	13.76M	13.41M	13.19M	12.77M
Cash Flow		Free Cash Flow
78.00K	60.00K	-212.00K	628.00K	306.00K
	Operating Cash Flow
129.00K	130.00K	-147.00K	769.00K	331.00K
	Investing Cash Flow
-51.00K	2.10M	964.00K	4.86M	-8.02M
	Financing Cash Flow
0.00	-6.00K	116.00K	-6.00K	-6.00K

Electro-Sensors Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELSE, the sentiment is Negative. The current price of 4.05 is below the 20-day moving average (MA) of 4.06, below the 50-day MA of 4.18, and below the 200-day MA of 4.34, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 48.66 is Neutral, neither overbought nor oversold. The STOCH value of 77.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ELSE.

Electro-Sensors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPSH	68 Neutral	$41.40M	―	-18.07%	―	-13.83%	-476.23%
ELSE	67 Neutral	$13.97M	37.53	2.64%	―	9.56%	61.85%
Sector *	61 Neutral	$11.50B	10.46	-6.94%	2.92%	7.57%	-9.01%
DAIO	52 Neutral	$24.76M	―	-14.35%	―	-18.88%	-534.79%
REFR	50 Neutral	$61.15M	―	-37.98%	―	62.28%	44.68%
NSYS	48 Neutral	$25.04M	6.41	-9.81%	―	-12.87%	-148.14%
HOLO		$28.27M	―	-7.37%	―	―	―