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Electro-Sensors (ELSE)
NASDAQ:ELSE
US Market
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Electro-Sensors (ELSE) AI Stock Analysis

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ELSE

Electro-Sensors

(NASDAQ:ELSE)

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Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
$8.50
▲(10.10% Upside)
Action:Downgraded
Date:07/28/26
The score is supported primarily by a low-risk financial profile (no debt) and improved recent cash generation, plus a constructive price trend. These positives are tempered by a very expensive valuation (high P/E) and thin/compressing profitability, which raise execution risk. The shareholder-approved merger adds a positive event-driven tailwind.
Positive Factors
Low Leverage / Strong Balance Sheet
Electro-Sensors' virtually debt-free balance sheet gives durable financial flexibility, reducing solvency risk and enabling funding of capex, working capital or strategic moves without relying on external borrowing. This supports resilience through industrial cycles and optionality for long-term growth.
Negative Factors
Thin & Compressing Profitability
Low and falling net margins limit the company's ability to absorb cost shocks or fund growth internally. Persistent margin compression undermines durable earnings power, constrains reinvestment capacity, and raises execution risk for sustaining profitability across the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage / Strong Balance Sheet
Electro-Sensors' virtually debt-free balance sheet gives durable financial flexibility, reducing solvency risk and enabling funding of capex, working capital or strategic moves without relying on external borrowing. This supports resilience through industrial cycles and optionality for long-term growth.
Read all positive factors

Electro-Sensors (ELSE) vs. SPDR S&P 500 ETF (SPY)

Electro-Sensors Business Overview & Revenue Model

Company Description
Electro-Sensors, Inc. focuses on designing, manufacturing, and selling sophisticated industrial systems for monitoring production and controlling processes. The company provides a comprehensive range of solutions that accurately measure the output...
How the Company Makes Money
Electro-Sensors makes money primarily by selling industrial sensing and monitoring products used to detect and control machine speed and motion in industrial operations. Its key revenue stream is product revenue from the manufacture and sale of se...

Electro-Sensors Financial Statement Overview

Summary
Strong balance sheet with essentially no debt supports stability and flexibility, and TTM cash flow has improved (positive operating cash flow and free cash flow with growth). The main offset is thin and compressing profitability (low net margin and modest returns), which limits overall financial strength despite steady revenue growth.
Income Statement
66
Positive
Balance Sheet
86
Very Positive
Cash Flow
72
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Mar 2022
Income Statement
Total Revenue10.48M10.14M9.37M8.55M9.03M8.61M
Gross Profit5.39M5.16M4.58M4.25M4.84M4.68M
EBITDA374.00K442.00K528.00K473.00K218.00K755.00K
Net Income254.00K306.00K446.00K275.00K100.00K410.00K
Balance Sheet
Total Assets16.06M15.70M14.92M14.47M14.07M13.91M
Cash, Cash Equivalents and Short-Term Investments10.81M10.54M10.00M9.93M9.68M9.77M
Total Debt0.000.000.000.006.00K12.00K
Total Liabilities1.16M885.00K583.00K717.00K660.00K726.00K
Stockholders Equity14.90M14.82M14.33M13.76M13.41M13.19M
Cash Flow
Free Cash Flow667.00K597.00K78.00K60.00K-212.00K628.00K
Operating Cash Flow760.00K662.00K129.00K130.00K-147.00K769.00K
Investing Cash Flow-93.00K-65.00K-51.00K2.10M964.00K4.86M
Financing Cash Flow171.00K0.000.00-6.00K116.00K-6.00K

Electro-Sensors Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$27.34M104.601.73%11.89%-31.82%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
$37.73M36.813.03%0.81%
54
Neutral
$91.83M269.530.17%13.08%-55.05%
53
Neutral
$27.43M-3.38-55.84%-14.98%-185.63%
42
Neutral
$13.61M-5.64-159.17%-55.89%-127.24%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ELSE
Electro-Sensors
7.74
3.54
84.29%
DAIO
Data I/O
2.84
-0.32
-10.13%
LGL
LGL Group
6.90
-0.06
-0.86%
NSYS
Nortech Systems
13.54
5.34
65.12%
REFR
Research Frontiers
0.40
-1.20
-75.00%
FCUV
Focus Universal
11.60
-84.40
-87.92%

Electro-Sensors Corporate Events

Business Operations and StrategyM&A TransactionsShareholder Meetings
Electro-Sensors Shareholders Approve Merger with steute
Positive
Jul 27, 2026
On July 21, 2026, Electro-Sensors, Inc. held a special shareholder meeting to vote on a proposed merger with steute Industrial Controls, Inc., under which Steute Burwell, Inc. will merge into Electro-Sensors and the company will become a wholly ow...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 28, 2026