Espey Mfg & Electronics (ESP) AI Stock Analysis

• Market Cap: $138.89M
• Dividend Yield: 3.85%
• Average Volume (3M): 15.95K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 1.05
• Revenue Growth: 4.90%
• EPS Growth: 31.13%
• Country: US
• Employees: 148
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.76
• Shares Outstanding: 2,935,093
• 10 Day Avg. Volume: 17,790
• 30 Day Avg. Volume: 15,953
• PEG Ratio: 0.43
• Price to Book (P/B): 2.33
• Price to Sales (P/S): 2.69
• P/FCF Ratio: 7.12
• Enterprise Value/Market Cap: 0.47
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 2.02
• Enterprise Value/Ebitda: 2.65
• 1Y Price Target: $80.00
• Price Target Upside: 106.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.22
• Revenue Forecast (FY): $47.53M

• Rating: 87 Outperform
• Price Target: $55.00 ▲(42.19% Upside)

The score is driven primarily by strong financial quality (high margins, rising free cash flow, and a debt-free balance sheet). Technicals are supportive with the stock trading above major moving averages and positive MACD, though momentum indicators are nearing stretched levels. Valuation is also constructive with a moderate P/E and an above-average dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, supporting long-term business viability and competitive positioning.

Cash Flow Management

Strong cash flow generation and efficient cash conversion enhance financial flexibility, enabling strategic investments and resilience in economic downturns.

Leadership Stability

Securing key leadership positions ensures operational stability and strategic continuity, supporting sustained business growth and adaptation to market changes.

Negative Factors

Increased Capital Expenditures

Rising capital expenditures may strain cash reserves if not managed carefully, potentially impacting the company's ability to invest in other growth opportunities.

Leadership Transition

Leadership transitions can introduce uncertainty and require time for new executives to adapt, potentially affecting strategic execution and financial oversight.

Margin Pressure

While margins are healthy, maintaining them amidst rising costs and competitive pressures is crucial for sustaining profitability and market competitiveness.

Espey Mfg & Electronics Business Overview & Revenue Model

Company Description

Espey Mfg. & Electronics Corp., a power electronics design and original equipment manufacturing company, designs, manufactures, and tests electronic equipment primarily for use in military and industrial applications in the United States and internationally. The company's principal products include power supplies, power converters, filters, power transformers, magnetic components, power distribution equipment, UPS systems, antennas, and high-power radar systems for use in AC and DC locomotives, shipboard power, shipboard radar, airborne power, ground-based radar, and ground mobile power applications. It also provides various services comprising design and development to specification, build to print, design services, design studies, environmental testing services, metal fabrication, painting services, and development of automatic testing equipment. In addition, the company produces individual components, such as inductors, printed circuit boards, wires, and tests items. It serves industrial manufacturers and defense companies, the government of the United States, foreign governments, and foreign electronic equipment companies through its direct sales organization and outside sales representatives. The company was incorporated in 1928 and is based in Saratoga Springs, New York.

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

Espey Mfg & Electronics showcases strong financial health with robust profitability, no leverage risk, and efficient cash flow management. Consistent revenue and profit growth, a high equity ratio, and zero debt position the company well in the industrial goods sector.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	103.39M	43.95M	38.74M	35.59M	32.10M	27.73M
Gross Profit	32.64M	12.68M	10.65M	8.05M	5.47M	3.36M
EBITDA	24.87M	10.18M	6.99M	4.78M	2.02M	93.67K
Net Income	21.77M	8.14M	5.82M	3.68M	1.27M	-181.54K
Balance Sheet
Total Assets	84.85M	79.12M	56.54M	47.50M	39.90M	37.98M
Cash, Cash Equivalents and Short-Term Investments	46.91M	43.58M	23.23M	14.71M	11.81M	9.89M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	33.87M	28.27M	15.27M	11.62M	7.80M	7.65M
Stockholders Equity	50.98M	50.85M	41.27M	35.88M	32.10M	30.33M
Cash Flow
Free Cash Flow	49.52M	16.63M	5.43M	3.39M	1.92M	551.44K
Operating Cash Flow	62.08M	20.99M	10.60M	3.90M	2.22M	595.00K
Investing Cash Flow	-13.97M	-6.94M	-7.84M	-8.77M	-918.34K	2.01M
Financing Cash Flow	-6.58M	458.27K	-1.15M	-489.27K	0.00	-1.20M

Espey Mfg & Electronics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.68
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 38.68 is below the 20-day moving average (MA) of 45.22, below the 50-day MA of 41.34, and below the 200-day MA of 39.57, indicating a bullish trend. The MACD of 1.53 indicates Positive momentum. The RSI at 62.36 is Neutral, neither overbought nor oversold. The STOCH value of 62.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESP.

Espey Mfg & Electronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESP	87 Outperform	$138.89M	15.03	18.65%	3.85%	4.90%	31.13%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ULBI	55 Neutral	$97.90M	60.84	1.26%	―	12.94%	-81.09%
RFIL	50 Neutral	$63.58M	-206.17	-0.98%	―	22.60%	95.36%
IPWR	45 Neutral	$29.85M	-3.14	-74.44%	―	-69.65%	11.41%
FLUX	42 Neutral	$33.93M	-3.50	―	―	2.14%	5.01%
DFLI	38 Underperform	$47.23M	-0.13	―	―	18.24%	24.49%

Espey Mfg & Electronics Corporate Events

Espey Mfg & Electronics Appoints New Audit Chair

On December 8, 2025, Espey Mfg. & Electronics Corp. announced the appointment of Nancy Patzwahl as the new Chair of the Audit Committee, effective December 5, 2025, succeeding Paul Corr, who remains a board member and Audit Committee member. Additionally, the company declared a regular quarterly dividend of $0.25 per share, payable on December 26, 2025, to shareholders of record on December 19, 2025.