M-tron Industries Inc (MPTI) AI Stock Analysis

• Market Cap: $121.33M
• Dividend Yield: N/A
• Average Volume (3M): 56.39K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 1.50
• Revenue Growth: 19.05%
• EPS Growth: 114.23%
• Country: US
• Employees: 226
• Sector: Technology
• Sector Strength: 86
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.56
• Shares Outstanding: 2,917,329
• 10 Day Avg. Volume: 98,872
• 30 Day Avg. Volume: 56,393
• PEG Ratio: 0.96
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.17
• Enterprise Value/Market Cap: 0.27
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 1.40
• Enterprise Value/Ebitda: 0.92
• 1Y Price Target: $70.00
• Price Target Upside: 68.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ―

M-tron Industries Inc shows strong financial health with no debt and robust revenue growth, supported by strategic planning for future expansion. The technical analysis indicates stable conditions, while the valuation is fair. The positive earnings call further bolsters the outlook, making the stock attractive for growth-oriented investors.

M-tron Industries Inc Business Overview & Revenue Model

Company Description

M-tron Industries Inc (MPTI) is a technology company that specializes in the design, manufacture, and marketing of frequency control and timing devices. These products are critical components in a range of applications including telecommunications, military, instrumentation, and industrial markets. The company is known for its high-performance solutions that meet the stringent requirements of its clients.

How the Company Makes Money

M-tron Industries Inc generates revenue primarily through the sale of its frequency control and timing devices. The company's products are tailored to meet the specific needs of industries that demand precision and reliability. MPTI's revenue streams include direct sales to end-users, as well as partnerships with distributors and OEMs (Original Equipment Manufacturers) who integrate MPTI's products into their own systems. Additionally, the company may engage in custom design and development contracts, providing bespoke solutions for unique industry requirements. MPTI's financial performance is influenced by factors such as technological advancements, the demand in sectors like telecommunications and defense, and their ability to maintain competitive pricing and high-quality standards.

M-tron Industries Inc Financial Statement Overview

Summary

M-tron Industries Inc exhibits a robust financial position with strong revenue growth, high profitability, and excellent cash flow management. The balance sheet is particularly strong with no debt, providing financial stability and flexibility for future growth.

Income Statement

M-tron Industries Inc has demonstrated strong growth, with a remarkable revenue growth rate of 19.05% in 2024 compared to 2023. The gross profit margin is exceptional at 100%, indicating efficient production and pricing strategies. The net profit margin improved to 15.57% in 2024, showcasing enhanced profitability. Both EBIT and EBITDA margins increased, reflecting robust operational efficiency. Overall, the income statement shows a solid upward trajectory in terms of revenue and profitability.

Balance Sheet

The company maintains a solid balance sheet with zero debt, leading to a debt-to-equity ratio of 0. The equity ratio is strong at 85.70%, indicating a low reliance on external funding and high asset coverage by equity. Return on equity improved to 24.42% in 2024, reflecting effective utilization of shareholder funds to generate earnings. The balance sheet is stable and reflects strong financial health.

Cash Flow

M-tron's free cash flow grew by 80.04%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.99, suggesting effective conversion of earnings into cash. The free cash flow to net income ratio is 0.74, which shows a healthy conversion of net income into free cash flow. Overall, the cash flow statement indicates strong cash management and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.56M	49.01M	41.17M	31.84M	26.69M	29.98M
Gross Profit	23.27M	22.64M	16.77M	11.35M	9.34M	10.30M
EBITDA	10.62M	10.37M	5.15M	3.60M	2.67M	3.47M
Net Income	7.78M	7.64M	3.49M	1.80M	1.58M	2.31M
Balance Sheet
Total Assets	37.77M	36.49M	24.30M	19.27M	20.01M	17.92M
Cash, Cash Equivalents and Short-Term Investments	13.66M	12.64M	3.91M	926.00K	2.63M	2.46M
Total Debt	41.00K	0.00	26.00K	76.00K	145.00K	132.00K
Total Liabilities	4.61M	5.22M	4.41M	4.93M	3.16M	2.94M
Stockholders Equity	33.15M	31.27M	19.89M	14.34M	16.85M	14.97M
Cash Flow
Free Cash Flow	5.27M	5.62M	3.12M	1.11M	1.86M	3.50M
Operating Cash Flow	7.63M	7.52M	4.41M	2.04M	2.96M	3.91M
Investing Cash Flow	-2.36M	-1.90M	-1.28M	-936.00K	-1.10M	-407.00K
Financing Cash Flow	2.98M	3.10M	-137.00K	-2.81M	-1.68M	-3.91M

M-tron Industries Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MPTI, the sentiment is Negative. The current price of 41.59 is below the 20-day moving average (MA) of 43.95, below the 50-day MA of 48.92, and below the 200-day MA of 49.25, indicating a bearish trend. The MACD of -2.23 indicates Positive momentum. The RSI at 42.03 is Neutral, neither overbought nor oversold. The STOCH value of 33.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MPTI.

M-tron Industries Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPTI	80 Outperform	$121.33M	15.24	28.36%	―	19.05%	114.23%
Sector *	69 Neutral	¥231.71B	14.67	7.64%	2.71%	9.09%	8.52%
RELL	64 Neutral	$136.52M	303.10	-1.50%	2.50%	-1.69%	-185.91%
LPTH	54 Neutral	$129.98M	―	-24.86%	―	2.59%	-48.02%
NEON	54 Neutral	$383.15M	―	-40.61%	―	-18.53%	46.30%
MEI	51 Neutral	$337.99M	―	-11.90%	5.91%	-6.16%	-59.41%
GNSS	48 Neutral	$78.12M	―	-131.75%	―	-20.77%	-2.08%

M-tron Industries Inc Corporate Events

M-tron Industries Reports Record 2024 Financial Results

M-tron Industries, Inc. reported robust financial results for the fourth quarter and full fiscal year 2024, with record revenues, gross margins, and earnings. The company achieved an 18.9% increase in quarterly revenues and a 19.1% rise in annual revenues, driven by strong defense program shipments. Net income per diluted share surged significantly, reflecting improved manufacturing efficiencies and a higher margin product mix. The company’s performance highlights its strategic focus on growth, particularly in the Aerospace and Defense sector, which saw over 40% growth year-over-year. Despite a slight decrease in backlog, Mtron’s financial position was strengthened, ending the year with $12.6 million in cash and cash equivalents.

M-tron Industries Announces Rights Offering Post CEO Resignation

On February 17, 2025, Michael J. Ferrantino, Jr. resigned as CEO and director of M-tron Industries to pursue opportunities with the Connectivity Partnership, with Cameron Pforr stepping in as the interim CEO. Concurrently, M-tron announced a rights offering on February 20, 2025, allowing shareholders to purchase additional common stock, which may influence their market positioning and shareholder value.

M-tron Industries Announces Leadership Change Amid Strategic Moves

On February 20, 2025, M-tron Industries announced several strategic initiatives, including leadership changes with Cameron Pforr taking on the role of Interim CEO, succeeding Michael J. Ferrantino, Jr. The company plans to announce its preliminary financial results for the fourth quarter and full fiscal year 2024 on February 26, 2025, and will hold an investor call the following day. M-tron is also offering subscription rights to its shareholders, which they believe will distribute value and accelerate growth. The company is strategically positioning itself for growth through organic business lines and potential mergers and acquisitions, leveraging its defense sector expertise.