Nortech Systems (NSYS) AI Stock Analysis

• Market Cap: $25.94M
• Dividend Yield: N/A
• Average Volume (3M): 4.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: -14.49%
• EPS Growth: -149.37%
• Country: US
• Employees: 701
• Sector: Healthcare
• Sector Strength: 45
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.11
• Shares Outstanding: 2,786,134
• 10 Day Avg. Volume: 3,988
• 30 Day Avg. Volume: 4,226
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.81
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 3.22
• Enterprise Value/Ebitda: -42.14
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: $9.50 ▲(2.04% Upside)

Nortech Systems' overall stock score is primarily impacted by its financial performance, which is currently weak due to declining revenues, negative profitability, and cash flow challenges. The technical analysis suggests a neutral trend with mild bullish momentum, while the valuation is unattractive due to a negative P/E ratio. The earnings call provided some positive insights, such as improved earnings and a growing customer backlog, but these are offset by ongoing sales declines and financial challenges.

Nortech Systems Business Overview & Revenue Model

Company Description

Nortech Systems Incorporated provides design and manufacturing solutions for electromedical devices, electromechanical systems, assemblies, and components in the United States, Mexico, and China. It offers a range of technical and manufacturing, and support services, including project management, designing, testing, prototyping, manufacturing, supply chain management, and post-market services. The company also provides manufacturing and engineering services for medical devices, printed circuit board assemblies, wire and cable assemblies, and higher-level electromechanical assemblies. In addition, it offers engineering and repair services. The company serves original equipment manufacturers in the aerospace and defense, medical, and industrial markets through business development teams and independent manufacturers' representatives. Nortech Systems Incorporated was founded in 1990 and is headquartered in Maple Grove, Minnesota.

How the Company Makes Money

Nortech Systems generates revenue through multiple key streams. The primary source of income comes from the manufacturing and assembly of electronic components and systems, which are tailored to meet the specific needs of various industries. The company engages in long-term contracts with clients, ensuring a steady flow of income. Additionally, Nortech offers design and engineering services, which create additional revenue opportunities by helping clients develop new products. The company's strategic partnerships with technology providers and suppliers also play a significant role in its earnings, enabling it to provide integrated solutions and enhancing its competitive position in the market.

Nortech Systems Financial Statement Overview

Summary

Nortech Systems is facing financial difficulties, with declining revenues, negative profitability, and cash flow challenges. The balance sheet shows moderate leverage, but the negative return on equity is concerning. Overall, the company needs to address its operational inefficiencies and improve cash flow management to enhance financial stability.

Income Statement

Nortech Systems has experienced declining revenue growth, with a negative growth rate in the TTM period. The gross profit margin has decreased over time, indicating pressure on profitability. The net profit margin is negative, reflecting ongoing losses. EBIT and EBITDA margins have also turned negative, highlighting operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved slightly but remains moderate, suggesting manageable leverage. However, the return on equity has turned negative in the TTM period, indicating inefficiencies in generating returns for shareholders. The equity ratio is stable, reflecting a balanced capital structure.

Cash Flow

Nortech Systems faces significant cash flow challenges, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, indicating cash flow issues relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	117.60M	128.13M	139.33M	134.12M	115.17M	104.11M
Gross Profit	14.57M	16.72M	23.10M	20.48M	15.86M	8.46M
EBITDA	-1.11M	1.54M	8.00M	3.87M	4.97M	1.58M
Net Income	-3.22M	-1.29M	6.87M	2.01M	7.15M	-1.55M
Balance Sheet
Total Assets	74.83M	72.44M	75.13M	69.54M	67.09M	57.63M
Cash, Cash Equivalents and Short-Term Investments	652.00K	916.00K	960.00K	1.03M	643.00K	352.00K
Total Debt	21.01M	18.04M	14.18M	18.06M	20.21M	21.79M
Total Liabilities	41.44M	38.43M	39.78M	41.46M	40.98M	38.92M
Stockholders Equity	33.39M	34.01M	35.34M	28.08M	26.11M	18.72M
Cash Flow
Free Cash Flow	-4.18M	-3.52M	485.00K	2.96M	-5.90M	844.00K
Operating Cash Flow	-3.56M	-2.25M	1.77M	5.40M	-4.54M	1.36M
Investing Cash Flow	-610.00K	-1.26M	-1.28M	-2.43M	-730.00K	5.50M
Financing Cash Flow	3.28M	2.77M	-1.28M	-2.67M	3.93M	-3.96M

Nortech Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.31
• 50DMA: Negative
• 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 NSYS, the sentiment is Negative. The current price of 9.31 is below the 20-day moving average (MA) of 9.53, below the 50-day MA of 9.37, and above the 200-day MA of 9.23, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 45.85 is Neutral, neither overbought nor oversold. The STOCH value of 34.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NSYS.

Nortech Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPSH	―	$77.49M	-34.04	-3.84%	―	7.47%	-133.39%
LGL	―	$33.55M	155.50	0.56%	―	26.84%	-45.92%
MEI	―	$233.84M	-4.46	-7.62%	5.84%	-4.91%	61.77%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
NSYS	―	$25.94M	-7.93	-9.26%	―	-14.49%	-149.37%
DAIO	―	$29.29M	-11.05	-14.45%	―	-7.58%	-69.20%
LINK	―	$95.58M	-46.81	-15.12%	―	-7.12%	-11.02%

Nortech Systems Corporate Events

Nortech Systems Director Debarati Sen to Step Down

Debarati Sen, a member of Nortech Systems‘ Board of Directors, has announced she will not seek re-election for the 2026-2027 term. Her decision, which is not due to any disagreements with the company, means she will fulfill her current term until May 2026.

The most recent analyst rating on (NSYS) stock is a Hold with a $9.50 price target. To see the full list of analyst forecasts on Nortech Systems stock, see the NSYS Stock Forecast page.

Nortech Systems Announces Senior VP Retirement Plan

On August 18, 2025, John Lindeen, Senior Vice President of Global Operations at Nortech Systems, announced his intention to retire and resign, effective by the end of the first quarter of 2026. The company has begun the search for a permanent replacement, ensuring a smooth transition in its leadership team.

The most recent analyst rating on (NSYS) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Nortech Systems stock, see the NSYS Stock Forecast page.

Nortech’s Earnings Call: Balancing Growth and Challenges

The recent earnings call for Nortech Systems, Inc. presented a mixed sentiment, highlighting both positive strides and significant challenges. While the company reported improved earnings and strategic advancements, it also faced hurdles such as a decrease in net sales and negative adjusted EBITDA over the past year. The overall tone of the call balanced optimism with caution, reflecting the company’s current financial landscape.

Nortech Systems Reports Positive Q2 2025 Earnings

Nortech Systems Incorporated is a leading provider of engineering and manufacturing solutions for complex electromedical and electromechanical products, primarily serving the medical imaging, medical device, industrial, and aerospace & defense markets. The company is headquartered in Maple Grove, Minnesota, and operates six manufacturing locations and design centers across the U.S., Latin America, and Asia.

Nortech Systems Amends Credit Line for Stability

On July 29, 2025, Nortech Systems amended its $15 million senior secured revolving line of credit with Bank of America, NA, extending the expiration to August 31, 2026. This amendment provides Nortech Systems with an extended financial runway, potentially enhancing its operational stability and flexibility in the coming year.