📊 ELSE Key Takeaways
Is Electro Sensors Inc. (ELSE) a Good Investment?
Despite a fortress balance sheet with 67% of assets in cash and minimal debt, Electro Sensors is deteriorating operationally with net losses widening 31.4% YoY despite 8.2% revenue growth, indicating severe cost control or structural profitability challenges. The company generates minimal free cash flow (1.6% margin), operates unprofitably at all levels, and lacks the scale or momentum to offset financial risks.
Electro-Sensors shows solid balance-sheet quality, with a large cash position, minimal debt, and strong free cash flow generation relative to its size. Revenue growth and net income improvement are encouraging, but the business is still operating near break-even at the operating level, which limits the strength of the overall fundamental case. The company appears financially resilient, but sustained margin expansion is needed before the fundamentals look meaningfully stronger.
Electro Sensors Inc. Key Strengths (ELSE)
- Fortress balance sheet: Debt/Equity of 0.03x with $10.8M cash on $16.1M assets (67% cash ratio)
- Exceptional liquidity: Current ratio of 12.64x and Quick ratio of 10.85x eliminate solvency risk
- Positive gross margin of 51.3% indicates reasonable underlying product economics
- Positive free cash flow of $40K despite unprofitability shows some operational cash generation
- Exceptional liquidity with $10.57M in cash, a 13.77x current ratio, and very low leverage
- Positive growth profile with revenue up 9.6% YoY and net income up 62.2% YoY
- Healthy cash generation with positive operating cash flow and free cash flow, supported by very low capital expenditure needs
ELSE Stock Risks: Electro Sensors Inc. Investment Risks
- Deteriorating profitability: Net income declining 31.4% YoY while revenue grows only 8.2%, indicating operational breakdown
- Negative operating margin of -8.5% with $218K operating loss on minimal $2.6M revenue base signals fundamental unprofitability
- Weak cash generation: Operating cash flow of only $68K on $2.6M revenue (2.6% ratio) and FCF margin of 1.6% provides limited financial flexibility
- Minimal scale and undisclosed path to profitability; industrial measurement sector is highly competitive
- Negative ROE and ROA indicate shareholder value destruction
- Operating profitability is extremely thin, with only $10K of operating income and a 0.1% operating margin
- Returns on capital remain weak, with ROE of 1.4% and ROA of 1.3%, indicating limited earnings power
- Net margin of 2.7% leaves little cushion if revenue softens or costs rise
Key Metrics to Watch
- Return to operating profitability and trajectory of operating margin toward positive territory
- Operating cash flow improvement relative to revenue growth; current ratio of 68K on 2.6M revenue is inadequate
- Revenue growth sustainability; determine if 8.2% growth can be maintained while controlling SG&A costs that are causing margin compression
- Operating margin trend and whether revenue growth converts into durable operating income
- Free cash flow consistency relative to net income and working capital movements
Electro Sensors Inc. (ELSE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.6% FCF margin may limit capital allocation flexibility. Strong liquidity with a 12.64x current ratio provides a solid financial cushion.
ELSE Profit Margin, ROE & Profitability Analysis
ELSE vs Industrial Sector: How Electro Sensors Inc. Compares
How Electro Sensors Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Electro Sensors Inc. Stock Overvalued? ELSE Valuation Analysis 2026
Based on fundamental analysis, Electro Sensors Inc. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Electro Sensors Inc. Balance Sheet: ELSE Debt, Cash & Liquidity
ELSE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Electro Sensors Inc.'s revenue has grown significantly by 18% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.13 reflects profitable operations.
ELSE Revenue Growth, EPS Growth & YoY Performance
ELSE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.2M | -$64.0K | $-0.02 |
| Q3 2025 | $2.5M | $203.0K | $0.06 |
| Q2 2025 | $2.2M | -$4.0K | $0.00 |
| Q1 2025 | $2.2M | $11.0K | $0.00 |
| Q3 2024 | $2.1M | $8.0K | $0.00 |
| Q2 2024 | $2.1M | -$4.0K | $0.00 |
| Q1 2024 | $2.0M | $11.0K | $0.00 |
| Q3 2023 | $2.1M | $8.0K | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Electro Sensors Inc. Dividends, Buybacks & Capital Allocation
ELSE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Electro Sensors Inc. (CIK: 0000351789)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ELSE
What is the AI rating for ELSE?
Electro Sensors Inc. (ELSE) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ELSE's key strengths?
Claude: Fortress balance sheet: Debt/Equity of 0.03x with $10.8M cash on $16.1M assets (67% cash ratio). Exceptional liquidity: Current ratio of 12.64x and Quick ratio of 10.85x eliminate solvency risk. ChatGPT: Exceptional liquidity with $10.57M in cash, a 13.77x current ratio, and very low leverage. Positive growth profile with revenue up 9.6% YoY and net income up 62.2% YoY.
What are the risks of investing in ELSE?
Claude: Deteriorating profitability: Net income declining 31.4% YoY while revenue grows only 8.2%, indicating operational breakdown. Negative operating margin of -8.5% with $218K operating loss on minimal $2.6M revenue base signals fundamental unprofitability. ChatGPT: Operating profitability is extremely thin, with only $10K of operating income and a 0.1% operating margin. Returns on capital remain weak, with ROE of 1.4% and ROA of 1.3%, indicating limited earnings power.
What is ELSE's revenue and growth?
Electro Sensors Inc. reported revenue of $2.6M.
Does ELSE pay dividends?
Electro Sensors Inc. does not currently pay dividends.
Where can I find ELSE SEC filings?
Official SEC filings for Electro Sensors Inc. (CIK: 0000351789) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ELSE's EPS?
Electro Sensors Inc. has a diluted EPS of $-0.03.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ELSE's fundamental grade?
Based on our AI fundamental analysis in June 2026, Electro Sensors Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ELSE stock overvalued or undervalued?
Valuation metrics for ELSE: ROE of -0.8% (sector avg: 15%), net margin of -4.5% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is ELSE's AI grade for 2026?
Our dual AI analysis gives Electro Sensors Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ELSE's free cash flow?
Electro Sensors Inc.'s operating cash flow is $68.0K, with capital expenditures of $28.0K. FCF margin is 1.6%.
How does ELSE compare to other Industrial stocks?
Vs Industrial sector averages: Net margin -4.5% (avg: 10%), ROE -0.8% (avg: 15%), current ratio 12.64 (avg: 1.8).