📊 ESP Key Takeaways
Is Espey Mfg & Electronics Corp. (ESP) a Good Investment?
Espey Manufacturing demonstrates exceptional profitability with 23.4% net margin and strong operating efficiency (24.2% operating margin) supported by a fortress balance sheet with zero debt and $17.8M in cash. However, the extraordinary 1098.6% revenue growth appears unsustainable and requires verification of its durability; the concerning disconnect between strong net income growth and weak free cash flow conversion (1.4% FCF margin) suggests potential working capital management challenges or one-time revenue items.
Espey Mfg & Electronics shows strong core fundamentals: high operating and net margins, positive earnings growth, and a debt-free balance sheet with solid liquidity. The main constraint is growth quality, as the extreme revenue jump appears lumpy and free cash flow conversion was weak relative to net income. If margins remain durable and operating cash flow improves, the underlying financial profile looks favorable.
Why Buy Espey Mfg & Electronics Corp. Stock? ESP Key Strengths
- Exceptional profitability metrics: 23.4% net margin significantly outperforms electronics industry averages
- Strong balance sheet fundamentals: Zero long-term debt, $17.8M cash position, and 2.53x current ratio provide financial stability
- Operational efficiency: 24.2% operating margin and 35.0% gross margin demonstrate pricing power and cost control
- Solid liquidity position: 1.81x quick ratio ensures ability to meet short-term obligations
- Strong profitability with 35.0% gross margin, 24.2% operating margin, and 23.4% net margin
- Debt-free balance sheet supported by $17.76M in cash and healthy liquidity ratios
- Positive earnings growth with net income up 40.0% YoY and diluted EPS up 31.9% YoY
ESP Stock Risks: Espey Mfg & Electronics Corp. Investment Risks
- Unsustainable revenue growth: 1098.6% YoY increase is anomalous and likely non-recurring; requires clarification on source
- Free cash flow deterioration: Only $296.4K FCF (1.4% margin) despite $5.0M net income signals potential working capital stress or quality-of-earnings concern
- Weak free cash flow conversion: Capital expenditures of $2.6M nearly offset operating cash flow of $2.9M, limiting reinvestment capacity
- Modest return on equity: 9.4% ROE lags capital availability and suggests underutilization of balance sheet strength
- Revenue growth of 1098.6% YoY may reflect contract timing or unusually low prior-period comparables rather than sustainable demand
- Free cash flow was only $296.41K, indicating weak cash conversion versus reported net income
- Returns on capital are only moderate, with ROE of 9.4% and ROA of 5.8%, limiting evidence of strong capital efficiency
Key Metrics to Watch
- Revenue sustainability and growth drivers in next reporting period
- Operating cash flow conversion and working capital management trends
- Free cash flow generation and capital allocation strategy
- Operating cash flow and free cash flow conversion relative to net income
- Revenue consistency and backlog-driven margin stability over the next few reporting periods
Espey Mfg & Electronics Corp. (ESP) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.4% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.53x current ratio provides a solid financial cushion.
ESP Profit Margin, ROE & Profitability Analysis
ESP vs Technology Sector: How Espey Mfg & Electronics Corp. Compares
How Espey Mfg & Electronics Corp. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Espey Mfg & Electronics Corp. Stock Overvalued? ESP Valuation Analysis 2026
Based on fundamental analysis, Espey Mfg & Electronics Corp. has mixed fundamental signals relative to the Technology 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.
Espey Mfg & Electronics Corp. Balance Sheet: ESP Debt, Cash & Liquidity
ESP Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Espey Mfg & Electronics Corp.'s revenue has grown significantly by 208% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.44 reflects profitable operations.
ESP Revenue Growth, EPS Growth & YoY Performance
ESP Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $3.5M | $1.0M | $0.40 |
| Q2 2025 | $2.4M | $1.8M | $0.71 |
| Q1 2025 | $374.2K | $1.1M | $0.44 |
| Q3 2024 | $907.8K | $867.3K | $0.35 |
| Q2 2024 | $727.3K | $1.1M | $0.47 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Espey Mfg & Electronics Corp. Dividends, Buybacks & Capital Allocation
ESP SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Espey Mfg & Electronics Corp. (CIK: 0000033533)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ESP
What is the AI rating for ESP?
Espey Mfg & Electronics Corp. (ESP) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ESP's key strengths?
Claude: Exceptional profitability metrics: 23.4% net margin significantly outperforms electronics industry averages. Strong balance sheet fundamentals: Zero long-term debt, $17.8M cash position, and 2.53x current ratio provide financial stability. ChatGPT: Strong profitability with 35.0% gross margin, 24.2% operating margin, and 23.4% net margin. Debt-free balance sheet supported by $17.76M in cash and healthy liquidity ratios.
What are the risks of investing in ESP?
Claude: Unsustainable revenue growth: 1098.6% YoY increase is anomalous and likely non-recurring; requires clarification on source. Free cash flow deterioration: Only $296.4K FCF (1.4% margin) despite $5.0M net income signals potential working capital stress or quality-of-earnings concern. ChatGPT: Revenue growth of 1098.6% YoY may reflect contract timing or unusually low prior-period comparables rather than sustainable demand. Free cash flow was only $296.41K, indicating weak cash conversion versus reported net income.
What is ESP's revenue and growth?
Espey Mfg & Electronics Corp. reported revenue of $21.2M.
Does ESP pay dividends?
Espey Mfg & Electronics Corp. pays dividends, with $3.4M distributed to shareholders in the trailing twelve months.
Where can I find ESP SEC filings?
Official SEC filings for Espey Mfg & Electronics Corp. (CIK: 0000033533) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ESP's EPS?
Espey Mfg & Electronics Corp. has a diluted EPS of $1.75.
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 rating reflects both perspectives for balanced insights.
Is ESP a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Espey Mfg & Electronics Corp. has a BUY rating with 73% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ESP stock overvalued or undervalued?
Valuation metrics for ESP: ROE of 9.4% (sector avg: 22%), net margin of 23.4% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy ESP stock in 2026?
Our dual AI analysis gives Espey Mfg & Electronics Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ESP's free cash flow?
Espey Mfg & Electronics Corp.'s operating cash flow is $2.9M, with capital expenditures of $2.6M. FCF margin is 1.4%.
How does ESP compare to other Technology stocks?
Vs Technology sector averages: Net margin 23.4% (avg: 18%), ROE 9.4% (avg: 22%), current ratio 2.53 (avg: 2.5).