📊 ESP Key Takeaways
Is Espey Mfg & Electronics Corp. (ESP) a Good Investment?
ESPEY demonstrates exceptional financial health with zero debt, strong liquidity (2.28x current ratio), $21.2M cash, and outstanding profitability margins (24% net, 24.9% operating). However, the 1098.6% revenue surge warrants caution—such extreme growth is typically unsustainable and suggests either one-time contracts or abnormally depressed prior-year baseline, requiring verification of organic growth quality.
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.
Espey Mfg & Electronics Corp. Key Strengths (ESP)
- Pristine balance sheet: zero debt, $56.4M stockholders equity, strong cash position
- Exceptional profitability margins: 24.0% net margin, 24.9% operating margin, 35.7% gross margin
- Superior liquidity: 2.28x current ratio, 1.61x quick ratio, positive free cash flow of $3.5M
- Positive operating and free cash flow generation despite rapid growth
- 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 is indicative of non-recurring events, not repeatable performance
- Growth quality questionable: extreme spike suggests one-time orders, customer concentration, or abnormal prior-year comparison
- Small-cap volatility: $96M asset base makes company vulnerable to customer concentration and market disruption
- Minimal insider activity: only 5 Form 4 filings in 90 days suggests limited management confidence signals
- 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
- Next quarter sequential revenue to validate sustainability of growth narrative
- Gross margin maintenance and operating margin preservation under normalized revenue
- Operating cash flow quality and working capital efficiency
- Customer concentration and backlog visibility for contract pipeline
- Capital deployment and return on reinvested cash
- 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
Strong liquidity with a 2.28x 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 Grade of A from Claude (A) and ChatGPT (A) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ESP's key strengths?
Claude: Pristine balance sheet: zero debt, $56.4M stockholders equity, strong cash position. Exceptional profitability margins: 24.0% net margin, 24.9% operating margin, 35.7% gross margin. 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 is indicative of non-recurring events, not repeatable performance. Growth quality questionable: extreme spike suggests one-time orders, customer concentration, or abnormal prior-year comparison. 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 $32.7M.
Does ESP pay dividends?
Espey Mfg & Electronics Corp. pays dividends, with $4.1M 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 $2.74.
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 ESP's fundamental grade?
Based on our AI fundamental analysis in June 2026, Espey Mfg & Electronics Corp. has a A grade with 75% 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 13.9% (sector avg: 22%), net margin of 24.0% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is ESP's AI grade for 2026?
Our dual AI analysis gives Espey Mfg & Electronics Corp. a combined A grade 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 $6.3M, with capital expenditures of $2.8M. FCF margin is 10.7%.
How does ESP compare to other Technology stocks?
Vs Technology sector averages: Net margin 24.0% (avg: 18%), ROE 13.9% (avg: 22%), current ratio 2.28 (avg: 2.5).