Espey Mfg. & Electronics Corp.

Espey Mfg. & Electronics Corp.

ESPยทAMEX

$55.75

-4.3%
IndustrialsElectrical Equipment & Parts

Espey Mfg. & Electronics Corp., a power electronics design and original equipment manufacturing company, designs, manufactures, and tests electronic equipment primarily for use in military and industrial applications in the United States and internationally. The company's principal products include power supplies, power converters, filters, power transformers, magnetic components, power distribution equipment, UPS systems, antennas, and high-power radar systems for use in AC and DC locomotives, shipboard power, shipboard radar, airborne power, ground-based radar, and ground mobile power applications. It also provides various services comprising design and development to specification, build to print, design services, design studies, environmental testing services, metal fabrication, painting services, and development of automatic testing equipment. In addition, the company produces individual components, such as inductors, printed circuit boards, wires, and tests items. It serves industrial manufacturers and defense companies, the government of the United States, foreign governments, and foreign electronic equipment companies through its direct sales organization and outside sales representatives. The company was incorporated in 1928 and is based in Saratoga Springs, New York.

At a Glance

Live Snapshot
Market Cap$167.02M
EPS3.1400
P/E Ratio17.75
Earnings Date09/17/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is mid-range (P/E 17.8).

Valuation inputs: P/E 17.8, earnings yield +5.6%, momentum -4.3%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is acceptable (ROE +16.0%, ROIC +13.4%).

Profitability stack: net margin +18.5%, ROE +16.0%, ROIC +13.4%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile looks controlled across current risk inputs.

Risk factors: liabilities/assets +35.7%, momentum -4.3%, net margin +18.5%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

esp

Espey Mfg. & Electronics Corp. Market vs Earnings Trajectory

ESP ยท AMEX

Loading price and EPS data...

Espey Mfg. & Electronics Corp.

Espey Mfg. & Electronics Corp. Fair Value Envelope

ESP ยท AMEX

Our analysis suggests that ESP has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $55.75, this represents a potential HIDDEN relative to our calculated worth for Espey Mfg. & Electronics Corp..

Intrinsic Value
Current Price: $55.75
3Y+504.0%
5Y+541.0%
10Y+126.0%
3Y+37.0%
5Y+39.0%
10Y+60.0%
3Y+544.0%
5Y+600.0%
10Y+156.0%
3Y+846.0%
5Y+252.0%
10Y+264.0%
3Y+768.0%
5Y+189.0%
10Y+204.0%
3Y+98.0%
5Y+107.0%
10Y+130.0%
Espey Mfg. & Electronics Corp.

Espey Mfg. & Electronics Corp. Profit Bridge

ESP ยท AMEX
Revenue43.95M
Cost of Goods Sold (31.27M)
Gross Profit12.68M
Operating Expenses (4.56M)
Operating Income8.13M
Interest Expense (0.00)
Other Income/Expense1.60M
Pretax Income9.73M
Income Tax (1.59M)
Net Income8.14M
Net Income
8.14M

Profitability Analysis

Gross Margin

28.9%

Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.

Operating Margin

18.5%

Healthy operating margins demonstrate effective cost control and strong business fundamentals.

Net Profit Margin

18.5%

Strong net margins indicate efficient operations and favorable tax/interest management.

Effective Tax Rate

16.3%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.

28.86%
Gross Profit Margin
5%
3Y+69.0%
5Y+64.0%
10Y+8.0%
18.49%
Operating Profit Margin
10%
3Y+288.0%
5Y+397.0%
10Y+17.0%
18.53%
Net Profit Margin
23%
3Y+370.0%
5Y+402.0%
10Y+60.0%
16.01%
Return on Equity
14%
3Y+306.0%
5Y+330.0%
10Y+63.0%
10.29%
Return on Assets
3Y+225.0%
5Y+238.0%
10Y+12.0%
13.38%
Return on Invested Capital
6%
3Y+256.0%
5Y+304.0%
10Y+41.0%
ESP

Espey Mfg. & Electronics Corp. Cash Conversion Engine

ESP ยท AMEX
Net Income8.14M
Depreciation & Amortization451.52K
Stock-Based Compensation968.75K
Change in Working Capital11.74M
Others0.00
Capital Expenditures-4.37M
Free Cash Flow16.63M

Cash Flow Quality Analysis

FCF Conversion Rate

204.2%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

20.8%

Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.

FCF Growth Trend

+206.1%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$11.74M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

esp

Espey Mfg. & Electronics Corp. Funding & Solvency Profile

ESP ยท AMEX
Cash & Cash Equivalents21.16M
Net Receivables6.29M
Inventory26.58M
Other Current Assets10.59M
Total Current Assets90 M
Property, Plant & Equipment4.35M
Goodwill & Intangible Assets0.00
Long-Term Investments0.00
Other Non-Current Assets0.00
Total Non-Current Assets4 M
Total Assets
96.00M

Financial Health Analysis

Current Ratio

2.28x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.70x

Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.

Working Capital

51 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

94% Current

Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

esp

Espey Mfg. & Electronics Corp. Street Expectations Map

ESP ยท AMEX

No Target Data

No analyst price targets available for esp.

esp

Espey Mfg. & Electronics Corp. Insider Positioning

ESP ยท AMEX

During the last 12 months, insiders have sold $651K worth of ESP shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

8

545.00

Net Activity

-545

-$545

3-6 Months

Bought

0

0.00

Sold

8.3K

397.82K

Net Activity

-398K

-$398K

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

6.3K

252.39K

Net Activity

-252K

-$252K

Top Buyers

No buying activity

Top Sellers

1
ODA

Oneil David A

Director, Officer: President & Ceo

12.3K sharesโ€ข7 transactions

$533K

2
WMW

Wool Michael W

Director

1.0K sharesโ€ข1 transactions

$58K

3
HC

Helmetag Carl

Director

1.0K sharesโ€ข1 transactions

$45K

4
CPJ

Corr Paul J

Director

349 sharesโ€ข3 transactions

$15K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $651K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$545

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

High Selling

4 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

Insider Activity Insight

Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.

0.45%
Dividend Yield
-15%
3Y-8.0%
5Y-
10Y-53.0%
ย 

esp Dividend History

ESP
10Y CAGR +0%
Latest $0.25
Annual $2
Stable dividend payments
Last Period: +0%