One-glance verdict
Overvalued
Fundamentals snapshot
Electro-Sensors Inc
ELSE · NCM · Technology · Scientific & Technical Instruments
Current price
$7.74
52-week range
$4.05 - $7.75
Market cap
$27.34M
Balance sheet
Healthy
0.33x Concerning
Net cash $10.81M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 8.2% last year.
- Reward Returns 1.7% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 3/10 years.
- Risk Operating margin compressed from -0.4% to -8.5% over 3 years.
What this company does
Electro-Sensors Inc
Electro-Sensors makes monitoring systems that act like a check-up for the giant machines used in industries like farming, food production, and manufacturing. These sensors watch for problems by tracking things like machine speed and temperature, helping prevent expensive equipment breakdowns and improve worker safety. By keeping these essential industries running reliably, the company plays a role in making sure supply chains (the network of businesses that get products from creation to the consumer) operate smoothly.
How the company got here
Electro-Sensors started in 1968 in Minnesota with a focus on creating devices to monitor machinery in industrial settings. Initially, they made sensors to check the speed of equipment like conveyor belts and the levels of materials in containers. Over the years, the company expanded its offerings to include a wider variety of sensors that monitor temperature, vibration, and the position of machine parts. In a significant recent development, Electro-Sensors was acquired by a German technology company, steute Technologies, in 2026, which will help them reach a more global market.
What it actually does
Electro-Sensors makes rugged electronic sensors and monitoring systems for industrial machinery. Think of these as electronic eyes and ears for the big equipment used in factories and processing plants. Their products help prevent accidents and costly breakdowns by keeping an eye on important factors like the speed of a machine, the temperature of its parts, and any unusual vibrations. These sensors are used in a wide range of industries, including agriculture, food production, and manufacturing, to help them run more safely and efficiently.
Wired Monitoring Systems
This is the company's traditional and largest line of business, making up a significant portion of their sales. They sell a variety of individual sensors that are physically wired into a company's machinery and control systems. For example, a grain processing plant might buy sensors to monitor the speed of its conveyor belts and the temperature of its grinding mills to prevent overheating and potential fires. These customers pay for the physical sensors and related equipment to help protect their workers and equipment.
HazardPRO™ Wireless Monitoring Systems
This is a newer and growing part of the business that offers a more modern approach to monitoring. Instead of running wires to every sensor, this system uses wireless technology to send information from the sensors to a central computer. This can be particularly useful in large or complex industrial environments where installing wires would be difficult or expensive. Customers in industries like ethanol production or mining might choose this system to get real-time updates on their equipment's health and to be alerted to potential dangers without the need for extensive wiring.
What management is betting on now
The company's main focus is on its recent integration with steute Technologies, its new parent company. The leadership believes this combination will allow them to sell their products to a much wider international customer base and to offer a more complete set of industrial safety and monitoring solutions. By joining with steute, they also gain access to more engineering resources, which they hope will lead to the development of new and improved products. The goal is to become a more comprehensive provider for industrial companies looking to improve the safety and efficiency of their operations.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $6.76 vs current price $7.74
Our most-likely fair value is $6.76 a share — about 12.6% below today's price of $7.74, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $10.8M - more cash than debt. Interest coverage 0.3x.
Net debt
$-10.81M
Interest coverage
0.33x
Electro-Sensors Inc's profit covers its interest bill about 0.3 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
ELSE
BASELINE
Electro-Sensors Inc
Total debt $0.00 Interest coverage 0.33x This is the baseline the peer rows are being compared against.
Total debt $959.00K Interest coverage 1,989.00x +596,600% vs ELSE Carries about 5967.0x more debt cushion than ELSE.
Total debt $663.00K Interest coverage -93.69x -100% vs ELSE This peer has almost no interest-payment cushion compared with ELSE.
Total debt $2.13M Interest coverage 6.10x +1,731% vs ELSE Carries about 18.3x more debt cushion than ELSE.
Total debt $834.00K Interest coverage -16.49x -100% vs ELSE This peer has almost no interest-payment cushion compared with ELSE.
What you should know
The case for and against ELSE
3 Rewards
1 Risk
Rewards
-
Revenue grew 8.2% last year.
-
Returns 1.7% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Operating margin compressed from -0.4% to -8.5% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
96.75x
Forward P/E
—
P/B
1.84x
P/S
2.61x
EV/EBITDA
413.23x
PEG ratio
3.15x
Profitability
How much profit each dollar creates
Gross margin
51.5%
Operating margin
-8.5%
Net margin
2.4%
ROE
1.7%
ROA
-0.2%
Health
Liquidity and balance-sheet strength
Debt / equity
—
Current ratio
12.64x
Quick ratio
10.57x
Total debt
$0.00
Total cash
$10.81M
Growth
How the business has been compounding
Revenue TTM
$10.48M
Revenue 5Y CAGR
4.0%
EPS TTM
0.08
EPS 5Y CAGR
44.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$662.00K
Free CF TTM
$597.00K
FCF margin
5.7%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2013-05-08