One-glance verdict
Within fair range
$52.86 our estimate vs market $50.27
Wall Street consensus: $70.00 (32.4% higher than our fair-value estimate)
5% below our estimate
Fundamentals snapshot
Espey Mfg. & Electronics Corp.
ESP · ASE · Industrials · Electrical Equipment & Parts
Current price
$50.27
52-week range
$36.82 - $74.77
Market cap
$152.80M
Balance sheet
Healthy
6.81x Adequate
Net cash $45.44M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 4.9% last year.
- Reward Returns 20.1% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 8/10 years.
What this company does
Espey Mfg. & Electronics Corp.
Espey Mfg. & Electronics Corp. makes electronic equipment like power supplies and filters that are used by the military and other industries, and most of their money comes from selling these specialized products and related services. This matters because their focus on defense and industrial clients means their sales are tied to government and big company spending.
How the company got here
Espey Mfg. & Electronics Corp. has been designing and manufacturing specialized electronic equipment since its founding in 1928. The company has a long history of serving the U.S. military and industrial markets, adapting its capabilities to meet evolving technological demands. A key turning point was its focus on "high-reliability" products for harsh environments, solidifying its niche in defense and demanding industrial applications. Espey's vertical integration, meaning it handles many production steps in-house, has been a consistent strategy to control quality and delivery.
What it actually does
Espey Mfg. & Electronics Corp. designs and builds rugged electronic equipment, primarily focusing on power-related products. Think of them as the company that makes the essential electrical components that allow complex machines to operate reliably, even in tough conditions. These aren't your everyday electronics; they are built to withstand extreme temperatures, vibrations, and other harsh factors found in military vehicles, ships, aircraft, and industrial machinery. Their work ensures that critical systems, like radar or power distribution on a submarine, function without fail.
Power electronics equipment
This is Espey's largest business segment, making up about 45% of its revenue. They create custom and standard power supplies (devices that convert electricity from one form to another), converters (which change voltage or current), and Uninterruptible Power Supply (UPS) systems. These are crucial for ensuring a steady and reliable flow of electricity to sensitive equipment, especially in applications where power interruptions could be catastrophic, such as in military operations or critical industrial processes. Essentially, they provide the stable electrical backbone for many advanced systems.
Magnetics and transformers
This segment, accounting for roughly 20% of Espey's revenue, focuses on creating magnetic components and transformers. Transformers are devices that change the voltage of electricity, and magnetic components are fundamental to many electrical functions. Espey builds these for rugged applications, meaning they are designed to be extremely durable and reliable in harsh environments. These are vital for power systems in ships, aircraft, and ground-based military equipment, ensuring that electrical power is managed and delivered safely and efficiently.
Defense and industrial build-to-print
Making up about 20% of the company's income, this business line involves manufacturing electronic and electromechanical assemblies exactly as specified by the customer. This is often referred to as "build-to-print," where Espey follows a client's detailed design plans to create a product. This service is crucial for defense contractors and industrial companies that may have unique or specialized electronic needs for their projects, relying on Espey's manufacturing expertise to bring those designs to life.
Engineering and test services
This segment represents about 10% of Espey's revenue and involves providing specialized engineering support. This includes designing new products to meet specific requirements, conducting design studies to explore possibilities, and performing environmental qualification and testing services. These tests ensure that the electronic equipment can withstand the harsh conditions it's designed for, such as extreme temperatures or vibrations, giving customers confidence in the product's reliability before it's deployed.
Metal fabrication and finishing
This smaller segment, contributing about 5% of revenue, covers the in-house fabrication of metal parts, painting, wiring, and assembly support for their electronic systems. By handling these processes internally, Espey can better control the quality and integration of the final product. This capability is important for creating the robust enclosures and custom mounting solutions needed for their specialized electronic equipment, ensuring it's protected and ready for deployment in demanding environments.
What management is betting on now
Espey's management is focused on securing and executing fixed-price defense and industrial contracts, aiming to maintain their reputation for reliable, severe-environment power electronics. A key strategic priority is to reduce reliance on a small number of major customers, which helps to make their earnings less volatile. They are also investing in their manufacturing capabilities, such as expanding their Magnetics Center of Excellence, to ensure a resilient domestic supply chain for critical military components and to position the company for future growth in demanding sectors.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$724.76K
FY2025 Q2
$4.49M
FY2025 Q3
$10.49M
FY2025 Q4
$915.29K
FY2026 Q1
$4.43M
FY2026 Q2
$-4.13M
FY2026 Q3
$3.20M
FY2026 Q4
$-914.46K
Revenue
$13.47M
Net income
$3.34M
Diluted EPS
1.15
Operating cash flow
$-606.55K
Free cash flow
$-914.46K
Fetching…
Sources
Revenue
$11.42M
Net income
$2.86M
Diluted EPS
0.99
Operating cash flow
$3.39M
Free cash flow
$3.20M
Fetching…
Sources
Revenue
$12.14M
Net income
$2.81M
Diluted EPS
0.99
Operating cash flow
$-2.81M
Free cash flow
$-4.13M
Fetching…
Sources
Revenue
$9.09M
Net income
$2.17M
Diluted EPS
0.76
Operating cash flow
$5.72M
Free cash flow
$4.43M
Fetching…
Sources
Revenue
$9.60M
Net income
$2.93M
Diluted EPS
1.05
Operating cash flow
$2.77M
Free cash flow
$915.29K
Fetching…
Sources
Revenue
$10.30M
Net income
$1.70M
Diluted EPS
0.63
Operating cash flow
$11.45M
Free cash flow
$10.49M
Fetching…
Sources
Revenue
$13.61M
Net income
$1.91M
Diluted EPS
0.71
Operating cash flow
$5.38M
Free cash flow
$4.49M
Fetching…
Sources
Revenue
$10.44M
Net income
$1.60M
Diluted EPS
0.61
Operating cash flow
$1.39M
Free cash flow
$724.76K
Fetching…
Sources
Is it cheap or expensive?
Fair value $52.86 vs current price $50.27
Wall Street consensus is the average analyst price target: $70.00 (32.4% higher than our fair-value estimate).
Our most-likely fair value is $52.86 a share — about 5.2% away from today's price of $50.27, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $45.4M - more cash than debt. Interest coverage 6.8x.
Net debt
$-45.44M
Interest coverage
6.81x
Espey Mfg. & Electronics Corp.'s profit covers its interest bill about 6.8 times over. which is stronger than every peer 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
ESP
BASELINE
Espey Mfg. & Electronics Corp.
Total debt $0.00 Interest coverage 6.81x This is the baseline the peer rows are being compared against.
Total debt $47.51M Interest coverage 1.59x -77% vs ESP Carries about 4.3x less debt cushion than ESP.
Total debt $6.96M Interest coverage -34.49x -100% vs ESP This peer has almost no interest-payment cushion compared with ESP.
Total debt $217.97M Interest coverage -0.80x -100% vs ESP This peer has almost no interest-payment cushion compared with ESP.
What you should know
The case for and against ESP
3 Rewards
0 Risks
Rewards
-
Revenue grew 4.9% last year.
-
Returns 20.1% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
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)
12.92x
Forward P/E
12.66x
P/B
2.36x
P/S
3.31x
EV/EBITDA
8.35x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
35.3%
Operating margin
25.8%
Net margin
24.2%
ROE
20.1%
ROA
8.2%
Health
Liquidity and balance-sheet strength
Debt / equity
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Current ratio
2.50x
Quick ratio
1.51x
Total debt
$0.00
Total cash
$45.44M
Growth
How the business has been compounding
Revenue TTM
$46.12M
Revenue 5Y CAGR
51.3%
EPS TTM
3.89
EPS 5Y CAGR
79.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$5.69M
Free CF TTM
$2.58M
FCF margin
5.6%
Dividend
Shareholder payout
Yield
1.9%
Payout ratio
25.7%
Last ex-div date
2026-09-18