One-glance verdict
Undervalued
$82.61 our estimate vs market $28.00
Wall Street consensus: $38.00 (-54.0% lower than our fair-value estimate)
66% below our estimate, below the bear case
Fundamentals snapshot
IEH Corporation
IEHC · OQX · Technology · Electronic Components
Current price
$28.00
52-week range
$8.10 - $33.88
Market cap
$69.16M
Balance sheet
Healthy
-5.58x Concerning
Net cash $7.23M. 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 12.6% last year.
- Reward Returns 0.1% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 5/10 years.
What this company does
IEH Corporation
IEH Corporation manufactures specialized electrical connectors, which are the crucial plugs that connect parts on a circuit board. The company makes its money by selling these high-performance components to industries like defense, aerospace, and medicine, where equipment failure is not an option. Because its products are used in critical systems like satellites and medical devices, IEH serves a market that demands extreme reliability.
How the company got here
IEH Corporation started in 1941 as a family-run tool and die maker in New York City, supporting the U.S. effort in World War II. After the war, the company shifted to making parts for the growing consumer electronics industry, eventually becoming the world's largest manufacturer of sockets for old-style tube televisions. Recognizing that technology was changing, in the 1960s the company made a pivotal decision to license and manufacture a special type of high-performance connector called the hyperboloid connector. This strategic shift moved the company's focus to producing highly reliable components for demanding industries like military and aerospace, which remains its core business today.
What it actually does
IEH Corporation makes highly specialized electrical connectors, which are essentially very reliable plugs and sockets that allow different electronic parts to communicate with each other. These aren't the simple connectors you'd find in your phone charger; they are built to withstand extreme conditions like intense vibrations, high temperatures, and repeated use without failing. The company's key technology is the 'hyperboloid' contact, a unique socket design that ensures a very secure and durable connection. Think of them as super-durable components used inside complex machines like missile systems, aircraft engines, and space telescopes, where a connection failure is not an option.
Defense Applications
This is the largest part of IEH's business, making up well over half of its sales. The company sells its rugged connectors to defense contractors who build things like missile systems, radar equipment, and military vehicles. These customers pay for extreme reliability because the connectors are used in 'mission-critical' systems (equipment that absolutely must work), such as the Patriot Missile System. The government and its contractors are the ultimate customers, and they need parts that meet strict military specifications.
Commercial Aerospace
This is another significant slice of the company's revenue, representing about a quarter of its sales. IEH provides connectors for use in commercial aircraft, such as in avionics (the plane's electronic systems) and engine controls. Major aircraft manufacturers and their suppliers buy these components because they can withstand the constant vibration and temperature changes of flight for many years. The need for proven, long-lasting parts makes this a steady business for the company.
Other High-Tech Markets
This smaller but important part of the business includes sales to several different industries. IEH's connectors are used in space exploration programs, including satellites and telescopes where repairs are impossible. They also sell to the medical field for devices like MRIs and catheters, and to the energy sector for oil and gas exploration equipment. In each case, customers are willing to pay for the high-quality, durable connections that IEH specializes in.
What management is betting on now
The company is focused on meeting a surge in demand from its core defense and aerospace customers, and is hiring people and adding equipment to increase its production capacity. Management is also working to develop new products, such as connectors for high-speed data transmission and hybrid versions that can handle both power and signals in one unit. A key priority is to continue expanding into markets beyond its traditional ones, including medical devices, space systems, and other industrial applications where high reliability is essential.
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 Q2
$1.44M
FY2025 Q3
$453.55K
FY2025 Q4
$1.45M
FY2026 Q1
$-441.32K
FY2026 Q2
$-996.33K
FY2026 Q3
$-461.67K
FY2026 Q4
$315.10K
FY2027 Q1
$-272.38K
Revenue
$10.02M
Net income
$654.47K
Diluted EPS
0.25
Operating cash flow
$-212.76K
Free cash flow
$-272.38K
Fetching…
Sources
Revenue
$8.53M
Net income
$44.98K
Diluted EPS
0.02
Operating cash flow
$780.84K
Free cash flow
$315.10K
Fetching…
Sources
Revenue
$7.50M
Net income
$-660.29K
Diluted EPS
-0.27
Operating cash flow
$-39.06K
Free cash flow
$-461.67K
Fetching…
Sources
Revenue
$7.08M
Net income
$-26.86K
Diluted EPS
-0.01
Operating cash flow
$-948.88K
Free cash flow
$-996.33K
Fetching…
Sources
Revenue
$6.31M
Net income
$-654.62K
Diluted EPS
-0.27
Operating cash flow
$-424.02K
Free cash flow
$-441.32K
Fetching…
Sources
Revenue
$7.12M
Net income
$421.45K
Diluted EPS
0.18
Operating cash flow
$1.77M
Free cash flow
$1.45M
Fetching…
Sources
Revenue
$7.22M
Net income
$-61.64K
Diluted EPS
-0.03
Operating cash flow
$525.79K
Free cash flow
$453.55K
Fetching…
Sources
Revenue
$7.34M
Net income
$246.44K
Diluted EPS
0.10
Operating cash flow
$1.52M
Free cash flow
$1.44M
Fetching…
Sources
Is it cheap or expensive?
Fair value $82.61 vs current price $28.00
Wall Street consensus is the average analyst price target: $38.00 (-54.0% lower than our fair-value estimate).
Our most-likely fair value is $82.61 a share — about 195.1% above today's price of $28.00, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $7.2M - more cash than debt. Interest coverage -5.6x.
Net debt
$-7.23M
Interest coverage
-5.58x
IEH Corporation's profit covers its interest bill about 0.0 times over. which is weaker 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
IEHC
BASELINE
IEH Corporation
Total debt $2.13M Interest coverage -5.58x This is the baseline the peer rows are being compared against.
Total debt $264.00K Interest coverage 1.87x This peer still has a real interest-payment cushion, while IEHC does not.
Total debt $3.93M Interest coverage -562.51x Neither company has much profit cushion over interest right now.
Total debt $132.00K Interest coverage 935.55x This peer still has a real interest-payment cushion, while IEHC does not.
Total debt $6.96M Interest coverage -34.49x Neither company has much profit cushion over interest right now.
What you should know
The case for and against IEHC
3 Rewards
0 Risks
Rewards
-
Revenue grew 12.6% last year.
-
Returns 0.1% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 5/10 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)
—
Forward P/E
—
P/B
2.94x
P/S
2.09x
EV/EBITDA
104.66x
PEG ratio
1.29x
Profitability
How much profit each dollar creates
Gross margin
23.4%
Operating margin
6.6%
Net margin
0.0%
ROE
0.1%
ROA
-0.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.09x
Current ratio
9.17x
Quick ratio
5.99x
Total debt
$2.13M
Total cash
$9.36M
Growth
How the business has been compounding
Revenue TTM
$33.13M
Revenue 5Y CAGR
4.9%
EPS TTM
-0.01
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-419.87K
Free CF TTM
$-1.58M
FCF margin
-4.8%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2017-06-02