One-glance verdict
Undervalued
$62.41 our estimate vs market $27.95
Wall Street consensus: $38.00 (-39.1% lower than our fair-value estimate)
55% below our estimate, below the bear case
Fundamentals snapshot
IEH Corporation
IEHC · OQX · Technology · Electronic Components
Current price
$27.95
52-week range
$8.50 - $33.88
Market cap
$69.52M
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 33% of its peers.
- Reward Free cash flow was positive in 5/10 years.
What this company does
IEH Corporation
IEH Corporation makes special connector pieces for electronics used in tough places like airplanes, medical equipment, and defense systems. Most of their money comes from selling these parts directly to companies that build the final products. This is important because it means they are a key supplier to industries that need reliable components.
How the company got here
IEH Corporation, founded in 1941 as L. Offerman Tool and Die, began by supporting the World War II effort with precision tools. After the war, the company shifted to making electronic components, becoming the world's largest manufacturer of cathode ray tube (CRT) sockets for televisions in the 1950s. Recognizing a market shift away from CRTs, IEH made a pivotal decision in the 1960s to license and develop "Hyperboloid" connector technology. This strategic move allowed the company to pivot towards high-performance connectors for demanding industries like defense and aerospace, a focus that has defined its success for decades.
What it actually does
IEH Corporation designs and manufactures specialized connectors and interconnects. These are small but critical components that allow electrical signals and power to flow between different parts of electronic devices. Think of them like the plugs and sockets in your home, but engineered for extreme conditions where reliability is paramount. Their products are essential for the functioning of complex systems in industries where failure is not an option.
Printed Circuit Board (PCB) Connectors
This is IEH's primary business, where they design and manufacture printed circuit board (PCB) connectors. A PCB is a board that electronic components are mounted on and connected through in devices like computers and smartphones. IEH's specialized "Hyperboloid" connectors are known for their exceptional durability and reliability, making them ideal for high-performance applications. These connectors are crucial in sectors like defense, aerospace, medical devices, and industrial equipment, ensuring stable connections even in harsh environments with extreme temperatures, shock, or vibration. This segment represents the core of IEH's revenue and expertise.
Custom Interconnects and Contacts
Beyond standard PCB connectors, IEH also develops custom interconnect solutions and individual contacts tailored to specific client needs. This means if a particular application requires a unique connector design or a specialized contact for power or signal transmission, IEH can engineer and manufacture it. These custom solutions are vital for clients in the defense and aerospace industries who often require highly specialized components for their advanced systems, such as those found in rockets, satellites, and military aircraft. This business line leverages IEH's core Hyperboloid technology to solve unique engineering challenges.
What management is betting on now
IEH Corporation's management is focused on leveraging its core Hyperboloid connector technology to expand into new markets beyond its traditional defense and aerospace strongholds. They are actively exploring opportunities in the medical, space, and industrial sectors to diversify revenue streams and reduce reliance on any single industry. Additionally, the company is looking to increase its market share in existing sectors through more aggressive sales efforts and international expansion. Management is also open to strategic partnerships and potential acquisitions to fuel future growth and enhance its product offerings.
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 $62.41 vs current price $27.95
Wall Street consensus is the average analyst price target: $38.00 (-39.1% lower than our fair-value estimate).
Our most-likely fair value is $62.41 a share — about 123.3% above today's price of $27.95, 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 $8.67M 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 33% 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
2.10x
EV/EBITDA
107.45x
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
0.0%
Payout ratio
0.0%
Last ex-div date
2017-06-02