One-glance verdict
Undervalued
$84.96 our estimate vs market $57.30
Wall Street consensus: $89.00 (4.7% higher than our fair-value estimate)
33% below our estimate, below the bear case
Fundamentals snapshot
M-tron Industries, Inc.
MPTI · ASE · Technology · Electronic Components
Current price
$57.30
52-week range
$43.55 - $104.85
Market cap
$249.05M
Balance sheet
Healthy
935.55x Strong cushion
Net cash $96.87M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 6.9% last year.
- Reward Returns 12.4% on equity, ahead of 50% of its peers.
- Risk Stock trades 9.6% above its 5-year average P/E.
- Risk Insider ownership is only 5.7% (peer median: 6.1%).
What this company does
M-tron Industries, Inc.
M-tron Industries makes special electronic parts that help devices keep time accurately and control signals, like the ones used in airplanes, defense systems, and other advanced technology. The money they make comes from selling these highly technical components to these specific industries. Understanding this helps us see how their sales are tied to the spending and needs of these specialized markets.
How the company got here
M-tron Industries, Inc. has been around since 1965, starting out as a designer and maker of electronic components. Over the decades, it has focused on a specialized niche: creating parts that precisely control the timing and frequency of electronic signals. This focus has allowed it to build expertise in serving demanding industries like defense and aerospace, where accuracy is critical. The company's history is one of steady development within this specialized field, adapting its technology to meet the evolving needs of high-tech applications.
What it actually does
Think of M-tron Industries as a maker of tiny, highly precise electronic 'brains' that dictate the timing and rhythm of signals within complex electronic devices. These components are essential for ensuring that radios, radar systems, and other communication equipment work correctly and reliably. They act like the conductor of an orchestra, ensuring every instrument plays at the right time and in tune. M-tron's products are not something you'd find in a typical consumer gadget; instead, they are crucial for specialized equipment used in demanding environments.
Frequency and Spectrum Control Products
This is the core of M-tron's business, where it designs and manufactures components that manage the precise timing and frequency of electronic signals. These products include various types of filters (like radio frequency and microwave filters) that allow specific signal frequencies to pass while blocking others, and oscillators (like crystal oscillators) that generate stable electronic signals at a set frequency. These are vital for ensuring clear communication and accurate data transmission in systems where timing is everything. The company sells these specialized parts to other businesses that build advanced electronic systems.
What management is betting on now
M-tron Industries is focused on continuing its leadership in providing high-performance frequency and spectrum control products. Management is likely prioritizing innovation to develop even more advanced components that can handle higher frequencies and harsher operating conditions. This strategy aims to capture more business in its key markets, such as defense, aerospace, and space exploration, where the demand for reliable and precise electronic timing is consistently growing. By staying at the forefront of this technology, the company seeks to maintain its competitive edge and secure long-term growth.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$1.77M
FY2024 Q4
$1.39M
FY2025 Q1
$1.02M
FY2025 Q2
$2.04M
FY2025 Q3
$2.71M
FY2025 Q4
$2.33M
FY2026 Q1
$1.67M
FY2026 Q2
$2.77M
Revenue
$15.11M
Net income
$1.87M
Diluted EPS
0.43
Operating cash flow
$3.70M
Free cash flow
$2.77M
Fetching…
Sources
Revenue
$14.69M
Net income
$2.39M
Diluted EPS
0.67
Operating cash flow
$2.12M
Free cash flow
$1.67M
Fetching…
Sources
Revenue
$14.23M
Net income
$3.42M
Diluted EPS
0.99
Operating cash flow
$2.68M
Free cash flow
$2.33M
Fetching…
Sources
Revenue
$14.17M
Net income
$1.83M
Diluted EPS
0.63
Operating cash flow
$3.52M
Free cash flow
$2.71M
Fetching…
Sources
Revenue
$13.28M
Net income
$1.56M
Diluted EPS
0.53
Operating cash flow
$2.85M
Free cash flow
$2.04M
Fetching…
Sources
Revenue
$12.73M
Net income
$1.63M
Diluted EPS
0.56
Operating cash flow
$1.61M
Free cash flow
$1.02M
Fetching…
Sources
Revenue
$12.80M
Net income
$2.14M
Diluted EPS
0.73
Operating cash flow
$1.81M
Free cash flow
$1.39M
Fetching…
Sources
Revenue
$13.21M
Net income
$2.27M
Diluted EPS
0.81
Operating cash flow
$2.25M
Free cash flow
$1.77M
Fetching…
Sources
Is it cheap or expensive?
Fair value $84.96 vs current price $57.30
Wall Street consensus is the average analyst price target: $89.00 (4.7% higher than our fair-value estimate).
Our most-likely fair value is $84.96 a share — about 48.3% above today's price of $57.30, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $96.9M - more cash than debt. Interest coverage 935.5x.
Net debt
$-96.87M
Interest coverage
935.55x
M-tron Industries, Inc.'s profit covers its interest bill about 935.5 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
MPTI
BASELINE
M-tron Industries, Inc.
Total debt $132.00K Interest coverage 935.55x This is the baseline the peer rows are being compared against.
Total debt $4.34M Interest coverage -0.65x -100% vs MPTI This peer has almost no interest-payment cushion compared with MPTI.
Total debt $3.52M Interest coverage 10.35x -99% vs MPTI Carries about 90.4x less debt cushion than MPTI.
Total debt $88.77M Interest coverage 19.50x -98% vs MPTI Carries about 48.0x less debt cushion than MPTI.
Total debt $1.16M Interest coverage -13.30x -100% vs MPTI This peer has almost no interest-payment cushion compared with MPTI.
Total debt $197.63M Interest coverage 3.65x -100% vs MPTI Carries about 256.7x less debt cushion than MPTI.
What you should know
The case for and against MPTI
3 Rewards
2 Risks
Rewards
-
Revenue grew 6.9% last year.
-
Returns 12.4% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 9.6% above its 5-year average P/E.
-
Insider ownership is only 5.7% (peer median: 6.1%).
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)
22.47x
Forward P/E
19.66x
P/B
2.10x
P/S
4.28x
EV/EBITDA
12.74x
PEG ratio
0.99x
Profitability
How much profit each dollar creates
Gross margin
44.3%
Operating margin
11.4%
Net margin
16.3%
ROE
12.4%
ROA
8.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.00x
Current ratio
16.63x
Quick ratio
14.85x
Total debt
$132.00K
Total cash
$97.00M
Growth
How the business has been compounding
Revenue TTM
$58.20M
Revenue 5Y CAGR
19.6%
EPS TTM
2.55
EPS 5Y CAGR
57.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$12.02M
Free CF TTM
$8.11M
FCF margin
13.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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