One-glance verdict
Undervalued
$33.96 our estimate vs market $22.47
34% below our estimate, below the bear case
Fundamentals snapshot
George Risk Industries, Inc.
RSKIA · PNK · Industrials · Security & Protection Services
Current price
$22.47
52-week range
$15.50 - $23.83
Market cap
$109.84M
Balance sheet
Healthy
3,550.00x Strong cushion
Net cash $50.29M. 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 3.8% last year.
- Reward Free cash flow was positive in 9/10 years.
- Reward Dividend yield is 5.6% with 22-year payout history.
- Risk Stock trades 18.6% above its 5-year average P/E.
What this company does
George Risk Industries, Inc.
George Risk Industries makes and sells electronic components, focusing mainly on security alarm sensors for things like doors and windows, along with custom computer keyboards. The company sells these parts in bulk to security system installers and other manufacturers rather than directly to individual customers. This means its business often depends on the health of the construction and security industries, as more new buildings or security upgrades can lead to more sales.
How the company got here
George Risk Industries was founded in Nebraska in 1965 by its namesake, George Risk, and is still controlled by the Risk family today. [1, 3] The company started out making electronic components called reed switches, but soon expanded into the security products that are its main business. [1] A key turning point was in 2017 when it purchased another company called Labor Saving Devices, Inc., which added a new line of tools for installing wires and cables. [2] This acquisition helped the company broaden its offerings beyond just security components. The founder's granddaughter now runs the company, continuing its long history as a family-led business. [1]
What it actually does
The company makes a variety of electronic parts that are mostly used in security systems for buildings. [2] Think of the little sensors on doors and windows that trigger an alarm; George Risk Industries makes those, along with alarms for swimming pools and sensors that can detect water leaks. [20] They also produce specialty items like custom computer keyboards and panic buttons you might see in a bank. [19] Beyond security, they manufacture tools that professionals use to run wires and cables through walls when setting up alarm systems or home theaters. [2] These products are sold to distributors, who then sell them to professional installers for use in homes, businesses, and government facilities. [12]
Security Alarm Products
This is the company's largest and most important business, making up the vast majority of its sales (about 92% of revenue, or the money it brings in from sales). [5] This segment creates a wide range of sensors and switches that form the backbone of security systems. [2] This includes contacts that detect when a door or window is opened, alarms that sound when someone enters a pool area, and environmental sensors that can alert you to water leaks or extreme temperatures. [20] The customers are typically security alarm distributors, who buy these components in bulk to sell to the professional installers who visit homes and businesses. [1]
Cable & Wiring Tools
This part of the company, which makes up a small slice of the business (around 7% of revenue), sells specialized tools for professional installers. [5] This business was added when the company bought Labor Saving Devices, Inc. in 2017. [2] The tools are designed to make the job of running wires and cables for security, communication, or audio/visual systems faster and easier. [1] For example, they sell long flexible rods that help installers fish wires through walls without having to cut large holes. Installers in various industries buy these products to save time and effort on the job. [2]
Other Products
This is the smallest part of the company, representing only about 1% of its total revenue (the total amount of money generated from sales). [5] This segment includes a variety of different electronic components. [1] The most notable products in this category are custom-designed computer keyboards and keypads. [2] These are often made for specific industrial or commercial uses rather than for the average home computer user. [2]
What management is betting on now
The company is focusing heavily on creating new and more advanced security products. [11] This includes developing high-security sensors for sensitive places like government buildings and military bases, as well as explosion-proof switches for hazardous industrial locations. [11] They are also working to make more of their products wireless and compatible with modern smart-home systems. [4] Management sees significant growth in sales to commercial and industrial customers and is working to increase production to meet the high demand for its heavy-duty products. [14] To keep up, the company is also investing in automating its manufacturing process to make production faster and more efficient. [22]
Price history
How the share price has moved
—
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
$27.00K
FY2025 Q3
$598.00K
FY2025 Q4
$1.10M
FY2026 Q1
$2.01M
FY2026 Q2
$1.19M
FY2026 Q3
$253.00K
FY2026 Q4
$847.00K
FY2027 Q1
$1.93M
Revenue
$6.85M
Net income
$2.19M
Diluted EPS
0.45
Operating cash flow
$1.94M
Free cash flow
$1.93M
Fetching…
Sources
Revenue
$6.96M
Net income
$2.77M
Diluted EPS
0.56
Operating cash flow
$1.10M
Free cash flow
$847.00K
Fetching…
Sources
Revenue
$5.66M
Net income
$2.48M
Diluted EPS
0.51
Operating cash flow
$253.00K
Free cash flow
$253.00K
Fetching…
Sources
Revenue
$6.33M
Net income
$2.34M
Diluted EPS
0.48
Operating cash flow
$1.19M
Free cash flow
$1.19M
Fetching…
Sources
Revenue
$5.90M
Net income
$3.79M
Diluted EPS
0.77
Operating cash flow
$2.14M
Free cash flow
$2.01M
Fetching…
Sources
Revenue
$6.23M
Net income
$606.00K
Diluted EPS
0.12
Operating cash flow
$1.13M
Free cash flow
$1.10M
Fetching…
Sources
Revenue
$4.91M
Net income
$1.61M
Diluted EPS
0.33
Operating cash flow
$649.00K
Free cash flow
$598.00K
Fetching…
Sources
Revenue
$5.61M
Net income
$2.21M
Diluted EPS
0.45
Operating cash flow
$230.00K
Free cash flow
$27.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value $33.96 vs current price $22.47
Our most-likely fair value is $33.96 a share — about 51.2% above today's price of $22.47, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $50.3M - more cash than debt. Interest coverage 3550.0x.
Net debt
$-50.29M
Interest coverage
3,550.00x
George Risk Industries, Inc. is healthier than 0 of 1 peers on balance-sheet leverage.
Healthy
Worse cushion
Baseline
Better cushion
RSKIA
BASELINE
George Risk Industries, Inc.
Total debt $0.00 Interest coverage 3,550.00x This is the baseline the peer rows are being compared against.
What you should know
The case for and against RSKIA
3 Rewards
1 Risk
Rewards
-
Revenue grew 3.8% last year.
-
Free cash flow was positive in 9/10 years.
-
Dividend yield is 5.6% with 22-year payout history.
Risks
-
Stock trades 18.6% above its 5-year average P/E.
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)
11.23x
Forward P/E
—
P/B
1.74x
P/S
4.26x
EV/EBITDA
7.97x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
47.1%
Operating margin
27.8%
Net margin
37.9%
ROE
15.5%
ROA
6.2%
Health
Liquidity and balance-sheet strength
Debt / equity
—
Current ratio
14.58x
Quick ratio
11.71x
Total debt
$0.00
Total cash
$50.29M
Growth
How the business has been compounding
Revenue TTM
$25.80M
Revenue 5Y CAGR
4.6%
EPS TTM
2.00
EPS 5Y CAGR
34.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$4.48M
Free CF TTM
$4.29M
FCF margin
16.6%
Dividend
Shareholder payout
Yield
5.6%
Payout ratio
50.0%
Last ex-div date
2026-09-30