Espey Mfg. & Electronics Corp. (ESP)
Valuation Overview•Is Espey Mfg. & Electronics Corp. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 73/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street sentiment is generally neutral. However, capital return yields remain modest, anchored by a strong, well-covered dividend yield.
ESP demonstrates strong business quality with robust profitability and healthy margins. This is backed by a fortress balance sheet, holding significant net cash ($19M) and minimal debt risk.
The company demonstrates solid revenue growth (11.0% 3Y CAGR) paired with highly explosive earnings growth (79.7% EPS 3Y CAGR). This growth is supported by elite operational efficiency, sustaining an impressive 25.4% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $11.4M | +13.5% | +11.0% | +6.9% | +5.1% | |
| EBITDA | $3.1M | — | +61.8% | — | — | |
| Net Income | $2.9M | +40.0% | +86.0% | — | +9.8% | |
| EPS (Diluted) | $0.99 | +31.9% | +79.7% | +43.9% | +8.1% | |
| Free Cash Flow | $3.2M | +206.1% | +105.5% | +23.6% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 36.5% | 26.3% | 21.6% | 21.6% |
| Operating Margin | 25.4% | 15.8% | 10.1% | 9.6% |
| Net Margin | 25.5% | 14.6% | 9.4% | 8.3% |
| FCF Margin | 10.4% | 20.5% | 13.9% | 11.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.88 | $0.99 | +12.5% | ||
| Q1'26 | $0.76 | $0.99 | +30.3% | ||
| Q4'25 | $0.67 | $0.76 | +13.4% | ||
| Q3'25 | — | $1.05 | — | ||
| Q2'25 | — | $0.63 | — | ||
| Q1'25 | — | $0.71 | — | ||
| Q4'24 | — | $0.61 | — | ||
| Q3'24 | — | $0.73 | — |
Total return is +53.2% (1Y), outperforming the benchmark by +28.2%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +31.1% | +21.8% | — |
| 1Y | +53.2% | +28.2% | +4.3% |
| 3YCAGR | +54.7% | +33.9% | +20.2% |
| 5YCAGR | +34.1% | +21.0% | +24.3% |
| 10YCAGR | +10.3% | -3.3% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Espey Mfg. & Electronics Corp. (ESP) valuation, health, and returns.
Based on peer relative multiples, Espey Mfg. & Electronics Corp. appears Cheap versus peers compared to industry peers.
Espey Mfg. & Electronics Corp. has multiple valuation anchors: Peer Relative Fair Value: $226.81. A convergence of these signals offers higher conviction.
Espey Mfg. & Electronics Corp. displays good financial health with a composite quality score of 73/100, supported by a Altman Z-Score of 6.0 (safe zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 17.7%.
Espey Mfg. & Electronics Corp. pays a 1.6% dividend yield, covered by a 32% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
Espey Mfg. & Electronics Corp.'s current growth trajectory is Accelerating. The company achieved +13.5% 1Y revenue growth and +31.9% 1Y EPS growth, compared to its 3Y revenue CAGR of +11.0%.
Wall Street consensus is Hold based on 3 analysts, beating EPS expectations in 33% of recent quarters with a 3-quarter streak. The consensus price target represents a N/A change from current levels.
Investment risks for Espey Mfg. & Electronics Corp. include: -30.7% 1-year max drawdown. Volatility risk is characterized by a beta of 0.74x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.