NORTECH SYSTEMS INC (NSYS)
US6565531042 - Common Stock
NSYS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 127 industry peers in the Electronic Equipment, Instruments & Components industry. Both the profitability and the financial health of NSYS get a neutral evaluation. Nothing too spectacular is happening here. NSYS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NSYS had positive earnings in the past year.
NSYS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: NSYS reported negative net income in multiple years.
Of the past 5 years NSYS 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.15%, NSYS belongs to the top of the industry, outperforming 89.68% of the companies in the same industry.
With an excellent Return On Equity value of 19.44%, NSYS belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
NSYS has a Return On Invested Capital of 9.68%. This is in the better half of the industry: NSYS outperforms 73.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NSYS is below the industry average of 9.44%.
The last Return On Invested Capital (9.68%) for NSYS is above the 3 year average (7.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.15% | ||
| ROE | 19.44% | ||
| ROIC | 9.68% |
ROA(3y)7.59%
ROA(5y)3.64%
ROE(3y)18.05%
ROE(5y)8.03%
ROIC(3y)7.37%
ROIC(5y)N/A
1.3 Margins
NSYS has a better Profit Margin (4.93%) than 69.05% of its industry peers.
NSYS's Profit Margin has improved in the last couple of years.
NSYS's Operating Margin of 4.27% is in line compared to the rest of the industry. NSYS outperforms 58.73% of its industry peers.
NSYS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 16.58%, NSYS is doing worse than 69.05% of the companies in the same industry.
NSYS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.27% | ||
| PM (TTM) | 4.93% | ||
| GM | 16.58% |
OM growth 3YN/A
OM growth 5Y32.2%
PM growth 3YN/A
PM growth 5Y94.69%
GM growth 3Y21.18%
GM growth 5Y7.17%
2. Health
2.1 Basic Checks
NSYS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, NSYS has about the same amount of shares outstanding.
NSYS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NSYS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.70 indicates that NSYS is not in any danger for bankruptcy at the moment.
The Altman-Z score of NSYS (3.70) is better than 69.05% of its industry peers.
NSYS has a debt to FCF ratio of 13.15. This is a negative value and a sign of low solvency as NSYS would need 13.15 years to pay back of all of its debts.
NSYS has a Debt to FCF ratio (13.15) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.17 indicates that NSYS is not too dependend on debt financing.
NSYS has a Debt to Equity ratio (0.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 13.15 | ||
| Altman-Z | 3.7 |
ROIC/WACC1.05
WACC9.18%
2.3 Liquidity
A Current Ratio of 2.21 indicates that NSYS has no problem at all paying its short term obligations.
The Current ratio of NSYS (2.21) is comparable to the rest of the industry.
A Quick Ratio of 1.40 indicates that NSYS should not have too much problems paying its short term obligations.
The Quick ratio of NSYS (1.40) is worse than 60.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
NSYS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 240.17%, which is quite impressive.
Measured over the past years, NSYS shows a very strong growth in Earnings Per Share. The EPS has been growing by 108.81% on average per year.
The Revenue has been growing slightly by 3.88% in the past year.
NSYS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.20% yearly.
EPS 1Y (TTM)240.17%
EPS 3YN/A
EPS 5Y108.81%
EPS growth Q2Q1262.45%
Revenue 1Y (TTM)3.88%
Revenue growth 3Y10.2%
Revenue growth 5Y4.2%
Revenue growth Q2Q1.22%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.31, the valuation of NSYS can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of NSYS indicates a rather cheap valuation: NSYS is cheaper than 96.03% of the companies listed in the same industry.
NSYS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.25.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.31 | ||
| Fwd PE | N/A |
4.2 Price Multiples
87.30% of the companies in the same industry are more expensive than NSYS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NSYS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 98.24 | ||
| EV/EBITDA | 6.64 |
4.3 Compensation for Growth
NSYS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.07
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for NSYS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NORTECH SYSTEMS INC
NASDAQ:NSYS (4/24/2024, 7:19:52 PM)
17.39
+0.27 (+1.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap47.65M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.31 | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.15% | ||
| ROE | 19.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.27% | ||
| PM (TTM) | 4.93% | ||
| GM | 16.58% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)240.17%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next YN/A
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.88%
Revenue growth 3Y10.2%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y