New Risk • May 29
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of American stocks, typically moving 10% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (10% average weekly change). Market cap is less than US$100m (US$38.9m market cap). Valuation Update With 7 Day Price Move • May 28
Investor sentiment improves as stock rises 34% After last week's 34% share price gain to US$16.36, the stock trades at a trailing P/E ratio of 44.4x. Average trailing P/E is 30x in the Electronic industry in the US. Total returns to shareholders of 70% over the past three years. Reported Earnings • May 15
First quarter 2026 earnings released: US$0.012 loss per share (vs US$0.48 loss in 1Q 2025) First quarter 2026 results: US$0.012 loss per share (improved from US$0.48 loss in 1Q 2025). Revenue: US$30.3m (up 13% from 1Q 2025). Net loss: US$34.0k (loss narrowed 97% from 1Q 2025). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 75 percentage points per year, which is a significant difference in performance. Buy Or Sell Opportunity • May 14
Now 27% undervalued Over the last 90 days, the stock has risen 29% to US$12.11. The fair value is estimated to be US$16.64, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 6.3% over the last 3 years. Meanwhile, the company became loss making. Ankündigung • May 07
Nortech Systems Incorporated to Report Q1, 2026 Results on May 14, 2026 Nortech Systems Incorporated announced that they will report Q1, 2026 results on May 14, 2026 Buy Or Sell Opportunity • Apr 28
Now 23% undervalued Over the last 90 days, the stock has risen 56% to US$13.75. The fair value is estimated to be US$17.78, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 6.3% over the last 3 years. Meanwhile, the company became loss making. Buy Or Sell Opportunity • Apr 12
Now 22% undervalued Over the last 90 days, the stock has risen 81% to US$13.78. The fair value is estimated to be US$17.76, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 6.3% over the last 3 years. Meanwhile, the company became loss making. Ankündigung • Apr 08
Nortech Systems Incorporated Launches Power over Fiber Technology Platform for EMI-Sensitive Applications Nortech Systems Incorporated announced the launch of its Power over Fiber technology platform. Power over Fiber addresses a critical engineering challenge by delivering reliable power and data through optical fiber cable, eliminating the need for a separate local power source. Using optical fiber instead of copper, the platform removes electrical noise and ground loops while providing electromagnetic interference (EMI) immunity, electrical isolation, and a lighter, more sustainable solution for long-distance power delivery across mission-critical applications, such as power transmission in medical, aerospace, low-orbit, subsea, defense and industrial applications. The technology offers four core advantages over conventional copper power solutions: EMI immunity and shielding, full electrical isolation, a reduced overall cable footprint, and the ability to deliver power over longer distances to remote optical components. The Power over Fiber platform is suited to a broad range of demanding use cases. In medical settings, Power over Fiber supports diagnostic imaging systems, including MRI, as well as surgical environments where minimizing EMI is critical to patient safety and device performance. In aerospace and defense, Power over Fiber is well-suited for satellites, aircraft, and military hardware. Underwater and subsea deployments also benefit from the platform, as optical fiber is lighter and more corrosion-resistant than copper in those environments. Industrial automation applications — including robotics and high-voltage factory environments — can use Power over Fiber to power remote actuators, cameras, and controllers without introducing electrical noise. By removing the dependency on copper for power delivery, Nortech's Power over Fiber platform also offers a more sustainable and space-efficient solution for engineers working within tight design constraints, including embedded systems, lighting, machine vision and motor control applications. This launch reflects Nortech's continued investment to help customers solve their most complex challenges with fiber optic innovation, building on the Company’s established capabilities in complex cable and harness assemblies, printed circuit board assemblies, and system-level integration. Ankündigung • Apr 02
Nortech Systems Incorporated, Annual General Meeting, May 13, 2026 Nortech Systems Incorporated, Annual General Meeting, May 13, 2026. Ankündigung • Mar 24
Nortech Systems Incorporated to Report Q4, 2025 Results on Mar 27, 2026 Nortech Systems Incorporated announced that they will report Q4, 2025 results at 9:30 AM, US Eastern Standard Time on Mar 27, 2026 Ankündigung • Jan 07
Nortech Systems Incorporated Announces Executive Changes Nortech Systems Incorporated announced that Andrew Walko has been named Senior Vice President of Global Operations. Walko has extensive experience in the medical device industry including top-level executive roles at Sanuwave and Biomerics, as well as senior manufacturing operations leadership roles at Minnetronix. In his new role, Walko will replace John Lindeen, who is retiring in the first quarter of 2026, and will be responsible for overseeing the Company's global operations, including Nortech's facilities in the U.S., Mexico and China, as well as the Company’s global supply chain, new product introductions, production planning and on-time delivery. Walko will work closely with Nortech's senior leadership team and board of directors to optimize the Company’s near-shoring strategy and manufacturing capacity while minimizing risk and driving performance improvement. Walko will focus on partnering closely with customers to drive shorter lead times, tailored on-time delivery strategies, high quality standards, supply chain risk mitigation, and cost productivity, along with deeper innovative customer partnerships that are fundamental to Nortech’s long-term growth. Reported Earnings • Nov 16
Third quarter 2025 earnings released: US$0.052 loss per share (vs US$0.27 loss in 3Q 2024) Third quarter 2025 results: US$0.052 loss per share (improved from US$0.27 loss in 3Q 2024). Revenue: US$30.5m (down 2.9% from 3Q 2024). Net loss: US$146.0k (loss narrowed 80% from 3Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 46 percentage points per year, which is a significant difference in performance. New Risk • Nov 16
New major risk - Revenue and earnings growth Earnings have declined by 5.8% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 5.8% per year over the past 5 years. Minor Risk Market cap is less than US$100m (US$20.4m market cap). Ankündigung • Nov 05
Nortech Systems Incorporated to Report Q3, 2025 Results on Nov 13, 2025 Nortech Systems Incorporated announced that they will report Q3, 2025 results on Nov 13, 2025 Ankündigung • Sep 16
Nortech Systems Achieves Enhanced Fiber Optic Performance Nortech Systems Incorporated announced significant advancements in its fiber optic capabilities. The Company has successfully achieved low insertion loss of 0.35dB per mated pair using US Conec's Multimode MT Elite®? ferrules, positioning Nortech to deliver superior performance in mission-critical applications across medical imaging, medical devices, aerospace, and defense markets. Low insertion loss is a critical factor in ensuring optimal performance and reliability within high-precision applications. A lower insertion loss minimizes the amount of signal degradation as light passes through mated fiber optic connections, thereby preserving signal strength and fidelity. This is especially significant in mission-critical environments such as medical imaging and aerospace, where even minor signal loss could impact the accuracy of data transmission or device functionality. By achieving an insertion loss of 0.35 dB per mated pair, Nortech ensures higher data throughput, enhanced system reliability, and reduced risk of operational disruptions, meeting the demanding requirements of industries that depend on absolute precision and consistency. Through comprehensive hands-on training with US Conec's components and guidance directly from the manufacturer, Nortech's engineering team has developed expertise in best practices and advanced techniques for achieving reliable fiber optic connections. This enhanced capability enables the Company to deliver optimized solutions for 10G applications, meeting the increasing demand for high-speed data transmission in critical environments. The MT Elite®? ferrule provide exceptional performance characteristics optimized for high-density applications where space and weight constraints are critical. The advanced ferrule technology ensures consistent, low-loss connections essential for maintaining signal integrity in complex systems. This capability expansion strengthens Nortech's position as a strategic partner for customers requiring cutting-edge interconnect solutions. Nortech's investment in fiber optic technology aligns with industry trends toward lighter, faster, and more sustainable connectivity solutions. The company's vertically integrated manufacturing capabilities enable seamless integration of these advanced components into complete cable assemblies and system-level solutions, providing customers with end-to-end support from concept through production. The validation process involved extensive training on US Conec's component specifications, process instructions, assembly techniques, and quality guidelines. This comprehensive approach along with Nortech's investment in top tier equipment ensures Nortech can consistently deliver the high-performance connections required for next-generation applications in medical imaging systems, defense communications, aerospace avionics, and other mission-critical environments. Ankündigung • Aug 22
Nortech Systems Incorporated Announces Retirement of John Lindeen as Senior Vice President, Global Operations On August 18, 2025, Senior Vice President, Global Operations John Lindeen notified Nortech Systems Incorporated (the Company) of his intention to retire and resign. The resignation is not due to any disagreement with the Company or the Company’s operations, policies, or procedures. He will remain Senior Vice President, Global Operations for the remainder of 2025 and into the first quarter of 2026. The Company has initiated a search for a permanent replacement. Reported Earnings • Aug 08
Second quarter 2025 earnings released: EPS: US$0.11 (vs US$0.057 in 2Q 2024) Second quarter 2025 results: EPS: US$0.11 (up from US$0.057 in 2Q 2024). Revenue: US$30.7m (down 9.5% from 2Q 2024). Net income: US$313.0k (up 99% from 2Q 2024). Profit margin: 1.0% (up from 0.5% in 2Q 2024). Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Ankündigung • Jul 30
Nortech Systems Incorporated to Report Q2, 2025 Results on Aug 07, 2025 Nortech Systems Incorporated announced that they will report Q2, 2025 results on Aug 07, 2025 Reported Earnings • May 15
First quarter 2025 earnings released: US$0.48 loss per share (vs US$0.28 profit in 1Q 2024) First quarter 2025 results: US$0.48 loss per share (down from US$0.28 profit in 1Q 2024). Revenue: US$26.9m (down 21% from 1Q 2024). Net loss: US$1.32m (down 272% from profit in 1Q 2024). Over the last 3 years on average, earnings per share has fallen by 50% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Ankündigung • May 10
Nortech Systems Incorporated to Report Q1, 2025 Results on May 14, 2025 Nortech Systems Incorporated announced that they will report Q1, 2025 results on May 14, 2025 Ankündigung • Apr 16
Nortech Expands Fiber Optic Capabilities to Include MT Connectors, Strengthening Aerospace and Defense Solutions Nortech Systems announced expansion in its fiber optic capabilities with the integration of MT connectors. MT connectors, known for their ability to support multiple fiber terminations in a compact form factor, are an ideal choice for applications requiring robust data transmission and reliability. By incorporating these advanced connectors into its offerings, Nortech provides customers with superior scalability and flexibility for their complex connectivity in rugged and harsh environments. Nortech Systems continues to invest in research and development to reimagine fiber optic technology to meet the growing demands for lighter, faster, and more sustainable solutions. The company is developing technology platforms that reduce material usage, increase data speeds, and improve energy efficiency. These initiatives align with Nortech's commitment to delivering high-performance products that support next-generation applications while reducing environmental impact, ensuring a forward-thinking approach to connectivity. Engineered for high-density data applications, MT connectors can handle up to 24 fiber strands in a compact and lightweight design. Their advanced performance characteristics, including low insertion loss and high reliability, make them the ideal solution for mission-critical applications such as avionics, cybersecure networks, surveillance systems, and body-worn technology for defense personnel. MT connectors are purpose-built to meet the stringent demands of industries like aerospace and defense. Notages include: High Data Transmission: Capable of managing up to 24 fiber strands, ideal for data-heavy applications. Compact Design: Saves space and reduces weight--both critical constraints in aerospace and defense. Reliability: Supports efficient and consistent performance with reduced downtime. Powering Advanced Applications in Aerospace and Defense: The adoption of MT connectors positions Nortech to support various cutting-edge applications, including but not limited to: Avionics Systems: High-density lightweight connectivity for next-gen aircraft. Cybersecure Networks: Enhanced resilience with improved data security. Robotics and Surveillance Systems: Reliable solutions for advanced automation and monitoring systems. Ankündigung • Apr 09
Nortech Announces New Patent for Non-Magnetic Expanded Beam Fiber Optic Cable Technology Nortech Systems announced its latest innovation, a patent for non-magnetic expanded beam fiber optic cables. This revolutionary technology platform reimagines connectivity as lighter, faster, and more sustainable while ruggedized for superior performance in the most demanding environments. The patented non-magnetic expanded beam technology introduces a hybrid solution that seamlessly integrates electro-optical and electrical elements, making it the ideal choice for industries requiring precision, durability, and reliability. From medical imaging systems to aerospace and military applications, this innovation sets a new benchmark for high-speed, high-performance data transmission. Unlike traditional physical contact connectors, Nortech's expanded beam fiber optic cables utilize advanced lenses to expand, collimate, and refocus light beams. Key benefits include reduced contamination impact, enhanced reliability, and improved insertion loss performance. Built with robust precision-lens technology and non-magnetic materials like aluminum, titanium, and silver, the solution achieves outstanding durability with reliable performance in high magnetic-field environments such as MRI systems. The imposition of tariffs may significantly impact contract manufacturers with facilities in China and Mexico, including Nortech. This non-magnetic expanded beam Fiber optic technology offers unmatched versatility, serving critical industries including: Medical Imaging - Reliable, interference-free data transmission for MRI systems and other advanced imaging applications. Aerospace and Military - Robust, vibration-resistant communication systems for challenging environments. Industrial and Oil & Gas - Durable connections that withstand harsh conditions and extreme temperatures. Commitment to Sustainability and Innovation: Nortech's new patent represents a significant step toward sustainability. By reducing maintenance needs while improving durability and performance, this technology is lighter and faster than copper-interconnect solutions, significantly contributing to environmentally conscious engineering practices while helping Nortech's customers reduce their overall carbon footprint. Through constant innovation and commitment to sustainability, Nortech continues to set new standards in the fiber optic and data connectivity industries. Reported Earnings • Mar 31
Full year 2024 earnings released: US$0.47 loss per share (vs US$2.53 profit in FY 2023) Full year 2024 results: US$0.47 loss per share (down from US$2.53 profit in FY 2023). Revenue: US$128.1m (down 8.0% from FY 2023). Net loss: US$1.30m (down 119% from profit in FY 2023). Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Reported Earnings • Nov 08
Third quarter 2024 earnings released: US$0.27 loss per share (vs US$0.44 profit in 3Q 2023) Third quarter 2024 results: US$0.27 loss per share (down from US$0.44 profit in 3Q 2023). Revenue: US$31.4m (down 5.9% from 3Q 2023). Net loss: US$739.0k (down 161% from profit in 3Q 2023). Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has remained flat. Ankündigung • Oct 24
Nortech Systems Incorporated to Report Q3, 2024 Results on Nov 07, 2024 Nortech Systems Incorporated announced that they will report Q3, 2024 results on Nov 07, 2024 Board Change • Aug 16
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Director Amy Fredregill was the last independent director to join the board, commencing their role in 2023. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Ankündigung • Jul 30
Nortech Systems Incorporated to Report Q2, 2024 Results on Aug 08, 2024 Nortech Systems Incorporated announced that they will report Q2, 2024 results on Aug 08, 2024 Ankündigung • Jun 18
Nortech Systems Incorporated Appoints Debarati Sen as Board of Director Nortech Systems Incorporated announced the addition of Debarati Sen to the company’s board of directors. Ms. Sen is a highly accomplished global business leader with experience driving transformative business performance through operating and financial expertise. She is currently the Group President for HMTX Industries. Ms. Sen has accelerated growth across diversified industrial and consumer businesses, spearheaded turnarounds, strategic M&A and partnerships, and built deep and diverse teams internationally. Most recently Ms. Sen led the largest division in 3M’s Consumer Business Group with household brands such as Filtrete™ filters, Command™ hanging solutions and ScotchBlue™ tapes, a profitable portfolio of brands totaling $2.8 billion in annual sales. Previously as the president of 3M’s heritage business of Industrial Abrasives, she led the strategy for robotics and automation redefining prior boundaries in the metal fabrication industry and has been in demand as a speaker in diversified industrials and industrial automation forums. As the CEO and Managing Director, she also led 3M India Ltd., 3M Co’s public entity in India from June of 2016 to June of 2019. As Treasurer and Trustee of the Women’s Foundation of Minnesota, Ms. Sen leads the Financial Leadership Committee of that organization. She is also currently serving on the Senior Advisory Board of the Global Women’s Network, Carlson School of Management, University of Minnesota She has a bachelor’s degree in Electronics from Maulana Azad National Institute of Technology in Bhopal, India and an MBA in Marketing and Finance from XLRI Jamshedpur in India. She has also been inducted into the Fortune India, Most Powerful Women list in 2018 and won the Business Standard Star MNC of the Year award in 2017. Ankündigung • Jun 13
Nortech Systems Incorporated (NasdaqCM:NSYS) announces an Equity Buyback for $0.1 million worth of its shares. Nortech Systems Incorporated (NasdaqCM:NSYS) announces a share repurchase program. Under the program, the company will repurchase up to $0.1 million worth of its own shares. Valuation Update With 7 Day Price Move • May 21
Investor sentiment deteriorates as stock falls 30% After last week's 30% share price decline to US$11.06, the stock trades at a trailing P/E ratio of 4.4x. Average trailing P/E is 22x in the Electronic industry in the US. Total returns to shareholders of 74% over the past three years. Ankündigung • May 18
Nortech Systems Incorporated Approves the Appointment of Debarah Sen as Director Nortech Systems Incorporated at its annual meeting of shareholders held on May 15, 2024, approved the appointment of Debarah Sen as director. Reported Earnings • May 16
First quarter 2024 earnings released: EPS: US$0.28 (vs US$0.25 in 1Q 2023) First quarter 2024 results: EPS: US$0.28 (up from US$0.25 in 1Q 2023). Revenue: US$34.2m (down 1.9% from 1Q 2023). Net income: US$765.0k (up 12% from 1Q 2023). Profit margin: 2.2% (up from 2.0% in 1Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 06
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to US$15.18, the stock trades at a trailing P/E ratio of 6.1x. Average trailing P/E is 20x in the Electronic industry in the US. Total returns to shareholders of 158% over the past three years. Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to US$17.51, the stock trades at a trailing P/E ratio of 7x. Average trailing P/E is 19x in the Electronic industry in the US. Total returns to shareholders of 161% over the past three years. Reported Earnings • Mar 21
Third quarter 2023 earnings released: EPS: US$0.44 (vs US$0.57 in 3Q 2022) Third quarter 2023 results: EPS: US$0.44 (down from US$0.57 in 3Q 2022). Revenue: US$33.4m (down 5.4% from 3Q 2022). Net income: US$1.21m (down 21% from 3Q 2022). Profit margin: 3.6% (down from 4.3% in 3Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 21
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to US$13.40, the stock trades at a trailing P/E ratio of 17.1x. Average trailing P/E is 19x in the Electronic industry in the US. Total returns to shareholders of 99% over the past three years. Ankündigung • Mar 19
Nortech Systems Incorporated to Report Q4, 2023 Results on Mar 20, 2024 Nortech Systems Incorporated announced that they will report Q4, 2023 results on Mar 20, 2024 Ankündigung • Jan 26
Nortech Systems Incorporated Expands Fiber Optic Capabilities with Innovative Expanded Beam Xtreme Technology Nortech Systems Incorporated announced the expansion of its innovative fiber optic technologies with the addition of Expanded Beam Xtreme (EBXTM). EBX is a revolutionary fiber optic technology utilizing expanded beam connectors to provide superior performance and reliability. Fiber optic interconnect solutions are particularly well-suited for digital data transmission applications in challenging environments demanding high speeds, unreitting reliability and immunity to electromagnetic interference (EMI) and radio frequency interference (RFI). This technology is designed to survival very rugged conditions making it ideal for medical, industrial, as well as aerospace and defense applications. With the addition of EBX, Nortech Systems is now able to offer customers a wide range of fiber optic technologies, from traditional and tactical-grade multi-mode fiber to the latest in expanded beam and active optical technology. Nortech recently invested in a clean room, dedicated specifically to advancing fiber optic technology research and development. Reported Earnings • Nov 10
Third quarter 2023 earnings released: EPS: US$0.44 (vs US$0.57 in 3Q 2022) Third quarter 2023 results: EPS: US$0.44 (down from US$0.57 in 3Q 2022). Revenue: US$33.4m (down 5.4% from 3Q 2022). Net income: US$1.21m (down 21% from 3Q 2022). Profit margin: 3.6% (down from 4.3% in 3Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. Ankündigung • Nov 03
Nortech Systems Incorporated Elects Two New Members to Board of Directors Nortech Systems Incorporated announced two new members were elected to Nortech’s board of directors. Amy Fredregill and Jose Peris bring a wealth of experience and expertise to the Board, and will be instrumental in helping Nortech drive shareholder value. Amy Fredregill has over 25 years of impact across industries, particularly advising the C-suite of energy, food and agricultural companies as well as governmental entities. She has a track record of working with leaders to drive shareholder value, and is skilled in business model transformation, scaling and succession planning. Amy has deep expertise in sustainability and environmental planning for organizations. Amy has a bachelor's degree in Economics from the College of Saint Benedict and a master's degree in Public Policy from George Washington University. Jose Peris has extensive experience in finance and wealth management, including financial planning, investment consulting, private banking, trust and estate services. He is well-versed in corporate governance, risk management, education, and stewardship. Jose holds the equivalent of a bachelor’s degree in Economics from Universidad Autónoma de Madrid in Spain and carries both a master’s degree and Ph.D. in Economics from the University of Minnesota. Ankündigung • Oct 14
Nortech Systems Incorporated to Report Q3, 2023 Results on Nov 08, 2023 Nortech Systems Incorporated announced that they will report Q3, 2023 results on Nov 08, 2023 New Risk • Aug 11
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.1% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Profit margins are more than 30% lower than last year (1.8% net profit margin). Shareholders have been diluted in the past year (2.1% increase in shares outstanding). Market cap is less than US$100m (US$27.2m market cap). Reported Earnings • Aug 10
Second quarter 2023 earnings released: EPS: US$0.23 (vs US$0.27 in 2Q 2022) Second quarter 2023 results: EPS: US$0.23 (down from US$0.27 in 2Q 2022). Revenue: US$35.0m (up 7.7% from 2Q 2022). Net income: US$634.0k (down 12% from 2Q 2022). Profit margin: 1.8% (down from 2.2% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. Ankündigung • Jul 25
Nortech Systems Incorporated to Report Q2, 2023 Results on Aug 09, 2023 Nortech Systems Incorporated announced that they will report Q2, 2023 results on Aug 09, 2023 Valuation Update With 7 Day Price Move • Jun 24
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to US$9.22, the stock trades at a trailing P/E ratio of 9.8x. Average trailing P/E is 17x in the Electronic industry in the US. Total returns to shareholders of 125% over the past three years. Board Change • May 15
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Stacy Kruse was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • May 11
First quarter 2023 earnings released: EPS: US$0.25 (vs US$0.051 in 1Q 2022) First quarter 2023 results: EPS: US$0.25 (up from US$0.051 in 1Q 2022). Revenue: US$34.9m (up 14% from 1Q 2022). Net income: US$681.0k (up 394% from 1Q 2022). Profit margin: 2.0% (up from 0.4% in 1Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 65% per year but the company’s share price has only increased by 38% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 19
Full year 2022 earnings released: EPS: US$0.75 (vs US$2.69 in FY 2021) Full year 2022 results: EPS: US$0.75 (down from US$2.69 in FY 2021). Revenue: US$134.1m (up 17% from FY 2021). Net income: US$2.01m (down 72% from FY 2021). Profit margin: 1.5% (down from 6.2% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 78% per year but the company’s share price has only increased by 64% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 13
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to US$12.80, the stock trades at a trailing P/E ratio of 4.7x. Average trailing P/E is 17x in the Electronic industry in the US. Total returns to shareholders of 341% over the past three years. Valuation Update With 7 Day Price Move • Dec 12
Investor sentiment deteriorated over the past week After last week's 18% share price decline to US$13.00, the stock trades at a trailing P/E ratio of 4.8x. Average trailing P/E is 16x in the Electronic industry in the US. Total returns to shareholders of 232% over the past three years. Reported Earnings • Nov 10
Third quarter 2022 earnings released: EPS: US$0.57 (vs US$1.33 in 3Q 2021) Third quarter 2022 results: EPS: US$0.57 (down from US$1.33 in 3Q 2021). Revenue: US$35.3m (up 20% from 3Q 2021). Net income: US$1.53m (down 57% from 3Q 2021). Profit margin: 4.3% (down from 12% in 3Q 2021). Over the last 3 years on average, earnings per share has increased by 92% per year but the company’s share price has only increased by 42% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Nov 07
Investor sentiment improved over the past week After last week's 15% share price gain to US$11.66, the stock trades at a trailing P/E ratio of 3.3x. Average trailing P/E is 15x in the Electronic industry in the US. Total returns to shareholders of 332% over the past three years. Valuation Update With 7 Day Price Move • Aug 17
Investor sentiment improved over the past week After last week's 29% share price gain to US$13.22, the stock trades at a trailing P/E ratio of 3.8x. Average trailing P/E is 16x in the Electronic industry in the US. Total returns to shareholders of 295% over the past three years. Reported Earnings • Aug 11
Second quarter 2022 earnings released: EPS: US$0.27 (vs US$0.067 in 2Q 2021) Second quarter 2022 results: EPS: US$0.27 (up from US$0.067 in 2Q 2021). Revenue: US$32.5m (up 7.7% from 2Q 2021). Net income: US$719.0k (up 302% from 2Q 2021). Profit margin: 2.2% (up from 0.6% in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 92% per year but the company’s share price has only increased by 54% per year, which means it is significantly lagging earnings growth. Ankündigung • Jul 20
Nortech Systems Incorporated to Report Q2, 2022 Results on Aug 10, 2022 Nortech Systems Incorporated announced that they will report Q2, 2022 results on Aug 10, 2022 Valuation Update With 7 Day Price Move • Jul 14
Investor sentiment improved over the past week After last week's 20% share price gain to US$16.22, the stock trades at a trailing P/E ratio of 4.9x. Average trailing P/E is 17x in the Electronic industry in the US. Total returns to shareholders of 343% over the past three years. Valuation Update With 7 Day Price Move • Jun 30
Investor sentiment improved over the past week After last week's 19% share price gain to US$14.00, the stock trades at a trailing P/E ratio of 4.2x. Average trailing P/E is 17x in the Electronic industry in the US. Total returns to shareholders of 250% over the past three years. Ankündigung • May 13
Nortech Systems Incorporated Announces David Graff as Board Member Nortech Systems Incorporated announced David Graff was elected to the company’s board of directors. Mr. Graff brings broad experience in financial leadership and global business strategy for companies in a variety of industries. His most recent engagements include companies in digital services, cybersecurity, business services and manufacturing. Mr. Graff retired from Deluxe Corporation in 2019 after 20 years as head of Corporate Development. Reported Earnings • May 12
First quarter 2022 earnings released: EPS: US$0.051 (vs US$0.58 loss in 1Q 2021) First quarter 2022 results: EPS: US$0.051 (up from US$0.58 loss in 1Q 2021). Revenue: US$30.7m (up 39% from 1Q 2021). Net income: US$138.0k (up US$1.69m from 1Q 2021). Profit margin: 0.4% (up from net loss in 1Q 2021). Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has only increased by 47% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 19
Investor sentiment improved over the past week After last week's 16% share price gain to US$11.60, the stock trades at a trailing P/E ratio of 4.3x. Average trailing P/E is 16x in the Electronic industry in the US. Total returns to shareholders of 181% over the past three years. Ankündigung • Apr 02
Nortech Systems Incorporated, Annual General Meeting, May 11, 2022 Nortech Systems Incorporated, Annual General Meeting, May 11, 2022, at 15:00 Central Standard Time. Agenda: To elect eight members of the Board of Directors to serve for a one-year term and until their successors are elected and qualify; to approve, on an advisory basis, the compensation of named executive officers; to approve an amendment to the 2017 Stock Incentive Plan increasing the shares of Common Stock reserved for issuance from 400,000 to 575,000; to ratify the appointment of Baker Tilly US, LLP (FKA: Baker Tilly Virchow Krause, LLP) as the independent registered public accounting firm of the Company for fiscal 2022; and to transact such other business as may properly come before the meeting or any adjournment thereof. Reported Earnings • Nov 12
Third quarter 2021 earnings released: EPS US$1.33 (vs US$0.74 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: US$29.5m (up 12% from 3Q 2020). Net income: US$3.56m (up 81% from 3Q 2020). Profit margin: 12% (up from 7.5% in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 28% per year, which means it is well ahead of earnings. Reported Earnings • Aug 14
Second quarter 2021 earnings released: EPS US$0.067 (vs US$0.046 loss in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: US$30.2m (up 14% from 2Q 2020). Net income: US$179.0k (up US$302.0k from 2Q 2020). Profit margin: 0.6% (up from net loss in 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 39% per year, which means it is well ahead of earnings. Executive Departure • May 18
Independent Director has left the company On the 13th of May, Kathleen Iverson's tenure as Independent Director ended after 6.2 years in the role. We don't have any record of a personal shareholding under Kathleen's name. A total of 2 executives have left over the last 12 months. Reported Earnings • May 15
First quarter 2021 earnings released: US$0.58 loss per share (vs US$0.052 profit in 1Q 2020) The company reported a poor first quarter result with weaker earnings, revenues and control over costs. First quarter 2021 results: Revenue: US$22.1m (down 20% from 1Q 2020). Net loss: US$1.55m (down US$1.69m from profit in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 26% per year whereas the company’s share price has increased by 22% per year. Reported Earnings • Mar 25
Full year 2020 earnings released: US$0.58 loss per share (vs US$0.46 loss in FY 2019) The company reported a poor full year result with increased losses, weaker revenues and weaker control over costs. Full year 2020 results: Revenue: US$104.1m (down 11% from FY 2019). Net loss: US$1.55m (loss widened 26% from FY 2019). Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 31% per year, which means it is significantly lagging earnings growth. Ankündigung • Mar 25
Nortech Systems Incorporated Reports Loss on Impairment of Goodwill for the Fourth Quarter Ended December 31, 2020 Nortech Systems Incorporated reported loss on impairment of Goodwill for the fourth quarter ended December 31, 2020. For the quarter, the company reported loss on Impairment of Goodwill of $2,375,000. Ankündigung • Mar 14
Nortech Systems, Incorporated Announces Board and Committee Changes On March 8, 2021, Kathleen “Kitty” Iverson, a member of the Board of Directors (the “Board”) of Nortech Systems, Incorporated (the “Company”), notified the Board that she would not stand for re-election as a member of the Board for the 2021-2022 period. Ms. Iverson's term as a director and member of the Audit Committee, Compensation and Talent Committee and Nominating and Corporate Governance Committee will end at the conclusion of the annual meeting of shareholders of the Company on May 13, 2021. Ms. Iverson's decision was for personal reasons and not the result of any disagreement with the Company. Ms. Iverson currently serves as the Company’s Audit Committee Chair and will be replaced in that role by Philip I. Smith, a director of the Company. Is New 90 Day High Low • Feb 09
New 90-day high: US$8.65 The company is up 82% from its price of US$4.75 on 09 November 2020. The American market is up 16% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is up 20% over the same period. Valuation Update With 7 Day Price Move • Feb 06
Investor sentiment improved over the past week After last week's 15% share price gain to US$8.35, the stock is trading at a trailing P/E ratio of 9.8x, up from the previous P/E ratio of 8.5x. This compares to an average P/E of 28x in the Electronic industry in the US. Total returns to shareholders over the past three years are 149%. Is New 90 Day High Low • Jan 14
New 90-day high: US$8.42 The company is up 79% from its price of US$4.70 on 16 October 2020. The American market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is up 25% over the same period. Valuation Update With 7 Day Price Move • Jan 13
Investor sentiment improved over the past week After last week's 20% share price gain to US$7.94, the stock is trading at a trailing P/E ratio of 9.3x, up from the previous P/E ratio of 7.8x. This compares to an average P/E of 29x in the Electronic industry in the US. Total returns to shareholders over the past three years are 115%. Valuation Update With 7 Day Price Move • Jan 06
Investor sentiment deteriorated over the past week After last week's 20% share price decline to US$6.60, the stock is trading at a trailing P/E ratio of 7.8x, down from the previous P/E ratio of 9.7x. This compares to an average P/E of 27x in the Electronic industry in the US. Total returns to shareholders over the past three years are 76%. Valuation Update With 7 Day Price Move • Dec 28
Investor sentiment improved over the past week After last week's 16% share price gain to US$6.25, the stock is trading at a trailing P/E ratio of 7.4x, up from the previous P/E ratio of 6.4x. This compares to an average P/E of 25x in the Electronic industry in the US. Total returns to shareholders over the past three years are 62%. Valuation Update With 7 Day Price Move • Dec 24
Investor sentiment improved over the past week After last week's 19% share price gain to US$6.00, the stock is trading at a trailing P/E ratio of 7.1x, up from the previous P/E ratio of 5.9x. This compares to an average P/E of 25x in the Electronic industry in the US. Total returns to shareholders over the past three years are 52%. Is New 90 Day High Low • Dec 17
New 90-day high: US$5.04 The company is up 5.0% from its price of US$4.81 on 18 September 2020. The American market is up 13% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 23% over the same period.