Recent Insider Transactions Derivative • May 17
Independent Director notifies of intention to sell stock Paul Corr intends to sell 3k shares in the next 90 days after lodging an Intent To Sell Form on the 15th of May. If the sale is conducted around the recent share price of US$71.00, it would amount to US$181k. Since June 2025, Paul has owned 20.44k shares directly. Company insiders have collectively sold US$733k more than they bought, via options and on-market transactions in the last 12 months. Reported Earnings • May 14
Third quarter 2026 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2026 results: EPS: US$1.03 (up from US$0.66 in 3Q 2025). Revenue: US$11.4m (up 11% from 3Q 2025). Net income: US$2.86m (up 68% from 3Q 2025). Profit margin: 25% (up from 17% in 3Q 2025). Revenue missed analyst estimates by 13%. Earnings per share (EPS) exceeded analyst estimates by 16%. Revenue is forecast to grow 9.8% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Electrical industry in the US. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has increased by 55% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • Apr 21
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 30% to US$69.91. The fair value is estimated to be US$57.86, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 8.8% over the last 3 years. Earnings per share has grown by 35%. Valuation Update With 7 Day Price Move • Apr 17
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to US$68.52, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 19x in the Electrical industry in the US. Total returns to shareholders of 239% over the past three years. Declared Dividend • Mar 12
Second quarter dividend of US$0.25 announced Shareholders will receive a dividend of US$0.25. Ex-date: 20th March 2026 Payment date: 27th March 2026 Dividend yield will be 3.2%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is well covered by both earnings (49% earnings payout ratio) and cash flows (25% cash payout ratio). The dividend has remained flat since 10 years ago. However, payments have been volatile during that time. EPS is expected to grow by 1.4% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Mar 10
Espey Mfg. & Electronics Corp. Announces Regular Quarterly Cash Dividend, Payable on March 27, 2026 The Board of Directors of Espey Mfg. & Electronics Corp. declared a regular quarterly dividend of $0.25 per share. The dividend will be payable on March 27, 2026 to all shareholders of record on March 20, 2026. Recent Insider Transactions Derivative • Mar 01
Independent Director exercised options to buy US$107k worth of stock. On the 23rd of February, Michael Wool exercised options to buy 2k shares at a strike price of around US$27.21, costing a total of US$50k. This transaction amounted to 11% of their direct individual holding at the time of the trade. Since June 2025, Michael's direct individual holding has increased from 16.50k shares to 19.24k. Company insiders have collectively sold US$786k more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions • Feb 24
Independent Director recently sold US$58k worth of stock On the 19th of February, Michael Wool sold around 1k shares on-market at roughly US$57.90 per share. This transaction amounted to 4.9% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth US$93k. Insiders have been net sellers, collectively disposing of US$651k more than they bought in the last 12 months. Recent Insider Transactions Derivative • Feb 23
Independent Director notifies of intention to sell stock Paul Corr intends to sell 5k shares in the next 90 days after lodging an Intent To Sell Form on the 18th of February. If the sale is conducted around the recent share price of US$60.51, it would amount to US$281k. Since June 2025, Paul has owned 20.44k shares directly. Company insiders have collectively sold US$622k more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions • Feb 17
President recently sold US$59k worth of stock On the 13th of February, David O'Neil sold around 1k shares on-market at roughly US$50.00 per share. This transaction amounted to 3.6% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger sale worth US$93k. David has been a net seller over the last 12 months, reducing personal holdings by US$593k. Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to US$52.41, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 18x in the Electrical industry in the US. Total returns to shareholders of 193% over the past three years. Recent Insider Transactions Derivative • Feb 15
President notifies of intention to sell stock David O'Neil intends to sell 9k shares in the next 90 days after lodging an Intent To Sell Form on the 13th of February. If the sale is conducted around the recent share price of US$51.00, it would amount to US$452k. For the year to June 2019, David's total compensation was 48% salary and 52% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since June 2025, David's direct individual holding has increased from 19.91k shares to 32.98k. Company insiders have collectively sold US$370k more than they bought, via options and on-market transactions in the last 12 months. Reported Earnings • Feb 12
Second quarter 2026 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2026 results: EPS: US$1.02 (up from US$0.74 in 2Q 2025). Revenue: US$12.1m (down 11% from 2Q 2025). Net income: US$2.81m (up 47% from 2Q 2025). Profit margin: 23% (up from 14% in 2Q 2025). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 13%. Earnings per share (EPS) exceeded analyst estimates by 24%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Electrical industry in the US. Over the last 3 years on average, earnings per share has increased by 35% per year whereas the company’s share price has increased by 39% per year. Buy Or Sell Opportunity • Jan 02
Now 20% undervalued Over the last 90 days, the stock has risen 20% to US$46.89. The fair value is estimated to be US$58.70, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has grown by 40%. Board Change • Jan 02
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 3 highly experienced directors. Independent Director Nancy Patzwahl was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Recent Insider Transactions • Dec 31
President recently sold US$93k worth of stock On the 29th of December, David O'Neil sold around 2k shares on-market at roughly US$46.27 per share. This transaction amounted to 5.7% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. David has been a net seller over the last 12 months, reducing personal holdings by US$534k. Recent Insider Transactions • Dec 21
President recently sold US$88k worth of stock On the 19th of December, David O'Neil sold around 2k shares on-market at roughly US$43.75 per share. This transaction amounted to 5.4% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. David has been a net seller over the last 12 months, reducing personal holdings by US$441k. Declared Dividend • Dec 11
First quarter dividend of US$0.25 announced Shareholders will receive a dividend of US$0.25. Ex-date: 19th December 2025 Payment date: 26th December 2025 Dividend yield will be 4.0%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is well covered by both earnings (30% earnings payout ratio) and cash flows (14% cash payout ratio). The dividend has remained flat since 10 years ago. However, payments have been volatile during that time. EPS is expected to grow by 2.9% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Recent Insider Transactions Derivative • Nov 21
President notifies of intention to sell stock David O'Neil intends to sell 5k shares in the next 90 days after lodging an Intent To Sell Form on the 20th of November. If the sale is conducted around the recent share price of US$39.08, it would amount to US$202k. For the year to June 2019, David's total compensation was 48% salary and 52% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since June 2025, David's direct individual holding has increased from 19.91k shares to 36.98k. Company insiders have collectively sold US$233k more than they bought, via options and on-market transactions in the last 12 months. Reported Earnings • Nov 14
First quarter 2026 earnings released: EPS: US$0.80 (vs US$0.63 in 1Q 2025) First quarter 2026 results: EPS: US$0.80 (up from US$0.63 in 1Q 2025). Revenue: US$9.09m (down 13% from 1Q 2025). Net income: US$2.17m (up 36% from 1Q 2025). Profit margin: 24% (up from 15% in 1Q 2025). The increase in margin was driven by lower expenses. Revenue is forecast to grow 6.7% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Electrical industry in the US. Over the last 3 years on average, earnings per share has increased by 40% per year whereas the company’s share price has increased by 41% per year. Announcement • Oct 29
Espey Mfg. & Electronics Corp., Annual General Meeting, Dec 05, 2025 Espey Mfg. & Electronics Corp., Annual General Meeting, Dec 05, 2025. Location: courtyard by marriott, 11 excelsior ave, saratoga springs, new york, United States Valuation Update With 7 Day Price Move • Sep 23
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to US$42.00, the stock trades at a trailing P/E ratio of 15.1x. Average trailing P/E is 30x in the Electrical industry in the US. Total returns to shareholders of 244% over the past three years. New Risk • Sep 21
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 16% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (16% increase in shares outstanding). Reported Earnings • Sep 17
Full year 2025 earnings released: EPS: US$3.14 (vs US$2.34 in FY 2024) Full year 2025 results: EPS: US$3.14 (up from US$2.34 in FY 2024). Revenue: US$44.0m (up 14% from FY 2024). Net income: US$8.14m (up 40% from FY 2024). Profit margin: 19% (up from 15% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 45% per year and the company’s share price has also increased by 45% per year. Recent Insider Transactions Derivative • Sep 15
President exercised options to buy US$263k worth of stock. On the 11th of September, David O'Neil exercised options to buy 5k shares at a strike price of around US$16.54, costing a total of US$83k. This transaction amounted to 16% of their direct individual holding at the time of the trade. Since December 2024, David's direct individual holding has increased from 29.91k shares to 31.16k. Company insiders have collectively sold US$333k more than they bought, via options and on-market transactions in the last 12 months. Declared Dividend • Sep 11
Third quarter dividend of US$1.00 announced Shareholders will receive a dividend of US$1.00. Ex-date: 19th September 2025 Payment date: 26th September 2025 Dividend yield will be 3.5%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is well covered by both earnings (34% earnings payout ratio) and cash flows (14% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. Earnings per share has grown by 37% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Recent Insider Transactions Derivative • Aug 29
President exercised options to buy US$290k worth of stock. On the 27th of August, David O'Neil exercised options to buy 6k shares at a strike price of around US$19.03, costing a total of US$119k. This transaction amounted to 25% of their direct individual holding at the time of the trade. Since September 2024, David's direct individual holding has decreased from 29.91k shares to 24.91k. Company insiders have collectively sold US$416k more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions Derivative • Aug 07
President exercised options to buy US$215k worth of stock. On the 5th of August, David O'Neil exercised options to buy 5k shares at a strike price of around US$13.61, costing a total of US$68k. This transaction amounted to 25% of their direct individual holding at the time of the trade. Since September 2024, David's direct individual holding has decreased from 29.91k shares to 19.91k. Company insiders have collectively sold US$535k more than they bought, via options and on-market transactions in the last 12 months. Valuation Update With 7 Day Price Move • Jul 30
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to US$43.74, the stock trades at a trailing P/E ratio of 16.2x. Average trailing P/E is 27x in the Electrical industry in the US. Total returns to shareholders of 250% over the past three years. Recent Insider Transactions Derivative • Jun 26
President exercised options and sold US$151k worth of stock On the 24th of June, David O'Neil exercised 6k options at a strike price of around US$14.87 and sold these shares for an average price of US$40.01 per share. This trade did not impact their existing holding. For the year to June 2018, David's total compensation was 49% salary and 51% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since September 2024, David's direct individual holding has decreased from 29.91k shares to 20.94k. Company insiders have collectively sold US$645k more than they bought, via options and on-market transactions in the last 12 months. Declared Dividend • Jun 09
Third quarter dividend of US$0.25 announced Shareholders will receive a dividend of US$0.25. Ex-date: 16th June 2025 Payment date: 23rd June 2025 Dividend yield will be 2.7%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is well covered by both earnings (34% earnings payout ratio) and cash flows (14% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. Earnings per share has grown by 37% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Jun 06
Espey Mfg. & Electronics Corp. Declares A Regular Quarterly Dividend, Payable on June 23, 2025 The Board of Directors of Espey Mfg. & Electronics Corp. has declared a regular quarterly dividend of $0.25 per share. The dividend will be payable on June 23, 2025 to all shareholders of record on June 16, 2025. Recent Insider Transactions • Jun 04
President recently sold US$75k worth of stock On the 29th of May, David O'Neil sold around 2k shares on-market at roughly US$38.05 per share. This transaction amounted to 8.6% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger sale worth US$179k. David has been a net seller over the last 12 months, reducing personal holdings by US$315k. Recent Insider Transactions Derivative • May 30
President notifies of intention to sell stock David O'Neil intends to sell 2k shares in the next 90 days after lodging an Intent To Sell Form on the 29th of May. If the sale is conducted around the recent share price of US$38.05, it would amount to US$75k. For the year to June 2018, David's total compensation was 49% salary and 51% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since September 2024, David's direct individual holding has decreased from 29.91k shares to 22.91k. Company insiders have collectively sold US$351k more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions • May 22
President recently sold US$179k worth of stock On the 19th of May, David O'Neil sold around 5k shares on-market at roughly US$35.80 per share. This transaction amounted to 17% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was David's only on-market trade for the last 12 months. Valuation Update With 7 Day Price Move • May 19
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to US$36.50, the stock trades at a trailing P/E ratio of 13.3x. Average trailing P/E is 22x in the Electrical industry in the US. Total returns to shareholders of 169% over the past three years. Reported Earnings • May 14
Third quarter 2025 earnings released: EPS: US$0.66 (vs US$0.41 in 3Q 2024) Third quarter 2025 results: EPS: US$0.66 (up from US$0.41 in 3Q 2024). Revenue: US$10.3m (up 25% from 3Q 2024). Net income: US$1.70m (up 65% from 3Q 2024). Profit margin: 17% (up from 13% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 40% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 15
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to US$29.23, the stock trades at a trailing P/E ratio of 11.8x. Average trailing P/E is 22x in the Electrical industry in the US. Total returns to shareholders of 134% over the past three years. Announcement • Mar 28
Espey Mfg. & Electronics Corp. Announces Funding Award for Capital Improvements Espey Mfg. & Electronics Corp. announced funding award for capital improvements. Espey has been awarded $3.4 million in funding for capital equipment and facility upgrades to enhance domestic industrial capabilities. The funding is part of the U.S. Navy’s initiative to strengthen and sustain the domestic U.S. Surface Combatant Industrial Base. The investment will enable Espey to expand its ability to design, manufacture, test, and deliver electrical power products. This funding is in addition to the $7.4 million received in February 2023 for construction of a new manufacturing facility and enhancements to facility power infrastructure. These investments demonstrate the U.S. Government’s ongoing commitment to bolstering critical domestic manufacturing capability. The work will take place at Espey’s facility in Saratoga Springs, NY, with project completion expected in 2026. Declared Dividend • Mar 13
Second quarter dividend of US$0.25 announced Shareholders will receive a dividend of US$0.25. Ex-date: 21st March 2025 Payment date: 28th March 2025 Dividend yield will be 3.6%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is well covered by both earnings (34% earnings payout ratio) and cash flows (32% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. Earnings per share has grown by 20% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Mar 11
Espey Mfg. & Electronics Corp. Declares Regular Quarterly Dividend, Payable on March 28, 2025 The Board of Directors of Espey Mfg. & Electronics Corp. has declared a regular quarterly dividend of $0.25 per share. The dividend will be payable on March 28, 2025 to all shareholders of record on March 21, 2025. Reported Earnings • Feb 13
Second quarter 2025 earnings released: EPS: US$0.74 (vs US$0.72 in 2Q 2024) Second quarter 2025 results: EPS: US$0.74 (up from US$0.72 in 2Q 2024). Revenue: US$13.6m (up 32% from 2Q 2024). Net income: US$1.91m (up 6.3% from 2Q 2024). Profit margin: 14% (down from 17% in 2Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 55% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Declared Dividend • Dec 12
First quarter dividend of US$0.25 announced Shareholders will receive a dividend of US$0.25. Ex-date: 20th December 2024 Payment date: 27th December 2024 Dividend yield will be 3.1%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is well covered by both earnings (31% earnings payout ratio) and cash flows (48% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. Earnings per share has grown by 18% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 15
First quarter 2025 earnings released: EPS: US$0.63 (vs US$0.44 in 1Q 2024) First quarter 2025 results: EPS: US$0.63 (up from US$0.44 in 1Q 2024). Revenue: US$10.4m (up 22% from 1Q 2024). Net income: US$1.60m (up 46% from 1Q 2024). Profit margin: 15% (up from 13% in 1Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 66% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Announcement • Oct 28
Espey Mfg. & Electronics Corp., Annual General Meeting, Dec 06, 2024 Espey Mfg. & Electronics Corp., Annual General Meeting, Dec 06, 2024. Location: embassy suites by hilton, 86 congress street, saratoga springs, new york United States New Risk • Oct 27
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 13% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (13% increase in shares outstanding). Market cap is less than US$100m (US$86.5m market cap). Recent Insider Transactions Derivative • Oct 15
Director of Human Resources exercised options and sold US$85k worth of stock On the 9th of October, Peggy Murphy exercised 13k options at a strike price of around US$18.05 and sold these shares for an average price of US$24.33 per share. This trade did not impact their existing holding. Since March 2024, Peggy has owned 8.83k shares directly. Company insiders have collectively sold US$163k more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions Derivative • Oct 06
Director of Human Resources notifies of intention to sell stock Peggy Murphy intends to sell 15k shares in the next 90 days after lodging an Intent To Sell Form on the 3rd of October. If the sale is conducted around the recent share price of US$29.80, it would amount to US$443k. Since December 2023, Peggy has owned 8.83k shares directly. There has only been one transaction (US$63k sale) from insiders over the last 12 months. Valuation Update With 7 Day Price Move • Oct 04
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to US$28.81, the stock trades at a trailing P/E ratio of 12.5x. Average trailing P/E is 20x in the Electrical industry in the US. Total returns to shareholders of 107% over the past three years. Reported Earnings • Sep 29
Full year 2024 earnings released: EPS: US$2.34 (vs US$1.50 in FY 2023) Full year 2024 results: EPS: US$2.34 (up from US$1.50 in FY 2023). Revenue: US$38.7m (up 8.8% from FY 2023). Net income: US$5.82m (up 58% from FY 2023). Profit margin: 15% (up from 10% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 76% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Declared Dividend • Sep 12
Third quarter dividend of US$0.25 announced Shareholders will receive a dividend of US$0.25. Ex-date: 20th September 2024 Payment date: 27th September 2024 Dividend yield will be 3.1%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (30% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. Earnings per share has grown by 19% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Jun 13
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to US$24.28, the stock trades at a trailing P/E ratio of 12.7x. Average trailing P/E is 20x in the Electrical industry in the US. Total returns to shareholders of 69% over the past three years. Declared Dividend • Jun 10
Third quarter dividend of US$0.20 announced Shareholders will receive a dividend of US$0.20. Ex-date: 17th June 2024 Payment date: 24th June 2024 Dividend yield will be 3.1%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (30% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. Earnings per share has grown by 19% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. New Risk • May 29
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: Major Risk High level of non-cash earnings (32% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Shareholders have been diluted in the past year (2.1% increase in shares outstanding). Market cap is less than US$100m (US$53.1m market cap). Valuation Update With 7 Day Price Move • May 20
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to US$20.97, the stock trades at a trailing P/E ratio of 10.8x. Average trailing P/E is 20x in the Electrical industry in the US. Total returns to shareholders of 43% over the past three years. Reported Earnings • May 15
Third quarter 2024 earnings released: EPS: US$0.41 (vs US$0.35 in 3Q 2023) Third quarter 2024 results: EPS: US$0.41 (up from US$0.35 in 3Q 2023). Revenue: US$8.25m (down 16% from 3Q 2023). Net income: US$1.03m (up 19% from 3Q 2023). Profit margin: 13% (up from 8.8% in 3Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 85% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Declared Dividend • Mar 14
Second quarter dividend of US$0.17 announced Shareholders will receive a dividend of US$0.17. Ex-date: 21st March 2024 Payment date: 28th March 2024 Dividend yield will be 2.2%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by earnings (27% earnings payout ratio) but not covered by cash flows (117% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. Earnings per share has grown by 28% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Mar 12
Espey Mfg. & Electronics Corp. Declares Regular Quarterly Dividend, Payable on March 28, 2024 The Board of Directors of Espey Mfg. & Electronics Corp. has declared a regular quarterly dividend of $0.175 per share, a 16% increase over the prior dividend. The dividend will be payable on March 28, 2024 to all shareholders of record on March 22, 2024. Recent Insider Transactions Derivative • Feb 23
Director of Human Resources notifies of intention to sell stock Peggy Murphy intends to sell 4k shares in the next 90 days after lodging an Intent To Sell Form on the 21st of February. If the sale is conducted around the recent share price of US$25.42, it would amount to US$108k. Since December 2023, Peggy has owned 8.83k shares directly. There have been no trades via on-market transactions or options from company insiders in the last 12 months. Reported Earnings • Feb 14
Second quarter 2024 earnings released: EPS: US$0.72 (vs US$0.47 in 2Q 2023) Second quarter 2024 results: EPS: US$0.72 (up from US$0.47 in 2Q 2023). Revenue: US$10.3m (up 17% from 2Q 2023). Net income: US$1.80m (up 57% from 2Q 2023). Profit margin: 17% (up from 13% in 2Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 85% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jan 23
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to US$21.31, the stock trades at a trailing P/E ratio of 13.2x. Average trailing P/E is 19x in the Electrical industry in the US. Total returns to shareholders of 14% over the past three years. Announcement • Dec 05
Espey Mfg. & Electronics Corp. Declares Regular Quarterly Dividend, Payable on December 22, 2023 The Board of Directors of Espey Mfg. & Electronics Corp. has declared a regular quarterly dividend of $0.15 per share. The dividend will be payable on December 22, 2023 to all shareholders of record on December 15, 2023. Reported Earnings • Nov 16
First quarter 2024 earnings released: EPS: US$0.44 (vs US$0.31 in 1Q 2023) First quarter 2024 results: EPS: US$0.44 (up from US$0.31 in 1Q 2023). Revenue: US$8.57m (flat on 1Q 2023). Net income: US$1.09m (up 43% from 1Q 2023). Profit margin: 13% (up from 8.9% in 1Q 2023). Over the last 3 years on average, earnings per share has increased by 77% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • Oct 29
Espey Mfg. & Electronics Corp., Annual General Meeting, Dec 01, 2023 Espey Mfg. & Electronics Corp., Annual General Meeting, Dec 01, 2023, at 09:00 US Eastern Standard Time. Location: The Courtyard by Marriott, 11 Excelsior Ave Saratoga Springs, New York New York United States Agenda: To elect as Class C Directors to serve for a three year term expiring at the 2026 Annual Meeting or until their respective successor is duly elected and qualifies, the nominees named in the attached proxy statement; to ratify the appointment of Freed Maxick CPAs, P.C. as the company’s independent public accountants for the fiscal year ending June 30, 2024. Reported Earnings • Sep 23
Full year 2023 earnings released: EPS: US$1.50 (vs US$0.52 in FY 2022) Full year 2023 results: EPS: US$1.50 (up from US$0.52 in FY 2022). Revenue: US$35.6m (up 11% from FY 2022). Net income: US$3.68m (up 191% from FY 2022). Profit margin: 10% (up from 3.9% in FY 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 fallen by 5% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • May 22
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to US$17.12, the stock trades at a trailing P/E ratio of 13.8x. Average trailing P/E is 23x in the Electrical industry in the US. Total loss to shareholders of 5.9% over the past three years. Reported Earnings • May 16
Third quarter 2023 earnings released: EPS: US$0.35 (vs US$0.27 in 3Q 2022) Third quarter 2023 results: EPS: US$0.35 (up from US$0.27 in 3Q 2022). Revenue: US$9.81m (up 14% from 3Q 2022). Net income: US$867.3k (up 31% from 3Q 2022). Profit margin: 8.8% (up from 7.7% in 3Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 14
Second quarter 2023 earnings released: EPS: US$0.47 (vs US$0.009 in 2Q 2022) Second quarter 2023 results: EPS: US$0.47 (up from US$0.009 in 2Q 2022). Revenue: US$8.80m (up 18% from 2Q 2022). Net income: US$1.15m (up US$1.12m from 2Q 2022). Profit margin: 13% (up from 0.3% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Announcement • Feb 10
Espey Mfg. & Electronics Corp. Receives Funding Award for a Facility Expansion for the United States Navy Espey Mfg. & Electronics Corp. announced funding award for a facility expansion. Espey has been awarded $7.4 million in funds in support of facility and capital equipment upgrades for testing and qualification for the United States Navy. The funding is part of the Navy’s investment to improve and sustain the Surface Combatant Industrial Base. The work will be conducted on Espey’s property in Saratoga Springs, NY, with completion slated for 2024. Announcement • Dec 06
Espey Mfg. & Electronics Corp. Elects Nancy K. Patzwahl to the Board of Directors Espey Mfg. & Electronics Corp. held its annual meeting of stockholders on December 2, 2022. At the Annual Meeting, the stockholders of the company elected Nancy K. Patzwahl to the board of directors as the Class B Director of the company for a three year term until the 2025 Annual Meeting of Shareholders or until her successor is duly elected and qualifies. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 3 highly experienced directors. President, CEO & Director Dave O'Neil was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 12
First quarter 2023 earnings released: EPS: US$0.31 (vs US$0.13 in 1Q 2022) First quarter 2023 results: EPS: US$0.31 (up from US$0.13 in 1Q 2022). Revenue: US$8.64m (up 14% from 1Q 2022). Net income: US$768.3k (up 151% from 1Q 2022). Profit margin: 8.9% (up from 4.1% in 1Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Buying Opportunity • Nov 11
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 5.0%. The fair value is estimated to be US$16.63, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 3.8% over the last 3 years. Meanwhile, the company has become profitable. Reported Earnings • Sep 23
Full year 2022 earnings released: EPS: US$0.52 (vs US$0.075 loss in FY 2021) Full year 2022 results: EPS: US$0.52 (up from US$0.075 loss in FY 2021). Revenue: US$32.1m (up 16% from FY 2021). Net income: US$1.27m (up US$1.45m from FY 2021). Profit margin: 3.9% (up from net loss in FY 2021). The move to profitability was driven by higher revenue. 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 17% per year, which means it has not declined as severely as earnings. Reported Earnings • May 18
Third quarter 2022 earnings released: EPS: US$0.27 (vs US$0.45 loss in 3Q 2021) Third quarter 2022 results: EPS: US$0.27 (up from US$0.45 loss in 3Q 2021). Revenue: US$8.62m (up 105% from 3Q 2021). Net income: US$661.4k (up US$1.73m from 3Q 2021). Profit margin: 7.7% (up from net loss in 3Q 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 5 highly experienced directors. President, CEO & Director Dave O'Neil was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 16
Second quarter 2022 earnings: EPS in line with expectations, revenues disappoint Second quarter 2022 results: EPS: US$0.009 (up from US$0.075 loss in 2Q 2021). Revenue: US$7.46m (up 7.1% from 2Q 2021). Net income: US$21.2k (up US$202.2k from 2Q 2021). Profit margin: 0.3% (up from net loss in 2Q 2021). The move to profitability was driven by higher revenue. Revenue missed analyst estimates by 13%. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 51 percentage points per year, which is a significant difference in performance. Reported Earnings • Nov 18
First quarter 2022 earnings released: EPS US$0.13 (vs US$0.079 in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: US$7.55m (up 3.9% from 1Q 2021). Net income: US$306.1k (up 61% from 1Q 2021). Profit margin: 4.1% (up from 2.6% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 47 percentage points per year, which is a significant difference in performance. Reported Earnings • Sep 25
Full year 2021 earnings released: US$0.075 loss per share (vs US$0.49 profit in FY 2020) The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2021 results: Revenue: US$27.7m (down 12% from FY 2020). Net loss: US$181.5k (down 116% from profit in FY 2020). Over the last 3 years on average, earnings per share has fallen by 56% per year but the company’s share price has only fallen by 23% per year, which means it has not declined as severely as earnings. Reported Earnings • May 19
Third quarter 2021 earnings released: US$0.45 loss per share (vs US$0.043 loss in 3Q 2020) The company reported a poor third quarter result with increased losses, weaker revenues and weaker control over costs. Third quarter 2021 results: Revenue: US$4.21m (down 32% from 3Q 2020). Net loss: US$1.07m (loss widened US$966.3k from 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Mar 11
Investor sentiment deteriorated over the past week After last week's 20% share price decline to US$15.25, the stock is trading at a trailing P/E ratio of 42.5x, down from the previous P/E ratio of 52.9x. This compares to an average P/E of 31x in the Electrical industry in the US. Total return to shareholders over the past three years is a loss of 31%. Is New 90 Day High Low • Mar 03
New 90-day low: US$18.80 The company is down 9.0% from its price of US$20.75 on 02 December 2020. The American market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electrical industry, which is up 16% over the same period. Reported Earnings • Feb 18
Second quarter 2021 earnings released: US$0.075 loss per share (vs US$0.096 profit in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and control over costs. Second quarter 2021 results: Revenue: US$6.96m (down 4.5% from 2Q 2020). Net loss: US$181.0k (down 179% from profit in 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings.