AMEX:ESP

Stock Analysis Report

Espey Mfg. & Electronics

Executive Summary

Espey Mfg. & Electronics Corp., a power electronics design and original equipment manufacturing company, designs, manufactures, and tests electronic equipment primarily for use in military and industrial applications in the United States and internationally.

Snowflake

Fundamentals

Flawless balance sheet unattractive dividend payer.


Similar Companies

Share Price & News

How has Espey Mfg. & Electronics's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.9%

ESP

1.9%

US Electrical

0.5%

US Market


1 Year Return

-24.8%

ESP

3.8%

US Electrical

6.8%

US Market

Return vs Industry: ESP underperformed the US Electrical industry which returned 3.8% over the past year.

Return vs Market: ESP underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

ESPIndustryMarket
7 Day-3.9%1.9%0.5%
30 Day-9.3%0.9%-0.8%
90 Day-8.3%2.4%-0.9%
1 Year-21.7%-24.8%6.1%3.8%9.2%6.8%
3 Year2.1%-12.3%41.7%33.3%45.6%36.2%
5 Year51.2%20.2%37.2%23.4%63.2%45.4%

Price Volatility Vs. Market

How volatile is Espey Mfg. & Electronics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Espey Mfg. & Electronics undervalued compared to its fair value and its price relative to the market?

22.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ESP ($22.11) is trading above our estimate of fair value ($9.13)

Significantly Below Fair Value: ESP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ESP is poor value based on its PE Ratio (22.4x) compared to the Electrical industry average (14.9x).

PE vs Market: ESP is poor value based on its PE Ratio (22.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ESP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ESP is overvalued based on its PB Ratio (1.7x) compared to the US Electrical industry average (1.6x).


Next Steps

Future Growth

How is Espey Mfg. & Electronics forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESP's forecast earnings growth (14.3% per year) is above the savings rate (2.7%).

Earnings vs Market: ESP's earnings (14.3% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: ESP's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if ESP's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if ESP's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ESP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Espey Mfg. & Electronics performed over the past 5 years?

0.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ESP's earnings have grown by 0.9% per year over the past 5 years.

Accelerating Growth: ESP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ESP had negative earnings growth (-23.8%) over the past year, making it difficult to compare to the Electrical industry average (16.3%).


Return on Equity

High ROE: ESP's Return on Equity (7.3%) is considered low.


Return on Assets

ROA vs Industry: ESP's Return on Assets is below or equal to the Electrical industry average last year.


Return on Capital Employed

ROCE Improving: ESP's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Espey Mfg. & Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: ESP's short term assets ($31.9M) exceeds its short term liabilities ($3.5M)

Long Term Liabilities: ESP's short term assets (31.9M) exceeds its long term liabilities (277.1K)


Debt to Equity History and Analysis

Debt Level: ESP is debt free.

Reducing Debt: ESP has not had any debt for past 5 years.

Debt Coverage: ESP has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ESP has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: ESP has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ESP's debt is covered by short term assets.


Next Steps

Dividend

What is Espey Mfg. & Electronics's current dividend yield, its reliability and sustainability?

4.52%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ESP's dividend (4.52%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: ESP's dividend (4.52%) is in the top 25% of dividend payers in the US market (3.73%)

Stable Dividend: ESP's dividend payments have been volatile in the past 10 years.

Growing Dividend: ESP's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (101.3%), ESP's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Espey Mfg. & Electronics's salary, the management and board of directors tenure and is there insider trading?

17.3yrs

Average management tenure


CEO

Pat Enright (58yo)

4.7yrs

Tenure

US$386,193

Compensation

Mr. Patrick T. Enright, Jr., also known as Pat, has been the Chief Executive Officer and President at Espey Mfg. & Electronics Corp. since February 2, 2015. From May 2010 to January 2015, Mr. Enright was e ...


CEO Compensation Analysis

Compensation vs. Market: Pat's total compensation ($USD386.19K) is about average for companies of similar size in the US market ($USD503.30K).

Compensation vs Earnings: Pat's compensation has been consistent with company performance over the past year.


Management Age and Tenure

17.3yrs

Average Tenure

56yo

Average Age

Experienced Management: ESP's management team is seasoned and experienced (17.3 years average tenure).


Board Age and Tenure

20.8yrs

Average Tenure

73yo

Average Age

Experienced Board: ESP's board of directors are seasoned and experienced ( 20.8 years average tenure).


Insider Trading

Insider Buying: ESP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$46202 Oct 19
Barry Pinsley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares19
Max PriceUS$24.30
BuyUS$12,00206 Jun 19
Alvin Sabo
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$24.03
BuyUS$23,64327 Feb 19
Alvin Sabo
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares950
Max PriceUS$24.94

Ownership Breakdown


Management Team

  • David O'Neil (54yo)

    Executive VP

    • Tenure: 1.3yrs
    • Compensation: US$224.34k
  • Peggy Murphy (61yo)

    Director of Human Resources

    • Tenure: 21yrs
  • Katrina Sparano (49yo)

    Assistant Treasurer & Principal Accounting Officer

    • Tenure: 14.9yrs
  • Alan Winslow

    Chief Technology officer

    • Tenure: 0yrs
  • Barry Potoker

    Director of Marketing & Investor Relations

    • Tenure: 0yrs
  • Pat Enright (58yo)

    President

    • Tenure: 4.7yrs
    • Compensation: US$386.19k

Board Members

  • Howard Pinsley (79yo)

    Chairman

    • Tenure: 21.3yrs
    • Compensation: US$72.99k
  • David O'Neil (54yo)

    Executive VP

    • Tenure: 1.3yrs
    • Compensation: US$224.34k
  • Paul Corr (75yo)

    Indepedent Director

    • Tenure: 27.8yrs
    • Compensation: US$66.40k
  • Carl Helmetag (71yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$72.99k
  • Barry Pinsley (78yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$65.29k
  • Michael Wool (73yo)

    Independent Director

    • Tenure: 29.8yrs
    • Compensation: US$72.80k
  • Alvin Sabo (76yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$62.78k
  • Pat Enright (58yo)

    President

    • Tenure: 4.7yrs
    • Compensation: US$386.19k
  • Roger Sexauer (60yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$4.35k

Company Information

Espey Mfg. & Electronics Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Espey Mfg. & Electronics Corp.
  • Ticker: ESP
  • Exchange: AMEX
  • Founded: 1928
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: US$53.091m
  • Shares outstanding: 2.40m
  • Website: https://www.espey.com

Number of Employees


Location

  • Espey Mfg. & Electronics Corp.
  • 233 Ballston Avenue
  • Saratoga Springs
  • New York
  • 12866
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESPAMEX (NYSE MKT LLC)YesCommon StockUSUSDJan 1968

Biography

Espey Mfg. & Electronics Corp., a power electronics design and original equipment manufacturing company, designs, manufactures, and tests electronic equipment primarily for use in military and industrial a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:33
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.