NasdaqCM:ELSE

Stock Analysis Report

Executive Summary

Electro-Sensors, Inc. manufactures and sells industrial production monitoring and process control systems.

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Electro-Sensors's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.2%

ELSE

2.7%

US Electronic

0.5%

US Market


1 Year Return

4.6%

ELSE

14.5%

US Electronic

6.8%

US Market

Return vs Industry: ELSE underperformed the US Electronic industry which returned 14.5% over the past year.

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


Shareholder returns

ELSEIndustryMarket
7 Day1.2%2.7%0.5%
30 Day2.7%2.7%-0.8%
90 Day12.7%3.0%-0.9%
1 Year4.6%4.6%15.7%14.5%9.2%6.8%
3 Year9.7%9.7%54.5%50.2%45.6%36.2%
5 Year2.4%2.4%87.5%78.5%63.2%45.4%

Price Volatility Vs. Market

How volatile is Electro-Sensors's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Electro-Sensors undervalued compared to its fair value and its price relative to the market?

42.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ELSE ($3.85) is trading above our estimate of fair value ($0.1)

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


Price To Earnings Ratio

PE vs Industry: ELSE is poor value based on its PE Ratio (42.6x) compared to the Electronic industry average (18.4x).

PE vs Market: ELSE is poor value based on its PE Ratio (42.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ELSE is good value based on its PB Ratio (1x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

How is Electro-Sensors forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

33.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELSE's forecast earnings growth (33% per year) is above the savings rate (2.7%).

Earnings vs Market: ELSE's earnings (33% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

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

High Growth Revenue: Insufficient data to determine if ELSE'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 ELSE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Electro-Sensors performed over the past 5 years?

-49.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ELSE's earnings have declined by -49% per year over the past 5 years.

Accelerating Growth: ELSE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ELSE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (59.6%).


Return on Equity

High ROE: ELSE's Return on Equity (2.4%) is considered low.


Return on Assets

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


Return on Capital Employed

ROCE Improving: ELSE has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Electro-Sensors's financial position?


Financial Position Analysis

Short Term Liabilities: ELSE's short term assets ($11.9M) exceeds its short term liabilities ($833.0K)

Long Term Liabilities: ELSE's short term assets (11.9M) exceeds its long term liabilities (21.0K)


Debt to Equity History and Analysis

Debt Level: ELSE is debt free.

Reducing Debt: ELSE has no debt compared to 5 years ago when its debt to equity ratio was 6.9%.

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

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


Balance Sheet

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

Debt Coverage by Assets: ELSE's debt is not covered by short term assets (assets are -3.4411824608753E+18x debt).


Next Steps

Dividend

What is Electro-Sensors's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate ELSE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ELSE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if ELSE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ELSE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ELSE is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ELSE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Electro-Sensors's salary, the management and board of directors tenure and is there insider trading?

7.0yrs

Average board tenure


CEO

David Klenk (54yo)

6.3yrs

Tenure

US$254,249

Compensation

Mr. David L. Klenk has been the Chief Executive Officer and Chief Financial Officer of Electro-Sensors Inc. since July 23, 2013 and its President since 2013. Mr. Klenk served as Chief Operating Officer of  ...


CEO Compensation Analysis

Compensation vs. Market: David's total compensation ($USD254.25K) is about average for companies of similar size in the US market ($USD503.30K).

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


Board Age and Tenure

7.0yrs

Average Tenure

62yo

Average Age

Experienced Board: ELSE's board of directors are considered experienced (7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$17,87316 May 19
Michael Zipoy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$3.60

Ownership Breakdown


Management Team

  • David Klenk (54yo)

    CEO, President

    • Tenure: 6.3yrs
    • Compensation: US$254.25k
  • Gloria Grundhoefer

    Controller

    • Tenure: 0yrs
  • Dan Saniti

    Vice President of Sales

    • Tenure: 1yrs

Board Members

  • David Klenk (54yo)

    CEO, President

    • Tenure: 6.3yrs
    • Compensation: US$254.25k
  • Joseph Marino (67yo)

    Independent Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$15.75k
  • Scott Gabbard (52yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$17.25k
  • Jeffrey Peterson (62yo)

    Director

    • Tenure: 8.8yrs
    • Compensation: US$8.75k
  • Michael Zipoy (71yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$17.25k

Company Information

Electro-Sensors, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Electro-Sensors, Inc.
  • Ticker: ELSE
  • Exchange: NasdaqCM
  • Founded: 1968
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$13.073m
  • Shares outstanding: 3.40m
  • Website: https://www.electro-sensors.com

Number of Employees


Location

  • Electro-Sensors, Inc.
  • 6111 Blue Circle Drive
  • Minnetonka
  • Minnesota
  • 55343
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELSENasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDFeb 1981

Biography

Electro-Sensors, Inc. manufactures and sells industrial production monitoring and process control systems. The company manufactures and sells various monitoring systems that measure machine production and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:36
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.