OTCPK:IEHC

Stock Analysis Report

Executive Summary

IEH Corporation designs, develops, and manufactures printed circuit board connectors and custom interconnects for high performance applications.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has IEH's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IEHC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.4%

IEHC

-10.2%

US Electronic

-10.6%

US Market


1 Year Return

18.8%

IEHC

-4.4%

US Electronic

5.2%

US Market

Return vs Industry: IEHC exceeded the US Electronic industry which returned -4.4% over the past year.

Return vs Market: IEHC exceeded the US Market which returned 5.2% over the past year.


Shareholder returns

IEHCIndustryMarket
7 Day-8.4%-10.2%-10.6%
30 Day-13.6%-11.8%-8.5%
90 Day-16.5%-10.8%-4.6%
1 Year18.8%18.8%-3.4%-4.4%7.4%5.2%
3 Year205.9%194.6%21.2%17.8%31.7%23.2%
5 Year243.1%230.4%50.8%43.3%56.4%39.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is IEH undervalued compared to its fair value and its price relative to the market?

11.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IEHC ($19) is trading above our estimate of fair value ($0.01)

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


Price To Earnings Ratio

PE vs Industry: IEHC is good value based on its PE Ratio (11.8x) compared to the Electronic industry average (17.3x).

PE vs Market: IEHC is good value based on its PE Ratio (11.8x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: IEHC is good value based on its PB Ratio (1.7x) compared to the US Electronic industry average (1.8x).


Next Steps

Future Growth

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

21.1%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as IEH has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Examine whether IEH is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access IEH's filings and announcements here.
  • Explore growth companies in the Tech industry.

Past Performance

How has IEH performed over the past 5 years?

25.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IEHC has high quality earnings.

Growing Profit Margin: IEHC's current net profit margins (12.4%) are lower than last year (18.1%).


Past Earnings Growth Analysis

Earnings Trend: IEHC's earnings have grown significantly by 25.7% per year over the past 5 years.

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

Earnings vs Industry: IEHC had negative earnings growth (-27.8%) over the past year, making it difficult to compare to the Electronic industry average (13.1%).


Return on Equity

High ROE: IEHC's Return on Equity (14.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is IEH's financial position?


Financial Position Analysis

Short Term Liabilities: IEHC's short term assets ($28.3M) exceed its short term liabilities ($4.7M).

Long Term Liabilities: IEHC has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: IEHC's debt to equity ratio (1.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if IEHC's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: IEHC's debt is well covered by operating cash flow (437.7%).

Interest Coverage: IEHC's interest payments on its debt are well covered by EBIT (101.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: IEHC's debt is covered by short term assets (assets are 81.3x debt).


Next Steps

Dividend

What is IEH's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.6%markettop25%4.1%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

David Offerman (44yo)

2.9yrs

Tenure

US$389,139

Compensation

Mr. David Offerman has been the Chairman of the Board, Chief Executive Officer and President at IEH Corporation since March 26, 2017. Mr. Offerman served as Vice President of Sales & Marketing at IEH Corpo ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD389.14K) is about average for companies of similar size in the US market ($USD535.60K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Offerman
Chairman of the Board2.9yrsUS$389.14k0.20% $90.9k
Robert Knoth
CFO, Corporate Secretary & Treasurer29.9yrsUS$238.25k0.093% $41.7k
Alexa Maldonado
Director of Human Resources0.6yrsno datano data
Atiqur Mufti
Controller0.8yrsno datano data

1.8yrs

Average Tenure

Experienced Management: IEHC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Offerman
Chairman of the Board2.9yrsUS$389.14k0.20% $90.9k
Allen Gottlieb
Independent Director28.1yrsno datano data
Eric Hugel
Independent Director3.6yrsno datano data
Gerald Chafetz
Independent Director10.8yrsno datano data
Sonia Marciano
Independent Director3.6yrsno datano data
Michael Rosenfield
Independent Director2.1yrsno datano data

3.6yrs

Average Tenure

52yo

Average Age

Experienced Board: IEHC's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

IEH Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IEH Corporation
  • Ticker: IEHC
  • Exchange: OTCPK
  • Founded: 1941
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: US$44.845m
  • Shares outstanding: 2.36m
  • Website: https://www.iehcorp.com

Number of Employees


Location

  • IEH Corporation
  • 140 58th Street
  • Suite 8E
  • Brooklyn
  • New York
  • 11220
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IEHCOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1980

Biography

IEH Corporation designs, develops, and manufactures printed circuit board connectors and custom interconnects for high performance applications. Its products are used as basic components of larger assemblies of finished goods. The company markets its products directly to original equipment manufacturers, as well as through authorized representatives and distributors primarily to government, military, aerospace, medical, automotive, industrial, test equipment, and commercial electronic markets. It markets its products in the United States, Canada, Israel, India, various Pacific Rim countries, South Korea, and the European Union. The company was formerly known as Industrial Heat Treating Company, Inc. and changed its name to IEH Corporation in March 1989. IEH Corporation was founded in 1941 and is based in Brooklyn, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:01
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/29


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.