Espey Mfg & Electronics (ESP) AI Stock Analysis

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Espey Mfg & Electronics

(NYSE MKT:ESP)

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Rating:80Outperform

Price Target:$58.00▲(26.36% Upside)

Action:reiterated

Date:09/24/26

The score is driven primarily by strong financial performance (notably improved margins and a debt-free balance sheet), partially tempered by weaker 2026 cash flow conversion versus earnings. Technicals are modestly supportive with price above key moving averages and neutral momentum, while valuation and the added special dividend provide additional support.

Positive Factors

Revenue and margin expansionConsistent revenue growth alongside substantial gross- and net-margin expansion indicates stronger operating performance and improved earnings capacity. If the company sustains these gains, it can generate more profit from its defense and industrial programs and fund continued investment internally.

Negative Factors

Cash flow deteriorationThe sharp 2026 decline in operating and free cash flow weakens the quality of otherwise strong reported earnings. Lower cash generation can constrain reinvestment, dividends, and other capital allocation choices if the weaker conversion persists over the next several quarters.

Espey Mfg & Electronics (ESP) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $139.52M
Dividend Yield: 3.81%
Average Volume (3M): 32.21K
Price to Earnings (P/E): 11.4
Beta (1Y): 0.98
Revenue Growth: 4.95%
EPS Growth: 28.35%
Country: US
Employees: 144
Sector: Industrials
Sector Strength: 63
Industry: Electrical Equipment & Parts

Espey Mfg & Electronics Business Overview & Revenue Model

Company Description

Espey Mfg. & Electronics Corp. manufactures and sells electronic equipment primarily for military and industrial applications in the United States and internationally. Its principal products include power supplies, power converters, filters, power tr...

Espey Mfg & Electronics Financial Statement Overview

Summary

Strong multi-year revenue growth and a major improvement in profitability (gross margin up to ~35% and net margin up to ~24% in 2026) support a high score, reinforced by a very conservative, debt-free balance sheet. The main offset is cash flow quality/volatility: 2026 operating cash flow and free cash flow fell sharply versus 2025, and cash conversion versus net income weakened materially.

Income Statement

86Very Positive

Balance Sheet

92Very Positive

Cash Flow

63Positive

Financial statement breakdown
Breakdown	TTM	Jun 2026	Jun 2025	Jun 2024	Jun 2023	Jun 2022
Income Statement
Total Revenue	46.12M	46.12M	43.95M	38.74M	35.59M	32.10M
Gross Profit	16.28M	16.28M	12.68M	10.65M	8.05M	5.47M
EBITDA	13.45M	12.11M	10.18M	7.75M	5.19M	2.09M
Net Income	11.18M	11.18M	8.14M	5.82M	3.68M	1.27M
Balance Sheet
Total Assets	97.15M	97.15M	79.12M	56.54M	47.50M	39.90M
Cash, Cash Equivalents and Short-Term Investments	45.44M	45.44M	43.58M	23.23M	14.71M	11.81M
Total Debt	0	0	0	0	0	0
Total Liabilities	36.58M	36.58M	28.27M	15.27M	11.62M	7.80M
Stockholders Equity	60.57M	60.57M	50.85M	41.27M	35.88M	32.10M
Cash Flow
Free Cash Flow	2.58M	2.58M	16.63M	5.43M	3.39M	1.92M
Operating Cash Flow	5.69M	5.69M	20.99M	10.60M	3.90M	2.22M
Investing Cash Flow	-2.36M	-2.36M	-6.94M	-7.84M	-8.77M	-918.34K
Financing Cash Flow	-2.75M	-2.75M	458.27K	-1.15M	-489.27K	0

Espey Mfg & Electronics Technical Analysis

Technical Analysis SentimentNegative

Last Price45.90

Price Trends

50DMA59.18Negative

100DMA59.94Negative

200DMA59.27Negative

Market Momentum

MACD-2.75Positive

RSI23.06Positive

STOCH15.44Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESP, the sentiment is Negative. The current price of 45.90 is below the 20-day moving average (MA) of 54.08, below the 50-day MA of 59.18, and below the 200-day MA of 59.27, indicating a bearish trend. The MACD of -2.75 indicates Positive momentum. The RSI at 23.06 is Positive, neither overbought nor oversold. The STOCH value of 15.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ESP.

Espey Mfg & Electronics Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

ESP against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESP	80Outperform	$152.80M	11.36	20.22%	3.81%	4.95%	28.35%
RFIL	66Neutral	$81.14M	29.44	6.69%	―	13.04%	―
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ULBI	57Neutral	$260.28M	-83.54	-4.95%	―	4.69%	-304.68%
IPWR	45Neutral	$38.95M	-1.98	-60.76%	―	57.22%	13.79%
FLUX	43Neutral	$9.10M	-0.81	-225.72%	―	-43.74%	17.47%
DFLI	40Underperform	$3.80M	-0.01	-1565.55%	―	-4.85%	53.62%

* Industrials Sector Average

Performance Comparison

ESP and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
ESP	Espey Mfg. & Electronics	45.90	9.43	25.87%
RFIL	Rf Industries, Ltd.	6.55	-0.57	-7.94%
ULBI	Ultralife	15.63	8.88	131.56%
IPWR	Ideal Power Inc	2.10	-2.94	-58.33%
FLUX	Flux Power Holdings	0.31	-1.92	-86.05%
DFLI	Dragonfly Energy Holdings Corp	1.74	-68.58	-97.53%

Espey Mfg & Electronics Corporate Events

Business Operations and StrategyExecutive/Board ChangesDividends

Espey Mfg & Electronics Declares Special Cash Dividend

Positive

Sep 8, 2026

On September 8, 2026, Espey Mfg. & Electronics Corp. announced that its Board of Directors had declared a special cash dividend of $0.75 per share, in addition to a regular quarterly dividend of $0.25 per share. The dividends are scheduled to be...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 24, 2026

Espey Mfg & Electronics AI Stock Analysis