Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Espey Mfg & Electronics Corp (NYSEMKT:ESP) due to its excellent fundamentals in more than one area. ESP is a company with great financial health as well as a a strong track record of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Espey Mfg. & Electronics here.
Flawless balance sheet with proven track record
Over the past year, ESP has grown its earnings by 55.16%, with its most recent figure exceeding its annual average over the past five years. Not only did ESP outperformed its past performance, its growth also surpassed the Electrical industry expansion, which generated a 8.20% earnings growth. This is an notable feat for the company. ESP’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that ESP has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. ESP currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
For Espey Mfg. & Electronics, I’ve compiled three relevant factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for ESP’s future growth? Take a look at our free research report of analyst consensus for ESP’s outlook.
- Valuation: What is ESP worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ESP is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ESP? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.