Executive Summary
Espey Mfg Electronics Corp (ESP) delivered a robust QQ4 2024 performance with revenue of $11.61 million, marking YoY growth of 39.17% and QoQ growth of 40.66%. The quarter produced a solid gross profit of $3.20 million and an EBITDA of $2.24 million, translating to an EBITDA margin of approximately 19.3% and an operating margin of about 18.4%. Net income reached $1.89 million, equating to a net margin of 16.3% and basic/fully diluted EPS of $0.75/$0.73 respectively. Notably, ESP remains debt-free with a net cash position of roughly $4.35 million and a substantial liquidity cushion (current ratio 3.49; quick ratio 2.23). Cash flow from operations was $3.24 million, while free cash flow was $2.58 million, underscoring the company's ability to self-fund growth and potentially pursue selective capital allocation opportunities without external financing.
The balance sheet showcases a conservative capital structure: cash and short-term investments total about $23.23 million, total current assets of $53.24 million against current liabilities of $15.27 million, and total stockholders’ equity of roughly $41.27 million. With no long-term debt reported, ESP’s financial flexibility supports ongoing investment in capabilities and service offerings amid a favorable defense and industrial electronics backdrop. However, the company exhibits elevated inventory days (~206 days) and a lengthy receivables cycle (DSO ~51 days), implying working capital intensity that warrants ongoing monitoring as volume scales.
Management commentary (where available) and the earnings call transcript are not provided in the data set; thus, the qualitative read from management sentiment is limited. In the absence of explicit forward guidance, the analysis highlights the strategic relevance of ESP’s niche in power electronics for military and industrial applications and the potential to translate growth into higher operating leverage, enhanced services, and margin resilience over time.
Key Performance Indicators
QoQ: 95.06% | YoY:117.00%
QoQ: 83.47% | YoY:111.42%
QoQ: 82.93% | YoY:108.33%
Key Insights
Revenue: $11,610,911; YoY growth: 39.17%; QoQ growth: 40.66%
Gross Profit: $3,200,917; Gross Margin: 27.57%
EBITDA: $2,241,592; EBITDA Margin: 19.30%
Operating Income: $2,131,900; Operating Margin: 18.36%
Total Other Income/Expense Net: $242,404; Income Before Tax: $2,374,304; Net Income: $1,893,296; Net Margin: 16.31%
EPS (basic): $0.75; EPS (diluted): $0.73; Weighted Avg Shares: 2,522,471 (basic); 2,593,556 (diluted)
Cash Flow: Net Cash Provided by Operating Activities $3,244,538; Free Cash Fl...
Financial Highlights
Revenue: $11,610,911; YoY growth: 39.17%; QoQ growth: 40.66%
Gross Profit: $3,200,917; Gross Margin: 27.57%
EBITDA: $2,241,592; EBITDA Margin: 19.30%
Operating Income: $2,131,900; Operating Margin: 18.36%
Total Other Income/Expense Net: $242,404; Income Before Tax: $2,374,304; Net Income: $1,893,296; Net Margin: 16.31%
EPS (basic): $0.75; EPS (diluted): $0.73; Weighted Avg Shares: 2,522,471 (basic); 2,593,556 (diluted)
Cash Flow: Net Cash Provided by Operating Activities $3,244,538; Free Cash Flow $2,582,370
Balance Sheet: Total Assets $56,542,931; Cash & Cash Equivalents $4,351,970; Cash & Short-Term Investments $23,230,601; Total Current Assets $53,236,656; Total Current Liabilities $15,268,959; No long-term debt; Total Stockholders’ Equity $41,273,972
Liquidity/Leverage: Current Ratio 3.49; Quick Ratio 2.23; Cash Ratio 0.285; Net Cash Position ~$4.35M; DSO ~51.4 days; DIO ~205.9 days; CCC ~257.38 days
Valuation/Benchmarks: P/E ~7.16; P/B ~1.31; P/S ~4.67; Dividend Yield ~0.92%; Enterprise Value Multiple ~22.25
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
11.61M |
39.17% |
40.66% |
| Gross Profit |
3.20M |
59.71% |
55.07% |
| Operating Income |
2.13M |
117.00% |
95.06% |
| Net Income |
1.89M |
111.42% |
83.47% |
| EPS |
0.75 |
108.33% |
82.93% |
Key Financial Ratios
operatingProfitMargin
18.4%
operatingCashFlowPerShare
$1.29
freeCashFlowPerShare
$1.02
dividendPayoutRatio
26.4%
Management Commentary
Transcript highlights not available in the provided data. No earnings call transcript was supplied, therefore no management quotes or thematic quotes could be extracted.
Forward Guidance
No formal forward guidance is provided in the data. Given ESP’s defense-oriented power-electronics niche and the broader Industrials backdrop, potential catalysts include continued demand from military and government modernization programs, and growth in industrial power systems (including rail, aerospace, and high-power conversion) supported by ESP’s design-to-print and testing services. Key factors investors should monitor:
- Defense budget cycles and contract awards for power electronics and radar/components
- Customer diversification and backlog visibility to reduce working-capital exposure (high inventory days)
- Technological upgrades, capacity expansion, and potential services expansion (testing, EDA/design services) to improve margins
- Commodity and supply chain resilience, given component cost dynamics; currency considerations if international orders scale
- Any development in strategic partnerships or small acquisitions that could scale the business while preserving the debt-free balance sheet