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NORTECH SYSTEMS INC (NSYS) Stock Fundamental Analysis

NASDAQ:NSYS - Nasdaq - US6565531042 - Common Stock - Currency: USD

7.7399  -0.46 (-5.55%)

Fundamental Rating

2

Taking everything into account, NSYS scores 2 out of 10 in our fundamental rating. NSYS was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. The financial health of NSYS is average, but there are quite some concerns on its profitability. NSYS does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

NSYS had negative earnings in the past year.
NSYS had a negative operating cash flow in the past year.
In multiple years NSYS reported negative net income over the last 5 years.
In multiple years NSYS reported negative operating cash flow during the last 5 years.
NSYS Yearly Net Income VS EBIT VS OCF VS FCFNSYS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2M -2M 4M -4M 6M

1.2 Ratios

NSYS has a Return On Assets of -1.79%. This is comparable to the rest of the industry: NSYS outperforms 45.97% of its industry peers.
NSYS has a Return On Equity (-3.81%) which is comparable to the rest of the industry.
NSYS has a Return On Invested Capital (0.58%) which is in line with its industry peers.
NSYS had an Average Return On Invested Capital over the past 3 years of 5.80%. This is below the industry average of 9.14%.
The last Return On Invested Capital (0.58%) for NSYS is well below the 3 year average (5.80%), which needs to be investigated, but indicates that NSYS had better years and this may not be a problem.
Industry RankSector Rank
ROA -1.79%
ROE -3.81%
ROIC 0.58%
ROA(3y)3.41%
ROA(5y)3.67%
ROE(3y)7.59%
ROE(5y)8.47%
ROIC(3y)5.8%
ROIC(5y)N/A
NSYS Yearly ROA, ROE, ROICNSYS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

1.3 Margins

With a Operating Margin value of 0.29%, NSYS perfoms like the industry average, outperforming 47.58% of the companies in the same industry.
NSYS's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 13.05%, NSYS is not doing good in the industry: 73.39% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of NSYS has grown nicely.
Industry RankSector Rank
OM 0.29%
PM (TTM) N/A
GM 13.05%
OM growth 3Y-51.7%
OM growth 5Y11.28%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.85%
GM growth 5Y3.79%
NSYS Yearly Profit, Operating, Gross MarginsNSYS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15

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4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NSYS is destroying value.
Compared to 1 year ago, NSYS has more shares outstanding
NSYS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NSYS is higher compared to a year ago.
NSYS Yearly Shares OutstandingNSYS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500K 1M 1.5M 2M 2.5M
NSYS Yearly Total Debt VS Total AssetsNSYS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M

2.2 Solvency

An Altman-Z score of 3.02 indicates that NSYS is not in any danger for bankruptcy at the moment.
NSYS has a Altman-Z score (3.02) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.26 indicates that NSYS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.26, NSYS is in line with its industry, outperforming 43.55% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.26
Debt/FCF N/A
Altman-Z 3.02
ROIC/WACC0.06
WACC9.52%
NSYS Yearly LT Debt VS Equity VS FCFNSYS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10M 20M 30M

2.3 Liquidity

A Current Ratio of 2.58 indicates that NSYS has no problem at all paying its short term obligations.
NSYS has a Current ratio (2.58) which is in line with its industry peers.
A Quick Ratio of 1.57 indicates that NSYS should not have too much problems paying its short term obligations.
The Quick ratio of NSYS (1.57) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.58
Quick Ratio 1.57
NSYS Yearly Current Assets VS Current LiabilitesNSYS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M

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1

3. Growth

3.1 Past

The earnings per share for NSYS have decreased strongly by -120.46% in the last year.
NSYS shows a decrease in Revenue. In the last year, the revenue decreased by -8.04%.
Measured over the past years, NSYS shows a small growth in Revenue. The Revenue has been growing by 1.96% on average per year.
EPS 1Y (TTM)-120.46%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-132.73%
Revenue 1Y (TTM)-8.04%
Revenue growth 3Y3.61%
Revenue growth 5Y1.96%
Sales Q2Q%-20.61%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
NSYS Yearly Revenue VS EstimatesNSYS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for NSYS. In the last year negative earnings were reported.
Industry RankSector Rank
PE N/A
Fwd PE N/A
NSYS Price Earnings VS Forward Price EarningsNSYS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0 0 0 0 0 0 0

4.2 Price Multiples

NSYS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NSYS is cheaper than 65.32% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.97
NSYS Per share dataNSYS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

NSYS does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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NORTECH SYSTEMS INC

NASDAQ:NSYS (4/24/2025, 8:00:02 PM)

7.7399

-0.46 (-5.55%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)03-31 2025-03-31/bmo
Earnings (Next)05-08 2025-05-08
Inst Owners4.86%
Inst Owner Change0%
Ins Owners16.22%
Ins Owner Change0%
Market Cap21.36M
Analysts0
Price TargetN/A
Short Float %0.37%
Short Ratio0.45
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.17
P/FCF N/A
P/OCF N/A
P/B 0.63
P/tB 0.63
EV/EBITDA 13.97
EPS(TTM)-0.49
EYN/A
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)-1.28
FCFYN/A
OCF(TTM)-0.82
OCFYN/A
SpS46.43
BVpS12.32
TBVpS12.26
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1.79%
ROE -3.81%
ROCE 0.74%
ROIC 0.58%
ROICexc 0.59%
ROICexgc 0.6%
OM 0.29%
PM (TTM) N/A
GM 13.05%
FCFM N/A
ROA(3y)3.41%
ROA(5y)3.67%
ROE(3y)7.59%
ROE(5y)8.47%
ROIC(3y)5.8%
ROIC(5y)N/A
ROICexc(3y)5.93%
ROICexc(5y)N/A
ROICexgc(3y)5.97%
ROICexgc(5y)N/A
ROCE(3y)7.35%
ROCE(5y)N/A
ROICexcg growth 3Y-52.15%
ROICexcg growth 5Y5.75%
ROICexc growth 3Y-52.02%
ROICexc growth 5Y7.82%
OM growth 3Y-51.7%
OM growth 5Y11.28%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.85%
GM growth 5Y3.79%
F-Score2
Asset Turnover1.77
Health
Industry RankSector Rank
Debt/Equity 0.26
Debt/FCF N/A
Debt/EBITDA 4.23
Cap/Depr 73.07%
Cap/Sales 0.99%
Interest Coverage 0.49
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.58
Quick Ratio 1.57
Altman-Z 3.02
F-Score2
WACC9.52%
ROIC/WACC0.06
Cap/Depr(3y)87.6%
Cap/Depr(5y)71.26%
Cap/Sales(3y)1.24%
Cap/Sales(5y)1.08%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-120.46%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-132.73%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-8.04%
Revenue growth 3Y3.61%
Revenue growth 5Y1.96%
Sales Q2Q%-20.61%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-93.68%
EBIT growth 3Y-49.96%
EBIT growth 5Y13.46%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-825.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-227.19%
OCF growth 3YN/A
OCF growth 5YN/A