Nortech Systems Incorporated
Nortech Systems Incorporated Fundamental Analysis
Nortech Systems Incorporated (NSYS) shows weak financial fundamentals with a PE ratio of -9.89, profit margin of -2.25%, and ROE of -7.87%. The company generates $0.1B in annual revenue with weak year-over-year growth of -8.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 3.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NSYS's fundamental strength across five key dimensions:
Efficiency Score
WeakNSYS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNSYS trades at attractive valuation levels.
Growth Score
WeakNSYS faces weak or negative growth trends.
Financial Health Score
ExcellentNSYS maintains a strong and stable balance sheet.
Profitability Score
WeakNSYS struggles to sustain strong margins.
Key Financial Metrics
Is NSYS Expensive or Cheap?
P/E Ratio
NSYS trades at -9.89 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NSYS's PEG of -0.53 indicates potential undervaluation.
Price to Book
The market values Nortech Systems Incorporated at 0.78 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 37.17 times EBITDA. This signals the market has high growth expectations.
How Well Does NSYS Make Money?
Net Profit Margin
For every $100 in sales, Nortech Systems Incorporated keeps $-2.25 as profit after all expenses.
Operating Margin
Core operations generate -0.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-7.87 in profit for every $100 of shareholder equity.
ROA
Nortech Systems Incorporated generates $-3.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nortech Systems Incorporated generates limited operating cash flow of $-2.07M, signaling weaker underlying cash strength.
Free Cash Flow
Nortech Systems Incorporated generates weak or negative free cash flow of $-2.88M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.03 in free cash annually.
FCF Yield
NSYS converts -10.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-9.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.53
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.63
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.08
vs 25 benchmark
ROA
Return on assets percentage
-0.04
vs 25 benchmark
ROCE
Return on capital employed
-0.03
vs 25 benchmark
How NSYS Stacks Against Its Sector Peers
| Metric | NSYS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -9.89 | 35.19 | Better (Cheaper) |
| ROE | -7.87% | 1155.00% | Weak |
| Net Margin | -2.25% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.63 | 0.41 | Weak (High Leverage) |
| Current Ratio | 1.76 | 4.71 | Neutral |
| ROA | -3.51% | -314918.00% (disorted) | Weak |
NSYS outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nortech Systems Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
6.41%
Industry Style: Growth, Innovation, High Beta
GrowingEPS CAGR
-1.88%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-318.03%
Industry Style: Growth, Innovation, High Beta
Declining