Escalon Medical Corp (ESMC) stock analysis
Close on Oct 19, 2026Market cap $2.72MP/E 0.7Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed10 of 30 checks passed
Escalon Medical passes 10 of the 30 checks behind our score; 15 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 1/6
- Past performance
- 4/6
- Financial health
- 5/6
- Dividend
- 0/6
What stands out
Return on equity over 15%
Return on equity was 102% over the last twelve months and averaged 25.9% over five years.
No debt
Escalon Medical has no borrowings on its latest balance sheet.
EPS growing 10%+ a year
Diluted EPS grew 108% a year over the last three fiscal years.
Interest well covered
Operating income covers interest expense 6.1 times.
What to watch
Return on capital under 10%
Return on invested capital was 1.7%, below the 10% that usually covers the cost of capital.
Revenue growing under 10% a year
Revenue grew 1.5% a year over the last three fiscal years, short of the 10% we look for.
Growing slower than the industry
Revenue grew 5.7% over the last twelve months; the Surgical, Medical, and Dental Instruments and Supplies median is 11.0%.
Gross margin slipping
Gross margin was 43.7% over the last twelve months, against 45.7% a year earlier.
Valuation0/6
P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B against the industry
Needs positive book value.
Price against fair value
We could not estimate a fair value: it needs at least two valuation methods with positive inputs.
Margin of safety
Depends on the fair value estimate.
Growth1/6
Revenue growing under 10% a year
Revenue grew 1.5% a year over the last three fiscal years, short of the 10% we look for.
EPS growing 10%+ a year
Diluted EPS grew 108% a year over the last three fiscal years.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew 5.7% over the last twelve months; the Surgical, Medical, and Dental Instruments and Supplies median is 11.0%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin slipping
Gross margin was 43.7% over the last twelve months, against 45.7% a year earlier.
Past performance4/6
Return on equity over 15%
Return on equity was 102% over the last twelve months and averaged 25.9% over five years.
Return on capital under 10%
Return on invested capital was 1.7%, below the 10% that usually covers the cost of capital.
Return on equity above the industry
Escalon Medical's return on equity of 102% is above the Surgical, Medical, and Dental Instruments and Supplies median of -31.3%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 31.5% over the last twelve months, against a 5-year average of 7.1%.
Net margin above the industry
Escalon Medical's net margin of 31.5% is above the Surgical, Medical, and Dental Instruments and Supplies median of -14.1%.
Financial health5/6
No debt
Escalon Medical has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
Operating income covers interest expense 6.1 times.
Short-term assets cover short-term debts
Current assets are 2.94 times current liabilities.
Bankruptcy risk (Altman Z)
Needs market value, working capital and retained earnings.
Dividend0/6
No dividend
Escalon Medical has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itWe don't publish a fair value for Escalon Medical. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 6.7
- Surgical, Medical, and Dental Instruments and Supplies median 27.7
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Margins
Share of revenue, fiscal years 2012 to 2026
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +5.7% | +1.5% | +4.0% | +1.0% | |
| Gross profit | +1.1% | +0.5% | +4.7% | +0.3% | |
| Operating income | -66.0% | -54.4% | – | – | |
| Net income | +3702.5% | +106.3% | – | – | |
| EPS, diluted | – | +108.0% | – | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | -47.0% | -3.5% | 102.3% | |
| Return on assets | -13.8% | -0.9% | 56.8% | |
| Current ratio | 1.38 | 1.35 | 2.94 | |
| Interest coverage | -6.2× | -1.5× | 6.1× | |
| Inventory turnover | 3.0× | 3.8× | 3.7× | |
| Capex to revenue | 0.0% | 0.1% | 0.0% | |
| Diluted shares | 8M | 7M | 15M |
Where the cash went
Fiscal 2022 to 2026, five years combined
Escalon Medical generated $2.76M from operations and spent $55.27K on capital expenditure, dividends and share buybacks. 100% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 31.5% | 1.80× | 1.80× | 102.3% |
| FY2025 | 0.9% | 2.47× | 2.62× | 5.7% |
| FY2024 | -1.0% | 2.38× | 2.69× | -6.7% |
| FY2023 | 3.8% | 2.32× | 3.07× | 26.8% |
| FY2022 | 0.2% | 1.97× | 3.69× | 1.2% |
| FY2021 | -0.5% | 1.84× | 3.84× | -3.5% |
| FY2020 | -6.9% | 1.73× | 2.95× | -35.4% |
| FY2019 | -2.6% | 1.82× | 2.31× | -10.9% |
| FY2018 | 5.1% | 2.19× | 2.90× | 32.5% |
| FY2017 | -6.5% | 2.14× | 3.40× | -47.0% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero$4.01M
- Cash generatingOperating cash flow above zero-$402.60K
- Return on assets improvedROA up on the prior year2.2% → 80.4%
- Earnings backed by cashOperating cash flow above net income-$402.60K vs $4.01M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose1.72 → 2.94
- No dilutionShare count did not rise14M → 15M
- Gross margin improvedGross margin up on the prior year45.75% → 43.73%
- More efficientAsset turnover rose2.53 → 2.55
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