Nortech Systems Inc (NSYS) stock analysis
Close on Nov 11, 2026Market cap $30.56MP/E 17.0Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Weak6 of 30 checks passed
Nortech Systems passes 6 of the 30 checks behind our score; 12 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
- 3/6
- Growth
- 1/6
- Past performance
- 0/6
- Financial health
- 2/6
- Dividend
- 0/6
What stands out
Trading below fair value
The share price of $10.71 is below our fair value estimate of $12.10.
Low bankruptcy risk
The Altman Z-score is 3.51; above 3 is the safe zone and below 1.8 the distress zone.
P/E below the industry
Nortech Systems's P/E of 28.9 is below the Electronic Components and Accessories median of 34.6.
P/B below the industry
Nortech Systems's price-to-book of 0.86 is below the Electronic Components and Accessories median of 3.49.
What to watch
Margin of safety under 20%
The price is 11.5% below fair value, less than the 20% cushion we look for.
Return on equity under 15%
Return on equity was 3.0% over the last twelve months and averaged 11.3% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 5.0%, below the 10% that usually covers the cost of capital.
Revenue growing under 10% a year
Revenue grew -55.0% a year over the last three fiscal years, short of the 10% we look for.
Valuation3/6
P/E above its 5-year median
Nortech Systems's P/E of 28.9 is above its own 5-year median of 6.7.
P/E below the industry
Nortech Systems's P/E of 28.9 is below the Electronic Components and Accessories median of 34.6.
EV/EBITDA above its 5-year median
Nortech Systems's EV/EBITDA of 11.6 is above its 5-year median of 7.0.
P/B below the industry
Nortech Systems's price-to-book of 0.86 is below the Electronic Components and Accessories median of 3.49.
Trading below fair value
The share price of $10.71 is below our fair value estimate of $12.10.
Margin of safety under 20%
The price is 11.5% below fair value, less than the 20% cushion we look for.
Growth1/6
Revenue growing under 10% a year
Revenue grew -55.0% a year over the last three fiscal years, short of the 10% we look for.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 54.4% over the last twelve months; the Electronic Components and Accessories median is 17.3%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin slipping
Gross margin was 11.3% over the last twelve months, against 12.4% a year earlier.
Past performance0/6
Return on equity under 15%
Return on equity was 3.0% over the last twelve months and averaged 11.3% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 5.0%, below the 10% that usually covers the cost of capital.
Return on equity below the industry
Nortech Systems's return on equity of 3.0% is below the Electronic Components and Accessories median of 4.8%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin below its 5-year average
Net margin was 0.6% over the last twelve months, against a 5-year average of 11.2%.
Net margin below the industry
Nortech Systems's net margin of 0.6% is below the Electronic Components and Accessories median of 3.0%.
Financial health2/6
Debt level
Needs debt and equity figures.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt coverage
Needs operating cash flow.
Interest not well covered
Operating income covers interest expense 2.7 times; we look for at least 5.
Short-term assets cover short-term debts
Current assets are 1.78 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 3.51; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Nortech Systems 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 itOur estimate per share
$12.10
The share price is 11% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 20.5× | 6.7× | 34.6× | $7.59 | 47% |
| EV/EBITDA | 14.1× | 7.0× | 21.3× | $12.90 | 41% |
| P/B | 2.2× | 0.9× | 3.5× | $27.37 | 12% |
| Fair value | $12.10 | 100% | |||
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
- Electronic Components and Accessories median 34.6
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.
Market risk
From the past year of daily prices.
Liquidity
High risk
- Average value traded per day
- $54.56K
- Value traded per 1% price move
- $13.51K
Downside
Medium risk
- Typical loss in a bad month
- 22.2%
- Volatility (annualized)
- 68%
- Sharpe ratio, 1 year
- 0.15
- Beta to the S&P 500 (5Y)
- 0.41
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -90.5% | -55.0% | -34.9% | -20.1% | |
| Gross profit | +7.7% | -4.2% | +13.3% | +4.1% | |
| Operating income | – | -36.9% | – | – | |
| Free cash flow | – | -11.8% | +18.8% | +2.0% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 0.2% | -8.0% | -0.7% | |
| Return on assets | 0.1% | -2.6% | -0.3% | |
| Current ratio | 1.94 | 2.10 | 1.88 | |
| Debt to equity | 0.29 | 0.38 | – | |
| Interest coverage | 1.1× | -1.0× | 1.0× | |
| Inventory turnover | 5.0× | 6.7× | -0.3× | |
| Capex to revenue | 1.7% | 0.5% | 5.4% | |
| Diluted shares | 3M | 3M | 3M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Nortech Systems generated $16.70M from operations and spent $6.88M 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 |
|---|---|---|---|---|
| FY2025 | -2.1% | 0.17× | 2.11× | -0.7% |
| FY2024 | -1.0% | 1.74× | 2.13× | -3.7% |
| FY2023 | 51.2% | 0.19× | 2.28× | 21.7% |
| FY2022 | 1.5% | 1.96× | 2.52× | 7.4% |
| FY2021 | 6.2% | 1.85× | 2.78× | 31.9% |
| FY2020 | -1.5% | 1.75× | 3.08× | -8.0% |
| FY2019 | -1.1% | 1.92× | 2.96× | -6.0% |
| FY2018 | 0.1% | 2.02× | 2.74× | 0.8% |
| FY2017 | -2.2% | 2.09× | 2.55× | -11.6% |
| FY2016 | 0.0% | 2.08× | 2.51× | 0.2% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero-$252.00K
- Cash generatingOperating cash flow above zero$2.74M
- Return on assets improvedROA up on the prior year-1.7% → -0.3%
- Earnings backed by cashOperating cash flow above net income$2.74M vs -$252.00K
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose2.58 → 1.88
- No dilutionShare count did not rise3M → 3M
- Gross margin improvedGross margin up on the prior year13.05% → 147.36%
- More efficientAsset turnover rose1.71 → 0.17
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