Recent News
On September 8, 2025 the Board declared a special cash dividend of $0.75 per share in addition to the regular $0.25 quarterly dividend, payable September 26 to holders of record September 19. On October 22, 2025 the company announced completion and start-up of full-scale production and testing at its expanded Magnetics Center of Excellence, beginning commercial operations at the new facility.
Technical Analysis
Directional indicators (ADX / DI+ / DI-): ADX reads 17.01, below 20, which indicates no established trend; DI+ at 22.27 trending higher while DI- at 13.29 trends lower, which favors a bullish directional bias but without strong trend strength. That combination supports upside attempts while keeping breakouts fragile relative to the valuation view that labels the stock over-valued.
MACD: MACD at 0.44 sits above the signal line at -0.02 and shows an increasing trajectory, which constitutes a bullish momentum signal and supports near-term upside continuation into the moving-average band.
MRO: MRO at 24.76 with a peak-and-reversal reading indicates the current price stands above the model target and faces downward pressure; that divergence between momentum and target-based pressure increases risk of a corrective pullback against the bullish MACD and DI readings.
RSI and price vs averages: RSI at 52.21 and rising signals balanced buying momentum rather than overbought extremes. Price closed at $42.53, trading above the 12-day EMA ($39.75), 20-day average ($39.18), 50-day average ($38.42) and 200-day average ($37.55), which supports short-term upside; however the close sits marginally above the 2x Bollinger upper band ($42.30), increasing likelihood of a reversion event that would conflict with an over-valued equity assessment.
Volume and volatility: Current volume at 6,143 undercuts 10-, 50- and 200-day averages (10-day 12,996; 50-day 18,396; 200-day 24,356), which reduces confidence in breakout strength. Beta measures low market sensitivity (42-day 0.24, 52-week 0.53) and 42-day volatility at 2% implies limited short-term amplitude, consistent with thin-volume moves.
Fundamental Analysis
Recent results and cash allocation: For the three months ended September 30, 2025 net sales totaled $9,092,876 versus $10,443,218 a year earlier, a YoY revenue decline of -12.93%. Net income rose to $2,169,836 from $1,598,317 YoY, a gain of +35.76%; diluted EPS moved from $0.61 to $0.76, a +24.59% increase. Management reported backlog near $141.1 million versus roughly $94.6 million a year earlier, reflecting substantial book-to-bill and pipeline expansion.
Profitability and margins: Operating margin and EBIT margin at 22.72% place Espey above the industry peer mean operating/EBIT margin of ~19.85% and above the industry median of ~21.38%, while gross margin at 35.38% sits below the industry peer mean of ~43.91%. QoQ dynamics show compression (EBIT margin QoQ -17.17%), while YoY margin expansion runs +38.00% for EBIT, supporting the valuation premium embedded in multiples.
Cash, leverage and cash conversion: Cash and short-term investments total $46,908,700 against a market capitalization of $117,983,801, providing material liquidity. Current ratio 2.38 and quick ratio 1.76 both exceed the industry peer mean and median, indicating ample near-term coverage of liabilities. Cash conversion cycle at 327.53 days sits at the high end of the industry peer range (peer mean ~93.93 days, peer high ~328.79 days), highlighting working-capital tied up in inventory and receivables.
Returns, efficiency and coverage: Return on equity at 4.26% and return on assets at 2.65% register above industry peer means; interest coverage near 14.17x offers strong buffer on interest obligations. Asset turnover at 0.1109 lags the industry peer mean (~0.1533), reflecting lower sales leverage of invested assets and consistent with the long cash conversion cycle.
Capital allocation and cash flow: Free cash flow totaled $4,429,521 with a free cash flow yield of 3.75%, above the industry peer mean free cash flow yield of ~1.27%. Dividend activity expanded sharply: the September 8 special dividend $0.75 plus the regular $0.25 raised the annualized cash return; dividend payout ratio reads 126.40% with dividend coverage 79.12%, reflecting payouts that exceed the most recent quarterly EPS on a simple annualization basis and warrant monitoring within the capital allocation context.
Valuation summary: Price multiples present a mixed picture: trailing P/E ~52.92 and P/S ~12.98, while price-to-book near 2.31 sits below the industry peer mean book multiple. Forward EPS at $0.0025 and forward P/E near 17,892 reflect an anomalously small forward EPS figure that inflates the forward multiple. WMDST values the stock as over-valued, a conclusion that aligns with high trailing multiples, positive margin divergence, and significant cash on the balance sheet that the company has begun returning to shareholders.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-12 |
| NEXT REPORT DATE: | 2026-02-11 |
| CASH FLOW | Begin Period Cash Flow | $ 18.9 M |
| Operating Cash Flow | $ 5.7 M | |
| Capital Expenditures | $ -1.29 M | |
| Change In Working Capital | $ 3.2 M | |
| Dividends Paid | $ -2.74 M | |
| Cash Flow Delta | $ 3.4 M | |
| End Period Cash Flow | $ 22.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 9.1 M | |
| Forward Revenue | $ 7.7 K | |
| COSTS | ||
| Cost Of Revenue | $ 5.9 M | |
| Depreciation | $ 117.9 K | |
| Depreciation and Amortization | $ 117.9 K | |
| Research and Development | — | |
| Total Operating Expenses | $ 7.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 3.2 M | |
| EBITDA | $ 2.2 M | |
| EBIT | $ 2.1 M | |
| Operating Income | $ 2.1 M | |
| Interest Income | $ 472.4 K | |
| Interest Expense | — | |
| Net Interest Income | $ 472.4 K | |
| Income Before Tax | $ 2.6 M | |
| Tax Provision | $ 387.7 K | |
| Tax Rate | 15.159 % | |
| Net Income | $ 2.2 M | |
| Net Income From Continuing Operations | $ 2.2 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.67 | |
| EPS Actual | $ 0.76 | |
| EPS Difference | $ 0.09 | |
| EPS Surprise | 13.433 % | |
| Forward EPS | $ 0.00 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 84.8 M | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 51.0 M | |
| Total Current Assets | $ 80.7 M | |
| Cash and Short-Term Investments | $ 46.9 M | |
| Cash | $ 22.2 M | |
| Net Receivables | $ 6.4 M | |
| Inventory | $ 21.1 M | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | $ 3.4 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 33.9 M | |
| Net Debt | — | |
| Total Debt | — | |
| Total Liabilities | $ 33.9 M | |
| EQUITY | ||
| Total Equity | $ 51.0 M | |
| Retained Earnings | $ 31.0 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 17.38 | |
| Shares Outstanding | 2.934 M | |
| Revenue Per-Share | $ 3.10 | |
| VALUATION | Market Capitalization | $ 118.0 M |
| Enterprise Value | — | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | — | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.664 | |
| Asset To Liability | 2.505 | |
| Debt To Capital | — | |
| Debt To Assets | — | |
| Debt To Assets QoQ | — | |
| Debt To Assets YoY | — | |
| Debt To Assets IPRWA | — | |
| Debt To Equity | — | |
| Debt To Equity QoQ | — | |
| Debt To Equity YoY | — | |
| Debt To Equity IPRWA | — | |
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.314 | |
| Price To Book QoQ | -4.894 % | |
| Price To Book YoY | 30.839 % | |
| Price To Book IPRWA | high: 9.111 mean: 4.249 median: 3.684 ESP: 2.314 low: -1.835 |
|
| Price To Earnings (P/E) | 52.919 | |
| Price To Earnings QoQ | 0.0 % | |
| Price To Earnings YoY | 41.047 % | |
| Price To Earnings IPRWA | high: 157.791 mean: 88.896 median: 81.953 ESP: 52.919 low: -33.071 |
|
| PE/G Ratio | — | |
| Price To Sales (P/S) | 12.975 | |
| Price To Sales QoQ | 0.624 % | |
| Price To Sales YoY | 80.274 % | |
| Price To Sales IPRWA | high: 31.268 mean: 16.222 median: 15.39 ESP: 12.975 low: 0.276 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 17892.532 | |
| Forward PE/G | — | |
| Forward P/S | 15356.475 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 4.101 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.111 | |
| Asset Turnover Ratio QoQ | -12.185 % | |
| Asset Turnover Ratio YoY | -39.37 % | |
| Asset Turnover Ratio IPRWA | high: 0.442 mean: 0.153 median: 0.12 ESP: 0.111 low: 0.026 |
|
| Receivables Turnover | 1.303 | |
| Receivables Turnover Ratio QoQ | -4.91 % | |
| Receivables Turnover Ratio YoY | -14.817 % | |
| Receivables Turnover Ratio IPRWA | high: 3.065 mean: 1.753 median: 1.616 ESP: 1.303 low: 0.264 |
|
| Inventory Turnover | 0.302 | |
| Inventory Turnover Ratio QoQ | -10.723 % | |
| Inventory Turnover Ratio YoY | -23.56 % | |
| Inventory Turnover Ratio IPRWA | high: 2.298 mean: 1.041 median: 1.038 ESP: 0.302 low: 0.236 |
|
| Days Sales Outstanding (DSO) | 70.03 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 327.528 | |
| Cash Conversion Cycle Days QoQ | 30.528 % | |
| Cash Conversion Cycle Days YoY | 43.736 % | |
| Cash Conversion Cycle Days IPRWA | high: 328.786 ESP: 327.528 median: 95.441 mean: 93.932 low: -31.206 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.194 | |
| CapEx To Revenue | -0.142 | |
| CapEx To Depreciation | -10.948 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 51.0 M | |
| Net Invested Capital | $ 51.0 M | |
| Invested Capital | $ 51.0 M | |
| Net Tangible Assets | $ 51.0 M | |
| Net Working Capital | $ 46.9 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.385 | |
| Current Ratio | 2.384 | |
| Current Ratio QoQ | -10.348 % | |
| Current Ratio YoY | -32.88 % | |
| Current Ratio IPRWA | high: 8.334 ESP: 2.384 mean: 1.336 median: 1.155 low: 0.876 |
|
| Quick Ratio | 1.762 | |
| Quick Ratio QoQ | -13.113 % | |
| Quick Ratio YoY | -22.315 % | |
| Quick Ratio IPRWA | high: 7.533 ESP: 1.762 mean: 0.905 median: 0.72 low: 0.65 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | — | |
| Cost Of Debt | — | |
| Interest Coverage Ratio | 14.167 | |
| Interest Coverage Ratio QoQ | -21.512 % | |
| Interest Coverage Ratio YoY | 20.156 % | |
| Interest Coverage Ratio IPRWA | high: 45.333 ESP: 14.167 mean: 10.072 median: 4.289 low: -60.965 |
|
| Operating Cash Flow Ratio | 0.031 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 47.261 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 0.791 | |
| Dividend Payout Ratio | 1.264 | |
| Dividend Rate | $ 0.93 | |
| Dividend Yield | 0.023 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 7.243 % | |
| Revenue Growth | -5.245 % | |
| Revenue Growth QoQ | -23.52 % | |
| Revenue Growth YoY | -47.847 % | |
| Revenue Growth IPRWA | high: 44.942 % median: 6.444 % mean: 4.939 % ESP: -5.245 % low: -27.734 % |
|
| Earnings Growth | 0.0 % | |
| Earnings Growth QoQ | — | |
| Earnings Growth YoY | -100.0 % | |
| Earnings Growth IPRWA | high: 52.778 % median: 6.18 % mean: 1.596 % ESP: 0.0 % low: -57.669 % |
|
| MARGINS | ||
| Gross Margin | 35.379 % | |
| Gross Margin QoQ | -9.986 % | |
| Gross Margin YoY | 31.913 % | |
| Gross Margin IPRWA | high: 71.841 % median: 48.879 % mean: 43.913 % ESP: 35.379 % low: -22.872 % |
|
| EBIT Margin | 22.718 % | |
| EBIT Margin QoQ | -17.169 % | |
| EBIT Margin YoY | 38.003 % | |
| EBIT Margin IPRWA | high: 30.674 % ESP: 22.718 % median: 21.38 % mean: 19.847 % low: -128.385 % |
|
| Return On Sales (ROS) | 22.718 % | |
| Return On Sales QoQ | -17.169 % | |
| Return On Sales YoY | 38.003 % | |
| Return On Sales IPRWA | high: 25.804 % ESP: 22.718 % median: 20.227 % mean: 20.164 % low: -37.774 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 4.4 M | |
| Free Cash Flow Yield | 3.754 % | |
| Free Cash Flow Yield QoQ | 407.297 % | |
| Free Cash Flow Yield YoY | 289.419 % | |
| Free Cash Flow Yield IPRWA | high: 11.554 % ESP: 3.754 % mean: 1.271 % median: 1.127 % low: -2.711 % |
|
| Free Cash Growth | 383.949 % | |
| Free Cash Growth QoQ | -520.646 % | |
| Free Cash Growth YoY | -633.752 % | |
| Free Cash Growth IPRWA | ESP: 383.949 % high: 128.865 % mean: 7.506 % median: -13.818 % low: -244.737 % |
|
| Free Cash To Net Income | 2.041 | |
| Cash Flow Margin | 11.628 % | |
| Cash Flow To Earnings | 0.487 | |
| VALUE & RETURNS | ||
| Economic Value Added | — | |
| Return On Assets (ROA) | 2.647 % | |
| Return On Assets QoQ | -31.407 % | |
| Return On Assets YoY | -5.464 % | |
| Return On Assets IPRWA | high: 4.472 % ESP: 2.647 % mean: 1.959 % median: 1.506 % low: -13.934 % |
|
| Return On Capital Employed (ROCE) | 4.052 % | |
| Return On Equity (ROE) | 0.043 | |
| Return On Equity QoQ | -26.175 % | |
| Return On Equity YoY | 13.161 % | |
| Return On Equity IPRWA | high: 0.147 ESP: 0.043 mean: 0.037 median: 0.031 low: -0.055 |
|
| DuPont ROE | 4.262 % | |
| Return On Invested Capital (ROIC) | 3.438 % | |
| Return On Invested Capital QoQ | -24.089 % | |
| Return On Invested Capital YoY | -158.669 % | |
| Return On Invested Capital IPRWA | high: 5.346 % ESP: 3.438 % mean: 2.92 % median: 2.483 % low: -2.217 % |
|