Recent News
May 12, 2026 — Espey reported third-quarter results for the fiscal year, releasing operational and financial details for the nine months ended March 31, 2026. June 4, 2026 — the board declared a regular quarterly cash dividend of $0.25 per share, payable June 22, 2026 to shareholders of record June 15, 2026.
Technical Analysis
Directional strength shows an emerging trend: ADX at 24.3 signals an emerging trend strength that supports a near-term directional bias toward the upside, consistent with the valuation’s “under-valued” designation.
Directional indicators display bullish overlap: DI+ recorded a dip-and-reversal (bullish) while DI- sits at 21.82 and is decreasing (bullish), implying recent directional conviction has shifted toward buyers.
MACD dynamics confirm momentum shift: MACD at -1.51 has completed a dip-and-reversal and sits above the signal line (-1.76), a bullish momentum crossover that supports short-term upward pressure on price.
MRO reads -9.4 (negative), indicating the current price sits below the WMDST target and therefore contains upside potential relative to that target; the MRO trend declines, suggesting the magnitude of that gap has recently widened.
RSI at 45.22 and rising indicates improving buying pressure without overbought risk, supporting a tactical long-bias for near-term swings rather than extended breakout expectations.
Price sits at $59.75 above the 20-day average ($57.73) but below the 50-day average ($63.44), signaling short-term bullishness against intermediate resistance; the 12-day EMA shows a dip-and-reversal that aligns with the MACD bullish crossover.
Bollinger parameters place price marginally above the 1x upper band (upper 1σ = $59.71), indicating modestly elevated short-term volatility. Low trading volume relative to multi-horizon averages suggests moves may lack broad participation.
Fundamental Analysis
Profitability and margins: operating (EBIT) margin stands at 26.12%, rising 3.22% QoQ and 53.66% YoY, and sits above the industry peer mean (17.739%) and near the industry peer high (26.648%), reflecting strong operating leverage on current revenue. Gross margin registers 37.03%, up 6.68% QoQ and 29.38% YoY, roughly in line with the industry peer mean (36.978%).
Top-line and growth: total revenue equals $11,422,655 with revenue growth at -5.89% and revenue growth YoY at -75.78%, while revenue QoQ shows a -117.58% read; these figures indicate meaningful top-line contraction over the reported intervals despite margin expansion.
Cash, liquidity and balance sheet: cash and short-term investments total $46,660,142 and the cash ratio equals 1.18; current ratio stands at 2.32 and quick ratio at 1.64, supporting short-term obligations. Free cash flow equals $3,199,665 with a free cash flow yield of 1.74%, above the industry peer mean (0.56%), indicating healthy cash conversion relative to market value.
Working capital dynamics: inventory sits at $26,580,068 with days inventory outstanding at 285.15 and a cash conversion cycle of 304.45 days—markedly longer than the industry peer mean (90.62 days)—which ties up capital and presents a constraint on liquidity deployment despite large cash reserves.
Returns and capital efficiency: return on equity equals 5.08% (YoY +38.03%), return on assets 3.16% (YoY +23.37%), and return on invested capital 4.47% (YoY +44.70%), all showing material YoY improvement while asset turnover remains low at 0.1261 (below the industry peer mean of 0.17432), signaling underutilized asset base.
Valuation and distributions: price-to-book stands at 3.26 (up 23.01% QoQ, up 88.87% YoY) while price-to-sales equals 16.10 (up 38.59% QoQ, up 107.46% YoY). Forward EPS equals $0.9275 with a forward P/E of 59.03. Dividend yield sits near 0.38% with a payout ratio of 24.41% and dividend coverage of 4.10, and the board declared a $0.25 quarterly cash dividend payable June 22, 2026. WMDST values the stock as under-valued given strong cash holdings and above-peer margins offsetting revenue contraction and stretched working capital.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-05-12 |
| NEXT REPORT DATE: | 2026-08-11 |
| CASH FLOW | Begin Period Cash Flow | $ 17.8 M |
| Operating Cash Flow | $ 3.4 M | |
| Capital Expenditures | $ -188.72 K | |
| Change In Working Capital | $ 162.2 K | |
| Dividends Paid | $ -699.19 K | |
| Cash Flow Delta | $ 3.4 M | |
| End Period Cash Flow | $ 21.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 11.4 M | |
| Forward Revenue | $ 2.8 M | |
| COSTS | ||
| Cost Of Revenue | $ 7.2 M | |
| Depreciation | $ 133.6 K | |
| Depreciation and Amortization | $ 133.6 K | |
| Research and Development | — | |
| Total Operating Expenses | $ 8.4 M | |
| PROFITABILITY | ||
| Gross Profit | $ 4.2 M | |
| EBITDA | $ 3.1 M | |
| EBIT | $ 3.0 M | |
| Operating Income | $ 3.0 M | |
| Interest Income | $ 402.1 K | |
| Interest Expense | — | |
| Net Interest Income | $ 402.1 K | |
| Income Before Tax | $ 3.4 M | |
| Tax Provision | $ 526.8 K | |
| Tax Rate | 15.5 % | |
| Net Income | $ 2.9 M | |
| Net Income From Continuing Operations | $ 2.9 M | |
| EARNINGS | ||
| EPS Estimate | — | |
| EPS Actual | — | |
| EPS Difference | — | |
| EPS Surprise | — | |
| Forward EPS | $ 0.93 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 96.0 M | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 56.4 M | |
| Total Current Assets | $ 91.7 M | |
| Cash and Short-Term Investments | $ 46.7 M | |
| Cash | $ 21.2 M | |
| Net Receivables | $ 6.3 M | |
| Inventory | $ 26.6 M | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | $ 3.1 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 39.6 M | |
| Net Debt | — | |
| Total Debt | — | |
| Total Liabilities | $ 39.6 M | |
| EQUITY | ||
| Total Equity | $ 56.4 M | |
| Retained Earnings | $ 35.3 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 18.89 | |
| Shares Outstanding | 2.987 M | |
| Revenue Per-Share | $ 3.82 | |
| VALUATION | Market Capitalization | $ 183.9 M |
| Enterprise Value | — | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | — | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.702 | |
| Asset To Liability | 2.425 | |
| 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) | 3.26 | |
| Price To Book QoQ | 23.012 % | |
| Price To Book YoY | 88.87 % | |
| Price To Book IPRWA | high: 9.416 mean: 5.002 median: 4.694 ESP: 3.26 low: -1.169 |
|
| Price To Earnings (P/E) | — | |
| Price To Earnings QoQ | — | |
| Price To Earnings YoY | — | |
| Price To Earnings IPRWA | — | |
| PE/G Ratio | — | |
| Price To Sales (P/S) | 16.103 | |
| Price To Sales QoQ | 38.585 % | |
| Price To Sales YoY | 107.46 % | |
| Price To Sales IPRWA | high: 42.542 median: 22.651 mean: 19.677 ESP: 16.103 low: 0.468 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 59.032 | |
| Forward PE/G | — | |
| Forward P/S | 68.069 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 0.486 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.126 | |
| Asset Turnover Ratio QoQ | -11.682 % | |
| Asset Turnover Ratio YoY | -18.587 % | |
| Asset Turnover Ratio IPRWA | high: 0.324 mean: 0.174 median: 0.151 ESP: 0.126 low: 0.023 |
|
| Receivables Turnover | 1.573 | |
| Receivables Turnover Ratio QoQ | -5.473 % | |
| Receivables Turnover Ratio YoY | 2.283 % | |
| Receivables Turnover Ratio IPRWA | high: 2.647 mean: 1.752 median: 1.697 ESP: 1.573 low: 0.383 |
|
| Inventory Turnover | 0.29 | |
| Inventory Turnover Ratio QoQ | -19.336 % | |
| Inventory Turnover Ratio YoY | -32.459 % | |
| Inventory Turnover Ratio IPRWA | high: 2.811 mean: 1.117 median: 1.076 ESP: 0.29 low: 0.109 |
|
| Days Sales Outstanding (DSO) | 58.021 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 304.454 | |
| Cash Conversion Cycle Days QoQ | -10.994 % | |
| Cash Conversion Cycle Days YoY | 61.911 % | |
| Cash Conversion Cycle Days IPRWA | ESP: 304.454 high: 179.8 mean: 90.625 median: 89.932 low: -19.563 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.219 | |
| CapEx To Revenue | -0.017 | |
| CapEx To Depreciation | -1.413 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 56.4 M | |
| Net Invested Capital | $ 56.4 M | |
| Invested Capital | $ 56.4 M | |
| Net Tangible Assets | $ 56.4 M | |
| Net Working Capital | $ 52.1 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.179 | |
| Current Ratio | 2.315 | |
| Current Ratio QoQ | -8.508 % | |
| Current Ratio YoY | -8.862 % | |
| Current Ratio IPRWA | high: 12.637 ESP: 2.315 mean: 1.739 median: 1.483 low: 0.993 |
|
| Quick Ratio | 1.644 | |
| Quick Ratio QoQ | -9.308 % | |
| Quick Ratio YoY | -14.149 % | |
| Quick Ratio IPRWA | high: 10.846 ESP: 1.644 mean: 1.139 median: 0.871 low: 0.724 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | — | |
| Cost Of Debt | — | |
| Interest Coverage Ratio | 20.461 | |
| Interest Coverage Ratio QoQ | -2.858 % | |
| Interest Coverage Ratio YoY | 70.369 % | |
| Interest Coverage Ratio IPRWA | high: 41.429 median: 24.577 ESP: 20.461 mean: 17.117 low: -48.0 |
|
| Operating Cash Flow Ratio | 0.019 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 38.722 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 4.097 | |
| Dividend Payout Ratio | 0.244 | |
| Dividend Rate | $ 0.23 | |
| Dividend Yield | 0.004 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 12.725 % | |
| Revenue Growth | -5.885 % | |
| Revenue Growth QoQ | -117.579 % | |
| Revenue Growth YoY | -75.775 % | |
| Revenue Growth IPRWA | high: 11.951 % median: -3.503 % mean: -3.836 % ESP: -5.885 % low: -46.572 % |
|
| Earnings Growth | — | |
| Earnings Growth QoQ | — | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | — | |
| MARGINS | ||
| Gross Margin | 37.026 % | |
| Gross Margin QoQ | 6.676 % | |
| Gross Margin YoY | 29.38 % | |
| Gross Margin IPRWA | high: 69.217 % median: 37.209 % ESP: 37.026 % mean: 36.978 % low: -11.982 % |
|
| EBIT Margin | 26.118 % | |
| EBIT Margin QoQ | 3.217 % | |
| EBIT Margin YoY | 53.662 % | |
| EBIT Margin IPRWA | high: 26.648 % ESP: 26.118 % mean: 17.739 % median: 17.388 % low: -93.547 % |
|
| Return On Sales (ROS) | 26.118 % | |
| Return On Sales QoQ | 3.217 % | |
| Return On Sales YoY | 53.662 % | |
| Return On Sales IPRWA | high: 26.702 % ESP: 26.118 % mean: 19.063 % median: 17.388 % low: -99.892 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 3.2 M | |
| Free Cash Flow Yield | 1.74 % | |
| Free Cash Flow Yield QoQ | -159.365 % | |
| Free Cash Flow Yield YoY | -86.738 % | |
| Free Cash Flow Yield IPRWA | high: 2.563 % ESP: 1.74 % median: 0.831 % mean: 0.56 % low: -11.857 % |
|
| Free Cash Growth | -177.415 % | |
| Free Cash Growth QoQ | -8.222 % | |
| Free Cash Growth YoY | -232.919 % | |
| Free Cash Growth IPRWA | high: 325.08 % median: -19.197 % mean: -38.586 % ESP: -177.415 % low: -568.477 % |
|
| Free Cash To Net Income | 1.117 | |
| Cash Flow Margin | 6.737 % | |
| Cash Flow To Earnings | 0.269 | |
| VALUE & RETURNS | ||
| Economic Value Added | — | |
| Return On Assets (ROA) | 3.162 % | |
| Return On Assets QoQ | -4.182 % | |
| Return On Assets YoY | 23.371 % | |
| Return On Assets IPRWA | high: 3.553 % ESP: 3.162 % median: 2.467 % mean: 1.918 % low: -10.831 % |
|
| Return On Capital Employed (ROCE) | 5.288 % | |
| Return On Equity (ROE) | 0.051 | |
| Return On Equity QoQ | -3.68 % | |
| Return On Equity YoY | 38.027 % | |
| Return On Equity IPRWA | high: 0.142 ESP: 0.051 mean: 0.037 median: 0.037 low: -0.097 |
|
| DuPont ROE | 5.227 % | |
| Return On Invested Capital (ROIC) | 4.467 % | |
| Return On Invested Capital QoQ | -2.997 % | |
| Return On Invested Capital YoY | 44.704 % | |
| Return On Invested Capital IPRWA | high: 5.205 % ESP: 4.467 % median: 3.178 % mean: 2.997 % low: -5.81 % |
|