Espey Mfg. & Electronics Corp. (ESP) AI Stock Analysis

Espey Mfg. & Electronics Corp. specializes in the design, manufacturing, and testing of advanced electronic equipment tailored primarily for military and industrial applications across the globe. Its portfolio includes power supplies, converters, filters, transformers, magnetic components, and UPS systems. Applications span AC and DC locomotives, shipboard power systems, shipboard radar installations, airborne power solutions, ground-based radar systems, and mobile power units. Based in Saratoga Springs, New York, the company also provides design, specification, environmental testing, metal fabrication, painting services, printed circuit board assembly, and automated testing equipment development for industrial manufacturers, defense contractors, and governments.

From FY2022 to FY2026, annual revenue grew from $32.1M to $46.1M, reflecting a 5-year revenue CAGR of 10.7%. Over that timeframe, gross margin expanded from 17.0% to 35.3%, while operating margin increased from 4.8% to 25.1%. Net income rose from $1.3M in FY2022 to $11.2M in FY2026, pushing net margin to 24.2% and EPS to $3.89. For the latest quarter ended June 30, 2026, quarterly revenue growth reached 40.4% year-over-year, and quarterly earnings growth was 8.4%. Operating cash flow was $5.7M in FY2026, down from $21.0M in FY2025.

As of June 30, 2026, Espey held $45.4M in cash and short-term investments against total assets of $97.2M and shareholders' equity of $60.6M. The company reported a current ratio of 2.50. During FY2026, operating cash flow reached $5.7M and capital expenditures were $3.1M, resulting in free cash flow of $2.6M. Cash deployment included $4.8M paid in dividends, while the share count increased 16.9% over five years.

At a last close of $55.58 on October 16, 2026, Espey trades at a trailing P/E of 14.3x and a forward P/E of 11.4x, below the median of its US-listed Industrials peers of 24.8x and 17.2x, respectively. Its enterprise value to EBITDA ratio is 11.8x compared to the peer median of 13.9x, while its price-to-sales multiple is 3.5x versus 1.5x for peers. Over the past year, the stock returned 56.9% compared to 16.8% for SPY, and over five years it gained 336.2% against 83.0% for SPY.

Espey pays a quarterly dividend with an annualized forward payout of $1.00, resulting in a dividend yield of 1.80%. The company has paid dividends for 4 consecutive years and generated a 5-year annualized dividend growth rate of 11.8%. The payout ratio stands at 45.0%, and its last ex-dividend date was September 18, 2026.

Wall Street coverage includes 1 analyst with a Hold rating, 0 Buys, and 0 Sells. The mean price target is $70.00, representing an upside of 25.9% from the last close of $55.58. For the fiscal year ending June 30, 2027, the analyst estimates revenue of $52.4M and EPS of $3.73, representing an EPS decline of 4.1%. Espey beat EPS estimates in each of the last 4 quarters, with the next earnings date scheduled for November 11, 2026.

This page is an AI-written research summary of Espey Mfg. & Electronics Corp. (ESP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: ESP income statement, ESP balance sheet, ESP key metrics, ESP analyst forecast, ESP chart. See the ESP stock overview for the latest quote and news.