Defense budget authorization levels and Navy shipbuilding appropriations (DDG-51 destroyers, Columbia-class submarines, Ford-class carriers)
New contract awards and backlog growth from prime contractors, particularly multi-year platform programs
Gross margin expansion driven by product mix shift toward higher-value aerospace and naval systems versus commodity industrial products
Supply chain cost pressures from copper, aluminum, and semiconductor component availability affecting input costs and delivery schedules
low - Defense spending exhibits counter-cyclical characteristics with 85-90% estimated revenue from military applications insulated from GDP fluctuations. Multi-year defense authorization cycles and geopolitical tensions (China, Russia) drive demand independent of domestic economic conditions. Small industrial segment provides modest GDP sensitivity but represents minor revenue contribution.
Low direct impact as zero debt eliminates financing cost exposure and defense contracts typically include cost escalation provisions. Rising rates modestly compress valuation multiples for small-cap defense stocks but fundamental business model remains insulated. Customer financing (government appropriations) unaffected by commercial credit conditions.
Defense budget sequestration or cuts to Navy shipbuilding programs could reduce platform production rates and retrofit demand
Consolidation among defense primes reducing customer count and increasing negotiating leverage over specialized suppliers
Technology shift toward solid-state power electronics and commercial-off-the-shelf components potentially commoditizing traditional magnetic component expertise
value - 118.5% one-year return suggests momentum interest, but 4.1x P/S and 2.9x P/B valuations with 19.1% ROE and zero debt attract value investors seeking quality small-cap defense exposure. 9.9% FCF yield appeals to cash flow investors. Illiquid float limits institutional ownership to specialized small-cap and defense-focused funds.
Trend
+20.6% vs SMA 50 · +61.1% vs SMA 200
Momentum
Accumulation pattern present — more buying days than selling over the past 20 sessions. Volume conditions support gradual price improvement.
Based on volume distribution analysis. Direct short interest data (short float %, days to cover) is not available in current data sources.
ANALYST ESTIMATES
Analyst consensus estimates · Actuals replace estimates as reported
| Year | Revenue Est. | Rev Gth | EPS Est. | EPS Gth | Range | Analysts |
|---|---|---|---|---|---|---|
FY2025 | $44.0M $44.0M–$44.0M | — | $1.09 | — | — | Low1 |
FY2026(current) | $48.0M $48.0M–$48.0M | ▲ +9.2% | $3.47 | ▲ +218.3% | — | Low1 |
FY2027 | $52.8M $52.8M–$52.8M | ▲ +10.0% | $3.50 | ▲ +0.9% | — | Low1 |
Dividend per payment — last 8 periods
INSTITUTIONAL OWNERSHIP
ESP News
About
Espey Mfg. & Electronics Corp. designs, develops, tests and manufactures specialized Military and Rugged Industrial Power Supplies and Transformers for use in harsh or severe environment applications. An Original Equipment Manufacturing (OEM) Company, Espey has been in business for more than 85 years designing and developing “Best in Class” products in support of our government and the Warfighter. Espey is a fully vertically integrated manufacturing company with product development, engineering, power supply and transformer assembly, sheet metal fabrication, machining, painting/coating, electrical/mechanical assembly and transformer coil winding capabilities all on-site at our 150,000+ square foot facility located in Saratoga Springs, NY
| Symbol | Price | Day % | Mkt Cap↓ | P/E | Rev Grw | Margin | ELO |
|---|---|---|---|---|---|---|---|
ESP◀ | $67.20 | -4.68% | $201M | 17.4 | +1346.2% | 1852.7% | 1500 |
| $404.35 | -3.20% | $2.1T | 30.5 | +3296.8% | 4510.0% | 1500 | |
| $132.58 | -6.05% | $307.9B | 20.7 | -44.8% | 1012.0% | 1500 | |
| $88.38 | -2.58% | $303.7B | 13.6 | +318.8% | 1510.7% | 1500 | |
| $148.08 | -1.13% | $282.6B | 21.0 | +597.3% | 2564.4% | 1500 | |
| $181.58 | -1.83% | $281.6B | 26.9 | +862.9% | 1745.9% | 1500 | |
| $183.40 | -0.23% | $256.1B | 16.8 | +213.3% | 1482.4% | 1500 | |
| Sector avg | — | -2.81% | — | 21.0 | +941.5% | 2096.9% | 1500 |