Nortech Systems, Inc. (NSYS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is Nortech Systems, Inc. ?

Poor Management Efficiency with a low ROCE of 8.91%

The company has been able to generate a Return on Capital Employed (avg) of 8.91% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 0.99% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(9M) At USD -0.88 MM has Grown at -301.22%
INTEREST(HY) At USD 0.53 MM has Grown at 39.11%
DEBTORS TURNOVER RATIO(HY) Lowest at 3.55 times

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 2.06%, its profits have fallen by -143%

Underperformed the market in the last 1 year

The stock has generated a return of 2.06% in the last 1 year, much lower than market (S&P 500) returns of 14.90%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Nortech Systems, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nortech Systems, Inc.

3.92%

-0.16

52.83%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.99%

EBIT Growth (5y)

-23.04%

EBIT to Interest (avg)

1.88

Debt to EBITDA (avg)

0.74

Net Debt to Equity (avg)

0.39

Sales to Capital Employed (avg)

3.04

Tax Ratio

10.07%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

5.00%

ROCE (avg)

8.91%

ROE (avg)

7.90%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.80

EV to EBIT

-39.16

EV to EBITDA

39.16

EV to Capital Employed

0.86

EV to Sales

0.34

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.28%

ROE (Latest)

-6.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -38.18% (YoY

OPERATING PROFIT(Q)

Highest at USD 1.25 MM

OPERATING PROFIT MARGIN(Q)

Highest at 4.11 %

PRE-TAX PROFIT(Q)

Highest at USD 0.67 MM

NET PROFIT(Q)

At USD -0.15 MM has Grown at 74.07%

-11What is not working for the Company

NET PROFIT(9M)

At USD -0.88 MM has Grown at -301.22%

INTEREST(HY)

At USD 0.53 MM has Grown at 39.11%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.55 times

CASH AND EQV(HY)

Lowest at USD 1.92 MM

Here's what is working for Nortech Systems, Inc.

Pre-Tax Profit

At USD 0.67 MM has Grown at 232.54%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Operating Profit

Highest at USD 1.25 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 4.11 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 0.67 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

At USD -0.15 MM has Grown at 74.07%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Raw Material Cost

Fallen by -38.18% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Nortech Systems, Inc.

Interest

At USD 0.53 MM has Grown at 39.11%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debtors Turnover Ratio

Lowest at 3.55 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Cash and Eqv

Lowest at USD 1.92 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents