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 2.60% over the last 5 years

With a growth in Net Sales of 12.72%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Highest at USD 4.12 MM
RAW MATERIAL COST(Y) Fallen by -38.98% (YoY)
PRE-TAX PROFIT(Q) At USD -0.21 MM has Grown at 86.61%

With ROE of 0.04%, it has a expensive valuation with a 0.95 Price to Book Value

Over the past year, while the stock has generated a return of 100.69%, its profits have risen by 75% ; the PEG ratio of the company is 0.3

Increasing Participation by Institutional Investors

Institutional investors have increased their stake by 1% over the previous quarter and collectively hold 5.61% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nortech Systems, Inc. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Nortech Systems, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nortech Systems, Inc.

100.69%

0.86

64.12%

S&P 500

22.24%

1.67

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.60%

EBIT Growth (5y)

21.08%

EBIT to Interest (avg)

1.88

Debt to EBITDA (avg)

0.74

Net Debt to Equity (avg)

0.39

Sales to Capital Employed (avg)

2.94

Tax Ratio

10.07%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

5.61%

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

Industry P/E

Price to Book Value

0.95

EV to EBIT

32.16

EV to EBITDA

15.78

EV to Capital Employed

0.96

EV to Sales

0.34

PEG Ratio

0.33

Dividend Yield

ROCE (Latest)

2.99%

ROE (Latest)

0.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

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

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 4.12 MM

RAW MATERIAL COST(Y)

Fallen by -38.98% (YoY

PRE-TAX PROFIT(Q)

At USD -0.21 MM has Grown at 86.61%

NET PROFIT(Q)

At USD -0.03 MM has Grown at 96.76%

-1What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.59 times

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

Operating Cash Flow

Highest at USD 4.12 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Pre-Tax Profit

At USD -0.21 MM has Grown at 86.61%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

At USD -0.03 MM has Grown at 96.76%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Raw Material Cost

Fallen by -38.98% (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.

Inventory Turnover Ratio

Lowest at 4.59 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio