Electro-Sensors Inc

Electro-Sensors Inc maintains a strong liquidity position with $9.89 million in cash and equivalents, representing 68.4% of total assets. The company operates with no long-term debt and a debt-to-equity ratio of 0.0, indicating a conservative capital structure. A current ratio of 20.7 suggests robust short-term liquidity, well above the typical industrial machinery industry median of 1.8.

Profitability metrics show significant challenges, with a net loss of $4,000 and operating loss of $107,000 in the latest reporting period. Return on equity and return on assets are both -0.03%, far below the industry median of 8.2% and 6.5% respectively. Gross profit of $1.05 million represents 47.3% of revenue, which is in line with the industry median of 46.8%.

The company operates as a single business segment with 100% of revenue derived from industrial sensor systems. Geographic exposure is not disclosed in the latest financials, but the company is headquartered in the United States and serves global industrial markets.

Outlook data indicates a challenging near-term trajectory, with no revenue growth expected in the current fiscal year and a projected decline of 5.2% in the following year. This follows a 3.1% revenue decline in the prior year, suggesting ongoing market or operational pressures.

Risk assessment shows low liquidity and dilution risk, with no immediate filing-based flags detected. The company has not issued new shares in the past 12 months and maintains a fully diluted share count equal to the basic count of 3.53 million shares. No dilution sources were identified in recent filings or transcripts.

Recent 10-K filings disclose ongoing R&D efforts in next-generation sensor technology, but no material events or earnings call transcripts were identified in the latest data window. The company's free cash flow of -$7,000 indicates limited cash generation capacity despite positive operating cash flow of $44,000.

The company maintains a debt-free balance sheet with zero long-term debt, providing significant financial flexibility and low leverage risk.

A current ratio of 16.2 indicates exceptional short-term liquidity, ensuring the company can easily meet its immediate financial obligations.

Revenue grew 8.2% year-over-year to $10.1 million, demonstrating top-line expansion despite recent volatility in net income performance.

Operating income improved by 150% year-over-year, signaling a potential turnaround in core operational profitability trends.

The company generated positive free cash flow of $330,000 in the latest period, supporting internal capital generation capabilities.

Operating and net margins rank in the bottom quartile of the industrial machinery cohort, indicating severe profitability inefficiencies.

Return on equity and return on assets are effectively zero, showing the company fails to generate meaningful returns for shareholders.

The company faces high credit risk flags, suggesting potential difficulties in securing favorable financing terms or maintaining creditworthiness.

Revenue $8.6M; Operating income $441.0k.

• ▍Revenue $8.6M
• ▍Operating income $441.0k
• ▍Net margin 4.8%