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what it is
Espey builds power equipment that military customers use where failure is expensive and sometimes impossible to tolerate.
how it gets paid
Last year Esp made $44M in revenue.
why it's growing
Revenue grew 358.0% last year. Revenue rose 75% vs. prior year in the latest quarter.
what just happened
Espey just posted $21M in quarterly revenue and $1.75 in EPS, showing how violently this tiny business can scale.
At a glance
B balance sheet — gets the job done, barely
30/100 earnings predictability — expect surprises
17.5x trailing p/e — the market's not buying it — or you found a deal
1.7% dividend yield — cash in your pocket every quarter
16.0% return on capital — nothing to write home about
xvary composite: 52/100 — below average
What they do
Espey builds power equipment that military customers use where failure is expensive and sometimes impossible to tolerate.
Espey wins by building ugly, mission-critical hardware you cannot afford to have fail. It has just 152 employees, yet it still delivered a 19.5% operating margin on $44 million of sales in fiscal 2025. OEM (original equipment manufacturer) means it builds custom gear for someone else’s system, so once your design is approved, switching vendors means new testing, new paperwork, and new delays.
How they make money
$44M
annual revenue · their business grew +358.0% last year
total revenue
$44M
+358.0%
The products that matter
military-grade power conversion hardware
Power Supplies & Converters
$30M · 73% of revenue
This is the core business. It generated $30M of the company's roughly $41M revenue base, which means contract wins and delays here do most of the talking.
core segment
transformers and magnetic components
Magnetic Components
$11M · 27% of revenue
This side of the business brought in $11M. Helpful, but not enough to offset a serious stumble in defense electronics on its own.
secondary segment
Key numbers
19.5%
operating margin
Operating margin means profit after running the business. In plain English, Espey keeps about 20 cents from each sales dollar before taxes and interest.
16.0%
return on capital
Return on capital means how well management turns invested money into profit. At 16.0%, this business is doing better than a lot of small manufacturers.
$21M
latest quarter revenue
One quarter produced nearly half of annual sales, which tells you the business is real but the timing is messy.
$3.02
fy2025 eps est
EPS means profit per share. At a $58 stock price, that estimate underpins the roughly 17.5x trailing earnings multiple.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 40 / 100
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for ESP right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Espey just posted $21M in quarterly revenue and $1.75 in EPS, showing how violently this tiny business can scale.
Revenue rose 75% vs. prior year in the latest quarter, while EPS climbed 77%. Gross margin was 35.0%, which says the jump was not just low-quality volume.
$21M
revenue
$1.75
eps
35.0%
gross margin
the number that mattered
The $21 million quarter mattered most because it equals about 48% of the company's $44 million annual revenue, so one strong shipment cycle changes the whole year.
source: company earnings report, 2026
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What could go wrong
The #1 risk is defense program concentration in a $41M revenue base. ESP is profitable, but it is still a tiny contractor. When $30M of revenue comes from one side of the business, timing risk stops being a footnote.
high
defense electronics concentration
Defense electronics accounts for $30M of revenue, or about 73% of the total. That's focus, but it's also exposure.
a delayed or lost program would hit the segment that carries most of the company's revenue
high
low earnings predictability
ESP scores 30/100 on earnings predictability. In human terms: the business can be profitable and still produce jumpy quarters.
valuation can compress fast if a quarter misses because investors will not treat it like a smooth compounder
med
insider selling near the top of the range
Insiders sold $443k over the last 12 months while the stock moved up toward the top of its $25–$62 range.
not fatal on its own, but it weakens the "everyone closest to the business is leaning in" argument
med
small scale cuts both ways
Trailing revenue is $41.13M against a $172M market cap. That scale can create upside if execution stays clean, but it also leaves little room to hide a soft quarter.
a few million dollars of revenue movement can materially change investor perception
With only $41.13M in trailing revenue and $30M tied to defense electronics, ESP is exposed to contract timing in a way larger defense names simply are not.
source: institutional data · regulatory filings · risk analysis
Pay attention to
the key metric
quarterly revenue versus the $10.5M baseline
That is the latest reported quarterly revenue. If ESP starts coming in below that level repeatedly, the margin story will have less cover.
calendar
q1 2026 earnings report
Estimated announcement May 18, 2026. You want to see whether recent profitability holds without relying on perfect timing.
risk signal
new insider filings
The last 12 months already showed $443k of insider selling. More of the same at current prices would be hard to ignore.
trend
whether defense stays the whole story
Defense electronics is 73% of revenue today. If that mix becomes even more concentrated, quarter-to-quarter volatility can get sharper, not smoother.
Analyst rankings
earnings predictability
30 / 100
Low score. In human-speak, analysts do not see this as a smooth, easy-to-model business.
risk rank
3
Middle-of-the-pack risk. Safer than many small caps, but not safe enough to ignore concentration and contract timing.
source: institutional data
Institutional activity
institutional ownership data for ESP is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$58
current price
n/a
target midpoint · n/a from current
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