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NSYSNortech Systems Incorporated
$13.56$38M
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  4. Financial Ratios

Nortech Systems Incorporated (NSYS) Financial Ratios

Latest Ratios: P/E Ratio -149.3x · EV/EBITDA 20.5x · ROE -0.7%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

NSYS Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$38M$21M$28M$27M$35M$29M$19M$13M$10M$11M$11M
Enterprise Value$52M$35M$46M$40M$51M$49M$40M$34M$23M$24M$24M
P/E Ratio →-149.34——3.9617.504.07——57.72—194.50
P/S Ratio0.320.170.220.200.260.250.180.110.080.090.09
P/B Ratio1.090.600.830.771.261.121.020.650.450.530.48
P/FCF18.209.91—56.0511.96—22.5854.319.22—6.78
P/OCF13.817.52—15.376.56—13.9813.023.9213.143.03

P/E links to full P/E history page with 30-year chart

NSYS EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—0.290.360.290.380.420.390.290.200.220.21
EV / EBITDA20.5413.7129.495.058.7711.55309.0813.736.7121.098.27
EV / EBIT41.8635.57—6.7913.095.78—149.8718.48—38.47
EV / FCF—16.66—83.3017.19—47.97140.4722.19—15.34

NSYS Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin15.2%15.2%13.1%16.6%15.3%13.8%8.1%10.8%11.7%10.8%11.9%
Operating Margin1.0%1.0%-0.2%4.3%2.9%2.0%-2.0%0.2%1.1%-1.1%0.5%
Net Profit Margin-0.2%-0.2%-1.0%4.9%1.5%6.2%-1.5%-1.1%0.1%-2.2%0.0%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE-0.7%-0.7%-3.7%21.7%7.4%31.9%-8.0%-6.0%0.8%-11.6%0.2%
ROA-0.3%-0.3%-1.8%9.5%2.9%11.5%-2.6%-2.0%0.3%-4.5%0.1%
ROIC1.9%1.9%-0.3%9.7%6.5%4.0%-3.8%0.4%2.7%-2.7%1.3%
ROCE2.7%2.7%-0.4%13.0%8.8%5.5%-5.3%0.6%3.6%-3.7%1.7%

NSYS Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.450.450.530.400.590.771.161.050.660.720.62
Debt / EBITDA6.216.2111.691.772.844.79166.318.574.0712.324.71
Net Debt / Equity—0.410.500.370.550.751.151.030.640.690.61
Net Debt / EBITDA5.565.5611.101.652.674.64163.628.423.9311.914.62
Debt / FCF—6.75—27.255.23—25.4086.1612.98—8.56
Interest Coverage1.011.01-0.2612.229.4619.63-0.990.211.65-2.301.14

NSYS Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio1.881.882.582.212.082.322.101.951.842.091.94
Quick Ratio1.191.191.571.401.231.451.391.301.161.070.93
Cash Ratio0.060.060.040.040.040.030.020.020.020.030.01
Asset Turnover—1.651.771.851.931.721.811.891.892.162.10
Inventory Turnover4.854.855.155.375.065.116.877.275.885.414.98
Days Sales Outstanding—99.2481.6688.4477.8590.1875.4682.2685.4057.3454.83

NSYS Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield———————————
Payout Ratio———————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield———25.3%5.7%24.5%——1.7%—0.5%
FCF Yield5.5%10.1%—1.8%8.4%—4.4%1.8%10.9%—14.8%
Buyback Yield0.0%0.0%0.4%0.0%0.0%0.0%0.0%1.0%2.9%0.3%0.0%
Total Shareholder Yield0.0%0.0%0.4%0.0%0.0%0.0%0.0%1.0%2.9%0.3%0.0%
Shares Outstanding—$3M$3M$3M$3M$3M$3M$3M$3M$3M$3M

Key Metrics

Growth RegimeContracting
ProfitabilityWeak
Balance SheetVulnerable
Cash FlowDeteriorating
Top Statement Risk

Liquidity and Program Concentration

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Valuation Reflects Stagnant Growth Outlook

According to recent market data, Nortech's P/S ratio of 0.39 suggests that investors are heavily discounting the firm's future revenue potential, likely due to the persistent -7.62% contraction in top-line performance and the absence of a clear path toward sustainable, profitable growth in the near term.

The negative P/E ratio of -180.84 underscores the company's current inability to generate consistent earnings, making traditional valuation metrics less useful than EV/EBITDA. At an EV/EBITDA of 23.70, the company appears expensive relative to its operational output, suggesting that the market may be pricing in a recovery that is not yet supported by the underlying financial trajectory.

Capital Returns Remain Substantially Depressed

Based on reported figures, Nortech's ROIC has struggled to maintain positive territory, oscillating near 0.1% in 2026Q1, which indicates that the company is failing to generate returns on invested capital that exceed its cost of capital, thereby eroding shareholder value rather than compounding it over time.

The decay in ROIC from 4.4% in 2023Q4 to near-zero levels highlights a structural inefficiency in how the company deploys its asset base. This trend suggests that the high-mix, low-volume manufacturing model is currently unable to achieve the scale necessary to drive meaningful returns, warranting further investigation into whether current capital allocation is sustainable.

Working Capital Cycles Impede Liquidity

As reported in financial statements, the Cash Conversion Cycle has expanded to 128 days in 2026Q1, reflecting a significant deterioration in working capital efficiency compared to the 101-day cycle observed in 2023Q4, which places additional strain on the company's already limited cash reserves and operational flexibility.

The increase in Days Sales Outstanding (DSO) to 98 days suggests that the company may be facing collection delays or is forced to offer extended payment terms to retain key OEM customers. This inefficiency in converting sales to cash, combined with high inventory days, implies that the company's operational leverage is being undermined by trapped working capital.

Liquidity Buffer Faces Severe Stress

According to recent SEC filings, Nortech's quick ratio of 1.12 indicates a precarious liquidity position, as the company's ability to meet short-term obligations is heavily dependent on the liquidation of inventory that may be subject to obsolescence risks within its specialized medical and aerospace program portfolio.

With cash reserves at a minimal $1.6M, the company lacks the financial cushion to absorb unexpected production disruptions or program cancellations. Investors should monitor the current ratio closely, as any further decline in asset quality or increase in short-term liabilities could rapidly transition the company into a liquidity crisis.

Misapplied Focus on Current Ratio

The current ratio is the most commonly misapplied metric for Nortech, as it obscures the underlying liquidity risk by including potentially illiquid inventory and unbilled receivables that are tied to specific, non-fungible customer programs, rather than reflecting true, readily available cash for operational continuity.

Analysts should instead prioritize the Quick Ratio or a 'Cash-to-Burn' analysis to better understand the company's actual runway. Relying on the current ratio provides a false sense of security, as it fails to account for the high probability that a significant portion of current assets cannot be converted to cash during a period of program-specific demand volatility.

Download Financial Ratios Data

Includes 30+ ratios · 30 years · Updated daily

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NSYS — Frequently Asked Questions

Quick answers to the most common questions about buying NSYS stock.

What is Nortech Systems Incorporated's P/E ratio?

Nortech Systems Incorporated's current P/E ratio is -149.3x. The historical average is 25.2x.

What is Nortech Systems Incorporated's EV/EBITDA?

Nortech Systems Incorporated's current EV/EBITDA is 20.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.2x.

What is Nortech Systems Incorporated's ROE?

Nortech Systems Incorporated's return on equity (ROE) is -0.7%. The historical average is 4.3%.

Is NSYS stock overvalued?

Based on historical data, Nortech Systems Incorporated is trading at a P/E of -149.3x. Compare with industry peers and growth rates for a complete picture.

What are Nortech Systems Incorporated's profit margins?

Nortech Systems Incorporated has 15.2% gross margin and 1.0% operating margin.

How much debt does Nortech Systems Incorporated have?

Nortech Systems Incorporated's Debt/EBITDA ratio is 6.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.