Nortech Systems Incorporated Common Stock (NSYS)

FairStock Score: 57/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Nortech as a small contract engineering and manufacturing business serving electromedical and electromechanical customers. It has 685 employees, so scale is limited, and the numbers show why a durable moat is hard to find: FairStock calculations put ROE at 3.00%, ROCE at 2.03%, and the Piotroski F-Score at 5/9. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $33.5M and net income was $316,000—a razor-thin 0.94% margin. That was better than fiscal Q2 2025, when revenue was $30.7M and net income was $313,000, but the annual picture is still troubled: FY2025 revenue was $118.4M with a net loss of $252,000; FY2024 revenue was $128.1M with a net loss of $1.3M; and FY2023 revenue was $139.3M with net income of $6.9M. The Lynch category is TURNAROUND—loss in the latest year after earlier profits—and that fits. Still, the balance sheet is not overleveraged, with D/E of 0.50, and trailing free cash flow of $2.5M gives a 7.8% FCF yield. At the 2026-10-13 close of $11.01, FairStock's P/B is 0.89, so the stock trades below book, but the P/E is 30.58, EV/EBITDA is 12.80, and the Graham Number is $10.03, leaving a negative margin of safety of -9.77%. Altman Z-Score of 1.60 adds caution. I would want evidence that recent revenue growth turns into durable earnings before calling this a bargain.

In plain English: Nortech makes engineering and manufacturing services for medical and electrical equipment. The business looks weak on profits: it lost a little money in its latest full year, and recent quarters earn only tiny margins. At about $11 a share, the price looks high compared with current profits but modest compared with its net assets.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K/A (period ended 2025-12-31) · FY2024 10-K/A (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer