Nortech Systems Incorporated Stock Return On Equity

NSYS Stock

USD 11.78 0.23 1.92%

Nortech Systems Incorporated fundamentals help investors to digest information that contributes to Nortech Systems' financial success or failures. It also enables traders to predict the movement of Nortech Stock. The fundamental analysis module provides a way to measure Nortech Systems' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Nortech Systems stock.

		Last Reported	Projected for Next Year
	Return On Equity	0.19	0.20

Return On Equity is likely to gain to 0.20 in 2024.

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Nortech Systems Incorporated Company Return On Equity Analysis

Nortech Systems' Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Return On Equity

Net Income

Total Equity

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Current Nortech Systems Return On Equity

0.14

Most of Nortech Systems' fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Nortech Systems Incorporated is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Nortech Return On Equity Driver Correlations

Understanding the fundamental principles of building solid financial models for Nortech Systems is extremely important. It helps to project a fair market value of Nortech Stock properly, considering its historical fundamentals such as Return On Equity. Since Nortech Systems' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Nortech Systems' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Nortech Systems' interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Net Debt	Retained Earnings	Accounts Payable	Net Receivables	Total Liab	Total Current Assets	Short Term Debt	Intangible Assets	Common Stock	Long Term Debt	Property Plant Equipment	Current Deferred Revenue	Net Tangible Assets	Long Term Debt Total	Capital Surpluse	Short Long Term Debt	Net Invested Capital	Net Working Capital	Capital Stock
Total Assets		0.9	0.81	0.66	0.9	0.78	0.96	0.99	-0.08	0.06	0.81	0.19	0.76	0.14	0.31	0.6	0.28	0.38	0.28	0.55	-0.06
Total Stockholder Equity	0.9		0.54	0.77	0.74	0.7	0.75	0.93	0.11	-0.23	0.76	-0.07	0.77	0.1	0.58	0.39	0.45	0.34	0.5	0.61	-0.16
Net Debt	0.81	0.54		0.36	0.66	0.62	0.89	0.75	-0.11	0.17	0.72	0.3	0.64	0.24	-0.04	0.54	-0.05	0.27	-0.2	0.29	0.09
Retained Earnings	0.66	0.77	0.36		0.51	0.88	0.52	0.69	0.09	-0.34	0.64	-0.11	0.59	0.36	0.59	0.36	0.75	0.2	0.73	0.75	-0.72
Accounts Payable	0.9	0.74	0.66	0.51		0.7	0.91	0.88	-0.15	0.29	0.72	0.31	0.5	-0.08	0.07	0.65	0.17	0.33	0.25	0.36	0.0
Net Receivables	0.78	0.7	0.62	0.88	0.7		0.76	0.8	-0.11	-0.13	0.64	0.11	0.62	0.49	0.42	0.53	0.61	0.13	0.57	0.77	-0.6
Total Liab	0.96	0.75	0.89	0.52	0.91	0.76		0.93	-0.19	0.24	0.76	0.34	0.68	0.16	0.11	0.67	0.14	0.36	0.11	0.46	0.01
Total Current Assets	0.99	0.93	0.75	0.69	0.88	0.8	0.93		-0.03	-0.04	0.79	0.1	0.78	0.17	0.41	0.53	0.32	0.34	0.35	0.61	-0.08
Short Term Debt	-0.08	0.11	-0.11	0.09	-0.15	-0.11	-0.19	-0.03		-0.63	0.23	-0.87	0.01	-0.08	0.18	-0.71	-0.03	-0.28	-0.02	-0.08	-0.01
Intangible Assets	0.06	-0.23	0.17	-0.34	0.29	-0.13	0.24	-0.04	-0.63		-0.07	0.77	-0.24	-0.38	-0.69	0.58	-0.3	0.46	-0.31	-0.34	0.29
Common Stock	0.81	0.76	0.72	0.64	0.72	0.64	0.76	0.79	0.23	-0.07		0.07	0.52	-0.16	0.04	0.49	0.13	0.2	0.09	0.19	-0.12
Long Term Debt	0.19	-0.07	0.3	-0.11	0.31	0.11	0.34	0.1	-0.87	0.77	0.07		-0.13	-0.22	-0.5	0.86	-0.2	0.27	-0.17	-0.18	0.14
Property Plant Equipment	0.76	0.77	0.64	0.59	0.5	0.62	0.68	0.78	0.01	-0.24	0.52	-0.13		0.44	0.6	0.23	0.43	0.42	0.22	0.71	-0.14
Current Deferred Revenue	0.14	0.1	0.24	0.36	-0.08	0.49	0.16	0.17	-0.08	-0.38	-0.16	-0.22	0.44		0.56	-0.12	0.54	-0.15	0.34	0.73	-0.5
Net Tangible Assets	0.31	0.58	-0.04	0.59	0.07	0.42	0.11	0.41	0.18	-0.69	0.04	-0.5	0.6	0.56		-0.22	0.62	0.05	0.67	0.81	-0.36
Long Term Debt Total	0.6	0.39	0.54	0.36	0.65	0.53	0.67	0.53	-0.71	0.58	0.49	0.86	0.23	-0.12	-0.22		0.13	0.34	0.13	0.15	-0.12
Capital Surpluse	0.28	0.45	-0.05	0.75	0.17	0.61	0.14	0.32	-0.03	-0.3	0.13	-0.2	0.43	0.54	0.62	0.13		0.05	0.84	0.72	-0.84
Short Long Term Debt	0.38	0.34	0.27	0.2	0.33	0.13	0.36	0.34	-0.28	0.46	0.2	0.27	0.42	-0.15	0.05	0.34	0.05		-0.03	0.22	0.06
Net Invested Capital	0.28	0.5	-0.2	0.73	0.25	0.57	0.11	0.35	-0.02	-0.31	0.09	-0.17	0.22	0.34	0.67	0.13	0.84	-0.03		0.71	-0.7
Net Working Capital	0.55	0.61	0.29	0.75	0.36	0.77	0.46	0.61	-0.08	-0.34	0.19	-0.18	0.71	0.73	0.81	0.15	0.72	0.22	0.71		-0.55
Capital Stock	-0.06	-0.16	0.09	-0.72	0.0	-0.6	0.01	-0.08	-0.01	0.29	-0.12	0.14	-0.14	-0.5	-0.36	-0.12	-0.84	0.06	-0.7	-0.55

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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Competition

Predict Nortech Systems

Return On Equity Over Time

Nortech Total Stockholder Equity

Total Stockholder Equity

18.6 Million

At this time, Nortech Systems' Total Stockholder Equity is comparatively stable compared to the past year.

Based on the latest financial disclosure, Nortech Systems Incorporated has a Return On Equity of 0.1366. This is 101.14% lower than that of the Electronic Equipment, Instruments & Components sector and 101.09% lower than that of the Information Technology industry. The return on equity for all United States stocks is 144.06% lower than that of the firm.

Nortech Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Nortech Systems' direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Nortech Systems could also be used in its relative valuation, which is a method of valuing Nortech Systems by comparing valuation metrics of similar companies.

Nortech Systems is currently under evaluation in return on equity category among its peers.

Nortech Systems Current Valuation Drivers

We derive many important indicators used in calculating different scores of Nortech Systems from analyzing Nortech Systems' financial statements. These drivers represent accounts that assess Nortech Systems' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Nortech Systems' important valuation drivers and their relationship over time.

	2019	2020	2021	2022	2023	2024 (projected)
Market Cap	13.0M	19.1M	27.6M	32.9M	25.6M	26.9M
Enterprise Value	33.2M	40.5M	47.1M	49.9M	38.9M	21.6M

Nortech Systems ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Nortech Systems' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Nortech Systems' managers, analysts, and investors.

Environmental

Governance

Social

Nortech Fundamentals

	Return On Equity	0.14
	Return On Asset	0.0348
	Profit Margin	0.03 %
	Operating Margin	(0.01) %
	Current Valuation	51.01 M
	Shares Outstanding	2.76 M
	Shares Owned By Insiders	65.09 %
	Shares Owned By Institutions	5.11 %
	Number Of Shares Shorted	7.36 K
	Price To Earning	4.08 X
	Price To Book	0.93 X
	Price To Sales	0.24 X
	Revenue	139.33 M
	Gross Profit	20.48 M
	EBITDA	8 M
	Net Income	6.87 M
	Cash And Equivalents	944 K
	Cash Per Share	0.35 X
	Total Debt	14.18 M
	Debt To Equity	0.81 %
	Current Ratio	2.32 X
	Book Value Per Share	12.86 X
	Cash Flow From Operations	1.77 M
	Short Ratio	1.29 X
	Earnings Per Share	1.57 X
	Number Of Employees	733
	Beta	0.53
	Market Capitalization	27.87 M
	Total Asset	75.13 M
	Retained Earnings	18.67 M
	Working Capital	32.21 M
	Current Asset	41.13 M
	Current Liabilities	20.7 M
	Net Asset	75.13 M

About Nortech Systems Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Nortech Systems Incorporated's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Nortech Systems using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Nortech Systems Incorporated based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

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Additional Tools for Nortech Stock Analysis

When running Nortech Systems' price analysis, check to measure Nortech Systems' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Nortech Systems is operating at the current time. Most of Nortech Systems' value examination focuses on studying past and present price action to predict the probability of Nortech Systems' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Nortech Systems' price. Additionally, you may evaluate how the addition of Nortech Systems to your portfolios can decrease your overall portfolio volatility.

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