Nortech Systems Incorporated cash flow to debt ratio of 17.46% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Nortech Systems Incorporated's free cash flow has increased -159.15% from $-3.52M last year to $2.08M, signaling increasing performance

Nortech Systems Incorporated's debt to equity ratio is 0.52, which means that the company's assets are healthy financed, signaling financial stability.

Nortech Systems Incorporated's debt has decreased relative to shareholder equity from 0.53 last year to 0.52 today, signaling strengthened financials

Nortech Systems Incorporated has a net debt to EBITDA ratio of 6.21x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Nortech Systems Incorporated's interest coverage ratio of 2.62 indicates that earnings with margin can cover interest payments on company debt

Nortech Systems Incorporated's profit margin has increased (-183.68%) in the last year from -1.01% to 0.85%, signaling increasing performance

Nortech Systems Incorporated's short-term assets of $56.15M exceed its short-term liabilities of $29.84M

Nortech Systems Incorporated's return on assets of 0.00% is lower than the 5.00% threshold, indicating inefficient asset utilization

Nortech Systems Incorporated's return on equity of 3.03%, is lower than 15.00%, indicating bad performance

Nortech Systems Incorporated's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Nortech Systems Incorporated had positive net income in 3 out of 5 years, indicating stable and consistent earnings

Nortech Systems Incorporated has positive free cash flow, indicating the company generates cash after capital expenditures

Nortech Systems Incorporated has a free cash flow yield of 5.09%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Nortech Systems Incorporated's yearly earnings has increased -80.54% since last year from $-1.29M to $-252.00K, signaling increasing performance

Nortech Systems Incorporated's yearly revenue has decreased 7.62% since last year from $128.13M to $118.36M, signaling decreasing performance

ROIC 3.14% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Nortech Systems Incorporated's 3-year revenue CAGR of -4.08% is negative, indicating declining revenue over the past 3 years

Nortech Systems Incorporated had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Nortech Systems Incorporated had positive ROE in 3 out of 5 years, indicating consistent and reliable returns on equity

Nortech Systems Incorporated is overvalued relative to its fair value price of 8.23 based on Discounted Cash Flow model

Nortech Systems Incorporated has an earnings yield of 2.53%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Nortech Systems Incorporated is overvalued relative to its fair value price of 1.32 based on EBITDA multiple model

Nortech Systems Incorporated has an EV/EBITDA ratio of 24.29x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Nortech Systems Incorporated is overvalued relative to its fair value price of 8.13 based on Earnings Fair Value model

Nortech Systems Incorporated has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Nortech Systems Incorporated has a price-to-book ratio of 1.18x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Nortech Systems Incorporated has a price-to-sales ratio of 0.33x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue