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Nortech Systems Incorporated (NSYS) Fair Value & Analysis

Healthcare · US · Market cap $48.9M

NS Nortech Systems Incorporated logo Nortech Systems Incorporated NSYS · US
Price$15.43
Fair Value$2.96
Upside-80.8%
Quality53/100
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Mixed Growth
Thin margins · 0.9% net margin
Low debt · generates free cash flow
Mixed vs. peers (7/13)
Narrow moat 24/100
Evidence: High Range $2.96 – $4.96 Share as image

Fair value as of: Jul 19, 2026

From 15 valuation models · updated 22 days ago

Fair value updated Jul 19, 2026, revised from $6.65 to $2.96 (−55.5%) since Jun 24, 2026. Share price +7.4% over the past month.

A solid business, but screening 81% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case ($4.96). The favourable scenario is already priced in.
  • Solid but not exceptional quality (53/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

$18.38 $5.63 Fair Value $2.96 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range $5.63 – $18.38 · fair‑value band $2.96 – $4.96 · the $15.43 price screens above the $2.96 fair value. Dashed = 300-day average. As of Jul 19, 2026.

Full chart & analysis →

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Analysis

Nortech Systems Incorporated (NSYS) currently trades at $15.43, while our model-based Fair Value estimate is $2.96, implying the stock looks roughly 80.8% overvalued today. The Quality Score stands at 53/100 (solid quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Nortech Systems Incorporated generated revenue of $122M at a net margin of 0.9%. Revenue grew 12.7% year over year. It earns a return on equity of 3.1%. Net debt stands at $14.1M. Fundamentals as of Jul 19, 2026

Our scenario range runs from $2.96 (bear case) to $4.96 (bull case); at $15.43, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 14% below its 52-week high and 137% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -22% fair-value upside, at -81%, NSYS screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF $3.35 $4.81 $6.41 80
Rev-Margin DCF $2.18 $4.03 $6.02 74
ROIC Compounder $0.3000 $0.5500 72
All 15 models by family
DCF Models
FCF DCF $3.27 $4.88 $6.70 38
5Y Revenue Exit $2.18 $3.91 $5.98 39
5Y EBITDA Exit $4.27 $7.58 $11.22 41
10Y Revenue Exit $2.55 $4.02 $5.73 36
10Y EBITDA Exit $3.75 $6.13 $8.95 37
Earnings-Based
EPV $0.3000 $0.5500 59
Dividend Discount
Gordon GGM $0.0200 $0.0200 $0.0300 70
DDM Multi-Stage $0.0200 $0.0200 $0.0300 61
Multiples
EV/EBIT $3.50 $5.50 $7.49 53
EV/EBITDA $6.26 $9.18 $12.10 54
EV/Revenue $1.54 $3.28 $5.01 43
Asset-Based
NCAV (Graham) $6.18 $8.28 $12.36 50
Growth DCF
Growth DCF $3.35 $4.81 $6.41 80
Rev-Margin DCF $2.18 $4.03 $6.02 74
Economic Profit
ROIC Compounder $0.3000 $0.5500 72

Widest divergence: Asset-Based ($8.28) versus Dividend Discount ($0.0200). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) $122M
Revenue growth (YoY) +12.7%
Net margin 0.9%
Return on equity 3.1%
Free cash flow $2.1M FY2025
P/E ratio 46.0
More key figures
Operating margin 0.2%
EPS (TTM) $0.3800
EPS growth (YoY) +126%
Net debt $14.1M FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 53/100

Of which business quality 53 · Market factors (momentum, volatility) 78

Profitability 38
Margins and returns on capital today
Quality Growth 39
Are margins and returns improving?
Cashflow 37
Earnings quality: real cash, not paper profit
Fin. Strength 53
Balance sheet, leverage, solvency risk
Investment 86
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 90
Price trend over the last 3–12 months (market factor)
52W Momentum 89
Distance to the 52-week high (market factor)
Net Issuance 85
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Nortech Systems Incorporated provides engineering design and manufacturing solutions for electromedical devices, electromechanical systems, assemblies, and components in the United States, Mexico, and China.

Full company description

Nortech Systems Incorporated provides engineering design and manufacturing solutions for electromedical devices, electromechanical systems, assemblies, and components in the United States, Mexico, and China. It offers a range of value-added engineering, technical, manufacturing, and support services, including project management, designing, testing, prototyping, manufacturing, supply chain management, and post-market services. The company also manufacturing and engineering services that include complex electromedical and electromechanical product, such as medical devices, wire and cable assemblies, printed circuit board assemblies, complex higher-level assemblies, and other box builds for a range of industries. In addition, it offers engineering and repair services. The company serves original equipment manufacturers in the medical devices and imaging, aerospace and defense, and industrial markets through business development teams and independent manufacturers' representatives. Nortech Systems Incorporated was founded in 1990 and is headquartered in Maple Grove, Minnesota.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Nortech Systems Incorporated reported revenue of $118M in FY2025 versus $115M in FY2021, a compound +0.7%/yr. Reported net income was −$252K in FY2025.

Growth Quality 43/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$118M
Latest YoY
−7.6%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−4.1%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.6%
Avg. growth/yr (32Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.5%
Revenue +0.7%/yr
FY21 $115M
FY22 $134M
FY23 $139M
FY24 $128M
FY25 $118M
Net income
FY21 $7.2M
FY22 $2.0M
FY23 $6.9M
FY24 −$1.3M
FY25 −$252K

NSYS screens 81% overvalued. Compare with Abbott Laboratories, →

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Cite: Fair Value Calculator (2026). "Nortech Systems Incorporated Fair Value". https://www.fairvalue-calculator.com/stock/NSYS

Peer Group

Medical Devices · 352 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 53 · Above median
Fair Value upside −81% · Bottom 25%
Return on equity (TTM) 3% · Above median
Return on assets 2% · Above median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 0% · Below median
Revenue growth 13% · Above median
Debt / equity 0.25× · Higher than median

Valuation Multiples vs Medical Devices median · lower = cheaper

P/E (TTM) 46.0× · Pricier than 75% of peers
P/B 1.41× · Cheaper than median
P/S (TTM) 0.40× · Cheaper than 75% of peers
P/FCF 23.5× · Pricier than 75% of peers
EV/EBITDA 14.4× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 64 · sector 29
PAST 12 · sector 8
HEALTH 88 · sector 97
DIVIDEND 0 · sector 38

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Medical Devices stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
Abbott Laboratories, ABT $100.68 $74.79 -26%
Stryker Corporation SYK $316.44 $186.28 -41%
Medtronic plc MDT $83.56 $65.57 -22%
Boston Scientific Corporation BSX $43.04 $38.44 -11%
Edwards Lifesciences Corporation EW $85.73 $41.02 -52%
Siemens Healthineers AG SHL €34.59 €33.87 -2%
Shenzhen Mindray Bio-Medical Electronics Co 300760 ¥149.43 ¥147.63 -1%
Shanghai United Imaging Healthcare Co 688271 ¥109.00 ¥43.60 -60%
Demant A/S DEMANT kr 276.60 kr 161.17 -42%
Getinge AB GETIB kr 206.80 kr 192.14 -7%

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Frequently asked questions

Is Nortech Systems Incorporated (NSYS) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of $2.96 versus a price of $15.43, about −81% (overvalued).
What is the fair value of NSYS?
Our model-based fair value for Nortech Systems Incorporated is $2.96 (as of Jul 19, 2026), built from audited fundamentals. The current price is $15.43.
What is the quality score of NSYS?
Nortech Systems Incorporated has a Quality Score of 53/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Nortech Systems Incorporated (NSYS)?
Nortech Systems Incorporated reported trailing-twelve-month revenue of about $122M (latest available figure, as of Jul 19, 2026).
What is the net profit margin of NSYS?
The net profit margin of Nortech Systems Incorporated is about 0.9%, meaning it keeps roughly 0.9% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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