Nortech Systems Incorporated logo

Nortech Systems Incorporated(NSYS)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$11.28
09/25/2026
(24-hour delay)

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Upturn Advisory & Investor View for NSYS

09/25/2026: NSYS (1-star) is currently NOT-A-BUY. Pass it for now.

Nortech Systems is a US-listed contract manufacturing firm providing specialized electromechanical assembly, primarily for the medical and industrial sectors. The company is known for its ability to handle complex, high-reliability production tasks, which creates a competitive niche away from larger, lower-cost rivals. While its focus on regulated industries provides a steady customer base, the company remains subject to revenue concentration and the volatility of component pricing. Future success hinges on its ability to maintain quality standards and expand its high-margin engineering services. Investors should monitor quarterly contract win rates and operating margins, keeping in mind that the stock is better suited for those who understand the cyclical nature of small-cap manufacturing.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company relies on industry demand cycles rather than explosive top-line growth, making it a conservative growth play.
Momentum investorWeak fitThe stock often lacks the high-volume trading and consistent upward price velocity required for momentum strategies.
Value investorMixed fitInvestors may find interest if the company is trading at a discount to its tangible asset value or long-term growth potential.
Dividend investorWeak fitNortech does not provide dividend income, making it unsuitable for income-focused portfolios.
Low-risk investorWeak fitSmall-cap manufacturing stocks can experience significant price volatility based on quarterly customer wins and economic conditions.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighSmall-cap stocks in the EMS sector can see significant price swings based on contract updates.
Valuation riskMediumAs a smaller player, the stock can be susceptible to valuation adjustments based on market sentiment.
Competition risk (Contract Manufacturing)HighNortech competes against larger, better-capitalized firms for high-volume contracts.
Business qualityMediumWhile specialized, the business operates with tight margins and heavy reliance on customer capital expenditures.
Dividend incomeLow / noneThere is no dividend component to total return expectations.
Execution riskMedium / highFailure to manage supply chains or project timelines can lead to rapid earnings degradation.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

The price momentum is slowing down and beginning to turn downward.

Choppy
PRICE STABILITY

Choppy

The stock has experienced frequent reversals and pronounced short-term price swings.

Analysis of Past Performance

Type Stock
Historic Profit 2.1%
Avg. Invested days 30
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
NSYS receives a 2-star rating, supported by available scored pillars. The rating is constrained by weak unit economics, soft analyst coverage, and weak price momentum.

Company Fundamentals

★★★★★
NSYS has moderate overall fundamentals (3 stars), with moderate financial health, solid growth momentum, and moderate ownership. In FY2025 versus FY2024, strong earnings growth (+80.5%) is partially offset by soft cash generation (FCF margin 1.8%), negative revenue growth (-7.6%), soft profitability (net margin -0.2%).

Financial Health Rating

★★★★★
NSYS's financial health is supported by solid liquidity, including working-capital and asset support (WC/assets 36.6%). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is NSYS's strongest growth driver at +159.1% FY2025 versus FY2024 (strong, 5 stars). By comparison, earnings growth (+80.5%, strong) is also strong, while revenue growth (-7.6%, negative) holds the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 8.1% and approximately 35.1% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 64.03% supports management-shareholder alignment.

Top 5 Institutional Investors

Renaissance Technologies Corp 1.54%
Vanguard Capital Management, LLC 0.98%
Chevy Chase Trust Holdings, Inc. 0.55%
Dimensional Fund Advisors, Inc. 0.37%
Vanguard Fiduciary Trust Co 0.05%

Unit Economics (Per $1K Revenue)

★★★★★
NSYS generates approximately $152 of gross profit, $10 of operating income, and $18 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

★★★★★
Effective Tax Rate: 2,390.91%

Quantitative Style Profile

★★★★★
NSYS has a relatively low-volatility profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedLow VolatilitySmall / Mid Cap Risk

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 32.19M USD
Price to earnings Ratio 31.33
1Y Target Price -
Price to earnings Ratio 31.33
1Y Target Price -
Volume (30-day avg) 14.9K shares
Beta -0.07
52 Weeks Range 6.50 - 18.01
Updated Date 09/25/2026
52 Weeks Range 6.50 - 18.01
Updated Date 09/25/2026
Dividends yield (FY) -
Basic EPS (TTM) 0.36

How Company Makes Money

Business areaWhat it includesRetail investor read
Manufacturing ServicesAssembly of printed circuit boards, cables, and complex electromechanical systems for medical and industrial clients.Revenue is primarily driven by contract manufacturing services where the company acts as a production partner for other firms.
Engineering ServicesDesign, prototyping, and testing services for new electronic products.These services often serve as a lead-in to manufacturing contracts, providing a sticky entry point with clients.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

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Valuation

Trailing PE 31.33
Forward PE -
Enterprise Value 49.06M
Price to Sales(TTM) 0.26
Enterprise Value 49.06M
Price to Sales(TTM) 0.26
Enterprise Value to Revenue 0.39
Enterprise Value to EBITDA 13.1
Shares Outstanding 2.85M
Shares Floating 1.00M
Shares Outstanding 2.85M
Shares Floating 1.00M
Percent Insiders 64.03
Percent Institutions 8.07

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Nortech Systems Incorporated

Exchange NASDAQ
Headquarters Maple Grove, MN, United States
IPO Launch date 1993-06-24
President, CEO & Director Mr. Jay Dean Miller
Sector Healthcare
Industry Medical Devices
Full time employees 685
Full time employees 685

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.