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ZYBERNO

Stock Report

Updated Sep 1, 2026

Electro-Sensors, Inc. (ELSE)

NASDAQ

$7.74

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

47.0/100

WEAK BUSINESS

Electro-Sensors, Inc. (ELSE) scores 47/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full ELSE quality analysis & detailed breakdown

VALUATION SIGNAL

N/A (Requires more data)

Requires fair value calculation and current price data

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full ELSE valuation analysis · → View full ELSE Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (1.7%)

Debt-to-Equity (Solvency Risk):EXCELLENT (0.00x)

Operating Margin (Operational Efficiency):CRITICAL (-2.1%)

Return on Capital (Capital Efficiency):CRITICAL (-3.9%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

Electro-Sensors, Inc. (ELSE) stock report — Zyberno Score 47/100 (WEAK BUSINESS). Full financial analysis on Zyberno.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:7.74

Market Cap:$27.18M

Valuation Multiples (4)

P/E Ratio:

96.75x

📊 Click to view full ELSE P/E analysis →

P/B Ratio:1.82x

P/S Ratio:2.59x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$16.43M

Pfcf Ratio:45.53x

Price Action & Momentum (3)

12-1 Momentum:

+60.3% (89th pctile)

📈 Click to view full ELSE Momentum analysis →

Momentum Percentile:89 / 100

% of 52-Week High:153.9%

B. Profitability Assessment

Return Metrics (3)

ROE:

1.7%

📊 Click to view full ELSE ROE analysis →

ROA:1.6%

Roic:

-3.9%

📊 Click to view full ELSE ROIC analysis →

Margin Analysis (3)

Operating Margin Ttm:-2.1%

Net Margin Ttm:2.4%

Ebitda Margin:-1.2%

TTM Performance (3)

Gross Margin Ttm:51.5%

Operating Margin Ttm:-2.1%

Net Margin Ttm:2.4%

Yield Metrics (2)

Earnings Yield:$1.03

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

-0.16

📊 Click to view full ELSE Earnings Surprise analysis →

EPS Surprise vs Expected:-37.1%

Latest Earnings Filed:2026-05-14

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):5.2%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):8.8%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):9.8%

Operating Cash Flow Growth Rate (Linear):24.6%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):15.5%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:12.64x

Quick Ratio:10.85x

Cash Ratio:9.26x

Leverage Analysis (3)

Debt To Equity Ttm:0.00x

Debt-to-Equity Ratio:0.00x

Debt To Ebitda:-999.00x

Coverage Ratios (2)

Interest Coverage Ratio:347.00x

Times Interest Earned:347.00

Capital Structure (4)

Working Capital:13,511,000.00

Cash And Cash Equivalents:10,756,000.00

Long Term Debt:$0.00

Net Debt:-$10.76M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $10.48M

Linear Growth: 5.2%

📊 Click to view full ELSE Revenue analysis & methodology →

Cost Of Revenue Ttm:$5.09M

Profitability Breakdown (2)

Gross profit TTM: $5.40M

Linear Growth: 4.4%

📊 Click to view full ELSE Gross Profit analysis & methodology →

Operating income TTM: -$218.00K

Linear Growth: 15.5%

📊 Click to view full ELSE Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: $254.00K

Linear Growth: 8.8%

📊 Click to view full ELSE Net Income analysis & methodology →

Income Before Tax:$281.00K

Ebitda Ttm:-131,000.00

Operating Expenses (5)

Operating Expenses:5,442,000.00

R And D Expense:1,019,000.00

Sga Expense:2,584,000.00

Income Tax Expense:$31.00K

Interest Expense:1,000.00

Expense Ratios (3)

R And D To Revenue Percentage:39.5%

Sga To Revenue Percentage:100.2%

Ebitda Margin:-1.2%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$16.06M

Current Assets:$14.67M

Ppe Net:892,000.00

Goodwill:0.00

Intangible Assets:$0.00

Liability Structure (4)

Total Liabilities:1,161,000.00

Current Liabilities:1,161,000.00

Long Term Debt:$0.00

Short Term Debt:$0.00

Equity & Capital (3)

Equity:$14.90M

Retained Earnings:$11.82M

Common Stock:10,000,000.00

Working Capital Items (3)

Accounts Receivable:1,393,000.00

Inventory:2,080,000.00

Accounts Payable:887,000.00

Special Items (2)

Contract Liabilities:0.00

Stock Based Compensation:0.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $760.00K

Linear Growth: 24.6%

Free cash flow TTM: $597.00K

Linear Growth: 9.8%

📊 Click to view full ELSE Free Cash Flow analysis & methodology →

Investment Activities (1)

Investing Cash Flow:-$28.00K

Financing Activities (3)

Financing Cash Flow:$171.00K

Dividends Paid Ttm:0.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:87,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):0.08

Eps diluted TTM: $0.08

Linear Growth: -8.2%

📊 Click to view full ELSE EPS analysis & methodology →

Earnings Per Share Ttm:$0.07

Revenue & Cash Per Share (2)

Sales Per Share Ttm:2.98

Operating Cash Flow Per Share:$0.19

Book Value & Capital (2)

Book Value Per Share:$4.24

Cash Per Share:3.06

Dividend Policy (1)

Dividend Payout Ratio:0.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.67x

Working Capital Turnover Ttm:0.78x

Receivables Management (2)

Receivables Turnover Ttm:7.52x

Days Sales Outstanding Ttm:48.51

Inventory Management (2)

Inventory Turnover Ttm:2.45x

Days Inventory Outstanding Ttm:149.24

Payables & Cash Cycle (2)

Days Payable Outstanding:63.64

Cash Conversion Cycle:134.11

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:100.00

Quality Score:90.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):5.2%

Net Income Growth Rate (Linear):8.8%

Operating Income Growth Rate (Linear):15.5%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):9.8%

Operating Cash Flow Growth Rate (Linear):24.6%

Other Growth Rates (2)

Gross Profit Growth Rate (Linear):4.4%

Book Value Growth Rate (Linear):3.4%

C. Company Profile & Context

Corporate Information (6)

Symbol:ELSE

Company Name:Electro-Sensors, Inc.

Sector:Unknown

Industry:Industrial Instruments For Measurement, Display, and Control

Exchange:NASDAQ

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:low

Volume Category:N/A

Share Structure (3)

Shares Outstanding:3.51M

Shares Outstanding Basic:3.51M

Shares Outstanding Diluted:3.51M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-09-01 09:16:18 UTC

Data Timestamp:2026-08-20T23:08:23.920779