Electronic Systems Technology (ELST) Stock Analysis & Winston Score

Electronic Systems Technology, Inc. is a small technology company that makes wireless communication products. Its core offering is the WiPath line of wireless controllers and networking devices, which are used to connect equipment and sensors in industrial and commercial settings. The company sells to businesses that need reliable wireless links for things like remote monitoring and control systems.

The company earns revenue by selling hardware devices directly to customers, primarily in the United States. It is a very small company with a market cap near zero, meaning it competes in a crowded field against much larger wireless and industrial networking firms. The 51% gross margin suggests decent pricing power on its products, but the negative operating and return-on-invested-capital figures show it is currently spending more than it earns, which is the central risk — the company must grow sales meaningfully or cut costs to reach profitability before it runs out of resources.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-14.2% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-58.1% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$109,925/ year

↓ Declining (-10% vs prior year)

7.7% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

36.4%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~3 months

$158,223 cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Short runway — potential dilution ahead through share issuance

Cash watch

Electronic Systems Technology has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

0.0% over 5y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 4.9M (2020) → 4.9M (2025)

Score breakdown

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Quality

Gross Margin

50.5%

Healthy — 50.5% gross margin

Operating Margin

-24.8%

Losing money on operations — -24.8%

ROCE

-5.2%

Weak — -5.2% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

-26.7%

Shrinking sales (-26.7% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

-20.3%

Burning cash (-20.3%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

N/A

Data not available

Interest Cover

N/A

—

Data not available

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Valuation

P/E Ratio (TTM)

5.6x

Attractive valuation — P/E 5.6

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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