IEH Corp (IEHC) Stock Analysis
IEH Corp (IEHC) Stock Analysis
Overall Grade: F (Concerning)
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IEH Corp faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | -5.7% | Below expectations |
| FCF Margin | -1.6% | Cash flow pressure |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
What is IEH Corp's Profitability and ROIC?
IEH Corp's return on invested capital of -5.7% is below the typical cost of capital. Gross margin of 20.2% with operating margin at -4.9% reflects the company's moderate market position.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -5.7% | Red flag | Below cost of capital |
| Return on Equity (ROE) | -4.0% | Red flag | Moderate equity returns |
| Gross Margin | 20.2% | Adequate | Competitive pricing environment |
| Operating Margin | -4.9% | Warning | Moderate operational efficiency |
How Strong is IEH Corp's Cash Flow Quality?
IEH Corp generated $-449414 in free cash flow over the trailing twelve months, representing a -1.6% margin. FCF was positive in N/A of the last 8 quarters, indicating variable cash generation.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | -1.6% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-449414 | Red flag | Cash burn |
| OCF/Net Income | -0.4x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is IEH Corp's Financial Health?
IEH Corp's debt-to-equity ratio of 0.0x indicates conservative leverage.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Is IEH Corp Stock Overvalued or Undervalued?
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| EV/Sales | -0.3x | Excellent | Attractive revenue multiple |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -5.7% | Bottom 50% | -0.9x below |
| Free Cash Flow Margin | -1.6% | Bottom 10% | -0.2x below |
| Gross Margin | 20.2% | Bottom 25% | 0.4x below |
| Operating Margin | -4.9% | Bottom 50% | -0.8x below |
| Return on Equity (ROE) | -4.0% | Bottom 50% | -0.6x below |
Rating Thresholds
Return on Invested Capital (ROIC)
Measures how efficiently a company uses its debt and equity capital to generate profits. ROIC above 15% typically indicates a competitive moat.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Exceptional capital efficiency, strong competitive moat |
| Good | 12% - 20% | Above-average returns, sustainable competitive position |
| Adequate | 8% - 12% | Around cost of capital, moderate competitive position |
| Warning | 4% - 8% | Below cost of capital, value may be eroding |
| Red flag | < 4% | Significant capital destruction, fundamental issues |
Current: -5.7% (Red flag - Bottom 50% of sector (median: 6.5%))
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: -1.6% (Red flag)
Gross Margin
Revenue minus cost of goods sold as a percentage. Higher gross margins indicate pricing power and competitive advantage.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 50% | Strong pricing power and competitive moat |
| Good | 30% - 50% | Healthy margins, differentiated product |
| Adequate | 20% - 30% | Moderate margins, competitive industry |
| Warning | 10% - 20% | Thin margins, commodity-like business |
| Red flag | < 10% | Very thin margins, structural challenges |
Current: 20.2% (Adequate - Bottom 25% of sector (median: 52.9%))
Debt to Equity Ratio
Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 0.3x | Conservative leverage, strong balance sheet |
| Good | 0.3x - 0.7x | Moderate leverage, healthy financial position |
| Adequate | 0.7x - 1.5x | Elevated leverage, monitor closely |
| Warning | 1.5x - 3.0x | High leverage, increased financial risk |
| Red flag | > 3.0x | Excessive leverage, potential distress risk |
Current: 0.0% (Excellent)
Frequently Asked Questions
Q: What is IEH Corp's Return on Invested Capital (ROIC)?
IEH Corp (IEHC) has a trailing twelve-month Return on Invested Capital (ROIC) of -5.7%. This compares below the sector median of 6.5%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is IEH Corp's Free Cash Flow Margin?
IEH Corp (IEHC) has a free cash flow margin of -1.6%, generating $-449414 in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is IEH Corp stock overvalued or undervalued?
IEH Corp (IEHC) The EV/Sales multiple is -0.3x.
Q: What is IEH Corp's revenue and earnings growth?
IEH Corp (IEHC) declined revenue by 2.0% year-over-year. Revenue decline may indicate market challenges or industry headwinds.
Q: How does IEH Corp compare to competitors in Technology?
Compared to other companies in Technology, IEH Corp (IEHC) shows: ROIC of -5.7% is below the sector median of 6.5% (Bottom 37%). FCF margin of -1.6% trails the sector median of 10.0%. Gross margin at 20.2% is 32.8 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with IEH Corp?
Investors in IEH Corp (IEHC) should monitor these potential warning signs: 1) FCF margin is thin at -1.6%, leaving limited buffer for economic downturns. 2) ROIC has been declining, potentially signaling deteriorating competitive position. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-10. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.