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Technology Sector Report

Electronic Equipment Industry Report

Market Cap: $564.3B
Stocks: 47
Median P/E: 8.8x
Median ROIC: 1.4%

Data sourced from SEC EDGAR filings. Report refreshed weekly.

Part of the Technology sector.

Performance Dashboard

PeriodSector (MCW)Sector (Median)
1 Day-1.9%-1.2%
1 Week-0.1%-1.0%
1 Month
3 Months
6 Months
YTD-0.6%+0.5%
1 Year+93.7%+29.9%
3 Years+468.5%+23.1%
5 Years+459.3%-14.4%

Today's Breadth: 12 advancing · 31 declining · 3 flat

Valuation Summary

MetricMedianP25P75vs 5Y Avg
P/E8.8x0.0x35.4x-57%
P/B1.8x0.0x5.5x-30%
P/S0.6x0.0x2.7x
P/FCF17.5x0.0x32.9x
EV/EBITDA15.0x9.3x26.4x
EV/EBIT18.5x14.6x36.4x
Earnings Yield
2.9%
FCF Yield
2.4%
Below Fair Value
34% of stocks

Profitability Profile

Margins

MetricMedian5Y AvgP25P75
Gross Margin36.7%33.9%26.9%46.3%
Operating Margin4.5%-3.2%13.9%
Net Margin4.0%2.3%-6.6%11.2%
FCF Margin3.8%-2.2%11.2%

Returns on Capital

MetricMedian5Y AvgP25P75
ROE2.8%-14.7%17.7%
ROA-0.3%-11.7%6.3%
ROIC1.4%4.4%-12.3%18.3%

Growth Metrics

Metric1Y3Y CAGR5Y CAGR
Revenue+10.8%+5.9%+10.4%
EPS+24.9%+30.2%+12.0%
Free Cash Flow+14.4%+15.2%+2.4%

All values represent sector median growth rates.

Balance Sheet Health

Debt / Equity
0.3x
Net Debt / EBITDA
0.4x
Interest Coverage
1.7x
Current Ratio
2.6x

Altman Z-Score

Safe (>3): 17 (39%)
Gray (1.8–3): 8 (18%)
Distress (<1.8): 19 (43%)

Piotroski F-Score

Strong (7–9): 6 (13%)
Moderate (4–6): 29 (62%)
Weak (0–3): 12 (26%)

Top Companies

Symbol#Mkt CapP/EEV/EBITDAROICNet MgnRev Gr.Div YldYTDQual.
PANW1$238.9B127.8x89.5x20.6%12.3%+14.9%-0.4%4/9
FTNT2$121.5B33.7x27.0x120.8%27.3%+14.2%-0.1%7/9
VRT3$119.4B49.1x31.2x44.1%13.0%+27.7%0.1%-2.5%6/9
LOGI4$14.8B20.8x87.5%13.9%+6.0%1.6%+1.7%5/9
VICR5$11.7B42.5x26.9%26.2%+26.1%+4.1%5/9
AEIS6$11.1B56.7x37.1x10.4%8.3%+21.4%0.2%-7.4%3/9
ENS7$7.9B10.3x7.4x19.5%10.1%+1.0%1.0%-6.0%5/9
NOVT8$5.4B83.5x25.8x6.4%5.5%+3.3%-2.4%2/9
PI9$4.0B370.8x-0.2%-3.0%-1.4%-2.7%1/9
RUN10$3.2B12.0x2.7%15.2%+45.1%+8.7%1/9
BELFB11$3.2B36.0x16.7x14.8%9.1%+26.3%0.2%+1.3%5/9
BELFA12$2.7B32.1x15.0x14.8%9.1%+26.3%0.2%+0.9%5/9
ATKR13$2.3B15.5x1.3%-0.5%-11.0%2.2%+0.4%6/9
NOVTU14$2.3B38.1x10.1x6.4%5.5%+3.3%+5.9%1/9
SPB15$2.2B13.8x8.2x5.3%3.6%-5.2%3.5%-1.6%4/9
FLNC16$2.1B194.4x-10.7%-2.1%-16.1%+53.9%2/9
ENR17$1.5B7.6x8.4x11.4%8.1%+2.3%4.8%-4.0%2/9
AMPX18$1.5B-50.8%-60.3%+202.1%-20.9%0/9
EOSE19$1.2B-45.3%-0.3%1/9
ENVX20$1.0B-26.0%-4.9%1/9

Industry Composition

IndustryStocksMarket Cap%
Computer Peripheral Equipment, Nec12$379.0B67.2%
Electronic Components, Nec12$147.4B26.1%
Miscellaneous Electrical Machinery, Equipment & Supplies20$32.0B5.7%
Electronic Coils, Transformers & Other Inductors2$5.9B1.0%
Consumer Electronics1$124M0.0%

Quality Distribution

0
1
2
3
4
5
6
7
8
9

Quality Score (0-9)

High Quality (7+)
2%
Median Piotroski F
5/9
Profitable Years
5 of 10

Dividends & Shareholder Returns

Paying Dividends
23%
Median Div Yield
1.6%
Median Buyback Yield
0.0%
Shareholder Yield
0.2%
Payout Ratio
20.5%
Div Growth (3Y)
0.1%
Div Growth (5Y)
0.0%

Strengths & Weaknesses

Strengths

  • +[Growth]Strong secular growth with a median 5-year revenue CAGR of 10.4%, outpacing nominal GDP.
  • +[Valuation]Attractive valuations: current median P/E of 8.8x is 56.7% below the 5-year average, presenting potential value opportunity.

Weaknesses

  • [Breadth]Narrow weakness: only 26.1% of stocks advanced today, suggesting widespread selling pressure.
  • [Financial Health]43.2% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
  • [Leverage]Tight interest coverage at 1.7x, leaving limited cushion for debt servicing if earnings decline.
  • [Profitability]Below-average capital returns with a median ROIC of 1.4%, suggesting limited pricing power or capital-intensive operations.

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