IEHC is Cheap Again

IEH Corp (IEHC) was the second stock I wrote up on my blog way back in 2015.  Coincidentally that post is how I met my mentor so it carries a special place in my heart.  

The stock rose from $6 to $25 over several years of solid results only to fall all the way back due to Covid and missed filings.  The stock only became tradeable again a few months ago so here's your chance with the stock at $6.30.

IEHC FY15 10-K update

IEHC filed their 10-k yesterday so I thought I'd put out a little update.  In short it was great and they are continuing down their path.  The record high backlog disclosed in Sept 2014 has increased even higher and earnings is at an all time high as well.  The most interesting thing, to me, is that they have granted some stock options.

Some highlights:

• Backlog at an all time high of $8.7M up 48% YOY
• EPS at an all time high of $0.79 up 25% YOY
• Trading at a P/E of 7.7
• Concentration on military continues to shrink

And lowlights:

• Despite record net income of $1.8M they actually ended the year with $12k less in the bank than last year

And items that could be interpreted good or bad:

• Inventory raw material is up 79% YOY to an all time high

The Growth of IEHC

IEH Corporation (IEHC) is a $14M market cap company that makes electrical connectors.  They have been written up a few times by OTC Adventures here and Whopper Investments here, here, and here.  Bull, Bear and Value has a number of posts here including a write up on his trip to the annual meeting.  I recommend you start by reading those posts and then I will just add a little bit on top.  Let's begin with a summary and some bullet points from these prior posts.

The company was founded by Louis Offerman in 1937 and is now run by Michael Offerman who owns 40% of the company.  The CEO's son, David Offerman, is VP of Sales and Marketing.