George Risk Industries, Inc. — Cyborg Score 6/10

Solid
Security alarm components and sensors manufacturing

Strategic Profile

Founded in 1965 and headquartered in Kimball, Nebraska, George Risk serves as a niche supplier to security alarm distributors, installers, and OEM manufacturers. In fiscal year 2025 (ending April 30, 2025), the company achieved net sales of $22.54 million with net income of $7.13 million, maintaining profitability despite economic and tariff pressures.

Cyborg Score Rationale

George Risk demonstrates consistent profitability with strong margins, dividend discipline, and backlog strength ($1.3M+ in open orders as of August 2024). However, material supply delays, small scale (~$22.5M revenue), and exposure to cyclical construction/security markets limit growth prospects. OTC trading status and 185-person workforce reflect limited institutional reach.

Top Insights

  • Fiscal year 2025 revenue grew 3.54% to $22.54M with 34.7% net profit margins, demonstrating pricing power despite inflationary pressures
  • Company maintains $1.3M+ in open orders with strong demand signals across residential and commercial sectors, indicating economic resilience
  • Board declared $1.00/share dividend in July 2024, a $0.35 increase year-over-year, reflecting commitment to shareholder returns from strong cash generation
  • Market cap of $83.8M as of March 2026 at $17.15/share price reflects undervaluation relative to profitability, though OTC status limits institutional participation

Named Competitors

  • Security Alarm Components — Electronic security and alarm systems
  • Industrial Proximity Sensors — Industrial automation and control sensors
  • Wire Installation Tools — Professional electrical and telecommunications tools

Recent Developments

  • (April 2025) Fiscal year 2025 results: $22.54M revenue (+3.54% YoY), $7.13M net income despite tariff and material supply challenges
  • (July 2024) Board increased annual dividend to $1.00/share ($0.35 increase), maintaining capital returns amid strong cash generation
  • (April 2024) FY2024 results: $21.77M revenue (+8.95%), $7.56M net income (+58.88%), demonstrating margin expansion and order backlog strength

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