ESAB CORP (ESAB) Stock Fundamental Analysis

NYSE:ESAB • US29605J1060

123.2 USD
-1.67 (-1.34%)
Last: Feb 27, 2026, 09:40 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to ESAB. ESAB was compared to 130 industry peers in the Machinery industry. ESAB has a medium profitability rating, but doesn't score so well on its financial health evaluation. ESAB is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • ESAB had positive earnings in the past year.
  • ESAB had a positive operating cash flow in the past year.
  • In the past 5 years ESAB has always been profitable.
  • Each year in the past 5 years ESAB had a positive operating cash flow.
ESAB Yearly Net Income VS EBIT VS OCF VS FCFESAB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

1.2 Ratios

  • ESAB's Return On Assets of 4.94% is in line compared to the rest of the industry. ESAB outperforms 58.46% of its industry peers.
  • With a decent Return On Equity value of 11.37%, ESAB is doing good in the industry, outperforming 67.69% of the companies in the same industry.
  • ESAB has a Return On Invested Capital of 7.96%. This is comparable to the rest of the industry: ESAB outperforms 58.46% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ESAB is in line with the industry average of 10.27%.
Industry RankSector Rank
ROA 4.94%
ROE 11.37%
ROIC 7.96%
ROA(3y)5.92%
ROA(5y)5.84%
ROE(3y)14.67%
ROE(5y)11.97%
ROIC(3y)9.72%
ROIC(5y)8.68%
ESAB Yearly ROA, ROE, ROICESAB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • With a decent Profit Margin value of 8.61%, ESAB is doing good in the industry, outperforming 69.23% of the companies in the same industry.
  • In the last couple of years the Profit Margin of ESAB has grown nicely.
  • Looking at the Operating Margin, with a value of 16.06%, ESAB is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
  • ESAB's Operating Margin has improved in the last couple of years.
  • ESAB has a better Gross Margin (37.56%) than 71.54% of its industry peers.
  • ESAB's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 16.06%
PM (TTM) 8.61%
GM 37.56%
OM growth 3Y7.94%
OM growth 5Y6.5%
PM growth 3Y-0.24%
PM growth 5Y4.55%
GM growth 3Y3.13%
GM growth 5Y1.32%
ESAB Yearly Profit, Operating, Gross MarginsESAB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ESAB is creating some value.
  • Compared to 1 year ago, ESAB has more shares outstanding
  • ESAB has a worse debt/assets ratio than last year.
ESAB Yearly Shares OutstandingESAB Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 2024 20M 40M 60M
ESAB Yearly Total Debt VS Total AssetsESAB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.2 Solvency

  • An Altman-Z score of 2.91 indicates that ESAB is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • ESAB's Altman-Z score of 2.91 is in line compared to the rest of the industry. ESAB outperforms 53.85% of its industry peers.
  • The Debt to FCF ratio of ESAB is 5.64, which is a neutral value as it means it would take ESAB, 5.64 years of fcf income to pay off all of its debts.
  • ESAB has a Debt to FCF ratio (5.64) which is comparable to the rest of the industry.
  • ESAB has a Debt/Equity ratio of 0.63. This is a neutral value indicating ESAB is somewhat dependend on debt financing.
  • The Debt to Equity ratio of ESAB (0.63) is worse than 63.85% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF 5.64
Altman-Z 2.91
ROIC/WACC0.88
WACC9.06%
ESAB Yearly LT Debt VS Equity VS FCFESAB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • A Current Ratio of 1.99 indicates that ESAB should not have too much problems paying its short term obligations.
  • The Current ratio of ESAB (1.99) is comparable to the rest of the industry.
  • ESAB has a Quick Ratio of 1.24. This is a normal value and indicates that ESAB is financially healthy and should not expect problems in meeting its short term obligations.
  • ESAB has a Quick ratio of 1.24. This is comparable to the rest of the industry: ESAB outperforms 48.46% of its industry peers.
Industry RankSector Rank
Current Ratio 1.99
Quick Ratio 1.24
ESAB Yearly Current Assets VS Current LiabilitesESAB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 6.33% over the past year.
  • Measured over the past years, ESAB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.40% on average per year.
  • Looking at the last year, ESAB shows a small growth in Revenue. The Revenue has grown by 1.19% in the last year.
  • ESAB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.05% yearly.
EPS 1Y (TTM)6.33%
EPS 3Y3.21%
EPS 5Y8.4%
EPS Q2Q%5.6%
Revenue 1Y (TTM)1.19%
Revenue growth 3Y4.12%
Revenue growth 5Y4.05%
Sales Q2Q%14.51%

3.2 Future

  • Based on estimates for the next years, ESAB will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.96% on average per year.
  • The Revenue is expected to grow by 5.16% on average over the next years.
EPS Next Y6.69%
EPS Next 2Y8.83%
EPS Next 3Y10.19%
EPS Next 5Y9.96%
Revenue Next Year5.48%
Revenue Next 2Y6.77%
Revenue Next 3Y6.41%
Revenue Next 5Y5.16%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
ESAB Yearly Revenue VS EstimatesESAB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B
ESAB Yearly EPS VS EstimatesESAB Yearly EPS VS EstimatesYearly EPS VS Estimates 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8

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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 23.65, ESAB is valued on the expensive side.
  • Based on the Price/Earnings ratio, ESAB is valued a bit cheaper than 63.85% of the companies in the same industry.
  • ESAB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.11.
  • With a Price/Forward Earnings ratio of 20.60, ESAB is valued on the expensive side.
  • 63.85% of the companies in the same industry are more expensive than ESAB, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.13, ESAB is valued a bit cheaper.
Industry RankSector Rank
PE 23.65
Fwd PE 20.6
ESAB Price Earnings VS Forward Price EarningsESAB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ESAB is on the same level as its industry peers.
  • ESAB's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 31.58
EV/EBITDA 16.6
ESAB Per share dataESAB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The decent profitability rating of ESAB may justify a higher PE ratio.
PEG (NY)3.53
PEG (5Y)2.82
EPS Next 2Y8.83%
EPS Next 3Y10.19%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

2

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.31%, ESAB is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.19, ESAB has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.80, ESAB's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.31%

5.2 History

  • ESAB has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
ESAB Yearly Dividends per shareESAB Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 2025 0.1 0.2 0.3

5.3 Sustainability

  • 8.66% of the earnings are spent on dividend by ESAB. This is a low number and sustainable payout ratio.
DP8.66%
EPS Next 2Y8.83%
EPS Next 3Y10.19%
ESAB Yearly Income VS Free CF VS DividendESAB Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2019 2020 2021 2022 2023 2024 100M 200M 300M
ESAB Dividend Payout.ESAB Dividend Payout, showing the Payout Ratio.ESAB Dividend Payout.PayoutRetained Earnings

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ESAB CORP

NYSE:ESAB (2/27/2026, 9:40:35 AM)

123.2

-1.67 (-1.34%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-29
Earnings (Next)03-10
Inst Owners97.98%
Inst Owner Change-8.1%
Ins Owners6.28%
Ins Owner Change2.29%
Market Cap7.48B
Revenue(TTM)2.79B
Net Income(TTM)240.55M
Analysts84.71
Price Target145.18 (17.84%)
Short Float %2.29%
Short Ratio2.79
Dividend
Industry RankSector Rank
Dividend Yield 0.31%
Yearly Dividend0.28
Dividend Growth(5Y)N/A
DP8.66%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.05%
Min EPS beat(2)-1.65%
Max EPS beat(2)1.76%
EPS beat(4)3
Avg EPS beat(4)2.53%
Min EPS beat(4)-1.65%
Max EPS beat(4)7.72%
EPS beat(8)7
Avg EPS beat(8)4.29%
EPS beat(12)11
Avg EPS beat(12)7.27%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.75%
Min Revenue beat(2)2.29%
Max Revenue beat(2)5.2%
Revenue beat(4)4
Avg Revenue beat(4)2.89%
Min Revenue beat(4)1.4%
Max Revenue beat(4)5.2%
Revenue beat(8)6
Avg Revenue beat(8)2.25%
Revenue beat(12)10
Avg Revenue beat(12)3.87%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.02%
PT rev (3m)-1.16%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)-0.87%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)-2.09%
Revenue NQ rev (3m)-2.12%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-0.64%
Valuation
Industry RankSector Rank
PE 23.65
Fwd PE 20.6
P/S 2.68
P/FCF 31.58
P/OCF 25.83
P/B 3.53
P/tB N/A
EV/EBITDA 16.6
EPS(TTM)5.21
EY4.23%
EPS(NY)5.98
Fwd EY4.85%
FCF(TTM)3.9
FCFY3.17%
OCF(TTM)4.77
OCFY3.87%
SpS45.99
BVpS34.85
TBVpS-8.75
PEG (NY)3.53
PEG (5Y)2.82
Graham Number63.92
Profitability
Industry RankSector Rank
ROA 4.94%
ROE 11.37%
ROCE 10.68%
ROIC 7.96%
ROICexc 8.4%
ROICexgc 25.05%
OM 16.06%
PM (TTM) 8.61%
GM 37.56%
FCFM 8.48%
ROA(3y)5.92%
ROA(5y)5.84%
ROE(3y)14.67%
ROE(5y)11.97%
ROIC(3y)9.72%
ROIC(5y)8.68%
ROICexc(3y)10.17%
ROICexc(5y)8.99%
ROICexgc(3y)31.04%
ROICexgc(5y)29.46%
ROCE(3y)13.04%
ROCE(5y)11.64%
ROICexgc growth 3Y2.55%
ROICexgc growth 5YN/A
ROICexc growth 3Y8.34%
ROICexc growth 5YN/A
OM growth 3Y7.94%
OM growth 5Y6.5%
PM growth 3Y-0.24%
PM growth 5Y4.55%
GM growth 3Y3.13%
GM growth 5Y1.32%
F-Score5
Asset Turnover0.57
Health
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF 5.64
Debt/EBITDA 2.55
Cap/Depr 69.53%
Cap/Sales 1.89%
Interest Coverage 250
Cash Conversion 55.23%
Profit Quality 98.47%
Current Ratio 1.99
Quick Ratio 1.24
Altman-Z 2.91
F-Score5
WACC9.06%
ROIC/WACC0.88
Cap/Depr(3y)67.55%
Cap/Depr(5y)60.38%
Cap/Sales(3y)1.73%
Cap/Sales(5y)1.74%
Profit Quality(3y)110.75%
Profit Quality(5y)118.94%
High Growth Momentum
Growth
EPS 1Y (TTM)6.33%
EPS 3Y3.21%
EPS 5Y8.4%
EPS Q2Q%5.6%
EPS Next Y6.69%
EPS Next 2Y8.83%
EPS Next 3Y10.19%
EPS Next 5Y9.96%
Revenue 1Y (TTM)1.19%
Revenue growth 3Y4.12%
Revenue growth 5Y4.05%
Sales Q2Q%14.51%
Revenue Next Year5.48%
Revenue Next 2Y6.77%
Revenue Next 3Y6.41%
Revenue Next 5Y5.16%
EBIT growth 1Y-1.37%
EBIT growth 3Y12.39%
EBIT growth 5Y10.82%
EBIT Next Year16.27%
EBIT Next 3Y11.68%
EBIT Next 5Y11.02%
FCF growth 1Y-6.19%
FCF growth 3Y12.18%
FCF growth 5Y8.14%
OCF growth 1Y-3.37%
OCF growth 3Y12.34%
OCF growth 5Y7.31%

ESAB CORP / ESAB FAQ

What is the ChartMill fundamental rating of ESAB CORP (ESAB) stock?

ChartMill assigns a fundamental rating of 4 / 10 to ESAB.


Can you provide the valuation status for ESAB CORP?

ChartMill assigns a valuation rating of 3 / 10 to ESAB CORP (ESAB). This can be considered as Overvalued.


What is the profitability of ESAB stock?

ESAB CORP (ESAB) has a profitability rating of 6 / 10.


Can you provide the PE and PB ratios for ESAB stock?

The Price/Earnings (PE) ratio for ESAB CORP (ESAB) is 23.65 and the Price/Book (PB) ratio is 3.53.


What is the earnings growth outlook for ESAB CORP?

The Earnings per Share (EPS) of ESAB CORP (ESAB) is expected to grow by 6.69% in the next year.