ESAB CORP (ESAB) Fundamental Analysis & Valuation
NYSE:ESAB • US29605J1060
Current stock price
103.26 USD
+1.98 (+1.95%)
At close:
103.26 USD
0 (0%)
After Hours:
This ESAB fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ESAB Profitability Analysis
1.1 Basic Checks
- ESAB had positive earnings in the past year.
- ESAB had a positive operating cash flow in the past year.
- Each year in the past 5 years ESAB has been profitable.
- ESAB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.73%, ESAB is in line with its industry, outperforming 57.25% of the companies in the same industry.
- With a decent Return On Equity value of 10.41%, ESAB is doing good in the industry, outperforming 61.07% of the companies in the same industry.
- With a decent Return On Invested Capital value of 8.48%, ESAB is doing good in the industry, outperforming 67.18% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ESAB is in line with the industry average of 10.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 10.41% | ||
| ROIC | 8.48% |
ROA(3y)5.53%
ROA(5y)5.86%
ROE(3y)12.66%
ROE(5y)12.8%
ROIC(3y)10.03%
ROIC(5y)9.68%
1.3 Margins
- ESAB's Profit Margin of 7.93% is fine compared to the rest of the industry. ESAB outperforms 67.94% of its industry peers.
- ESAB's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 15.48%, ESAB is in the better half of the industry, outperforming 72.52% of the companies in the same industry.
- ESAB's Operating Margin has improved in the last couple of years.
- ESAB's Gross Margin of 36.88% is fine compared to the rest of the industry. ESAB outperforms 67.18% of its industry peers.
- ESAB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.48% | ||
| PM (TTM) | 7.93% | ||
| GM | 36.88% |
OM growth 3Y2.69%
OM growth 5Y6.08%
PM growth 3Y-2.51%
PM growth 5Y-0.34%
GM growth 3Y2.6%
GM growth 5Y1.05%
2. ESAB Health Analysis
2.1 Basic Checks
- ESAB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, ESAB has more shares outstanding
- The number of shares outstanding for ESAB has been increased compared to 5 years ago.
- Compared to 1 year ago, ESAB has an improved debt to assets ratio.
2.2 Solvency
- ESAB has an Altman-Z score of 2.71. This is not the best score and indicates that ESAB is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.71, ESAB perfoms like the industry average, outperforming 44.27% of the companies in the same industry.
- ESAB has a debt to FCF ratio of 5.79. This is a neutral value as ESAB would need 5.79 years to pay back of all of its debts.
- ESAB has a Debt to FCF ratio (5.79) which is in line with its industry peers.
- A Debt/Equity ratio of 0.57 indicates that ESAB is somewhat dependend on debt financing.
- ESAB has a Debt to Equity ratio of 0.57. This is comparable to the rest of the industry: ESAB outperforms 40.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.82
WACC10.33%
2.3 Liquidity
- A Current Ratio of 1.90 indicates that ESAB should not have too much problems paying its short term obligations.
- ESAB's Current ratio of 1.90 is in line compared to the rest of the industry. ESAB outperforms 42.75% of its industry peers.
- A Quick Ratio of 1.17 indicates that ESAB should not have too much problems paying its short term obligations.
- The Quick ratio of ESAB (1.17) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.17 |
3. ESAB Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 4.55% over the past year.
- The Earnings Per Share has been growing slightly by 7.03% on average over the past years.
- Looking at the last year, ESAB shows a small growth in Revenue. The Revenue has grown by 3.71% in the last year.
- Measured over the past years, ESAB shows a small growth in Revenue. The Revenue has been growing by 7.83% on average per year.
EPS 1Y (TTM)4.55%
EPS 3Y0%
EPS 5Y7.03%
EPS Q2Q%5.47%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y3.1%
Revenue growth 5Y7.83%
Sales Q2Q%7.49%
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 11.15% on average per year.
- The Revenue is expected to grow by 4.46% on average over the next years.
EPS Next Y12.69%
EPS Next 2Y12.66%
EPS Next 3Y13%
EPS Next 5Y11.15%
Revenue Next Year7.48%
Revenue Next 2Y6.4%
Revenue Next 3Y6.59%
Revenue Next 5Y4.46%
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 accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. ESAB Valuation Analysis
4.1 Price/Earnings Ratio
- ESAB is valuated rather expensively with a Price/Earnings ratio of 19.56.
- Based on the Price/Earnings ratio, ESAB is valued a bit cheaper than the industry average as 77.86% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.42, ESAB is valued a bit cheaper.
- A Price/Forward Earnings ratio of 17.35 indicates a rather expensive valuation of ESAB.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ESAB indicates a somewhat cheap valuation: ESAB is cheaper than 75.57% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 22.29. ESAB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.56 | ||
| Fwd PE | 17.35 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ESAB is valued a bit cheaper than the industry average as 66.41% of the companies are valued more expensively.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ESAB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.48 | ||
| EV/EBITDA | 13.77 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of ESAB may justify a higher PE ratio.
- A more expensive valuation may be justified as ESAB's earnings are expected to grow with 13.00% in the coming years.
PEG (NY)1.54
PEG (5Y)2.78
EPS Next 2Y12.66%
EPS Next 3Y13%
5. ESAB Dividend Analysis
5.1 Amount
- ESAB has a yearly dividend return of 0.39%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.13, ESAB has a dividend in line with its industry peers.
- With a Dividend Yield of 0.39, ESAB pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
5.2 History
- ESAB has been paying a dividend for over 5 years, so it has already some track record.
- ESAB has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- 9.72% of the earnings are spent on dividend by ESAB. This is a low number and sustainable payout ratio.
DP9.72%
EPS Next 2Y12.66%
EPS Next 3Y13%
ESAB Fundamentals: All Metrics, Ratios and Statistics
103.26
+1.98 (+1.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-20 2026-02-20/bmo
Earnings (Next)05-07 2026-05-07
Inst Owners96.04%
Inst Owner Change-0.08%
Ins Owners6.31%
Ins Owner Change13.85%
Market Cap6.29B
Revenue(TTM)2.84B
Net Income(TTM)225.55M
Analysts86.25
Price Target141.82 (37.34%)
Short Float %3.05%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
Yearly Dividend0.36
Dividend Growth(5Y)N/A
DP9.72%
Div Incr Years3
Div Non Decr Years3
Ex-Date04-02 2026-04-02 (0.1)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.24%
Min EPS beat(2)-1.28%
Max EPS beat(2)1.76%
EPS beat(4)2
Avg EPS beat(4)0.28%
Min EPS beat(4)-1.65%
Max EPS beat(4)2.31%
EPS beat(8)6
Avg EPS beat(8)3.33%
EPS beat(12)10
Avg EPS beat(12)5.91%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)2.56%
Min Revenue beat(2)-0.08%
Max Revenue beat(2)5.2%
Revenue beat(4)3
Avg Revenue beat(4)2.52%
Min Revenue beat(4)-0.08%
Max Revenue beat(4)5.2%
Revenue beat(8)5
Avg Revenue beat(8)1.57%
Revenue beat(12)9
Avg Revenue beat(12)3.09%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-5.51%
PT rev (3m)-3.31%
EPS NQ rev (1m)-2.79%
EPS NQ rev (3m)-7.1%
EPS NY rev (1m)0.45%
EPS NY rev (3m)-1.8%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-3.22%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.56 | ||
| Fwd PE | 17.35 | ||
| P/S | 2.21 | ||
| P/FCF | 29.48 | ||
| P/OCF | 24.13 | ||
| P/B | 2.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.77 |
EPS(TTM)5.28
EY5.11%
EPS(NY)5.95
Fwd EY5.76%
FCF(TTM)3.5
FCFY3.39%
OCF(TTM)4.28
OCFY4.14%
SpS46.69
BVpS35.58
TBVpS-7.5
PEG (NY)1.54
PEG (5Y)2.78
Graham Number65.0136 (-37.04%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 10.41% | ||
| ROCE | 10.73% | ||
| ROIC | 8.48% | ||
| ROICexc | 8.88% | ||
| ROICexgc | 26.89% | ||
| OM | 15.48% | ||
| PM (TTM) | 7.93% | ||
| GM | 36.88% | ||
| FCFM | 7.5% |
ROA(3y)5.53%
ROA(5y)5.86%
ROE(3y)12.66%
ROE(5y)12.8%
ROIC(3y)10.03%
ROIC(5y)9.68%
ROICexc(3y)10.57%
ROICexc(5y)10.07%
ROICexgc(3y)32.42%
ROICexgc(5y)31.84%
ROCE(3y)12.69%
ROCE(5y)12.25%
ROICexgc growth 3Y-1.74%
ROICexgc growth 5Y2.45%
ROICexc growth 3Y-2.26%
ROICexc growth 5Y7.53%
OM growth 3Y2.69%
OM growth 5Y6.08%
PM growth 3Y-2.51%
PM growth 5Y-0.34%
GM growth 3Y2.6%
GM growth 5Y1.05%
F-Score5
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 5.79 | ||
| Debt/EBITDA | 2.35 | ||
| Cap/Depr | 56.22% | ||
| Cap/Sales | 1.66% | ||
| Interest Coverage | 6.61 | ||
| Cash Conversion | 49.72% | ||
| Profit Quality | 94.56% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 2.71 |
F-Score5
WACC10.33%
ROIC/WACC0.82
Cap/Depr(3y)65.99%
Cap/Depr(5y)61.15%
Cap/Sales(3y)1.76%
Cap/Sales(5y)1.66%
Profit Quality(3y)116.12%
Profit Quality(5y)103.66%
High Growth Momentum
Growth
EPS 1Y (TTM)4.55%
EPS 3Y0%
EPS 5Y7.03%
EPS Q2Q%5.47%
EPS Next Y12.69%
EPS Next 2Y12.66%
EPS Next 3Y13%
EPS Next 5Y11.15%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y3.1%
Revenue growth 5Y7.83%
Sales Q2Q%7.49%
Revenue Next Year7.48%
Revenue Next 2Y6.4%
Revenue Next 3Y6.59%
Revenue Next 5Y4.46%
EBIT growth 1Y-3.79%
EBIT growth 3Y5.88%
EBIT growth 5Y14.38%
EBIT Next Year26.35%
EBIT Next 3Y16.24%
EBIT Next 5Y13.17%
FCF growth 1Y-29.75%
FCF growth 3Y6.98%
FCF growth 5Y-4.54%
OCF growth 1Y-26.68%
OCF growth 3Y6.72%
OCF growth 5Y-3.36%
ESAB CORP / ESAB Fundamental Analysis FAQ
What is the ChartMill fundamental rating of ESAB CORP (ESAB) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ESAB.
Can you provide the valuation status for ESAB CORP?
ChartMill assigns a valuation rating of 4 / 10 to ESAB CORP (ESAB). This can be considered as Fairly Valued.
How profitable is ESAB CORP (ESAB) stock?
ESAB CORP (ESAB) has a profitability rating of 6 / 10.
What is the valuation of ESAB CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ESAB CORP (ESAB) is 19.56 and the Price/Book (PB) ratio is 2.9.
Can you provide the dividend sustainability for ESAB stock?
The dividend rating of ESAB CORP (ESAB) is 3 / 10 and the dividend payout ratio is 9.72%.