ESAB CORP (ESAB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESAB - US29605J1060 - Common Stock
113.12 USD
+0.03 (+0.03%)
ESAB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 132 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ESAB was profitable.
ESAB had a positive operating cash flow in the past year.
Each year in the past 5 years ESAB has been profitable.
Each year in the past 5 years ESAB had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ESAB (4.94%) is comparable to the rest of the industry.
With a decent Return On Equity value of 11.37%, ESAB is doing good in the industry, outperforming 66.67% of the companies in the same industry.
ESAB's Return On Invested Capital of 7.96% is in line compared to the rest of the industry. ESAB outperforms 59.09% of its industry peers.
ESAB had an Average Return On Invested Capital over the past 3 years of 9.72%. This is in line with the industry average of 10.27%.
| Industry Rank | Sector 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%
1.3 Margins
ESAB has a better Profit Margin (8.61%) than 67.42% of its industry peers.
ESAB's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.06%, ESAB is in the better half of the industry, outperforming 76.52% of the companies in the same industry.
In the last couple of years the Operating Margin of ESAB has grown nicely.
ESAB has a Gross Margin of 37.56%. This is in the better half of the industry: ESAB outperforms 69.70% of its industry peers.
In the last couple of years the Gross Margin of ESAB has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ESAB is still creating some value.
The number of shares outstanding for ESAB has been increased compared to 1 year ago.
The debt/assets ratio for ESAB is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.76 indicates that ESAB is not a great score, but indicates only limited risk for bankruptcy at the moment.
ESAB has a Altman-Z score (2.76) which is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 5.64, ESAB is in line with its industry, outperforming 51.52% of the companies in the same industry.
A Debt/Equity ratio of 0.63 indicates that ESAB is somewhat dependend on debt financing.
ESAB's Debt to Equity ratio of 0.63 is on the low side compared to the rest of the industry. ESAB is outperformed by 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 5.64 | ||
| Altman-Z | 2.76 |
ROIC/WACC0.85
WACC9.34%
2.3 Liquidity
A Current Ratio of 1.99 indicates that ESAB should not have too much problems paying its short term obligations.
ESAB has a Current ratio of 1.99. This is comparable to the rest of the industry: ESAB outperforms 46.21% of its industry peers.
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.
Looking at the Quick ratio, with a value of 1.24, ESAB is in line with its industry, outperforming 52.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
ESAB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.33%.
The Earnings Per Share has been growing by 8.40% on average over the past years. This is quite good.
ESAB shows a small growth in Revenue. In the last year, the Revenue has grown by 1.19%.
The Revenue has been growing slightly by 4.05% on average over the past years.
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 11.21% on average per year.
Based on estimates for the next years, ESAB will show a small growth in Revenue. The Revenue will grow by 5.88% on average per year.
EPS Next Y6.79%
EPS Next 2Y9.81%
EPS Next 3Y10.61%
EPS Next 5Y11.21%
Revenue Next Year6.15%
Revenue Next 2Y7.26%
Revenue Next 3Y6.44%
Revenue Next 5Y5.88%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.71, the valuation of ESAB can be described as rather expensive.
Based on the Price/Earnings ratio, ESAB is valued a bit cheaper than 66.67% of the companies in the same industry.
ESAB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.84.
The Price/Forward Earnings ratio is 18.58, which indicates a rather expensive current valuation of ESAB.
Based on the Price/Forward Earnings ratio, ESAB is valued a bit cheaper than 63.64% of the companies in the same industry.
ESAB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.71 | ||
| Fwd PE | 18.58 |
4.2 Price Multiples
ESAB's Enterprise Value to EBITDA is on the same level as the industry average.
ESAB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.99 | ||
| EV/EBITDA | 15.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ESAB does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ESAB may justify a higher PE ratio.
PEG (NY)3.2
PEG (5Y)2.59
EPS Next 2Y9.81%
EPS Next 3Y10.61%
5. Dividend
5.1 Amount
ESAB has a yearly dividend return of 0.35%, which is pretty low.
ESAB's Dividend Yield is comparable with the industry average which is at 0.98.
Compared to an average S&P500 Dividend Yield of 2.00, ESAB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
5.2 History
ESAB has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
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 2Y9.81%
EPS Next 3Y10.61%
NYSE:ESAB (12/30/2025, 12:16:42 PM)
113.12
+0.03 (+0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.8%
Inst Owner Change11.51%
Ins Owners6.41%
Ins Owner Change1.34%
Market Cap6.87B
Revenue(TTM)2.79B
Net Income(TTM)240.55M
Analysts86.25
Price Target146.68 (29.67%)
Short Float %2.2%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
Yearly Dividend0.28
Dividend Growth(5Y)N/A
DP8.66%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)-0.14%
PT rev (3m)2.96%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-1.59%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.71 | ||
| Fwd PE | 18.58 | ||
| P/S | 2.46 | ||
| P/FCF | 28.99 | ||
| P/OCF | 23.72 | ||
| P/B | 3.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.23 |
EPS(TTM)5.21
EY4.61%
EPS(NY)6.09
Fwd EY5.38%
FCF(TTM)3.9
FCFY3.45%
OCF(TTM)4.77
OCFY4.22%
SpS45.99
BVpS34.85
TBVpS-8.75
PEG (NY)3.2
PEG (5Y)2.59
Graham Number63.92
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.76 |
F-Score5
WACC9.34%
ROIC/WACC0.85
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 Y6.79%
EPS Next 2Y9.81%
EPS Next 3Y10.61%
EPS Next 5Y11.21%
Revenue 1Y (TTM)1.19%
Revenue growth 3Y4.12%
Revenue growth 5Y4.05%
Sales Q2Q%14.51%
Revenue Next Year6.15%
Revenue Next 2Y7.26%
Revenue Next 3Y6.44%
Revenue Next 5Y5.88%
EBIT growth 1Y-1.37%
EBIT growth 3Y12.39%
EBIT growth 5Y10.82%
EBIT Next Year16.3%
EBIT Next 3Y11.83%
EBIT Next 5Y10.84%
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.
What is the valuation status of ESAB CORP (ESAB) stock?
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.
How financially healthy is ESAB CORP?
The financial health rating of ESAB CORP (ESAB) is 3 / 10.
How sustainable is the dividend of ESAB CORP (ESAB) stock?
The dividend rating of ESAB CORP (ESAB) is 2 / 10 and the dividend payout ratio is 8.66%.