ESAB CORP (ESAB) Stock Fundamental Analysis
USA - NYSE:ESAB - US29605J1060 - Common Stock
124.01 USD
+1.17 (+0.95%)
Overall ESAB gets a fundamental rating of 4 out of 10. We evaluated ESAB against 130 industry peers in the Machinery industry. While ESAB has a great profitability rating, there are some minor concerns on its financial health. ESAB is quite expensive at the moment. It does show a decent growth rate.
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.
Each year in the past 5 years ESAB has been profitable.
In the past 5 years ESAB always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ESAB (5.74%) is better than 61.54% of its industry peers.
ESAB's Return On Equity of 12.29% is fine compared to the rest of the industry. ESAB outperforms 66.15% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.87%, ESAB is in the better half of the industry, outperforming 63.85% of the companies in the same industry.
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 10.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.74% | ||
| ROE | 12.29% | ||
| ROIC | 8.87% |
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
Looking at the Profit Margin, with a value of 9.29%, ESAB is in the better half of the industry, outperforming 68.46% of the companies in the same industry.
ESAB's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.28%, ESAB is in the better half of the industry, outperforming 77.69% of the companies in the same industry.
ESAB's Operating Margin has improved in the last couple of years.
ESAB's Gross Margin of 37.75% is fine compared to the rest of the industry. ESAB outperforms 68.46% of its industry peers.
ESAB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.28% | ||
| PM (TTM) | 9.29% | ||
| GM | 37.75% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ESAB is creating some value.
The number of shares outstanding for ESAB has been increased compared to 1 year ago.
Compared to 1 year ago, ESAB has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.25 indicates that ESAB is not in any danger for bankruptcy at the moment.
ESAB has a Altman-Z score (3.25) which is in line with its industry peers.
The Debt to FCF ratio of ESAB is 4.19, which is a neutral value as it means it would take ESAB, 4.19 years of fcf income to pay off all of its debts.
ESAB's Debt to FCF ratio of 4.19 is fine compared to the rest of the industry. ESAB outperforms 60.77% of its industry peers.
ESAB has a Debt/Equity ratio of 0.51. This is a neutral value indicating ESAB is somewhat dependend on debt financing.
ESAB has a Debt to Equity ratio of 0.51. This is comparable to the rest of the industry: ESAB outperforms 43.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 3.25 |
ROIC/WACC0.95
WACC9.31%
2.3 Liquidity
ESAB has a Current Ratio of 1.95. 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 Current ratio of 1.95. This is comparable to the rest of the industry: ESAB outperforms 46.15% of its industry peers.
A Quick Ratio of 1.26 indicates that ESAB should not have too much problems paying its short term obligations.
ESAB has a Quick ratio of 1.26. This is comparable to the rest of the industry: ESAB outperforms 50.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.67% 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.
The Revenue has decreased by -1.06% in the past 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)8.67%
EPS 3Y3.21%
EPS 5Y8.4%
EPS Q2Q%3.03%
Revenue 1Y (TTM)-1.06%
Revenue growth 3Y4.12%
Revenue growth 5Y4.05%
Sales Q2Q%1.21%
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 9.66% on average per year.
ESAB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.86% yearly.
EPS Next Y6.11%
EPS Next 2Y9.05%
EPS Next 3Y9.96%
EPS Next 5Y9.66%
Revenue Next Year3.79%
Revenue Next 2Y5.08%
Revenue Next 3Y5.38%
Revenue Next 5Y4.86%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.13, which indicates a rather expensive current valuation of ESAB.
Compared to the rest of the industry, the Price/Earnings ratio of ESAB is on the same level as its industry peers.
ESAB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.69.
Based on the Price/Forward Earnings ratio of 20.65, the valuation of ESAB can be described as rather expensive.
ESAB's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.18, ESAB is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.13 | ||
| Fwd PE | 20.65 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as ESAB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.16 | ||
| EV/EBITDA | 16.03 |
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)3.95
PEG (5Y)2.87
EPS Next 2Y9.05%
EPS Next 3Y9.96%
5. Dividend
5.1 Amount
ESAB has a yearly dividend return of 0.33%, which is pretty low.
Compared to an average industry Dividend Yield of 1.80, ESAB has a dividend in line with its industry peers.
With a Dividend Yield of 0.33, ESAB pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
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
5.3 Sustainability
7.64% of the earnings are spent on dividend by ESAB. This is a low number and sustainable payout ratio.
DP7.64%
EPS Next 2Y9.05%
EPS Next 3Y9.96%
NYSE:ESAB (10/21/2025, 11:33:10 AM)
124.01
+1.17 (+0.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners96.9%
Inst Owner Change0.15%
Ins Owners6.41%
Ins Owner Change26.82%
Market Cap7.53B
Analysts86.25
Price Target142.46 (14.88%)
Short Float %1.98%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
Yearly Dividend0.28
Dividend Growth(5Y)N/A
DP7.64%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.33%
Min EPS beat(2)-1.65%
Max EPS beat(2)2.31%
EPS beat(4)3
Avg EPS beat(4)4.39%
Min EPS beat(4)-1.65%
Max EPS beat(4)9.18%
EPS beat(8)7
Avg EPS beat(8)5.56%
EPS beat(12)11
Avg EPS beat(12)7.63%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2.49%
Min Revenue beat(2)2.29%
Max Revenue beat(2)2.68%
Revenue beat(4)3
Avg Revenue beat(4)1.47%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)2.68%
Revenue beat(8)6
Avg Revenue beat(8)2.3%
Revenue beat(12)10
Avg Revenue beat(12)3.77%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)2.51%
EPS NQ rev (1m)0.75%
EPS NQ rev (3m)0.43%
EPS NY rev (1m)0.15%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)2.23%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.13 | ||
| Fwd PE | 20.65 | ||
| P/S | 2.75 | ||
| P/FCF | 29.16 | ||
| P/OCF | 24.29 | ||
| P/B | 3.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.03 |
EPS(TTM)5.14
EY4.14%
EPS(NY)6.01
Fwd EY4.84%
FCF(TTM)4.25
FCFY3.43%
OCF(TTM)5.11
OCFY4.12%
SpS45.1
BVpS34.1
TBVpS-4.32
PEG (NY)3.95
PEG (5Y)2.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.74% | ||
| ROE | 12.29% | ||
| ROCE | 11.9% | ||
| ROIC | 8.87% | ||
| ROICexc | 9.53% | ||
| ROICexgc | 28.76% | ||
| OM | 16.28% | ||
| PM (TTM) | 9.29% | ||
| GM | 37.75% | ||
| FCFM | 9.43% |
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%
ROICexcg growth 3Y2.55%
ROICexcg 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-Score6
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.19 | ||
| Debt/EBITDA | 2.05 | ||
| Cap/Depr | 73.28% | ||
| Cap/Sales | 1.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.01% | ||
| Profit Quality | 101.45% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 3.25 |
F-Score6
WACC9.31%
ROIC/WACC0.95
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)8.67%
EPS 3Y3.21%
EPS 5Y8.4%
EPS Q2Q%3.03%
EPS Next Y6.11%
EPS Next 2Y9.05%
EPS Next 3Y9.96%
EPS Next 5Y9.66%
Revenue 1Y (TTM)-1.06%
Revenue growth 3Y4.12%
Revenue growth 5Y4.05%
Sales Q2Q%1.21%
Revenue Next Year3.79%
Revenue Next 2Y5.08%
Revenue Next 3Y5.38%
Revenue Next 5Y4.86%
EBIT growth 1Y-1.15%
EBIT growth 3Y12.39%
EBIT growth 5Y10.82%
EBIT Next Year14.53%
EBIT Next 3Y10.85%
EBIT Next 5Y9.28%
FCF growth 1Y13.12%
FCF growth 3Y12.18%
FCF growth 5Y8.14%
OCF growth 1Y14.08%
OCF growth 3Y12.34%
OCF growth 5Y7.31%