ESAB CORP (ESAB) Fundamental Analysis & Valuation

NYSE:ESAB • US29605J1060

Current stock price

98.37 USD
-2.63 (-2.6%)
At close:
98.37 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.

6

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.
  • ESAB had positive earnings in each of the past 5 years.
  • ESAB had a positive operating cash flow in each of the past 5 years.
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 2025 100M 200M 300M 400M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 4.73%, ESAB is in line with its industry, outperforming 56.49% of the companies in the same industry.
  • The Return On Equity of ESAB (10.41%) is comparable to the rest of the industry.
  • With a decent Return On Invested Capital value of 8.48%, ESAB is doing good in the industry, outperforming 64.89% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for ESAB is in line with the industry average of 10.17%.
Industry RankSector 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%
ESAB Yearly ROA, ROE, ROICESAB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • ESAB has a better Profit Margin (7.93%) than 65.65% of its industry peers.
  • In the last couple of years the Profit Margin of ESAB has remained more or less at the same level.
  • 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.
  • The Gross Margin of ESAB (36.88%) is better than 67.94% of its industry peers.
  • ESAB's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
ESAB Yearly Profit, Operating, Gross MarginsESAB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 2025 10 20 30

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4

2. ESAB Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ESAB is destroying value.
  • The number of shares outstanding for ESAB has been increased compared to 1 year ago.
  • Compared to 5 years ago, ESAB has more shares outstanding
  • The debt/assets ratio for ESAB has been reduced compared to a year ago.
ESAB Yearly Shares OutstandingESAB Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 2024 2025 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 2025 1B 2B 3B 4B

2.2 Solvency

  • An Altman-Z score of 2.67 indicates that ESAB is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.67, ESAB is in line with its industry, outperforming 45.04% of the companies in the same industry.
  • The Debt to FCF ratio of ESAB is 5.79, which is a neutral value as it means it would take ESAB, 5.79 years of fcf income to pay off 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's Debt to Equity ratio of 0.57 is in line compared to the rest of the industry. ESAB outperforms 41.98% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.57
Debt/FCF 5.79
Altman-Z 2.67
ROIC/WACC0.84
WACC10.06%
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 2025 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • ESAB has a Current Ratio of 1.90. This is a normal value and indicates that ESAB is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of ESAB (1.90) is comparable to the rest of the industry.
  • 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 RankSector Rank
Current Ratio 1.9
Quick Ratio 1.17
ESAB Yearly Current Assets VS Current LiabilitesESAB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

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

4

3. ESAB Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 4.55% over the past year.
  • Measured over the past 5 years, ESAB shows a small growth in Earnings Per Share. The EPS has been growing by 7.03% on average per year.
  • The Revenue has been growing slightly by 3.71% in the past 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 11.88% on average per year.
  • The Revenue is expected to grow by 5.47% on average over the next years.
EPS Next Y12.18%
EPS Next 2Y12.73%
EPS Next 3Y13.16%
EPS Next 5Y11.88%
Revenue Next Year7.69%
Revenue Next 2Y6.62%
Revenue Next 3Y6.63%
Revenue Next 5Y5.47%

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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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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5

4. ESAB Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 18.63, ESAB is valued on the expensive side.
  • 77.10% of the companies in the same industry are more expensive than ESAB, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of ESAB to the average of the S&P500 Index (25.60), we can say ESAB is valued slightly cheaper.
  • With a Price/Forward Earnings ratio of 16.61, ESAB is valued correctly.
  • Based on the Price/Forward Earnings ratio, ESAB is valued a bit cheaper than the industry average as 73.28% of the companies are valued more expensively.
  • ESAB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.84, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.63
Fwd PE 16.61
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

  • Based on the Enterprise Value to EBITDA ratio, ESAB is valued a bit cheaper than the industry average as 64.89% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ESAB is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 28.01
EV/EBITDA 13.4
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 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 13.16% in the coming years.
PEG (NY)1.53
PEG (5Y)2.65
EPS Next 2Y12.73%
EPS Next 3Y13.16%

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

3

5. ESAB Dividend Analysis

5.1 Amount

  • ESAB has a yearly dividend return of 0.43%, which is pretty low.
  • ESAB's Dividend Yield is comparable with the industry average which is at 1.20.
  • Compared to an average S&P500 Dividend Yield of 1.88, ESAB's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.43%

5.2 History

  • ESAB has been paying a dividend for over 5 years, so it has already some track record.
  • The dividend of ESAB decreased in the last 3 years.
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 2026 0.1 0.2 0.3

5.3 Sustainability

  • ESAB pays out 9.72% of its income as dividend. This is a sustainable payout ratio.
DP9.72%
EPS Next 2Y12.73%
EPS Next 3Y13.16%
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 2025 100M 200M 300M
ESAB Dividend Payout.ESAB Dividend Payout, showing the Payout Ratio.ESAB Dividend Payout.PayoutRetained Earnings

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ESAB Fundamentals: All Metrics, Ratios and Statistics

ESAB CORP

NYSE:ESAB (4/2/2026, 8:21:23 PM)

After market: 98.37 0 (0%)

98.37

-2.63 (-2.6%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-20
Earnings (Next)04-29
Inst Owners96.18%
Inst Owner Change-8.14%
Ins Owners6.28%
Ins Owner Change13.88%
Market Cap5.97B
Revenue(TTM)2.84B
Net Income(TTM)225.55M
Analysts86.25
Price Target150.66 (53.16%)
Short Float %2.76%
Short Ratio2.83
Dividend
Industry RankSector Rank
Dividend Yield 0.43%
Yearly Dividend0.36
Dividend Growth(5Y)N/A
DP9.72%
Div Incr Years2
Div Non Decr Years2
Ex-Date04-02
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)0.38%
PT rev (3m)2.71%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-5.24%
EPS NY rev (1m)-0.97%
EPS NY rev (3m)-2.72%
Revenue NQ rev (1m)-0.64%
Revenue NQ rev (3m)-3.13%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-1.37%
Valuation
Industry RankSector Rank
PE 18.63
Fwd PE 16.61
P/S 2.1
P/FCF 28.01
P/OCF 22.93
P/B 2.76
P/tB N/A
EV/EBITDA 13.4
EPS(TTM)5.28
EY5.37%
EPS(NY)5.92
Fwd EY6.02%
FCF(TTM)3.51
FCFY3.57%
OCF(TTM)4.29
OCFY4.36%
SpS46.81
BVpS35.67
TBVpS-7.52
PEG (NY)1.53
PEG (5Y)2.65
Graham Number65.09
Profitability
Industry RankSector 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 RankSector 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 2.67
F-Score5
WACC10.06%
ROIC/WACC0.84
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 Y12.18%
EPS Next 2Y12.73%
EPS Next 3Y13.16%
EPS Next 5Y11.88%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y3.1%
Revenue growth 5Y7.83%
Sales Q2Q%7.49%
Revenue Next Year7.69%
Revenue Next 2Y6.62%
Revenue Next 3Y6.63%
Revenue Next 5Y5.47%
EBIT growth 1Y-3.79%
EBIT growth 3Y5.88%
EBIT growth 5Y14.38%
EBIT Next Year26.11%
EBIT Next 3Y16.24%
EBIT Next 5Y13.77%
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 5 / 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 18.63 and the Price/Book (PB) ratio is 2.76.


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%.