Logo image of ESAB

ESAB CORP (ESAB) Stock Fundamental Analysis

NYSE:ESAB - New York Stock Exchange, Inc. - US29605J1060 - Common Stock - Currency: USD

123.77  +5.54 (+4.69%)

After market: 123.77 0 (0%)

Fundamental Rating

5

Overall ESAB gets a fundamental rating of 5 out of 10. We evaluated ESAB against 129 industry peers in the Machinery industry. ESAB has an excellent profitability rating, but there are some minor concerns on its financial health. ESAB is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

8

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.
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 100M 200M 300M 400M

1.2 Ratios

ESAB's Return On Assets of 6.53% is fine compared to the rest of the industry. ESAB outperforms 65.89% of its industry peers.
ESAB has a Return On Equity of 14.89%. This is in the better half of the industry: ESAB outperforms 71.32% of its industry peers.
The Return On Invested Capital of ESAB (10.03%) is better than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ESAB is in line with the industry average of 10.67%.
The 3 year average ROIC (9.72%) for ESAB is below the current ROIC(10.03%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.53%
ROE 14.89%
ROIC 10.03%
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

Looking at the Profit Margin, with a value of 9.61%, ESAB is in the better half of the industry, outperforming 66.67% 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 16.70%, ESAB belongs to the top of the industry, outperforming 80.62% of the companies in the same industry.
In the last couple of years the Operating Margin of ESAB has grown nicely.
ESAB's Gross Margin of 37.85% is fine compared to the rest of the industry. ESAB outperforms 69.77% 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 RankSector Rank
OM 16.7%
PM (TTM) 9.61%
GM 37.85%
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

More info and screens

4

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.
Compared to 1 year ago, ESAB has a worse debt to assets ratio.
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

ESAB has an Altman-Z score of 3.40. This indicates that ESAB is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.40, ESAB perfoms like the industry average, outperforming 58.91% of the companies in the same industry.
ESAB has a debt to FCF ratio of 3.54. This is a good value and a sign of high solvency as ESAB would need 3.54 years to pay back of all of its debts.
The Debt to FCF ratio of ESAB (3.54) is better than 62.02% of its industry peers.
ESAB has a Debt/Equity ratio of 0.60. This is a neutral value indicating ESAB is somewhat dependend on debt financing.
ESAB has a Debt to Equity ratio of 0.60. This is in the lower half of the industry: ESAB underperforms 62.02% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 3.54
Altman-Z 3.4
ROIC/WACC1.01
WACC9.9%
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 1.82 indicates that ESAB should not have too much problems paying its short term obligations.
ESAB's Current ratio of 1.82 is on the low side compared to the rest of the industry. ESAB is outperformed by 63.57% of its industry peers.
ESAB has a Quick Ratio of 1.18. 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 1.18. This is comparable to the rest of the industry: ESAB outperforms 44.96% of its industry peers.
Industry RankSector Rank
Current Ratio 1.82
Quick Ratio 1.18
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

More info and screens

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 10.39% over the past year.
ESAB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.40% yearly.
The Revenue has decreased by -1.22% 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)10.39%
EPS 3Y3.21%
EPS 5Y8.4%
EPS Q2Q%4.17%
Revenue 1Y (TTM)-1.22%
Revenue growth 3Y4.12%
Revenue growth 5Y4.05%
Sales Q2Q%-6.21%

3.2 Future

ESAB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.46% yearly.
ESAB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.91% yearly.
EPS Next Y4.99%
EPS Next 2Y7.59%
EPS Next 3Y8.59%
EPS Next 5Y9.46%
Revenue Next Year0.19%
Revenue Next 2Y2.59%
Revenue Next 3Y3.15%
Revenue Next 5Y2.91%

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.
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 500M 1B 1.5B 2B 2.5B
ESAB Yearly EPS VS EstimatesESAB Yearly EPS VS EstimatesYearly EPS VS Estimates 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6

More info and screens

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 24.27, which indicates a rather expensive current valuation of ESAB.
ESAB's Price/Earnings ratio is in line with the industry average.
ESAB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.22.
A Price/Forward Earnings ratio of 21.17 indicates a rather expensive valuation of ESAB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ESAB is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, ESAB is valued at the same level.
Industry RankSector Rank
PE 24.27
Fwd PE 21.17
ESAB Price Earnings VS Forward Price EarningsESAB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

ESAB's Enterprise Value to EBITDA ratio is in line with the industry average.
ESAB's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 24.71
EV/EBITDA 15.88
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 excellent profitability rating of ESAB may justify a higher PE ratio.
PEG (NY)4.87
PEG (5Y)2.89
EPS Next 2Y7.59%
EPS Next 3Y8.59%

More info and screens

2

5. Dividend

5.1 Amount

With a yearly dividend of 0.27%, ESAB is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.05, ESAB has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, ESAB's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.27%

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 Years1
Div Non Decr Years1
ESAB Yearly Dividends per shareESAB Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 2025 0.05 0.1 0.15 0.2 0.25

5.3 Sustainability

6.45% of the earnings are spent on dividend by ESAB. This is a low number and sustainable payout ratio.
DP6.45%
EPS Next 2Y7.59%
EPS Next 3Y8.59%
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

More info and screens

ESAB CORP

NYSE:ESAB (5/2/2025, 8:04:01 PM)

After market: 123.77 0 (0%)

123.77

+5.54 (+4.69%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)05-01 2025-05-01/bmo
Earnings (Next)07-31 2025-07-31/bmo
Inst Owners96.05%
Inst Owner Change0.46%
Ins Owners6.32%
Ins Owner Change17.94%
Market Cap7.50B
Analysts82.5
Price Target136.45 (10.24%)
Short Float %2.15%
Short Ratio3.22
Dividend
Industry RankSector Rank
Dividend Yield 0.27%
Yearly Dividend0.28
Dividend Growth(5Y)N/A
DP6.45%
Div Incr Years1
Div Non Decr Years1
Ex-Date04-04 2025-04-04 (0.08)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.45%
Min EPS beat(2)7.72%
Max EPS beat(2)9.18%
EPS beat(4)4
Avg EPS beat(4)6.38%
Min EPS beat(4)2.1%
Max EPS beat(4)9.18%
EPS beat(8)8
Avg EPS beat(8)8.72%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.45%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)1.4%
Revenue beat(4)2
Avg Revenue beat(4)0.61%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)1.71%
Revenue beat(8)6
Avg Revenue beat(8)3.37%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.54%
PT rev (3m)-2.35%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-5.82%
EPS NY rev (1m)-0.87%
EPS NY rev (3m)-3.57%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-4.58%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-3.71%
Valuation
Industry RankSector Rank
PE 24.27
Fwd PE 21.17
P/S 2.74
P/FCF 24.71
P/OCF 21.11
P/B 4.24
P/tB N/A
EV/EBITDA 15.88
EPS(TTM)5.1
EY4.12%
EPS(NY)5.85
Fwd EY4.72%
FCF(TTM)5.01
FCFY4.05%
OCF(TTM)5.86
OCFY4.74%
SpS45.21
BVpS29.18
TBVpS-6.12
PEG (NY)4.87
PEG (5Y)2.89
Profitability
Industry RankSector Rank
ROA 6.53%
ROE 14.89%
ROCE 13.45%
ROIC 10.03%
ROICexc 10.82%
ROICexgc 33.7%
OM 16.7%
PM (TTM) 9.61%
GM 37.85%
FCFM 11.08%
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-Score7
Asset Turnover0.68
Health
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 3.54
Debt/EBITDA 2.02
Cap/Depr 77.53%
Cap/Sales 1.89%
Interest Coverage 7.35
Cash Conversion 67.76%
Profit Quality 115.24%
Current Ratio 1.82
Quick Ratio 1.18
Altman-Z 3.4
F-Score7
WACC9.9%
ROIC/WACC1.01
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)10.39%
EPS 3Y3.21%
EPS 5Y8.4%
EPS Q2Q%4.17%
EPS Next Y4.99%
EPS Next 2Y7.59%
EPS Next 3Y8.59%
EPS Next 5Y9.46%
Revenue 1Y (TTM)-1.22%
Revenue growth 3Y4.12%
Revenue growth 5Y4.05%
Sales Q2Q%-6.21%
Revenue Next Year0.19%
Revenue Next 2Y2.59%
Revenue Next 3Y3.15%
Revenue Next 5Y2.91%
EBIT growth 1Y6.89%
EBIT growth 3Y12.39%
EBIT growth 5Y10.82%
EBIT Next Year12.76%
EBIT Next 3Y9.98%
EBIT Next 5Y8.73%
FCF growth 1Y7.55%
FCF growth 3Y12.18%
FCF growth 5Y8.14%
OCF growth 1Y7.54%
OCF growth 3Y12.34%
OCF growth 5Y7.31%