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ESCO TECHNOLOGIES INC (ESE) Stock Fundamental Analysis

USA - NYSE:ESE - US2963151046 - Common Stock

212.95 USD
+0.5 (+0.24%)
Last: 9/22/2025, 3:01:08 PM
Fundamental Rating

5

ESE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 129 industry peers in the Machinery industry. ESE has only an average score on both its financial health and profitability. ESE is valued quite expensive, but it does show an excellent growth. These ratings could make ESE a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year ESE was profitable.
ESE had a positive operating cash flow in the past year.
Each year in the past 5 years ESE has been profitable.
Each year in the past 5 years ESE had a positive operating cash flow.
ESE Yearly Net Income VS EBIT VS OCF VS FCFESE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M

1.2 Ratios

ESE has a Return On Assets (4.55%) which is in line with its industry peers.
ESE has a Return On Equity (8.66%) which is comparable to the rest of the industry.
ESE has a Return On Invested Capital (6.50%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ESE is below the industry average of 10.02%.
Industry RankSector Rank
ROA 4.55%
ROE 8.66%
ROIC 6.5%
ROA(3y)5.34%
ROA(5y)5.46%
ROE(3y)8.09%
ROE(5y)8.17%
ROIC(3y)7.18%
ROIC(5y)6.57%
ESE Yearly ROA, ROE, ROICESE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

Looking at the Profit Margin, with a value of 10.37%, ESE is in the better half of the industry, outperforming 73.64% of the companies in the same industry.
In the last couple of years the Profit Margin of ESE has declined.
ESE's Operating Margin of 15.25% is fine compared to the rest of the industry. ESE outperforms 73.64% of its industry peers.
In the last couple of years the Operating Margin of ESE has remained more or less at the same level.
The Gross Margin of ESE (40.57%) is better than 74.42% of its industry peers.
ESE's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 15.25%
PM (TTM) 10.37%
GM 40.57%
OM growth 3Y7.68%
OM growth 5Y-0.55%
PM growth 3Y3.78%
PM growth 5Y-2.32%
GM growth 3Y1.35%
GM growth 5Y-0.16%
ESE Yearly Profit, Operating, Gross MarginsESE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ESE is destroying value.
ESE has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, ESE has less shares outstanding
The debt/assets ratio for ESE is higher compared to a year ago.
ESE Yearly Shares OutstandingESE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M 25M
ESE Yearly Total Debt VS Total AssetsESE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

ESE has an Altman-Z score of 4.17. This indicates that ESE is financially healthy and has little risk of bankruptcy at the moment.
ESE has a Altman-Z score of 4.17. This is in the better half of the industry: ESE outperforms 70.54% of its industry peers.
ESE has a debt to FCF ratio of 3.56. This is a good value and a sign of high solvency as ESE would need 3.56 years to pay back of all of its debts.
The Debt to FCF ratio of ESE (3.56) is better than 62.02% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that ESE is not too dependend on debt financing.
ESE has a Debt to Equity ratio of 0.39. This is comparable to the rest of the industry: ESE outperforms 57.36% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 3.56
Altman-Z 4.17
ROIC/WACC0.65
WACC9.97%
ESE Yearly LT Debt VS Equity VS FCFESE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.3 Liquidity

ESE has a Current Ratio of 1.52. This is a normal value and indicates that ESE is financially healthy and should not expect problems in meeting its short term obligations.
ESE's Current ratio of 1.52 is on the low side compared to the rest of the industry. ESE is outperformed by 74.42% of its industry peers.
ESE has a Quick Ratio of 1.04. This is a normal value and indicates that ESE is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.04, ESE is not doing good in the industry: 60.47% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.52
Quick Ratio 1.04
ESE Yearly Current Assets VS Current LiabilitesESE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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7

3. Growth

3.1 Past

ESE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.04%, which is quite impressive.
ESE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.96% yearly.
The Revenue has grown by 10.65% in the past year. This is quite good.
Measured over the past years, ESE shows a small growth in Revenue. The Revenue has been growing by 7.18% on average per year.
EPS 1Y (TTM)38.04%
EPS 3Y16.26%
EPS 5Y5.96%
EPS Q2Q%37.93%
Revenue 1Y (TTM)10.65%
Revenue growth 3Y12.8%
Revenue growth 5Y7.18%
Sales Q2Q%13.64%

3.2 Future

ESE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.00% yearly.
ESE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.38% yearly.
EPS Next Y43.04%
EPS Next 2Y30.98%
EPS Next 3Y28%
EPS Next 5YN/A
Revenue Next Year16.62%
Revenue Next 2Y14.5%
Revenue Next 3Y10.38%
Revenue Next 5YN/A

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.
ESE Yearly Revenue VS EstimatesESE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M 1B
ESE Yearly EPS VS EstimatesESE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8

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1

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 38.86, ESE can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ESE is valued a bit more expensive than 67.44% of the companies in the same industry.
ESE's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.38.
A Price/Forward Earnings ratio of 29.70 indicates a quite expensive valuation of ESE.
Based on the Price/Forward Earnings ratio, ESE is valued a bit more expensive than the industry average as 65.89% of the companies are valued more cheaply.
ESE's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.86.
Industry RankSector Rank
PE 38.86
Fwd PE 29.7
ESE Price Earnings VS Forward Price EarningsESE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

ESE's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ESE is more expensive than 70.54% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ESE is valued a bit more expensive than the industry average as 62.02% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 36.15
EV/EBITDA 25.72
ESE Per share dataESE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40 50

4.3 Compensation for Growth

ESE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ESE's earnings are expected to grow with 28.00% in the coming years.
PEG (NY)0.9
PEG (5Y)6.52
EPS Next 2Y30.98%
EPS Next 3Y28%

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5

5. Dividend

5.1 Amount

ESE has a yearly dividend return of 0.15%, which is pretty low.
ESE's Dividend Yield is comparable with the industry average which is at 1.74.
Compared to an average S&P500 Dividend Yield of 2.38, ESE's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.15%

5.2 History

The dividend of ESE has a limited annual growth rate of 0.01%.
ESE has been paying a dividend for at least 10 years, so it has a reliable track record.
ESE has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.01%
Div Incr Years0
Div Non Decr Years3
ESE Yearly Dividends per shareESE Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 0 0 0 0

5.3 Sustainability

ESE pays out 7.19% of its income as dividend. This is a sustainable payout ratio.
ESE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP7.19%
EPS Next 2Y30.98%
EPS Next 3Y28%
ESE Yearly Income VS Free CF VS DividendESE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
ESE Dividend Payout.ESE Dividend Payout, showing the Payout Ratio.ESE Dividend Payout.PayoutRetained Earnings

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ESCO TECHNOLOGIES INC

NYSE:ESE (9/22/2025, 3:01:08 PM)

212.95

+0.5 (+0.24%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)08-07 2025-08-07/amc
Earnings (Next)11-12 2025-11-12/amc
Inst Owners99.21%
Inst Owner Change0.71%
Ins Owners0.31%
Ins Owner Change0.02%
Market Cap5.50B
Analysts82.86
Price Target205.53 (-3.48%)
Short Float %2.27%
Short Ratio2.93
Dividend
Industry RankSector Rank
Dividend Yield 0.15%
Yearly Dividend0.32
Dividend Growth(5Y)0.01%
DP7.19%
Div Incr Years0
Div Non Decr Years3
Ex-Date10-02 2025-10-02 (0.08)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.46%
Min EPS beat(2)-3.8%
Max EPS beat(2)6.72%
EPS beat(4)3
Avg EPS beat(4)12.32%
Min EPS beat(4)-3.8%
Max EPS beat(4)45.62%
EPS beat(8)5
Avg EPS beat(8)5.94%
EPS beat(12)9
Avg EPS beat(12)6.99%
EPS beat(16)12
Avg EPS beat(16)5.9%
Revenue beat(2)0
Avg Revenue beat(2)-4.35%
Min Revenue beat(2)-7.91%
Max Revenue beat(2)-0.78%
Revenue beat(4)1
Avg Revenue beat(4)-0.96%
Min Revenue beat(4)-7.91%
Max Revenue beat(4)5.25%
Revenue beat(8)3
Avg Revenue beat(8)-0.92%
Revenue beat(12)7
Avg Revenue beat(12)1.58%
Revenue beat(16)10
Avg Revenue beat(16)1.57%
PT rev (1m)3.69%
PT rev (3m)7.47%
EPS NQ rev (1m)6.43%
EPS NQ rev (3m)5.7%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.06%
Revenue NQ rev (1m)-1.75%
Revenue NQ rev (3m)-2.2%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)0.25%
Valuation
Industry RankSector Rank
PE 38.86
Fwd PE 29.7
P/S 4.97
P/FCF 36.15
P/OCF 26.94
P/B 4.14
P/tB N/A
EV/EBITDA 25.72
EPS(TTM)5.48
EY2.57%
EPS(NY)7.17
Fwd EY3.37%
FCF(TTM)5.89
FCFY2.77%
OCF(TTM)7.9
OCFY3.71%
SpS42.89
BVpS51.38
TBVpS-6.93
PEG (NY)0.9
PEG (5Y)6.52
Profitability
Industry RankSector Rank
ROA 4.55%
ROE 8.66%
ROCE 8.32%
ROIC 6.5%
ROICexc 6.76%
ROICexgc 29.63%
OM 15.25%
PM (TTM) 10.37%
GM 40.57%
FCFM 13.74%
ROA(3y)5.34%
ROA(5y)5.46%
ROE(3y)8.09%
ROE(5y)8.17%
ROIC(3y)7.18%
ROIC(5y)6.57%
ROICexc(3y)7.55%
ROICexc(5y)6.9%
ROICexgc(3y)24.04%
ROICexgc(5y)22.95%
ROCE(3y)9.19%
ROCE(5y)8.41%
ROICexcg growth 3Y7.45%
ROICexcg growth 5Y0.32%
ROICexc growth 3Y16.12%
ROICexc growth 5Y2.2%
OM growth 3Y7.68%
OM growth 5Y-0.55%
PM growth 3Y3.78%
PM growth 5Y-2.32%
GM growth 3Y1.35%
GM growth 5Y-0.16%
F-Score4
Asset Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 3.56
Debt/EBITDA 2.25
Cap/Depr 83.23%
Cap/Sales 4.69%
Interest Coverage 7.62
Cash Conversion 88.24%
Profit Quality 132.46%
Current Ratio 1.52
Quick Ratio 1.04
Altman-Z 4.17
F-Score4
WACC9.97%
ROIC/WACC0.65
Cap/Depr(3y)83.06%
Cap/Depr(5y)86.64%
Cap/Sales(3y)4.53%
Cap/Sales(5y)4.84%
Profit Quality(3y)77.69%
Profit Quality(5y)82.49%
High Growth Momentum
Growth
EPS 1Y (TTM)38.04%
EPS 3Y16.26%
EPS 5Y5.96%
EPS Q2Q%37.93%
EPS Next Y43.04%
EPS Next 2Y30.98%
EPS Next 3Y28%
EPS Next 5YN/A
Revenue 1Y (TTM)10.65%
Revenue growth 3Y12.8%
Revenue growth 5Y7.18%
Sales Q2Q%13.64%
Revenue Next Year16.62%
Revenue Next 2Y14.5%
Revenue Next 3Y10.38%
Revenue Next 5YN/A
EBIT growth 1Y20.62%
EBIT growth 3Y21.46%
EBIT growth 5Y6.59%
EBIT Next Year79.79%
EBIT Next 3Y34.19%
EBIT Next 5YN/A
FCF growth 1Y75.24%
FCF growth 3Y-3.27%
FCF growth 5Y1.81%
OCF growth 1Y66.2%
OCF growth 3Y1.19%
OCF growth 5Y3.95%