ESCO TECHNOLOGIES INC (ESE) Stock Fundamental Analysis
USA - NYSE:ESE - US2963151046 - Common Stock
221.25 USD
+2.15 (+0.98%)
221.25 USD
0 (0%)
Taking everything into account, ESE scores 5 out of 10 in our fundamental rating. ESE was compared to 130 industry peers in the Machinery industry. ESE has an average financial health and profitability rating. ESE is valued quite expensively, but it does show have an excellent growth rating. These ratings could make ESE a good candidate for growth investing.
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.
ESE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 4.55%, ESE perfoms like the industry average, outperforming 52.31% of the companies in the same industry.
The Return On Equity of ESE (8.66%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 6.50%, ESE perfoms like the industry average, outperforming 49.23% of the companies in the same industry.
ESE had an Average Return On Invested Capital over the past 3 years of 7.18%. This is below the industry average of 10.00%.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of ESE (10.37%) is better than 73.85% of its industry peers.
ESE's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 15.25%, ESE is in the better half of the industry, outperforming 72.31% of the companies in the same industry.
In the last couple of years the Operating Margin of ESE has remained more or less at the same level.
ESE has a Gross Margin of 40.57%. This is in the better half of the industry: ESE outperforms 73.85% of its industry peers.
In the last couple of years the Gross Margin of ESE has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
ESE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ESE remains at a similar level compared to 1 year ago.
The number of shares outstanding for ESE has been reduced compared to 5 years ago.
The debt/assets ratio for ESE is higher compared to a year ago.
2.2 Solvency
ESE has an Altman-Z score of 4.25. This indicates that ESE is financially healthy and has little risk of bankruptcy at the moment.
ESE's Altman-Z score of 4.25 is fine compared to the rest of the industry. ESE outperforms 67.69% of its industry peers.
The Debt to FCF ratio of ESE is 3.56, which is a good value as it means it would take ESE, 3.56 years of fcf income to pay off all of its debts.
ESE has a Debt to FCF ratio of 3.56. This is in the better half of the industry: ESE outperforms 63.85% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that ESE is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.39, ESE is in line with its industry, outperforming 57.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 3.56 | ||
| Altman-Z | 4.25 |
ROIC/WACC0.68
WACC9.52%
2.3 Liquidity
A Current Ratio of 1.52 indicates that ESE should not have too much problems paying its short term obligations.
With a Current ratio value of 1.52, ESE is not doing good in the industry: 74.62% of the companies in the same industry are doing better.
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.
ESE has a worse Quick ratio (1.04) than 60.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.04% over the past year.
The Earnings Per Share has been growing slightly by 5.96% on average over the past years.
ESE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.65%.
The Revenue has been growing slightly by 7.18% on average over the past years.
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
Based on estimates for the next years, ESE will show a very strong growth in Earnings Per Share. The EPS will grow by 25.24% on average per year.
The Revenue is expected to grow by 9.96% on average over the next years. This is quite good.
EPS Next Y41.23%
EPS Next 2Y32.45%
EPS Next 3Y25.24%
EPS Next 5YN/A
Revenue Next Year11.01%
Revenue Next 2Y11.55%
Revenue Next 3Y9.96%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 40.37, the valuation of ESE can be described as expensive.
ESE's Price/Earnings ratio is a bit more expensive when compared to the industry. ESE is more expensive than 66.15% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.91. ESE is valued rather expensively when compared to this.
ESE is valuated quite expensively with a Price/Forward Earnings ratio of 30.17.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ESE indicates a slightly more expensive valuation: ESE is more expensive than 64.62% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.92. ESE is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.37 | ||
| Fwd PE | 30.17 |
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 69.23% of the companies in the same industry.
60.00% of the companies in the same industry are cheaper than ESE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.56 | ||
| EV/EBITDA | 26.46 |
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 25.24% in the coming years.
PEG (NY)0.98
PEG (5Y)6.78
EPS Next 2Y32.45%
EPS Next 3Y25.24%
5. Dividend
5.1 Amount
ESE has a yearly dividend return of 0.15%, which is pretty low.
Compared to an average industry Dividend Yield of 1.80, ESE has a dividend in line with its industry peers.
With a Dividend Yield of 0.15, ESE pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector 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
5.3 Sustainability
7.19% of the earnings are spent on dividend by ESE. This is a low number and sustainable payout ratio.
The dividend of ESE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP7.19%
EPS Next 2Y32.45%
EPS Next 3Y25.24%
221.25
+2.15 (+0.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners99.74%
Inst Owner Change-0.01%
Ins Owners0.31%
Ins Owner Change0.02%
Market Cap5.71B
Revenue(TTM)1.11B
Net Income(TTM)114.83M
Analysts83.33
Price Target205.53 (-7.11%)
Short Float %1.32%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
Yearly Dividend0.32
Dividend Growth(5Y)0.01%
DP7.19%
Div Incr Years0
Div Non Decr Years3
Ex-Date
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)0%
PT rev (3m)7.47%
EPS NQ rev (1m)4.66%
EPS NQ rev (3m)10.62%
EPS NY rev (1m)-1.27%
EPS NY rev (3m)-4.28%
Revenue NQ rev (1m)-5.52%
Revenue NQ rev (3m)-7.6%
Revenue NY rev (1m)-4.81%
Revenue NY rev (3m)-4.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.37 | ||
| Fwd PE | 30.17 | ||
| P/S | 5.16 | ||
| P/FCF | 37.56 | ||
| P/OCF | 27.99 | ||
| P/B | 4.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.46 |
EPS(TTM)5.48
EY2.48%
EPS(NY)7.33
Fwd EY3.31%
FCF(TTM)5.89
FCFY2.66%
OCF(TTM)7.9
OCFY3.57%
SpS42.89
BVpS51.38
TBVpS-6.93
PEG (NY)0.98
PEG (5Y)6.78
Graham Number79.59
Profitability
| Industry Rank | Sector 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%
ROICexgc growth 3Y7.45%
ROICexgc 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 Rank | Sector 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 | 4.25 |
F-Score4
WACC9.52%
ROIC/WACC0.68
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 Y41.23%
EPS Next 2Y32.45%
EPS Next 3Y25.24%
EPS Next 5YN/A
Revenue 1Y (TTM)10.65%
Revenue growth 3Y12.8%
Revenue growth 5Y7.18%
Sales Q2Q%13.64%
Revenue Next Year11.01%
Revenue Next 2Y11.55%
Revenue Next 3Y9.96%
Revenue Next 5YN/A
EBIT growth 1Y20.62%
EBIT growth 3Y21.46%
EBIT growth 5Y6.59%
EBIT Next Year75.07%
EBIT Next 3Y33.81%
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%
ESCO TECHNOLOGIES INC / ESE FAQ
Can you provide the ChartMill fundamental rating for ESCO TECHNOLOGIES INC?
ChartMill assigns a fundamental rating of 5 / 10 to ESE.
Can you provide the valuation status for ESCO TECHNOLOGIES INC?
ChartMill assigns a valuation rating of 1 / 10 to ESCO TECHNOLOGIES INC (ESE). This can be considered as Overvalued.
How profitable is ESCO TECHNOLOGIES INC (ESE) stock?
ESCO TECHNOLOGIES INC (ESE) has a profitability rating of 5 / 10.
What is the valuation of ESCO TECHNOLOGIES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ESCO TECHNOLOGIES INC (ESE) is 40.37 and the Price/Book (PB) ratio is 4.31.
Can you provide the financial health for ESE stock?
The financial health rating of ESCO TECHNOLOGIES INC (ESE) is 5 / 10.