ESCO TECHNOLOGIES INC (ESE) Stock Fundamental Analysis
USA - NYSE:ESE - US2963151046 - Common Stock
216.22 USD
-2.7 (-1.23%)
216.22 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ESE. ESE was compared to 130 industry peers in the Machinery industry. ESE has only an average score on both its financial health and profitability. ESE is valued quite expensively, but it does show have an excellent growth rating. With these ratings, ESE could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
ESE had positive earnings in the past year.
ESE had a positive operating cash flow in the past year.
ESE had positive earnings in each of the past 5 years.
In the past 5 years ESE always reported a positive cash flow from operatings.
1.2 Ratios
ESE has a Return On Assets (4.55%) which is comparable to the rest of the industry.
ESE's Return On Equity of 8.66% is in line compared to the rest of the industry. ESE outperforms 53.08% of its industry peers.
ESE has a Return On Invested Capital (6.50%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ESE is below the industry average of 10.24%.
| 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
ESE's Profit Margin of 10.37% is fine compared to the rest of the industry. ESE outperforms 73.08% of its industry peers.
In the last couple of years the Profit Margin of ESE has declined.
Looking at the Operating Margin, with a value of 15.25%, ESE is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
ESE's Operating Margin has been stable in the last couple of years.
ESE's Gross Margin of 40.57% is fine compared to the rest of the industry. ESE outperforms 73.85% of its industry peers.
ESE's Gross Margin has been stable in the last couple of years.
| 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
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.
ESE has less shares outstanding than it did 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 4.21. This indicates that ESE is financially healthy and has little risk of bankruptcy at the moment.
ESE has a better Altman-Z score (4.21) than 66.92% 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.
Looking at the Debt to FCF ratio, with a value of 3.56, ESE is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
ESE has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
ESE has a Debt to Equity ratio (0.39) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 3.56 | ||
| Altman-Z | 4.21 |
ROIC/WACC0.68
WACC9.6%
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 74.62% of its industry peers.
A Quick Ratio of 1.04 indicates that ESE should not have too much problems paying its short term obligations.
ESE has a Quick ratio of 1.04. This is in the lower half of the industry: ESE underperforms 60.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.04 |
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.
The Earnings Per Share has been growing slightly by 5.96% on average over the past years.
The Revenue has grown by 10.65% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 25.24% on average over the next years. This is a very strong growth
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 39.46 indicates a quite expensive valuation of ESE.
66.15% of the companies in the same industry are cheaper than ESE, based on the Price/Earnings ratio.
ESE's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.06.
ESE is valuated quite expensively with a Price/Forward Earnings ratio of 29.49.
Based on the Price/Forward Earnings ratio, ESE is valued a bit more expensive than 64.62% of the companies in the same industry.
ESE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.46 | ||
| Fwd PE | 29.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESE is valued a bit more expensive than the industry average as 70.77% of the companies are valued more cheaply.
ESE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.7 | ||
| EV/EBITDA | 26.14 |
4.3 Compensation for Growth
The 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)0.96
PEG (5Y)6.62
EPS Next 2Y32.45%
EPS Next 3Y25.24%
5. Dividend
5.1 Amount
With a yearly dividend of 0.15%, ESE is not a good candidate for dividend investing.
ESE's Dividend Yield is comparable with the industry average which is at 1.85.
With a Dividend Yield of 0.15, ESE pays less dividend than the S&P500 average, which is at 2.37.
| 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 paid a dividend for at least 10 years, which is 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
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 2Y32.45%
EPS Next 3Y25.24%
216.22
-2.7 (-1.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners99.74%
Inst Owner Change-0.43%
Ins Owners0.31%
Ins Owner Change-0.55%
Market Cap5.58B
Revenue(TTM)1.11B
Net Income(TTM)114.83M
Analysts83.33
Price Target205.53 (-4.94%)
Short Float %1.42%
Short Ratio1.76
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)3.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.17%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.46 | ||
| Fwd PE | 29.49 | ||
| P/S | 5.04 | ||
| P/FCF | 36.7 | ||
| P/OCF | 27.35 | ||
| P/B | 4.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.14 |
EPS(TTM)5.48
EY2.53%
EPS(NY)7.33
Fwd EY3.39%
FCF(TTM)5.89
FCFY2.72%
OCF(TTM)7.9
OCFY3.66%
SpS42.89
BVpS51.38
TBVpS-6.93
PEG (NY)0.96
PEG (5Y)6.62
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 | 4.21 |
F-Score4
WACC9.6%
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 2 / 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 39.46 and the Price/Book (PB) ratio is 4.21.
Can you provide the financial health for ESE stock?
The financial health rating of ESCO TECHNOLOGIES INC (ESE) is 5 / 10.