ESCO TECHNOLOGIES INC (ESE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESE - US2963151046 - Common Stock
195.59 USD
-6.7 (-3.31%)
195.59 USD
0 (0%)
Overall ESE gets a fundamental rating of 6 out of 10. We evaluated ESE against 130 industry peers in the Machinery industry. ESE scores excellent on profitability, but there are some minor concerns on its financial health. ESE is valued quite expensive, but it does show an excellent growth. 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.
In the past year ESE had a positive cash flow from operations.
In the past 5 years ESE has always been profitable.
ESE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.41%, ESE belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
The Return On Equity of ESE (19.42%) is better than 85.38% of its industry peers.
ESE's Return On Invested Capital of 7.45% is in line compared to the rest of the industry. ESE outperforms 55.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ESE is below the industry average of 10.46%.
The 3 year average ROIC (7.29%) for ESE is below the current ROIC(7.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.41% | ||
| ROE | 19.42% | ||
| ROIC | 7.45% |
ROA(3y)7.82%
ROA(5y)6.49%
ROE(3y)11.94%
ROE(5y)9.98%
ROIC(3y)7.29%
ROIC(5y)6.63%
1.3 Margins
Looking at the Profit Margin, with a value of 25.76%, ESE belongs to the top of the industry, outperforming 99.23% of the companies in the same industry.
ESE's Profit Margin has improved in the last couple of years.
The Operating Margin of ESE (15.80%) is better than 73.08% of its industry peers.
ESE's Operating Margin has improved in the last couple of years.
ESE has a Gross Margin of 41.24%. This is in the better half of the industry: ESE outperforms 76.15% of its industry peers.
ESE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.8% | ||
| PM (TTM) | 25.76% | ||
| GM | 41.24% |
OM growth 3Y6.52%
OM growth 5Y4.68%
PM growth 3Y41.72%
PM growth 5Y14.96%
GM growth 3Y2.83%
GM growth 5Y2.47%
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.
ESE has more 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 5.11. This indicates that ESE is financially healthy and has little risk of bankruptcy at the moment.
ESE has a Altman-Z score of 5.11. This is in the better half of the industry: ESE outperforms 76.15% of its industry peers.
The Debt to FCF ratio of ESE is 1.07, which is an excellent value as it means it would take ESE, only 1.07 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.07, ESE belongs to the best of the industry, outperforming 87.69% of the companies in the same industry.
ESE has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ESE (0.12) is better than 76.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 5.11 |
ROIC/WACC0.78
WACC9.57%
2.3 Liquidity
ESE has a Current Ratio of 1.35. 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 Current ratio (1.35) than 79.23% of its industry peers.
A Quick Ratio of 0.93 indicates that ESE may have some problems paying its short term obligations.
The Quick ratio of ESE (0.93) is worse than 68.46% of its industry peers.
The current and quick ratio evaluation for ESE is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
ESE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.67%, which is quite impressive.
ESE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.01% yearly.
The Revenue has grown by 13.13% in the past year. This is quite good.
ESE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.44% yearly.
EPS 1Y (TTM)51.67%
EPS 3Y25.47%
EPS 5Y18.01%
EPS Q2Q%58.9%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y8.5%
Revenue growth 5Y8.44%
Sales Q2Q%18.04%
3.2 Future
The Earnings Per Share is expected to grow by 10.97% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.07% on average over the next years. This is quite good.
EPS Next Y22.82%
EPS Next 2Y10.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.4%
Revenue Next 2Y10.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 30.85, ESE can be considered very expensive at the moment.
ESE's Price/Earnings is on the same level as the industry average.
ESE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 25.12, ESE can be considered very expensive at the moment.
ESE's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ESE to the average of the S&P500 Index (23.69), we can say ESE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.85 | ||
| Fwd PE | 25.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ESE indicates a slightly more expensive valuation: ESE is more expensive than 61.54% of the companies listed in the same industry.
ESE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.64 | ||
| EV/EBITDA | 19.94 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of ESE may justify a higher PE ratio.
PEG (NY)1.35
PEG (5Y)1.71
EPS Next 2Y10.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.16%, ESE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.84, ESE has a dividend in line with its industry peers.
With a Dividend Yield of 0.16, ESE pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
5.2 History
The dividend of ESE has a limited annual growth rate of 0.07%.
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)0.07%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
2.76% 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.
DP2.76%
EPS Next 2Y10.97%
EPS Next 3YN/A
195.59
-6.7 (-3.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners99.85%
Inst Owner Change0.96%
Ins Owners0.23%
Ins Owner Change-2.43%
Market Cap5.06B
Revenue(TTM)1.16B
Net Income(TTM)299.22M
Analysts83.33
Price Target260.1 (32.98%)
Short Float %1.41%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
Yearly Dividend0.32
Dividend Growth(5Y)0.07%
DP2.76%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.9%
Min EPS beat(2)-3.8%
Max EPS beat(2)7.59%
EPS beat(4)3
Avg EPS beat(4)14.03%
Min EPS beat(4)-3.8%
Max EPS beat(4)45.62%
EPS beat(8)5
Avg EPS beat(8)6.71%
EPS beat(12)9
Avg EPS beat(12)7.37%
EPS beat(16)12
Avg EPS beat(16)5.85%
Revenue beat(2)1
Avg Revenue beat(2)-2.51%
Min Revenue beat(2)-7.91%
Max Revenue beat(2)2.89%
Revenue beat(4)2
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-7.91%
Max Revenue beat(4)5.25%
Revenue beat(8)3
Avg Revenue beat(8)-0.73%
Revenue beat(12)7
Avg Revenue beat(12)1.12%
Revenue beat(16)10
Avg Revenue beat(16)1.68%
PT rev (1m)26.55%
PT rev (3m)26.87%
EPS NQ rev (1m)-1%
EPS NQ rev (3m)1.84%
EPS NY rev (1m)6.2%
EPS NY rev (3m)8.59%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-6.12%
Revenue NY rev (1m)1.16%
Revenue NY rev (3m)-4.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.85 | ||
| Fwd PE | 25.12 | ||
| P/S | 4.35 | ||
| P/FCF | 26.64 | ||
| P/OCF | 20.9 | ||
| P/B | 3.28 | ||
| P/tB | 91.98 | ||
| EV/EBITDA | 19.94 |
EPS(TTM)6.34
EY3.24%
EPS(NY)7.79
Fwd EY3.98%
FCF(TTM)7.34
FCFY3.75%
OCF(TTM)9.36
OCFY4.79%
SpS44.93
BVpS59.61
TBVpS2.13
PEG (NY)1.35
PEG (5Y)1.71
Graham Number92.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.41% | ||
| ROE | 19.42% | ||
| ROCE | 9.65% | ||
| ROIC | 7.45% | ||
| ROICexc | 7.87% | ||
| ROICexgc | 45.01% | ||
| OM | 15.8% | ||
| PM (TTM) | 25.76% | ||
| GM | 41.24% | ||
| FCFM | 16.34% |
ROA(3y)7.82%
ROA(5y)6.49%
ROE(3y)11.94%
ROE(5y)9.98%
ROIC(3y)7.29%
ROIC(5y)6.63%
ROICexc(3y)7.61%
ROICexc(5y)6.97%
ROICexgc(3y)29.66%
ROICexgc(5y)26.52%
ROCE(3y)9.43%
ROCE(5y)8.58%
ROICexgc growth 3Y19.88%
ROICexgc growth 5Y12.93%
ROICexc growth 3Y2.02%
ROICexc growth 5Y2.13%
OM growth 3Y6.52%
OM growth 5Y4.68%
PM growth 3Y41.72%
PM growth 5Y14.96%
GM growth 3Y2.83%
GM growth 5Y2.47%
F-Score4
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 0.7 | ||
| Cap/Depr | 69.54% | ||
| Cap/Sales | 4.49% | ||
| Interest Coverage | 10.54 | ||
| Cash Conversion | 93.56% | ||
| Profit Quality | 63.42% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 5.11 |
F-Score4
WACC9.57%
ROIC/WACC0.78
Cap/Depr(3y)75.18%
Cap/Depr(5y)80.65%
Cap/Sales(3y)4.55%
Cap/Sales(5y)4.77%
Profit Quality(3y)62.25%
Profit Quality(5y)86.89%
High Growth Momentum
Growth
EPS 1Y (TTM)51.67%
EPS 3Y25.47%
EPS 5Y18.01%
EPS Q2Q%58.9%
EPS Next Y22.82%
EPS Next 2Y10.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.13%
Revenue growth 3Y8.5%
Revenue growth 5Y8.44%
Sales Q2Q%18.04%
Revenue Next Year13.4%
Revenue Next 2Y10.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y24.93%
EBIT growth 3Y15.57%
EBIT growth 5Y13.52%
EBIT Next Year77.99%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y139.35%
FCF growth 3Y28.09%
FCF growth 5Y35.73%
OCF growth 1Y89.69%
OCF growth 3Y21.38%
OCF growth 5Y24.07%
ESCO TECHNOLOGIES INC / ESE FAQ
Can you provide the ChartMill fundamental rating for ESCO TECHNOLOGIES INC?
ChartMill assigns a fundamental rating of 4 / 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 4 / 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 30.85 and the Price/Book (PB) ratio is 3.28.
Can you provide the financial health for ESE stock?
The financial health rating of ESCO TECHNOLOGIES INC (ESE) is 5 / 10.