ESCO TECHNOLOGIES INC (ESE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESE - US2963151046 - Common Stock
220.5 USD
+1.92 (+0.88%)
220.5 USD
0 (0%)
Taking everything into account, ESE scores 6 out of 10 in our fundamental rating. ESE was compared to 132 industry peers in the Machinery industry. While ESE belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ESE shows excellent growth, but is valued quite expensive already. With these ratings, ESE could be worth investigating further 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.
- ESE had positive earnings in each of the past 5 years.
- ESE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ESE's Return On Assets of 12.41% is amongst the best of the industry. ESE outperforms 87.88% of its industry peers.
- ESE has a better Return On Equity (19.42%) than 86.36% of its industry peers.
- ESE has a Return On Invested Capital (7.45%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for ESE is below the industry average of 10.24%.
- 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
- ESE's Profit Margin of 25.76% is amongst the best of the industry. ESE outperforms 99.24% of its industry peers.
- ESE's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 15.80%, ESE is doing good in the industry, outperforming 73.48% of the companies in the same industry.
- In the last couple of years the Operating Margin of ESE has grown nicely.
- The Gross Margin of ESE (41.24%) is better than 78.03% of its industry peers.
- In the last couple of years the Gross Margin of ESE has grown nicely.
| 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.
- Compared to 5 years ago, ESE has less shares outstanding
- The debt/assets ratio for ESE is higher compared to a year ago.
2.2 Solvency
- ESE has an Altman-Z score of 5.52. This indicates that ESE is financially healthy and has little risk of bankruptcy at the moment.
- ESE's Altman-Z score of 5.52 is fine compared to the rest of the industry. ESE outperforms 77.27% of its industry peers.
- ESE has a debt to FCF ratio of 1.07. This is a very positive value and a sign of high solvency as it would only need 1.07 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.07, ESE belongs to the top of the industry, outperforming 87.88% 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.
- ESE has a Debt to Equity ratio of 0.12. This is in the better half of the industry: ESE outperforms 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 5.52 |
ROIC/WACC0.76
WACC9.84%
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.
- The Current ratio of ESE (1.35) is worse than 78.79% 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 68.18% of its industry peers.
- ESE does not score too well on the current and quick ratio evaluation. However, as it has 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
- The Earnings Per Share has grown by an impressive 51.67% over the past year.
- ESE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.01% yearly.
- ESE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.13%.
- 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
- Based on estimates for the next years, ESE will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.97% on average per year.
- Based on estimates for the next years, ESE will show a quite strong growth in Revenue. The Revenue will grow by 10.07% on average per year.
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
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 34.78 indicates a quite expensive valuation of ESE.
- 61.36% of the companies in the same industry are cheaper than ESE, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of ESE to the average of the S&P500 Index (26.94), we can say ESE is valued slightly more expensively.
- Based on the Price/Forward Earnings ratio of 28.32, the valuation of ESE can be described as expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as ESE.
- ESE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.78 | ||
| Fwd PE | 28.32 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ESE is valued a bit more expensive than the industry average as 65.91% of the companies are valued more cheaply.
- ESE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.04 | ||
| EV/EBITDA | 22.24 |
4.3 Compensation for Growth
- ESE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ESE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.52
PEG (5Y)1.93
EPS Next 2Y10.97%
EPS Next 3YN/A
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 0.98.
- With a Dividend Yield of 0.15, ESE pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
5.2 History
- The dividend of ESE has a limited annual growth rate of 0.07%.
- 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)0.07%
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
220.5
+1.92 (+0.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-20 2025-11-20/amc
Earnings (Next)02-05 2026-02-05
Inst Owners99.63%
Inst Owner Change0.25%
Ins Owners0.29%
Ins Owner Change-2.43%
Market Cap5.70B
Revenue(TTM)1.16B
Net Income(TTM)299.22M
Analysts83.33
Price Target260.1 (17.96%)
Short Float %1.3%
Short Ratio1.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
Yearly Dividend0.32
Dividend Growth(5Y)0.07%
DP2.76%
Div Incr Years0
Div Non Decr Years3
Ex-Date01-02 2026-01-02 (0.08)
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)0%
PT rev (3m)26.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1%
EPS NY rev (1m)0%
EPS NY rev (3m)6.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.78 | ||
| Fwd PE | 28.32 | ||
| P/S | 4.91 | ||
| P/FCF | 30.04 | ||
| P/OCF | 23.56 | ||
| P/B | 3.7 | ||
| P/tB | 103.7 | ||
| EV/EBITDA | 22.24 |
EPS(TTM)6.34
EY2.88%
EPS(NY)7.79
Fwd EY3.53%
FCF(TTM)7.34
FCFY3.33%
OCF(TTM)9.36
OCFY4.24%
SpS44.93
BVpS59.61
TBVpS2.13
PEG (NY)1.52
PEG (5Y)1.93
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 | 5.52 |
F-Score4
WACC9.84%
ROIC/WACC0.76
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 6 / 10 to ESE.
What is the valuation status of ESCO TECHNOLOGIES INC (ESE) stock?
ChartMill assigns a valuation rating of 2 / 10 to ESCO TECHNOLOGIES INC (ESE). This can be considered as Overvalued.
What is the profitability of ESE stock?
ESCO TECHNOLOGIES INC (ESE) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for ESE stock?
The Price/Earnings (PE) ratio for ESCO TECHNOLOGIES INC (ESE) is 34.78 and the Price/Book (PB) ratio is 3.7.
What is the financial health of ESCO TECHNOLOGIES INC (ESE) stock?
The financial health rating of ESCO TECHNOLOGIES INC (ESE) is 6 / 10.