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ESCO TECHNOLOGIES INC (ESE) Stock Fundamental Analysis

NYSE:ESE - US2963151046 - Common Stock

193.26 USD
-0.49 (-0.25%)
Last: 8/26/2025, 2:38:08 PM
Fundamental Rating

5

ESE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 127 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. This makes ESE very considerable for growth investing!


Dividend Valuation Growth Profitability Health

5

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.
In the past 5 years ESE has always been profitable.
ESE had a positive operating cash flow in each of the past 5 years.
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

Looking at the Return On Assets, with a value of 4.55%, ESE is in line with its industry, outperforming 51.18% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.66%, ESE is in line with its industry, outperforming 51.97% of the companies in the same 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 10.48%.
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

With a decent Profit Margin value of 10.37%, ESE is doing good in the industry, outperforming 71.65% of the companies in the same industry.
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 71.65% 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 74.02% 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 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

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.
ESE has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ESE has a worse debt to assets ratio.
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 3.92. This indicates that ESE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ESE (3.92) is better than 65.35% 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.
The Debt to FCF ratio of ESE (3.56) is better than 61.42% 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 (0.39) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 3.56
Altman-Z 3.92
ROIC/WACC0.65
WACC9.98%
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

A Current Ratio of 1.52 indicates that ESE should not have too much problems paying its short term obligations.
ESE has a Current ratio of 1.52. This is in the lower half of the industry: ESE underperforms 74.02% 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's Quick ratio of 1.04 is in line compared to the rest of the industry. ESE outperforms 40.16% of its industry peers.
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

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.
Measured over the past 5 years, ESE shows a small growth in Earnings Per Share. The EPS has been growing by 5.96% on average per year.
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

The Earnings Per Share is expected to grow by 28.00% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.38% on average over the next years. This is quite good.
EPS Next Y43.04%
EPS Next 2Y30.98%
EPS Next 3Y28%
EPS Next 5YN/A
Revenue Next Year16.81%
Revenue Next 2Y14.76%
Revenue Next 3Y10.38%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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

2

4. Valuation

4.1 Price/Earnings Ratio

ESE is valuated quite expensively with a Price/Earnings ratio of 35.27.
66.93% 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 (27.03), we can say ESE is valued slightly more expensively.
With a Price/Forward Earnings ratio of 26.95, ESE can be considered very expensive at the moment.
62.99% of the companies in the same industry are cheaper than ESE, based on the Price/Forward Earnings ratio.
ESE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.63.
Industry RankSector Rank
PE 35.27
Fwd PE 26.95
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 68.50% of the companies in the same industry.
61.42% of the companies in the same industry are cheaper than ESE, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 32.8
EV/EBITDA 23.63
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)0.82
PEG (5Y)5.92
EPS Next 2Y30.98%
EPS Next 3Y28%

5

5. Dividend

5.1 Amount

ESE has a yearly dividend return of 0.17%, which is pretty low.
ESE's Dividend Yield is comparable with the industry average which is at 1.87.
Compared to an average S&P500 Dividend Yield of 2.34, ESE's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.17%

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
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

7.19% of the earnings are spent on dividend by ESE. This is a low number and 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

ESCO TECHNOLOGIES INC

NYSE:ESE (8/26/2025, 2:38:08 PM)

193.26

-0.49 (-0.25%)

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 Cap4.99B
Analysts82.86
Price Target205.02 (6.09%)
Short Float %1.05%
Short Ratio1.41
Dividend
Industry RankSector Rank
Dividend Yield 0.17%
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)7.2%
PT rev (3m)17.89%
EPS NQ rev (1m)-0.69%
EPS NQ rev (3m)2.63%
EPS NY rev (1m)-3.06%
EPS NY rev (3m)-2.36%
Revenue NQ rev (1m)-0.46%
Revenue NQ rev (3m)10.05%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)-0.25%
Valuation
Industry RankSector Rank
PE 35.27
Fwd PE 26.95
P/S 4.51
P/FCF 32.8
P/OCF 24.45
P/B 3.76
P/tB N/A
EV/EBITDA 23.63
EPS(TTM)5.48
EY2.84%
EPS(NY)7.17
Fwd EY3.71%
FCF(TTM)5.89
FCFY3.05%
OCF(TTM)7.9
OCFY4.09%
SpS42.89
BVpS51.38
TBVpS-6.93
PEG (NY)0.82
PEG (5Y)5.92
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 3.92
F-Score4
WACC9.98%
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 Year16.81%
Revenue Next 2Y14.76%
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%