ESCO TECHNOLOGIES INC (ESE) Fundamental Analysis & Valuation

NYSE:ESE • US2963151046

Current stock price

288.77 USD
+11.93 (+4.31%)
At close:
288.77 USD
0 (0%)
After Hours:

This ESE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. ESE Profitability Analysis

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.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M

1.2 Ratios

  • The Return On Assets of ESE (12.69%) is better than 90.84% of its industry peers.
  • ESE has a Return On Equity of 19.50%. This is amongst the best in the industry. ESE outperforms 86.26% of its industry peers.
  • ESE has a Return On Invested Capital of 7.82%. This is comparable to the rest of the industry: ESE outperforms 58.02% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ESE is below the industry average of 10.17%.
  • The 3 year average ROIC (7.29%) for ESE is below the current ROIC(7.82%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 12.69%
ROE 19.5%
ROIC 7.82%
ROA(3y)7.82%
ROA(5y)6.49%
ROE(3y)11.94%
ROE(5y)9.98%
ROIC(3y)7.29%
ROIC(5y)6.63%
ESE Yearly ROA, ROE, ROICESE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • ESE has a better Profit Margin (25.28%) than 99.24% of its industry peers.
  • In the last couple of years the Profit Margin of ESE has grown nicely.
  • ESE's Operating Margin of 15.81% is fine compared to the rest of the industry. ESE outperforms 74.81% of its industry peers.
  • In the last couple of years the Operating Margin of ESE has grown nicely.
  • Looking at the Gross Margin, with a value of 41.57%, ESE is in the better half of the industry, outperforming 79.39% of the companies in the same industry.
  • ESE's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 15.81%
PM (TTM) 25.28%
GM 41.57%
OM growth 3Y6.52%
OM growth 5Y4.68%
PM growth 3Y41.72%
PM growth 5Y14.96%
GM growth 3Y2.83%
GM growth 5Y2.47%
ESE Yearly Profit, Operating, Gross MarginsESE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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7

2. ESE Health Analysis

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 has been increased compared to 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M 20M 25M
ESE Yearly Total Debt VS Total AssetsESE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

2.2 Solvency

  • ESE has an Altman-Z score of 6.80. This indicates that ESE is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of ESE (6.80) is better than 87.79% of its industry peers.
  • ESE has a debt to FCF ratio of 0.72. This is a very positive value and a sign of high solvency as it would only need 0.72 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.72, ESE belongs to the top of the industry, outperforming 90.08% of the companies in the same industry.
  • ESE has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
  • With a decent Debt to Equity ratio value of 0.09, ESE is doing good in the industry, outperforming 79.39% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.09
Debt/FCF 0.72
Altman-Z 6.8
ROIC/WACC0.76
WACC10.24%
ESE Yearly LT Debt VS Equity VS FCFESE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.3 Liquidity

  • ESE has a Current Ratio of 1.33. 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 Current ratio of 1.33. This is amonst the worse of the industry: ESE underperforms 80.15% of its industry peers.
  • ESE has a Quick Ratio of 1.33. This is a bad value and indicates that ESE is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of ESE (0.89) is worse than 70.99% 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 RankSector Rank
Current Ratio 1.33
Quick Ratio 0.89
ESE Yearly Current Assets VS Current LiabilitesESE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. ESE Growth Analysis

3.1 Past

  • ESE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.24%, 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.
  • ESE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.09%.
  • Measured over the past years, ESE shows a quite strong growth in Revenue. The Revenue has been growing by 8.44% on average per year.
EPS 1Y (TTM)49.24%
EPS 3Y25.47%
EPS 5Y18.01%
EPS Q2Q%53.27%
Revenue 1Y (TTM)14.09%
Revenue growth 3Y8.5%
Revenue growth 5Y8.44%
Sales Q2Q%17.26%

3.2 Future

  • The Earnings Per Share is expected to grow by 20.90% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 10.97% on average over the next years. This is quite good.
EPS Next Y28.48%
EPS Next 2Y20.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year15.23%
Revenue Next 2Y10.97%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same 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.
ESE Yearly Revenue VS EstimatesESE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B
ESE Yearly EPS VS EstimatesESE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8

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2

4. ESE Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 41.79, which means the current valuation is very expensive for ESE.
  • 64.12% of the companies in the same industry are cheaper than ESE, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 25.50, ESE is valued quite expensively.
  • The Price/Forward Earnings ratio is 31.16, which means the current valuation is very expensive for ESE.
  • Based on the Price/Forward Earnings ratio, ESE is valued a bit more expensive than the industry average as 61.83% of the companies are valued more cheaply.
  • When comparing the Price/Forward Earnings ratio of ESE to the average of the S&P500 Index (22.67), we can say ESE is valued slightly more expensively.
Industry RankSector Rank
PE 41.79
Fwd PE 31.16
ESE Price Earnings VS Forward Price EarningsESE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 69.47% of the companies listed in the same industry.
  • ESE's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 33.37
EV/EBITDA 25.99
ESE Per share dataESE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The 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.
  • A more expensive valuation may be justified as ESE's earnings are expected to grow with 20.90% in the coming years.
PEG (NY)1.47
PEG (5Y)2.32
EPS Next 2Y20.9%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. ESE Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.12%, ESE is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.22, ESE has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, ESE's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.12%

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
ESE Yearly Dividends per shareESE Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0 0 0 0

5.3 Sustainability

  • ESE pays out 2.72% 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.
DP2.72%
EPS Next 2Y20.9%
EPS Next 3YN/A
ESE Yearly Income VS Free CF VS DividendESE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
ESE Dividend Payout.ESE Dividend Payout, showing the Payout Ratio.ESE Dividend Payout.PayoutRetained Earnings

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ESE Fundamentals: All Metrics, Ratios and Statistics

ESCO TECHNOLOGIES INC

NYSE:ESE (3/25/2026, 5:27:23 PM)

After market: 288.77 0 (0%)

288.77

+11.93 (+4.31%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-05
Earnings (Next)05-05
Inst Owners99.17%
Inst Owner Change7.4%
Ins Owners0.36%
Ins Owner Change-1.61%
Market Cap7.48B
Revenue(TTM)1.20B
Net Income(TTM)304.44M
Analysts83.33
Price Target290.7 (0.67%)
Short Float %1.29%
Short Ratio1.57
Dividend
Industry RankSector Rank
Dividend Yield 0.12%
Yearly Dividend0.32
Dividend Growth(5Y)0.07%
DP2.72%
Div Incr Years0
Div Non Decr Years3
Ex-Date04-02
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.3%
Min EPS beat(2)7.59%
Max EPS beat(2)23.01%
EPS beat(4)3
Avg EPS beat(4)8.38%
Min EPS beat(4)-3.8%
Max EPS beat(4)23.01%
EPS beat(8)6
Avg EPS beat(8)10.34%
EPS beat(12)9
Avg EPS beat(12)7.66%
EPS beat(16)13
Avg EPS beat(16)8.1%
Revenue beat(2)2
Avg Revenue beat(2)2.75%
Min Revenue beat(2)2.6%
Max Revenue beat(2)2.89%
Revenue beat(4)2
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-7.91%
Max Revenue beat(4)2.89%
Revenue beat(8)4
Avg Revenue beat(8)-0.11%
Revenue beat(12)7
Avg Revenue beat(12)0.54%
Revenue beat(16)11
Avg Revenue beat(16)2.01%
PT rev (1m)11.76%
PT rev (3m)11.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.05%
EPS NY rev (1m)4.6%
EPS NY rev (3m)4.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.61%
Valuation
Industry RankSector Rank
PE 41.79
Fwd PE 31.16
P/S 6.21
P/FCF 33.37
P/OCF 27.04
P/B 4.79
P/tB 85.86
EV/EBITDA 25.99
EPS(TTM)6.91
EY2.39%
EPS(NY)9.27
Fwd EY3.21%
FCF(TTM)8.65
FCFY3%
OCF(TTM)10.68
OCFY3.7%
SpS46.49
BVpS60.27
TBVpS3.36
PEG (NY)1.47
PEG (5Y)2.32
Graham Number96.8
Profitability
Industry RankSector Rank
ROA 12.69%
ROE 19.5%
ROCE 10.12%
ROIC 7.82%
ROICexc 8.27%
ROICexgc 48.51%
OM 15.81%
PM (TTM) 25.28%
GM 41.57%
FCFM 18.61%
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-Score5
Asset Turnover0.5
Health
Industry RankSector Rank
Debt/Equity 0.09
Debt/FCF 0.72
Debt/EBITDA 0.5
Cap/Depr 59.82%
Cap/Sales 4.36%
Interest Coverage 10.85
Cash Conversion 99.48%
Profit Quality 73.63%
Current Ratio 1.33
Quick Ratio 0.89
Altman-Z 6.8
F-Score5
WACC10.24%
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)49.24%
EPS 3Y25.47%
EPS 5Y18.01%
EPS Q2Q%53.27%
EPS Next Y28.48%
EPS Next 2Y20.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.09%
Revenue growth 3Y8.5%
Revenue growth 5Y8.44%
Sales Q2Q%17.26%
Revenue Next Year15.23%
Revenue Next 2Y10.97%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y21.85%
EBIT growth 3Y15.57%
EBIT growth 5Y13.52%
EBIT Next Year79.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y295.65%
FCF growth 3Y28.09%
FCF growth 5Y35.73%
OCF growth 1Y192.27%
OCF growth 3Y21.38%
OCF growth 5Y24.07%

ESCO TECHNOLOGIES INC / ESE Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for ESCO TECHNOLOGIES INC?

ChartMill assigns a fundamental rating of 7 / 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 41.79 and the Price/Book (PB) ratio is 4.79.


What is the financial health of ESCO TECHNOLOGIES INC (ESE) stock?

The financial health rating of ESCO TECHNOLOGIES INC (ESE) is 7 / 10.