ESCO TECHNOLOGIES INC (ESE) Fundamental Analysis & Valuation

NYSE:ESE • US2963151046

Current stock price

315.15 USD
+0.23 (+0.07%)
At close:
315.15 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.
  • Each year in the past 5 years ESE had a positive operating cash flow.
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

  • ESE's Return On Assets of 12.69% is amongst the best of the industry. ESE outperforms 91.60% of its industry peers.
  • The Return On Equity of ESE (19.50%) is better than 86.26% of its industry peers.
  • ESE has a Return On Invested Capital (7.82%) 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 10.00%.
  • 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's Profit Margin of 25.28% is amongst the best of the industry. ESE outperforms 99.24% of its industry peers.
  • In the last couple of years the Profit Margin of ESE has grown nicely.
  • The Operating Margin of ESE (15.81%) is better than 74.81% of its industry peers.
  • In the last couple of years the Operating Margin of ESE has grown nicely.
  • ESE's Gross Margin of 41.57% is fine compared to the rest of the industry. ESE outperforms 79.39% of its industry peers.
  • In the last couple of years the Gross Margin of ESE has grown nicely.
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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ESE is destroying value.
  • Compared to 1 year ago, ESE has more shares outstanding
  • 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 7.51. This indicates that ESE is financially healthy and has little risk of bankruptcy at the moment.
  • ESE's Altman-Z score of 7.51 is amongst the best of the industry. ESE outperforms 89.31% 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.
  • With an excellent Debt to FCF ratio value of 0.72, ESE belongs to the best of the industry, outperforming 90.08% of the companies in the same industry.
  • A Debt/Equity ratio of 0.09 indicates that ESE is not too dependend on debt financing.
  • ESE has a better Debt to Equity ratio (0.09) than 79.39% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.09
Debt/FCF 0.72
Altman-Z 7.51
ROIC/WACC0.75
WACC10.4%
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

  • A Current Ratio of 1.33 indicates that ESE should not have too much problems paying its short term obligations.
  • ESE's Current ratio of 1.33 is on the low side compared to the rest of the industry. ESE is outperformed by 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.
  • Looking at the Quick ratio, with a value of 0.89, ESE is doing worse than 72.52% of the companies in the same industry.
  • 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

7

3. ESE Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 49.24% over the past year.
  • Measured over the past years, ESE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.01% on average per year.
  • Looking at the last year, ESE shows a quite strong growth in Revenue. The Revenue has grown by 14.09% in the last year.
  • 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)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

  • ESE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.21% yearly.
  • The Revenue is expected to grow by 10.52% on average over the next years. This is quite good.
EPS Next Y29.3%
EPS Next 2Y21%
EPS Next 3Y18.21%
EPS Next 5YN/A
Revenue Next Year15.75%
Revenue Next 2Y11.29%
Revenue Next 3Y10.52%
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 stable.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 2028 500M 1B 1.5B
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 2028 2 4 6 8 10

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2

4. ESE Valuation Analysis

4.1 Price/Earnings Ratio

  • ESE is valuated quite expensively with a Price/Earnings ratio of 45.61.
  • Compared to the rest of the industry, the Price/Earnings ratio of ESE indicates a slightly more expensive valuation: ESE is more expensive than 61.83% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of ESE to the average of the S&P500 Index (27.95), we can say ESE is valued expensively.
  • Based on the Price/Forward Earnings ratio of 33.95, the valuation of ESE can be described as expensive.
  • ESE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ESE is more expensive than 61.07% of the companies in the same industry.
  • ESE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 38.68, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 45.61
Fwd PE 33.95
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

  • 69.47% of the companies in the same industry are cheaper than ESE, based on the Enterprise Value to EBITDA ratio.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as ESE.
Industry RankSector Rank
P/FCF 36.41
EV/EBITDA 29.56
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 18.21% in the coming years.
PEG (NY)1.56
PEG (5Y)2.53
EPS Next 2Y21%
EPS Next 3Y18.21%

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5

5. ESE Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.11%, ESE is not a good candidate for dividend investing.
  • ESE's Dividend Yield is comparable with the industry average which is at 1.08.
  • With a Dividend Yield of 0.11, ESE pays less dividend than the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 0.11%

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 Years4
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

  • 2.72% 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.
DP2.72%
EPS Next 2Y21%
EPS Next 3Y18.21%
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 (4/20/2026, 8:04:00 PM)

After market: 315.15 0 (0%)

315.15

+0.23 (+0.07%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-05
Earnings (Next)05-13
Inst Owners99.19%
Inst Owner Change0.14%
Ins Owners0.36%
Ins Owner Change-1.61%
Market Cap8.16B
Revenue(TTM)1.20B
Net Income(TTM)304.44M
Analysts82.86
Price Target312.8 (-0.75%)
Short Float %1.43%
Short Ratio1.3
Dividend
Industry RankSector Rank
Dividend Yield 0.11%
Yearly Dividend0.32
Dividend Growth(5Y)0.07%
DP2.72%
Div Incr Years0
Div Non Decr Years4
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)7.6%
PT rev (3m)20.26%
EPS NQ rev (1m)1.43%
EPS NQ rev (3m)3.51%
EPS NY rev (1m)0.64%
EPS NY rev (3m)5.27%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)1.36%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)2.07%
Valuation
Industry RankSector Rank
PE 45.61
Fwd PE 33.95
P/S 6.78
P/FCF 36.41
P/OCF 29.51
P/B 5.23
P/tB 93.71
EV/EBITDA 29.56
EPS(TTM)6.91
EY2.19%
EPS(NY)9.28
Fwd EY2.95%
FCF(TTM)8.65
FCFY2.75%
OCF(TTM)10.68
OCFY3.39%
SpS46.49
BVpS60.27
TBVpS3.36
PEG (NY)1.56
PEG (5Y)2.53
Graham Number96.7972 (-69.29%)
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 7.51
F-Score5
WACC10.4%
ROIC/WACC0.75
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 Y29.3%
EPS Next 2Y21%
EPS Next 3Y18.21%
EPS Next 5YN/A
Revenue 1Y (TTM)14.09%
Revenue growth 3Y8.5%
Revenue growth 5Y8.44%
Sales Q2Q%17.26%
Revenue Next Year15.75%
Revenue Next 2Y11.29%
Revenue Next 3Y10.52%
Revenue Next 5YN/A
EBIT growth 1Y21.85%
EBIT growth 3Y15.57%
EBIT growth 5Y13.52%
EBIT Next Year80.99%
EBIT Next 3Y29.9%
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 6 / 10 to ESE.


What is the valuation status for ESE stock?

ChartMill assigns a valuation rating of 2 / 10 to ESCO TECHNOLOGIES INC (ESE). This can be considered as Overvalued.


Can you provide the profitability details for ESCO TECHNOLOGIES INC?

ESCO TECHNOLOGIES INC (ESE) has a profitability rating of 8 / 10.


How financially healthy is ESCO TECHNOLOGIES INC?

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


How sustainable is the dividend of ESCO TECHNOLOGIES INC (ESE) stock?

The dividend rating of ESCO TECHNOLOGIES INC (ESE) is 5 / 10 and the dividend payout ratio is 2.72%.