ESCO Technologies Inc.
ESCO Technologies Inc. Fundamental Analysis
ESCO Technologies Inc. (ESE) shows strong financial fundamentals with a PE ratio of 24.40, profit margin of 24.69%, and ROE of 20.50%. The company generates $1.2B in annual revenue with strong year-over-year growth of 19.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 92.4/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze ESE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentESE demonstrates superior asset utilization.
Valuation Score
ExcellentESE trades at attractive valuation levels.
Growth Score
ModerateESE shows steady but slowing expansion.
Financial Health Score
ExcellentESE maintains a strong and stable balance sheet.
Profitability Score
ExcellentESE achieves industry-leading margins.
Key Financial Metrics
Is ESE Expensive or Cheap?
P/E Ratio
ESE trades at 24.40 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ESE's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values ESCO Technologies Inc. at 4.74 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 27.83 times EBITDA. This signals the market has high growth expectations.
How Well Does ESE Make Money?
Net Profit Margin
For every $100 in sales, ESCO Technologies Inc. keeps $24.69 as profit after all expenses.
Operating Margin
Core operations generate 15.64 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.50 in profit for every $100 of shareholder equity.
ROA
ESCO Technologies Inc. generates $12.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ESCO Technologies Inc. produces operating cash flow of $258.93M, showing steady but balanced cash generation.
Free Cash Flow
ESCO Technologies Inc. generates strong free cash flow of $212.25M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.19 in free cash annually.
FCF Yield
ESE converts 2.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.45
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How ESE Stacks Against Its Sector Peers
| Metric | ESE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.40 | 36.74 | Better (Cheaper) |
| ROE | 20.50% | 968.00% | Weak |
| Net Margin | 24.69% | 5945062585.00% | Weak |
| Debt/Equity | 0.13 | 0.34 | Strong (Low Leverage) |
| Current Ratio | 1.45 | 4.94 | Neutral |
| ROA | 12.81% | -296476.00% (disorted) | Strong |
ESE outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ESCO Technologies Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.54%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
202.16%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
195.18%
Industry Style: Growth, Innovation, High Beta
High Growth