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ESCO TECHNOLOGIES INC (ESE) Stock Fundamental Analysis

NYSE:ESE - New York Stock Exchange, Inc. - US2963151046 - Common Stock - Currency: USD

162.2  -7.45 (-4.39%)

After market: 162.2 0 (0%)

Fundamental Rating

6

ESE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 129 industry peers in the Machinery industry. While ESE has a great health rating, its profitability is only average at the moment. ESE is valued quite expensively, but it does show have an excellent growth rating. These ratings could make ESE a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

ESE had positive earnings in the past year.
In the past year ESE had a positive cash flow from operations.
Each year in the past 5 years ESE has 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

ESE's Return On Assets of 6.14% is fine compared to the rest of the industry. ESE outperforms 64.00% of its industry peers.
With a Return On Equity value of 8.91%, ESE perfoms like the industry average, outperforming 56.80% of the companies in the same industry.
ESE has a Return On Invested Capital (8.25%) 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 11.00%.
The 3 year average ROIC (7.18%) for ESE is below the current ROIC(8.25%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.14%
ROE 8.91%
ROIC 8.25%
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

Looking at the Profit Margin, with a value of 10.44%, ESE is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ESE has declined.
ESE has a better Operating Margin (14.80%) than 72.00% of its industry peers.
In the last couple of years the Operating Margin of ESE has remained more or less at the same level.
With a decent Gross Margin value of 39.63%, ESE is doing good in the industry, outperforming 72.80% of the companies in the same industry.
ESE's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 14.8%
PM (TTM) 10.44%
GM 39.63%
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

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7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ESE is destroying value.
Compared to 1 year ago, ESE has about the same amount of 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 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

An Altman-Z score of 6.46 indicates that ESE is not in any danger for bankruptcy at the moment.
The Altman-Z score of ESE (6.46) is better than 85.60% of its industry peers.
The Debt to FCF ratio of ESE is 1.20, which is an excellent value as it means it would take ESE, only 1.20 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ESE (1.20) is better than 84.80% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that ESE is not too dependend on debt financing.
ESE's Debt to Equity ratio of 0.09 is fine compared to the rest of the industry. ESE outperforms 77.60% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.09
Debt/FCF 1.2
Altman-Z 6.46
ROIC/WACC0.77
WACC10.69%
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

ESE has a Current Ratio of 2.04. This indicates that ESE is financially healthy and has no problem in meeting its short term obligations.
ESE has a Current ratio (2.04) which is in line with its industry peers.
ESE has a Quick 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.
Looking at the Quick ratio, with a value of 1.35, ESE is in line with its industry, outperforming 52.80% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.04
Quick Ratio 1.35
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

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7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 24.46% over the past year.
The Earnings Per Share has been growing slightly by 5.96% on average over the past years.
Looking at the last year, ESE shows a quite strong growth in Revenue. The Revenue has grown by 8.96% in the last year.
ESE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.18% yearly.
EPS 1Y (TTM)24.46%
EPS 3Y16.26%
EPS 5Y5.96%
EPS Q2Q%72.58%
Revenue 1Y (TTM)8.96%
Revenue growth 3Y12.8%
Revenue growth 5Y7.18%
Sales Q2Q%13.15%

3.2 Future

Based on estimates for the next years, ESE will show a very strong growth in Earnings Per Share. The EPS will grow by 25.42% on average per year.
The Revenue is expected to grow by 13.70% on average over the next years. This is quite good.
EPS Next Y38.69%
EPS Next 2Y25.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.4%
Revenue Next 2Y13.7%
Revenue Next 3YN/A
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.
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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 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 2 4 6

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3

4. Valuation

4.1 Price/Earnings Ratio

ESE is valuated quite expensively with a Price/Earnings ratio of 35.03.
Based on the Price/Earnings ratio, ESE is valued a bit more expensive than the industry average as 68.00% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 29.63. ESE is around the same levels.
A Price/Forward Earnings ratio of 24.67 indicates a rather expensive valuation of ESE.
The rest of the industry has a similar Price/Forward Earnings ratio as ESE.
The average S&P500 Price/Forward Earnings ratio is at 22.68. ESE is around the same levels.
Industry RankSector Rank
PE 35.03
Fwd PE 24.67
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

Based on the Enterprise Value to EBITDA ratio, ESE is valued a bit more expensive than the industry average as 63.20% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as ESE.
Industry RankSector Rank
P/FCF 38.87
EV/EBITDA 20.02
ESE Per share dataESE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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.
The decent profitability rating of ESE may justify a higher PE ratio.
ESE's earnings are expected to grow with 25.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.91
PEG (5Y)5.88
EPS Next 2Y25.42%
EPS Next 3YN/A

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5

5. Dividend

5.1 Amount

With a yearly dividend of 0.19%, ESE is not a good candidate for dividend investing.
ESE's Dividend Yield is comparable with the industry average which is at 1.65.
With a Dividend Yield of 0.19, ESE pays less dividend than the S&P500 average, which is at 2.27.
Industry RankSector Rank
Dividend Yield 0.19%

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

7.48% 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.
DP7.48%
EPS Next 2Y25.42%
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 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

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ESCO TECHNOLOGIES INC

NYSE:ESE (2/21/2025, 8:16:04 PM)

After market: 162.2 0 (0%)

162.2

-7.45 (-4.39%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-06 2025-02-06/amc
Earnings (Next)05-07 2025-05-07/amc
Inst Owners99.47%
Inst Owner Change-0.68%
Ins Owners0.31%
Ins Owner Change2.4%
Market Cap4.19B
Analysts80
Price Target170.09 (4.86%)
Short Float %0.6%
Short Ratio1.53
Dividend
Industry RankSector Rank
Dividend Yield 0.19%
Yearly Dividend0.32
Dividend Growth(5Y)0.01%
DP7.48%
Div Incr Years0
Div Non Decr Years3
Ex-Date04-02 2025-04-02 (0.08)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.18%
Min EPS beat(2)0.73%
Max EPS beat(2)45.62%
EPS beat(4)3
Avg EPS beat(4)12.3%
Min EPS beat(4)-4.56%
Max EPS beat(4)45.62%
EPS beat(8)6
Avg EPS beat(8)7.3%
EPS beat(12)10
Avg EPS beat(12)8.01%
EPS beat(16)12
Avg EPS beat(16)4.91%
Revenue beat(2)1
Avg Revenue beat(2)2.43%
Min Revenue beat(2)-0.38%
Max Revenue beat(2)5.25%
Revenue beat(4)2
Avg Revenue beat(4)0.58%
Min Revenue beat(4)-4.11%
Max Revenue beat(4)5.25%
Revenue beat(8)5
Avg Revenue beat(8)1.22%
Revenue beat(12)9
Avg Revenue beat(12)2.95%
Revenue beat(16)10
Avg Revenue beat(16)1.49%
PT rev (1m)12.86%
PT rev (3m)12.86%
EPS NQ rev (1m)18.72%
EPS NQ rev (3m)18.91%
EPS NY rev (1m)20.15%
EPS NY rev (3m)19.33%
Revenue NQ rev (1m)-4.38%
Revenue NQ rev (3m)3.47%
Revenue NY rev (1m)-1.54%
Revenue NY rev (3m)-4.16%
Valuation
Industry RankSector Rank
PE 35.03
Fwd PE 24.67
P/S 3.97
P/FCF 38.87
P/OCF 27.37
P/B 3.38
P/tB 13.58
EV/EBITDA 20.02
EPS(TTM)4.63
EY2.85%
EPS(NY)6.58
Fwd EY4.05%
FCF(TTM)4.17
FCFY2.57%
OCF(TTM)5.93
OCFY3.65%
SpS40.89
BVpS47.92
TBVpS11.95
PEG (NY)0.91
PEG (5Y)5.88
Profitability
Industry RankSector Rank
ROA 6.14%
ROE 8.91%
ROCE 10.56%
ROIC 8.25%
ROICexc 8.67%
ROICexgc 25.47%
OM 14.8%
PM (TTM) 10.44%
GM 39.63%
FCFM 10.2%
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-Score9
Asset Turnover0.59
Health
Industry RankSector Rank
Debt/Equity 0.09
Debt/FCF 1.2
Debt/EBITDA 0.51
Cap/Depr 81.17%
Cap/Sales 4.29%
Interest Coverage 10.71
Cash Conversion 72.16%
Profit Quality 97.75%
Current Ratio 2.04
Quick Ratio 1.35
Altman-Z 6.46
F-Score9
WACC10.69%
ROIC/WACC0.77
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)24.46%
EPS 3Y16.26%
EPS 5Y5.96%
EPS Q2Q%72.58%
EPS Next Y38.69%
EPS Next 2Y25.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.96%
Revenue growth 3Y12.8%
Revenue growth 5Y7.18%
Sales Q2Q%13.15%
Revenue Next Year11.4%
Revenue Next 2Y13.7%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y19.51%
EBIT growth 3Y21.46%
EBIT growth 5Y6.59%
EBIT Next Year60.09%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y22.54%
FCF growth 3Y-3.27%
FCF growth 5Y1.81%
OCF growth 1Y22.97%
OCF growth 3Y1.19%
OCF growth 5Y3.95%