ESAB Stock Overview
ESAB Corporation formulates, develops, manufactures, and supplies consumable products and equipment for use in cutting, joining, and automated welding, as well as gas control equipment.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$44.04|
|52 Week High||US$58.08|
|52 Week Low||US$39.12|
|1 Month Change||8.55%|
|3 Month Change||-5.88%|
|1 Year Change||n/a|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-11.92%|
Recent News & Updates
ESAB Non-GAAP EPS of $1.14 beats by $0.13, revenue of $661.17M beats by $25.22M;reaffrirms FY guidance
ESAB press release (NYSE:ESAB): Q2 Non-GAAP EPS of $1.14 beats by $0.13. Revenue of $661.17M (+5.0% Y/Y) beats by $25.22M. The Company reported strong second quarter results, and reaffirmed its full year 2022 guidance, which excludes Russia from Q2 through the remainder of the year. ESAB continues to expect $2.45-$2.50 billion vs consensus of $2.50B of sales with total reported sales growth of 2%-4%, full year adjusted EBITDA of $400-$420 million, adjusted EPS of $3.85-$4.05 vs consensus of $4.00 and free cash flow of greater than $210 million.
ESAB Corp.: Looks To Be A Solid Welding Play After The Spin-Off
ESAB is the welding business which has been spun off from its former parent, called Colfax. After cutting the 2022 guidance, I still find confidence in a solid strategy even after 2022 is set to be a rockier year, while spin-offs face inherent uncertainty. Amidst non-demanding valuations, I have taken a very small stake, acting as a watch function for now.
|ESAB||US Machinery||US Market|
Return vs Industry: Insufficient data to determine how ESAB performed against the US Machinery industry.
Return vs Market: Insufficient data to determine how ESAB performed against the US Market.
|ESAB Average Weekly Movement||5.7%|
|Machinery Industry Average Movement||5.8%|
|Market Average Movement||7.6%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||3.1%|
Stable Share Price: ESAB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: Insufficient data to determine ESAB's volatility change over the past year.
About the Company
ESAB Corporation formulates, develops, manufactures, and supplies consumable products and equipment for use in cutting, joining, and automated welding, as well as gas control equipment. Its comprehensive range of welding consumables includes electrodes, cored and solid wires, and fluxes using a range of specialty and other materials; and cutting consumables, including electrodes, nozzles, shields, and tips. The company’s fabrication technology equipment ranges from portable welding machines to large customized automated cutting and welding systems.
ESAB Fundamentals Summary
|ESAB fundamental statistics|
Is ESAB overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ESAB income statement (TTM)|
|Cost of Revenue||US$1.67b|
Last Reported Earnings
Jul 01, 2022
Next Earnings Date
|Earnings per share (EPS)||3.56|
|Net Profit Margin||8.42%|
How did ESAB perform over the long term?See historical performance and comparison
0.5%Current Dividend Yield
Is ESAB undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for ESAB?
Other financial metrics that can be useful for relative valuation.
|What is ESAB's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does ESAB's PE Ratio compare to its peers?
|ESAB PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
SPXC SPX Technologies
AIMC Altra Industrial Motion
AIN Albany International
ESE ESCO Technologies
Price-To-Earnings vs Peers: ESAB is good value based on its Price-To-Earnings Ratio (12.4x) compared to the peer average (65.2x).
Price to Earnings Ratio vs Industry
How does ESAB's PE Ratio compare vs other companies in the US Machinery Industry?
Price-To-Earnings vs Industry: ESAB is good value based on its Price-To-Earnings Ratio (12.4x) compared to the US Machinery industry average (22.5x)
Price to Earnings Ratio vs Fair Ratio
What is ESAB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||12.4x|
|Fair PE Ratio||n/a|
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ESAB's Price-To-Earnings Fair Ratio for valuation analysis.
Share Price vs Fair Value
What is the Fair Price of ESAB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: ESAB ($44.04) is trading below our estimate of fair value ($79.63)
Significantly Below Fair Value: ESAB is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is ESAB forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ESAB's forecast earnings growth (9.6% per year) is above the savings rate (1.9%).
Earnings vs Market: ESAB's earnings (9.6% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: ESAB's earnings are forecast to grow, but not significantly.
Revenue vs Market: ESAB's revenue (0.08% per year) is forecast to grow slower than the US market (7.9% per year).
High Growth Revenue: ESAB's revenue (0.08% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if ESAB's Return on Equity is forecast to be high in 3 years time
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How has ESAB performed over the past 5 years?
Past Performance Score1/6
Past Performance Score 1/6
Growing Profit Margin
Earnings vs Industry
Last years earnings growth
Earnings and Revenue History
Quality Earnings: ESAB has high quality earnings.
Growing Profit Margin: ESAB's current net profit margins (8.4%) are lower than last year (9%).
Past Earnings Growth Analysis
Earnings Trend: Insufficient data to determine if ESAB's year-on-year earnings growth rate was positive over the past 5 years.
Accelerating Growth: Insufficient data to compare ESAB's past year earnings growth to its 5-year average.
Earnings vs Industry: ESAB earnings growth over the past year (9.1%) underperformed the Machinery industry 9.4%.
Return on Equity
High ROE: ESAB's Return on Equity (17%) is considered low.
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How is ESAB's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: ESAB's short term assets ($1.0B) exceed its short term liabilities ($642.1M).
Long Term Liabilities: ESAB's short term assets ($1.0B) do not cover its long term liabilities ($1.8B).
Debt to Equity History and Analysis
Debt Level: ESAB's net debt to equity ratio (88.1%) is considered high.
Reducing Debt: Insufficient data to determine if ESAB's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: ESAB's debt is not well covered by operating cash flow (14.5%).
Interest Coverage: ESAB earns more interest than it pays, so coverage of interest payments is not a concern.
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What is ESAB current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ESAB's dividend (0.45%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: ESAB's dividend (0.45%) is low compared to the top 25% of dividend payers in the US market (3.95%).
Stability and Growth of Payments
Stable Dividend: ESAB is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: ESAB is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Earnings Payout to Shareholders
Earnings Coverage: ESAB is not paying a notable dividend for the US market.
Cash Payout to Shareholders
Cash Flow Coverage: ESAB is not paying a notable dividend for the US market.
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How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Shyam Kambeyanda (51 yo)
Mr. Shyam Kambeyanda serves as Chief Executive Officer at ESAB Corporation. He served as Chief Executive Officer and President of ESAB at Enovis Corporation (formerly known as Colfax Corporation) from May...
Experienced Board: ESAB's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ESAB insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: ESAB only recently listed within the past 12 months.
ESAB Corporation's employee growth, exchange listings and data sources
- Name: ESAB Corporation
- Ticker: ESAB
- Exchange: NYSE
- Founded: 2021
- Industry: Industrial Machinery
- Sector: Capital Goods
- Implied Market Cap: US$2.644b
- Shares outstanding: 60.04m
Number of Employees
- ESAB Corporation
- 909 Rose Avenue
- 8th Floor
- North Bethesda
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/17 00:00|
|End of Day Share Price||2022/08/17 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.