ESCO Technologies
Market Cap
US$2.8b
Last Updated
2021/03/01 00:41 UTC
Data Sources
Company Financials +
Executive Summary
ESCO Technologies Inc. produces and supplies engineered products and systems for industrial and commercial markets worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with moderate growth potential.
Similar Companies
Share Price & News
How has ESCO Technologies's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ESE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: ESE's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
0.4%
ESE
0.9%
US Machinery
-3.6%
US Market
1 Year Return
16.2%
ESE
48.2%
US Machinery
36.5%
US Market
Return vs Industry: ESE underperformed the US Machinery industry which returned 48.2% over the past year.
Return vs Market: ESE underperformed the US Market which returned 36.4% over the past year.
Shareholder returns
| ESE | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.4% | 0.9% | -3.6% |
| 30 Day | 11.1% | 9.0% | 2.7% |
| 90 Day | 6.8% | 12.4% | 7.5% |
| 1 Year | 16.7%16.2% | 51.9%48.2% | 39.5%36.5% |
| 3 Year | 78.6%76.3% | 50.4%39.7% | 53.5%43.6% |
| 5 Year | 194.4%187.0% | 152.2%126.3% | 117.5%93.2% |
Long-Term Price Volatility Vs. Market
How volatile is ESCO Technologies's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
Have ESCO Technologies Inc. (NYSE:ESE) Insiders Been Selling Their Stock?1 week ago | Simply Wall St
Here's Why ESCO Technologies (NYSE:ESE) Can Manage Its Debt Responsibly4 weeks ago | Simply Wall St
Are ESCO Technologies's (NYSE:ESE) Statutory Earnings A Good Guide To Its Underlying Profitability?Valuation
Is ESCO Technologies undervalued compared to its fair value and its price relative to the market?
96.87x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ESE ($105.67) is trading above our estimate of fair value ($37.13)
Significantly Below Fair Value: ESE is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ESE is poor value based on its PE Ratio (96.9x) compared to the US Machinery industry average (33.6x).
PE vs Market: ESE is poor value based on its PE Ratio (96.9x) compared to the US market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: ESE is poor value based on its PEG Ratio (2.9x)
Price to Book Ratio
PB vs Industry: ESE is good value based on its PB Ratio (2.8x) compared to the US Machinery industry average (3x).
Next Steps
Future Growth
How is ESCO Technologies forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
32.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ESE's forecast earnings growth (32.9% per year) is above the savings rate (2%).
Earnings vs Market: ESE's earnings (32.9% per year) are forecast to grow faster than the US market (20.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ESE's revenue (6.9% per year) is forecast to grow slower than the US market (10.4% per year).
High Growth Revenue: ESE's revenue (6.9% 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 ESE's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has ESCO Technologies performed over the past 5 years?
5.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ESE has a large one-off loss of $49.3M impacting its December 31 2020 financial results.
Growing Profit Margin: ESE's current net profit margins (3.9%) are lower than last year (9.6%).
Past Earnings Growth Analysis
Earnings Trend: ESE's earnings have grown by 5.8% per year over the past 5 years.
Accelerating Growth: ESE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ESE had negative earnings growth (-60%) over the past year, making it difficult to compare to the Machinery industry average (-12.1%).
Return on Equity
High ROE: ESE's Return on Equity (2.9%) is considered low.
Next Steps
Financial Health
How is ESCO Technologies's financial position?
Financial Position Analysis
Short Term Liabilities: ESE's short term assets ($452.2M) exceed its short term liabilities ($254.6M).
Long Term Liabilities: ESE's short term assets ($452.2M) exceed its long term liabilities ($149.4M).
Debt to Equity History and Analysis
Debt Level: ESE's debt to equity ratio (5.7%) is considered satisfactory.
Reducing Debt: ESE's debt to equity ratio has reduced from 11.9% to 5.7% over the past 5 years.
Debt Coverage: ESE's debt is well covered by operating cash flow (186.9%).
Interest Coverage: ESE's interest payments on its debt are well covered by EBIT (19.7x coverage).
Balance Sheet
Next Steps
Dividend
What is ESCO Technologies's current dividend yield, its reliability and sustainability?
0.30%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: ESE's dividend (0.3%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: ESE's dividend (0.3%) is low compared to the top 25% of dividend payers in the US market (3.77%).
Stability and Growth of Payments
Stable Dividend: ESE is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: ESE is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: ESE is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ESE's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Vic Richey (63 yo)
17.83yrs
Tenure
US$1,668,556
Compensation
Mr. Michael J. Merriman, Jr., also known as Mike, CPA, is a Consumer Products Consultant at Product Launch Ventures, LLC. He served as an Operating Advisor and Strategic Advisor at Resilience Capital Partn...
CEO Compensation Analysis
Compensation vs Market: Vic's total compensation ($USD1.67M) is below average for companies of similar size in the US market ($USD4.98M).
Compensation vs Earnings: Vic's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 17.83yrs | US$1.67m | 1.06% $ 29.2m | |
| Executive VP | 10yrs | US$1.06m | 0.74% $ 20.4m | |
| Senior VP | 21.33yrs | US$616.65k | 0.29% $ 8.0m | |
| Director of Investor Relations | no data | no data | no data | |
| Vice President of Human Resources | no data | no data | no data | |
| Chief Operating Officer of Morgan Schaffer Ltd. | no data | no data | no data | |
| President of ETS-Lindgren Inc. | 3.25yrs | no data | no data | |
| President of VACCO Industries | no data | no data | no data | |
| Utility Solutions Group President & President of Doble Engineering Company | 3.25yrs | no data | no data | |
| Aerospace & Defense Group President | 3.25yrs | no data | no data | |
| President of Globe Composite Solutions | 1yr | no data | no data | |
| VP & Corporate Controller | no data | no data | no data |
3.3yrs
Average Tenure
60.5yo
Average Age
Experienced Management: ESE's management team is considered experienced (3.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 17.83yrs | US$1.67m | 1.06% $ 29.2m | |
| Executive VP | 10yrs | US$1.06m | 0.74% $ 20.4m | |
| Independent Director | 6.75yrs | US$230.01k | 0.011% $ 299.1k | |
| Independent Director | 6.5yrs | US$235.01k | 0.078% $ 2.1m | |
| Independent Lead Director | 4.25yrs | US$267.78k | 0.085% $ 2.3m | |
| Independent Director | 22.08yrs | US$239.16k | 0.089% $ 2.5m | |
| Independent Director | 6.75yrs | US$230.01k | 0.0035% $ 95.2k | |
| Independent Director | 3.25yrs | US$230.01k | 0% $ 0 | |
| Independent Director | 1.25yrs | US$287.53k | 0% $ 0 |
6.8yrs
Average Tenure
63yo
Average Age
Experienced Board: ESE's board of directors are considered experienced (6.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ESE insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
ESCO Technologies Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: ESCO Technologies Inc.
- Ticker: ESE
- Exchange: NYSE
- Founded: 1990
- Industry: Industrial Machinery
- Sector: Capital Goods
- Market Cap: US$2.751b
- Shares outstanding: 26.04m
- Website: https://www.escotechnologies.com
Number of Employees
Location
- ESCO Technologies Inc.
- 9900A Clayton Road
- Saint Louis
- Missouri
- 63124-1186
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ESE | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Oct 1990 |
| ET7 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Oct 1990 |
Biography
ESCO Technologies Inc. produces and supplies engineered products and systems for industrial and commercial markets worldwide. It operates through three segments: Aerospace & Defense, Utility Solutions Grou...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/01 00:41 |
| End of Day Share Price | 2021/02/26 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/09/30 |
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.