ESCO Technologies
Market Cap
US$2.0b
Last Updated
2020/03/31 01:00 UTC
Data Sources
Company Financials +
Executive Summary
ESCO Technologies Inc. produces and supplies engineered products and systems for utility, industrial, aerospace, and commercial users worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet and slightly overvalued.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
3.3%
ESE
9.2%
US Machinery
7.2%
US Market
1 Year Return
11.9%
ESE
-22.1%
US Machinery
-10.4%
US Market
Return vs Industry: ESE exceeded the US Machinery industry which returned -22.1% over the past year.
Return vs Market: ESE exceeded the US Market which returned -10.4% over the past year.
Shareholder returns
| ESE | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.3% | 9.2% | 7.2% |
| 30 Day | -15.8% | -19.4% | -12.6% |
| 90 Day | -17.2% | -29.0% | -19.4% |
| 1 Year | 12.2%11.9% | -19.8%-22.1% | -8.5%-10.4% |
| 3 Year | 34.7%32.9% | 0.6%-6.7% | 15.8%8.3% |
| 5 Year | 105.8%100.0% | 22.3%6.8% | 35.8%21.0% |
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
1 week ago | Simply Wall St
Interested In ESCO Technologies Inc. (NYSE:ESE)? Here's How It Performed Recently2 weeks ago | Simply Wall St
A Sliding Share Price Has Us Looking At ESCO Technologies Inc.'s (NYSE:ESE) P/E Ratio3 weeks ago | Simply Wall St
ESCO Technologies (NYSE:ESE) Has A Pretty Healthy Balance SheetValuation
Is ESCO Technologies undervalued compared to its fair value and its price relative to the market?
38.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ESE ($76.55) is trading below our estimate of fair value ($124.88)
Significantly Below Fair Value: ESE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ESE is poor value based on its PE Ratio (26.7x) compared to the Machinery industry average (15.6x).
PE vs Market: ESE is poor value based on its PE Ratio (26.7x) compared to the US market (13.1x).
Price to Earnings Growth Ratio
PEG Ratio: ESE is poor value based on its PEG Ratio (18.6x)
Price to Book Ratio
PB vs Industry: ESE is overvalued based on its PB Ratio (2.2x) compared to the US Machinery industry average (1.6x).
Next Steps
Future Growth
How is ESCO Technologies forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
1.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ESE's forecast earnings growth (1.4% per year) is below the savings rate (1.7%).
Earnings vs Market: ESE's earnings (1.4% per year) are forecast to grow slower than the US market (12.2% per year).
High Growth Earnings: ESE's earnings are forecast to grow, but not significantly.
Revenue vs Market: ESE's revenue (0.8% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: ESE's revenue (0.8% 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?
17.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ESE has high quality earnings.
Growing Profit Margin: ESE's current net profit margins (9.1%) are lower than last year (9.8%).
Past Earnings Growth Analysis
Earnings Trend: ESE's earnings have grown by 17.8% 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 (-0.5%) over the past year, making it difficult to compare to the Machinery industry average (-2%).
Return on Equity
High ROE: ESE's Return on Equity (8.1%) 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 ($498.3M) exceed its short term liabilities ($252.0M).
Long Term Liabilities: ESE's short term assets ($498.3M) exceed its long term liabilities ($264.0M).
Debt to Equity History and Analysis
Debt Level: ESE's debt to equity ratio (16.5%) is considered satisfactory.
Reducing Debt: ESE's debt to equity ratio has increased from 10.3% to 16.5% over the past 5 years.
Debt Coverage: ESE's debt is well covered by operating cash flow (66.1%).
Interest Coverage: ESE's interest payments on its debt are well covered by EBIT (12.5x coverage).
Balance Sheet
Inventory Level: ESE has a high level of physical assets or inventory.
Debt Coverage by Assets: ESE's debt is covered by short term assets (assets are 3.3x debt).
Next Steps
Dividend
What is ESCO Technologies's current dividend yield, its reliability and sustainability?
0.42%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ESE's dividend (0.42%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.95%).
High Dividend: ESE's dividend (0.42%) is low compared to the top 25% of dividend payers in the US market (5.4%).
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?
9.5yrs
Average management tenure
CEO
Vic Richey (62yo)
16.83s
Tenure
US$4,071,933
Compensation
Mr. Victor L. Richey, Jr., also known as Vic, has been the Chief Executive Officer and President at ESCO Technologies Inc. since April 2003 and October 2006 respectively. Mr. Richey serves as the President ...
CEO Compensation Analysis
Compensation vs Market: Vic's total compensation ($USD4.07M) is about average for companies of similar size in the US market ($USD4.58M).
Compensation vs Earnings: Vic's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 16.83yrs | US$4.07m | 1.01% $20.0m | |
| Executive VP | 9yrs | US$2.23m | 0.71% $14.1m | |
| Senior VP | 20.42yrs | US$1.24m | 0.35% $6.9m | |
| Director of Investor Relations | no data | no data | no data | |
| President of ETS-Lindgren Inc. | 2.25yrs | no data | no data | |
| President of VACCO Industries | no data | no data | no data | |
| Utility Solutions Group President & President of Doble Engineering Company | 2.25yrs | no data | no data | |
| Filtration Group President | 2.25yrs | no data | no data | |
| President of Globe Composite Solutions | no data | no data | no data |
9.5yrs
Average Tenure
59.5yo
Average Age
Experienced Management: ESE's management team is seasoned and experienced (9.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 16.83yrs | US$4.07m | 1.01% $20.0m | |
| Executive VP | 9yrs | US$2.23m | 0.71% $14.1m | |
| Independent Director | 5.83yrs | US$229.98k | 0.011% $216.7k | |
| Independent Director | 5.58yrs | US$234.98k | 0.078% $1.6m | |
| Lead Director | 3.25yrs | US$271.65k | 0.085% $1.7m | |
| Independent Director | 21.17yrs | US$242.41k | 0.097% $1.9m | |
| Independent Director | 5.83yrs | US$229.98k | 0.0035% $68.8k | |
| Independent Director | 2.25yrs | US$229.98k | no data | |
| Additional Independent Director | 0.25yr | no data | no data |
5.8yrs
Average Tenure
62yo
Average Age
Experienced Board: ESE's board of directors are considered experienced (5.8 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$1.989b
- Shares outstanding: 25.99m
- Website: https://www.escotechnologies.com
Number of Employees
Location
- ESCO Technologies Inc.
- 9900A Clayton Road
- St. Louis
- Missouri
- 63124
- 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 |
| ET7 | BRSE (Berne Stock Exchange) | Yes | Common Stock | CH | CHF | Oct 1990 |
Biography
ESCO Technologies Inc. produces and supplies engineered products and systems for utility, industrial, aerospace, and commercial users worldwide. The company operates in four segments: Filtration/Fluid Flow (Filtration), RF Shielding and Test (Test), Utility Solutions Group (USG), and Technical Packaging. The Filtration segment supplies filter elements, manifolds, assemblies, modules, indicators, custom and standard valves, filters, regulators, actuators, and other related components; elastomeric-based signature reduction solutions; and mission-critical bushings, pins, sleeves, and precision-tolerance machined components, as well as processing services. The Test segment designs and manufactures RF test and secure communication facilities, acoustic test enclosures, RF and magnetically shielded rooms, RF measurement systems, and broadcast and recording studios; and RF absorptive materials and filters, active compensation systems, antennas, antenna masts, turntables, electric and magnetic probes, RF test cells, proprietary measurement software, and other test accessories to perform various tests, as well as calibration for antennas and field probes, chamber certification, field surveys, customer training, and various product tests. The USG segment designs, manufactures, and delivers diagnostic testing solutions for electrical equipment comprising the electric power grid and enterprise management systems. The Technical Packaging segment offers thermoformed products and packaging materials for medical, pharmaceutical, retail, food, and electronic applications. The company distributes its products through a network of distributors, sales representatives, direct sales teams, and in-house sales personnel. ESCO Technologies Inc. was founded in 1990 and is headquartered in St. Louis, Missouri.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 01:00 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/09/30 |
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.