NYSE:ESE

Stock Analysis Report

Executive Summary

ESCO Technologies Inc. produces and supplies engineered products and systems for utility, industrial, aerospace, and commercial users worldwide.

Snowflake

Fundamentals

Excellent balance sheet with limited growth.

Risks

  • ESCO Technologies is covered by less than 3 analysts.

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


Market Performance


7 Day Return

-0.5%

NYSE:ESE

-1.0%

US Machinery

-0.02%

US Market


1 Year Return

21.6%

NYSE:ESE

-5.4%

US Machinery

1.6%

US Market

ESE outperformed the Machinery industry which returned -4.3% over the past year.

ESE outperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

ESEIndustryMarket
7 Day-0.5%-1.0%-0.02%
30 Day5.3%7.1%2.7%
90 Day3.4%-1.0%1.4%
1 Year22.1%21.6%-3.4%-5.4%3.8%1.6%
3 Year74.8%72.0%49.2%39.5%45.2%35.8%
5 Year136.3%128.6%55.3%36.1%61.8%44.1%

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

Valuation

Is ESCO Technologies undervalued based on future cash flows and its price relative to the stock market?

24.68x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

ESCO Technologies's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

ESCO Technologies's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

ESCO Technologies is overvalued based on earnings compared to the US Machinery industry average.

ESCO Technologies is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

ESCO Technologies is poor value based on expected growth next year.


Price Based on Value of Assets

ESCO Technologies is overvalued based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

How is ESCO Technologies expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

ESCO Technologies's revenue is expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).

ESCO Technologies's earnings are expected to grow by 9.1% yearly, however this is not considered high growth (20% yearly).

ESCO Technologies's revenue growth is expected to exceed the United States of America market average.

ESCO Technologies's earnings growth is positive but not above the United States of America market average.

ESCO Technologies's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if ESCO Technologies will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has ESCO Technologies performed over the past 5 years?

18.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

ESCO Technologies's year on year earnings growth rate has been positive over the past 5 years.

ESCO Technologies's 1-year earnings growth is less than its 5-year average (2.1% vs 18.2%)

ESCO Technologies's earnings growth has not exceeded the US Machinery industry average in the past year (2.1% vs 18.7%).


Return on Equity

ESCO Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

ESCO Technologies used its assets less efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

ESCO Technologies has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is ESCO Technologies's financial position?


Financial Position Analysis

ESCO Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

ESCO Technologies's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

ESCO Technologies's level of debt (24.7%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (8.2% vs 24.7% today).

Debt is well covered by operating cash flow (38%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 14.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.2x debt.


Next Steps

Dividend

What is ESCO Technologies's current dividend yield, its reliability and sustainability?

0.40%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase ESCO Technologies before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

ESCO Technologies's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

ESCO Technologies's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).

ESCO Technologies is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

ESCO Technologies is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of ESCO Technologies's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

No need to calculate the sustainability of ESCO Technologies's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of ESCO Technologies's salary, the management and board of directors tenure and is there insider trading?

9.1yrs

Average management tenure


CEO

Vic Richey (62yo)

16.4yrs

Tenure

US$3,765,361

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

Vic's remuneration is about average for companies of similar size in United States of America.

Vic's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

9.1yrs

Average Tenure

59.5yo

Average Age

The average tenure for the ESCO Technologies management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.3yrs

Average Tenure

64.5yo

Average Age

The tenure for the ESCO Technologies board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$284,51022 May 19
Gary Muenster
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares3,903
Max PriceUS$73.00
SellUS$444,17020 May 19
Gary Muenster
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares6,097
Max PriceUS$74.00
SellUS$289,71720 Feb 19
Larry Solley
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,177
Max PriceUS$69.36

Ownership Breakdown


Management Team

  • Alyson Barclay (60yo)

    Senior VP

    • Tenure: 19.9yrs
    • Compensation: US$1.10m
  • Vic Richey (62yo)

    Chairman

    • Tenure: 16.4yrs
    • Compensation: US$3.77m
  • Gary Muenster (59yo)

    Executive VP

    • Tenure: 8.6yrs
    • Compensation: US$2.06m
  • Bruce Butler (59yo)

    President of ETS-Lindgren Inc.

    • Tenure: 1.8yrs
  • Tony Gonzalez

    President of VACCO Industries

    • Tenure: 0yrs
  • Sam Chapetta

    Filtration Group President

    • Tenure: 1.8yrs
  • Kate Lowrey

    Director of Investor Relations

    • Tenure: 0yrs
  • Randall Loga

    Technical Packaging Group VP & President of Thermoform Engineered Quality LLC

    • Tenure: 0yrs
  • Bryan Sayler

    Utility Solutions Group President & President of Doble Engineering Company

    • Tenure: 1.8yrs

Board Members

  • Bob Phillippy (59yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$285.02k
  • Vic Richey (62yo)

    Chairman

    • Tenure: 16.4yrs
    • Compensation: US$3.77m
  • Vinod Khilnani (67yo)

    Director

    • Tenure: 5.1yrs
    • Compensation: US$290.02k
  • Jim Stolze (76yo)

    Lead Director

    • Tenure: 2.8yrs
    • Compensation: US$317.02k
  • Larry Solley (77yo)

    Director

    • Tenure: 20.7yrs
    • Compensation: US$290.02k
  • Lee Olivier (71yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$285.02k
  • Gary Muenster (59yo)

    Executive VP

    • Tenure: 8.6yrs
    • Compensation: US$2.06m
  • Pat Dewar (59yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$294.87k

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$2.093b
  • Shares outstanding: 25.98m
  • Website: https://www.escotechnologies.com

Number of Employees


Location

  • ESCO Technologies Inc.
  • 9900A Clayton Road
  • St. Louis
  • Missouri
  • 63124
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESENYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1990
ET7DB (Deutsche Boerse AG)YesCommon StockDEEUROct 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 23:34
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.