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ESE

ESCO TechnologiesNYSE:ESE Stock Report

Last Price

US$88.23

Market Cap

US$2.3b

7D

0.1%

1Y

-17.0%

Updated

16 Jan, 2022

Data

Company Financials +
ESE fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance4/6
Financial Health6/6
Dividends0/6

ESE Stock Overview

ESCO Technologies Inc. produces and supplies engineered products and systems for industrial and commercial markets worldwide.

Rewards

Earnings are forecast to grow 21.18% per year

Earnings grew by 177.3% over the past year

Risk Analysis

No risks detected for ESE from our risk checks.

ESCO Technologies Competitors

Parker-Hannifin

NYSE:PH

US$42.0b

IDEX

NYSE:IEX

US$16.8b

Graco

NYSE:GGG

US$12.8b

Colfax

NYSE:CFX

US$6.9b

Price History & Performance

Summary of all time highs, changes and price drops for ESCO Technologies
Historical stock prices
Current Share PriceUS$88.23
52 Week HighUS$115.84
52 Week LowUS$75.19
Beta1.08
1 Month Change0.43%
3 Month Change2.86%
1 Year Change-17.02%
3 Year Change33.72%
5 Year Change56.44%
Change since IPO1,580.57%

Recent News & Updates

Dec 13
When Should You Buy ESCO Technologies Inc. (NYSE:ESE)?

When Should You Buy ESCO Technologies Inc. (NYSE:ESE)?

ESCO Technologies Inc. ( NYSE:ESE ), is not the largest company out there, but it saw a double-digit share price rise...

Nov 30
ESCO Technologies (NYSE:ESE) Seems To Use Debt Quite Sensibly

ESCO Technologies (NYSE:ESE) Seems To Use Debt Quite Sensibly

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Nov 17
Here's What To Make Of ESCO Technologies' (NYSE:ESE) Decelerating Rates Of Return

Here's What To Make Of ESCO Technologies' (NYSE:ESE) Decelerating Rates Of Return

To find a multi-bagger stock, what are the underlying trends we should look for in a business? One common approach is...

Oct 13
Estimating The Fair Value Of ESCO Technologies Inc. (NYSE:ESE)

Estimating The Fair Value Of ESCO Technologies Inc. (NYSE:ESE)

How far off is ESCO Technologies Inc. ( NYSE:ESE ) from its intrinsic value? Using the most recent financial data...

Shareholder Returns

ESEUS MachineryUS Market
7D0.1%0.04%-0.5%
1Y-17.0%11.9%13.7%

Return vs Industry: ESE underperformed the US Machinery industry which returned 11.9% over the past year.

Return vs Market: ESE underperformed the US Market which returned 13.7% over the past year.

Price Volatility

Is ESE's price volatile compared to industry and market?
ESE volatility
ESE Average Weekly Movement3.5%
Machinery Industry Average Movement4.9%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

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.

About the Company

FoundedEmployeesCEOWebsite
19902,761Vic Richeyhttps://www.escotechnologies.com

ESCO Technologies Inc. produces and supplies engineered products and systems for industrial and commercial markets worldwide. It operates through Aerospace & Defense, Utility Solutions Group, and RF Shielding and Test segments. The Aerospace & Defense segment designs and manufactures filtration products, including hydraulic filter elements and fluid control devices used in commercial aerospace applications; filter mechanisms used in micro-propulsion devices for satellites; and custom designed filters for manned aircraft and submarines.

ESCO Technologies Fundamentals Summary

How do ESCO Technologies's earnings and revenue compare to its market cap?
ESE fundamental statistics
Market CapUS$2.30b
Earnings (TTM)US$63.50m
Revenue (TTM)US$715.44m

36.3x

P/E Ratio

3.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ESE income statement (TTM)
RevenueUS$715.44m
Cost of RevenueUS$445.05m
Gross ProfitUS$270.40m
ExpensesUS$206.90m
EarningsUS$63.50m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.43
Gross Margin37.79%
Net Profit Margin8.88%
Debt/Equity Ratio15.1%

How did ESE perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

13%

Payout Ratio

Valuation

Is ESCO Technologies undervalued compared to its fair value and its price relative to the market?

36.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ESE ($88.23) is trading above our estimate of fair value ($79.04)

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 (36.3x) compared to the US Machinery industry average (29.3x).

PE vs Market: ESE is poor value based on its PE Ratio (36.3x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: ESE is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: ESE is good value based on its PB Ratio (2.3x) compared to the US Machinery industry average (2.8x).


Future Growth

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

21.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESE's forecast earnings growth (21.2% per year) is above the savings rate (2%).

Earnings vs Market: ESE's earnings (21.2% per year) are forecast to grow faster than the US market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ESE's revenue (9.7% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: ESE's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ESE's Return on Equity is forecast to be low in 3 years time (10.3%).


Past Performance

How has ESCO Technologies performed over the past 5 years?

-6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESE has high quality earnings.

Growing Profit Margin: ESE's current net profit margins (8.9%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: ESE's earnings have declined by 6.2% per year over the past 5 years.

Accelerating Growth: ESE's earnings growth over the past year (177.3%) exceeds its 5-year average (-6.2% per year).

Earnings vs Industry: ESE earnings growth over the past year (177.3%) exceeded the Machinery industry 34.4%.


Return on Equity

High ROE: ESE's Return on Equity (6.2%) is considered low.


Financial Health

How is ESCO Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: ESE's short term assets ($466.2M) exceed its short term liabilities ($277.8M).

Long Term Liabilities: ESE's short term assets ($466.2M) exceed its long term liabilities ($279.9M).


Debt to Equity History and Analysis

Debt Level: ESE's net debt to equity ratio (9.6%) is considered satisfactory.

Reducing Debt: ESE's debt to equity ratio has reduced from 18% to 15.1% over the past 5 years.

Debt Coverage: ESE's debt is well covered by operating cash flow (80%).

Interest Coverage: ESE's interest payments on its debt are well covered by EBIT (36.4x coverage).


Balance Sheet


Dividend

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

0.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ESE's dividend (0.36%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: ESE's dividend (0.36%) is low compared to the top 25% of dividend payers in the US market (3.44%).


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?

4.2yrs

Average management tenure


CEO

Vic Richey (64 yo)

18.75yrs

Tenure

US$4,161,742

Compensation

Mr. Victor L. Richey, Jr., also known as Vic, is Independent Director of Nordson Corporation from February 2010. He joined the Nordson Corporation in February 2010. He is Chairman & CEO of ESCO Technologie...


CEO Compensation Analysis

Compensation vs Market: Vic's total compensation ($USD4.16M) is about average for companies of similar size in the US market ($USD3.62M).

Compensation vs Earnings: Vic's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ESE's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: ESE's board of directors are considered experienced (7.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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
  • Implied Market Cap: US$2.303b
  • Shares outstanding: 26.10m
  • Website: https://www.escotechnologies.com

Number of Employees


Location

  • ESCO Technologies Inc.
  • 9900A Clayton Road
  • Saint Louis
  • Missouri
  • 63124-1186
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/16 23:09
End of Day Share Price2022/01/14 00:00
Earnings2021/09/30
Annual Earnings2021/09/30


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.