A Business at a Glance
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ESCO TECHNOLOGIES INC
ESE
$8.5B
Mkt Cap
$327.78
-1.10%
ESCO TECHNOLOGIES INC (ESE) has a current P/E ratio of 27.9, compared to its historical median P/E of 25.0. The stock is currently considered Fair based on its historical valuation range.
ESCO TECHNOLOGIES INC (ESE) has a 5-year average return on invested capital (ROIC) of 8.1%. This is below average and may indicate limited pricing power.
ESCO TECHNOLOGIES INC (ESE) has a market capitalization of $10.1B. It is classified as a large-cap stock.
Yes, ESCO TECHNOLOGIES INC (ESE) pays a dividend with a trailing twelve-month yield of 0.08%.
Based on historical P/E analysis, ESCO TECHNOLOGIES INC (ESE) appears fair. The current P/E of 27.9 is 11% above its historical median of 25.0. The estimated fair value CAGR (P/E method) is 8.3%.
ESCO TECHNOLOGIES INC (ESE) operates in the Communications Equipment, Nec industry, within the Industrials sector.
ESCO TECHNOLOGIES INC (ESE) reported annual revenue of $1.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
Item 1. Business The Company The Registrant is ESCO Technologies Inc. (NYSE: ESE), sometimes referred to in this report as ESCO. Except where the context indicates otherwise, the terms “Company”, “we”, “our” and “us” are used in this report to refer to ESCO together with its subsidiaries through which its businesses are conducted. We are: ●A global provider of highly engineered components and systems for aviation, Navy, defense and industrial customers; ●An industry leader in designing and manufacturing radio frequency (RF) test and measurement products and systems; and ●A provider of diagnostic instruments, software and services to industrial power users and the electric utility and renewable energy industries. Our business is focused on generating predictable and profitable long-term growth in sales and earnings through continued expansion of our product offerings across each of our business segments.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.1B | 1.1B | 919M | 856M | 858M | 715M |
| Net Income | 304M | 299M | 102M | 93M | 82M | 63M |
| EPS | $9.86 | $11.55 | $3.94 | $3.58 | $3.16 | $2.42 |
| Free Cash Flow | 240M | 206M | 99M | 57M | 103M | 96M |
| ROIC | 11.6% | 8.9% | 9.3% | 8.1% | 7.8% | 6.3% |
| Gross Margin | - | 42.1% | 42.3% | 41.3% | 38.7% | 37.8% |
| Debt/Equity | 0.09 | 0.12 | 0.10 | 0.09 | 0.15 | 0.15 |
| Dividends/Share | $0.27 | $0.32 | $0.32 | $0.32 | $0.32 | $0.32 |
| Operating Income | 208M | 170M | 146M | 119M | 111M | 83M |
| Operating Margin | 18.3% | 15.6% | 15.9% | 13.9% | 13.0% | 11.6% |
| ROE | 19.5% | 21.5% | 8.6% | 8.5% | 8.0% | 6.4% |
| Shares Outstanding | 31M | 26M | 26M | 26M | 26M | 26M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 531M | 537M | 571M | 686M | 772M | 726M | 730M | 715M | 858M | 856M | 919M | 1.1B | 1.1B |
| Gross Margin | 39.0% | 37.7% | 38.6% | 36.3% | 45.6% | 39.7% | 37.3% | 37.8% | 38.7% | 41.3% | 42.3% | 42.1% | N/A |
| R&D | 28M | 18M | 12M | 14M | 11M | 12M | 13M | 15M | 12M | 13M | 12M | 23M | 23M |
| SG&A | 135M | 130M | 131M | 148M | 153M | 163M | 159M | 168M | 195M | 203M | 208M | 235M | 237M |
| EBIT | -1.8M | 63M | -7.8M | 85M | 96M | 110M | -7.1M | 83M | 111M | 119M | 146M | 170M | 208M |
| Op. Margin | -0.3% | 11.7% | -1.4% | 12.4% | 12.4% | 15.1% | -1.0% | 11.6% | 13.0% | 13.9% | 15.9% | 15.6% | 18.3% |
| Net Income | 410K | 43M | 46M | 54M | 92M | 81M | 99M | 63M | 82M | 93M | 102M | 299M | 304M |
| Net Margin | 0.1% | 7.9% | 8.0% | 7.8% | 11.9% | 11.2% | 13.6% | 8.9% | 9.6% | 10.8% | 11.1% | 27.3% | 26.8% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 18M | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 0.1% | 6.8% | 7.0% | 6.8% | 10.5% | 8.8% | 9.5% | 6.3% | 7.8% | 8.1% | 9.3% | 8.9% | 11.6% |
| ROE | 0.1% | 7.3% | 7.7% | 8.3% | 12.9% | 10.2% | 11.1% | 6.4% | 8.0% | 8.5% | 8.6% | 21.5% | 19.5% |
| ROA | 0.0% | 5.0% | 5.0% | 4.8% | 7.3% | 5.9% | 7.0% | 4.3% | 5.1% | 5.5% | 5.8% | 14.1% | 12.7% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 43M | 66M | 74M | 67M | 93M | 105M | 82M | 123M | 135M | 77M | 128M | 242M | 277M |
| Free Cash Flow | 31M | 53M | 60M | 38M | 78M | 81M | 50M | 96M | 103M | 57M | 99M | 206M | 240M |
| Owner Earnings | 22M | 42M | 46M | 30M | 55M | 64M | 35M | 74M | 80M | 20M | 67M | 156M | 178M |
| CapEx | 13M | 12M | 14M | 30M | 15M | 24M | 32M | 27M | 32M | 20M | 28M | 36M | 37M |
| Maint. CapEx | 16M | 19M | 24M | 32M | 34M | 36M | 41M | 42M | 48M | 48M | 52M | 75M | 88M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 16M | 19M | 24M | 32M | 34M | 36M | 41M | 42M | 48M | 48M | 52M | 75M | 88M |
| CapEx/OCF | 29.3% | 18.9% | 18.7% | 44.1% | 22.1% | 23.0% | 39.0% | 21.7% | 23.7% | 29.1% | 22.2% | 15.0% | 13.4% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 8.5M | 8.4M | 8.2M | 8.3M | 8.3M | 8.3M | 8.3M | 8.3M | 8.3M | 8.3M | 8.2M | 8.3M | 8.3M |
| Dividend Yield | 1.3% | 0.9% | 0.8% | 0.6% | 0.5% | 0.5% | 0.4% | 0.3% | 0.4% | 0.3% | 0.3% | 0.2% | 0.1% |
| Share Buybacks | 12M | 18M | 4.3M | 0 | 0 | 50M | 0 | 200M | 20M | 12M | 8.0M | 0 | 0 |
| Buyback Yield | 1.8% | 2.0% | 0.4% | N/A | N/A | N/A | N/A | N/A | 1.0% | 0.4% | 0.2% | N/A | 0.0% |
| Stock-Based Comp | 4.8M | 4.8M | 4.7M | 5.4M | 5.0M | 5.1M | 5.5M | 6.9M | 7.3M | 8.9M | 8.6M | 11M | 11M |
| Debt Repayment | 216M | 96M | 80M | 92M | 110M | 65M | 235M | 124M | 101M | 154M | 197M | 597M | 597M |
| Balance Sheet | |||||||||||||
| Net Debt | 25M | 31M | 76M | 229M | 190M | 224M | 9.8M | 98M | 55M | 60M | 56M | 85M | 42M |
| Cash & Equiv. | 35M | 39M | 54M | 46M | 30M | 62M | 53M | 56M | 98M | 42M | 66M | 101M | 104M |
| Long-Term Debt | 20M | 30M | 90M | 255M | 200M | 265M | 40M | 134M | 133M | 82M | 102M | 166M | 125M |
| Debt/Equity | 0.10 | 0.12 | 0.21 | 0.41 | 0.29 | 0.35 | 0.07 | 0.15 | 0.15 | 0.09 | 0.10 | 0.12 | 0.09 |
| Interest Coverage | -1.1 | 80.4 | -6.0 | 18.5 | 10.9 | 13.5 | -1.1 | 37.7 | 22.7 | 13.6 | 9.6 | 9.7 | 11.5 |
| Equity | 580M | 584M | 615M | 672M | 759M | 826M | 959M | 1.0B | 1.0B | 1.1B | 1.2B | 1.5B | 1.6B |
| Total Assets | 846M | 864M | 978M | 1.3B | 1.3B | 1.5B | 1.4B | 1.6B | 1.7B | 1.7B | 1.8B | 2.4B | 2.4B |
| Total Liabilities | 266M | 280M | 363M | 589M | 506M | 640M | 411M | 558M | 606M | 552M | 601M | 870M | 838M |
| Intangibles | 182M | 191M | 232M | 351M | 345M | 382M | 347M | 409M | 394M | 392M | 404M | 724M | 706M |
| Retained Earnings | 399M | 434M | 471M | 517M | 607M | 685M | 776M | 831M | 905M | 989M | 1.1B | 1.4B | 1.4B |
| Working Capital | 149M | 155M | 165M | 198M | 195M | 244M | 188M | 191M | 254M | 266M | 319M | 180M | 171M |
| Current Assets | 296M | 298M | 323M | 393M | 396M | 495M | 443M | 466M | 573M | 581M | 669M | 689M | 690M |
| Current Liabilities | 147M | 143M | 158M | 195M | 201M | 252M | 255M | 275M | 318M | 315M | 350M | 508M | 518M |
| Per Share Data | |||||||||||||
| EPS | 0.02 | 1.62 | 1.77 | 2.07 | 3.54 | 3.10 | 3.81 | 2.42 | 3.16 | 3.58 | 3.94 | 11.55 | 9.86 |
| Owner EPS | 1.09 | 1.62 | 1.76 | 1.14 | 2.10 | 2.45 | 1.36 | 2.83 | 3.06 | 0.78 | 2.58 | 6.03 | 5.74 |
| Book Value | 28.30 | 22.26 | 23.73 | 25.90 | 29.18 | 31.61 | 36.76 | 38.86 | 40.24 | 43.76 | 47.85 | 59.48 | 50.43 |
| Cash Flow/Share | 2.12 | 2.51 | 2.85 | 2.60 | 3.58 | 4.02 | 3.15 | 4.69 | 5.19 | 2.97 | 4.93 | 9.34 | 12.67 |
| Dividends/Share | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | 0.27 |
| Shares Out. | 20.5M | 26.2M | 25.9M | 25.9M | 26.0M | 26.1M | 26.1M | 26.2M | 26.1M | 25.9M | 25.9M | 25.9M | 31.0M |
| Valuation | |||||||||||||
| P/E Ratio | N/A | 21.2 | 25.2 | 28.3 | 18.7 | 24.8 | 20.8 | 31.4 | 23.8 | 30.0 | 32.5 | 17.7 | 33.3 |
| P/FCF | 22.2 | 16.9 | 19.3 | 40.4 | 22.1 | 24.9 | 41.2 | 20.7 | 19.0 | 48.5 | 33.3 | 25.8 | 42.3 |
| EV/EBIT | N/A | 14.1 | N/A | 20.6 | 19.7 | 20.0 | N/A | 25.3 | 17.8 | 22.1 | 22.9 | 15.0 | 48.9 |
| Price/Book | 1.2 | 1.5 | 1.9 | 2.3 | 2.3 | 2.4 | 2.2 | 2.0 | 1.9 | 2.5 | 2.7 | 3.4 | 6.5 |
| Price/Sales | 1.3 | 1.7 | 1.7 | 2.0 | 2.0 | 2.5 | 3.0 | 3.5 | 2.3 | 2.5 | 3.0 | 3.9 | 8.9 |
| FCF Yield | 4.5% | 5.9% | 5.2% | 2.5% | 4.5% | 4.0% | 2.4% | 4.8% | 5.3% | 2.1% | 3.0% | 3.9% | 2.4% |
| Market Cap | 683M | 902M | 1.2B | 1.5B | 1.7B | 2.0B | 2.1B | 2.0B | 2.0B | 2.8B | 3.3B | 5.3B | 10.1B |
| Avg. Price | 32.66 | 35.19 | 37.58 | 54.01 | 59.43 | 69.67 | 83.86 | 95.76 | 75.63 | 93.80 | 107.40 | 163.55 | 327.78 |
| Year-End Price | 33.33 | 34.38 | 44.67 | 58.61 | 66.33 | 76.94 | 79.30 | 76.06 | 75.34 | 107.37 | 128.02 | 204.95 | 327.78 |
ESCO TECHNOLOGIES INC passes 4 of 9 quality checks, suggesting mixed fundamentals.
ESCO TECHNOLOGIES INC trades at 27.9x trailing earnings, compared to its 15-year median P/E of 25.0x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 35.4x vs a median of 25.3x. The company's 5-year average ROIC is 8.1% with a gross margin of 40.4%. At current prices, the estimated annualized return to fair value is +10.1%.
ESCO TECHNOLOGIES INC (ESE) has a net profit margin of 27.3%. This is a strong margin indicating high profitability.
ESCO TECHNOLOGIES INC (ESE) generated $206 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
ESCO TECHNOLOGIES INC (ESE) has a debt-to-equity ratio of 0.12. This indicates a conservatively financed balance sheet.
ESCO TECHNOLOGIES INC (ESE) reported earnings per share (EPS) of $11.55 in its most recent fiscal year.
ESCO TECHNOLOGIES INC (ESE) has a return on equity (ROE) of 21.5%. This indicates the company generates strong returns for shareholders.
ESCO TECHNOLOGIES INC (ESE) has a 5-year average gross margin of 40.4%. This indicates decent pricing power.
The Ledger Terminal provides 15 years of financial data for ESCO TECHNOLOGIES INC (ESE), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
ESCO TECHNOLOGIES INC (ESE) has a book value per share of $59.48, based on its most recent annual SEC filing.