ESCO Technologies Inc.

ESCO Technologies Inc.

ESEยทNYSE

$295.43

+2.7%
TechnologyHardware, Equipment & Parts

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. It also designs, develops, and manufactures elastomeric-based signature reduction solutions for U.S. naval vessels; and mission-critical bushings, pins, sleeves, and precision-tolerance machined components for landing gear, rotor heads, engine mounts, flight controls, and actuation systems for the aerospace and defense industries. The Utility Solutions Group segment provides diagnostic testing solutions that enable electric power grid operators to assess the integrity of high-voltage power delivery equipment; and decision support tools for the renewable energy industry, primarily wind and solar. The RF Shielding and 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. It also provides services, such as calibration for antennas and field probes, chamber certification, field surveys, customer training, and various product tests. The company distributes its products through a network of distributors, sales representatives, direct sales teams, and in-house sales personnel. The company was incorporated in 1990 and is based in St. Louis, Missouri.

At a Glance

Live Snapshot
Market Cap$7.65B
EPS11.5500
P/E Ratio18.28
Earnings Date08/06/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is mid-range (P/E 18.3).

Valuation inputs: P/E 18.3, earnings yield +5.5%, momentum +2.7%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is acceptable (ROE +19.4%, ROIC +6.9%).

Profitability stack: net margin +27.3%, ROE +19.4%, ROIC +6.9%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile looks controlled across current risk inputs.

Risk factors: liabilities/assets +36.1%, momentum +2.7%, net margin +27.3%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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ESCO Technologies Inc. Market vs Earnings Trajectory

ESE ยท NYSE

Loading price and EPS data...

ESCO Technologies Inc.

ESCO Technologies Inc. Fair Value Envelope

ESE ยท NYSE

Our analysis suggests that ESE has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $295.43, this represents a potential HIDDEN relative to our calculated worth for ESCO Technologies Inc..

Intrinsic Value
Current Price: $295.43
3Y+264.0%
5Y+1212.0%
10Y+549.0%
3Y+28.0%
5Y+49.0%
10Y+92.0%
3Y+263.0%
5Y+201.0%
10Y+552.0%
3Y+79.0%
5Y+194.0%
10Y+228.0%
3Y+110.0%
5Y+361.0%
10Y+270.0%
3Y+46.0%
5Y+75.0%
10Y+146.0%
ESCO Technologies Inc.

ESCO Technologies Inc. Profit Bridge

ESE ยท NYSE
Revenue1.10B
Cost of Goods Sold (634.30M)
Gross Profit461.08M
Operating Expenses (287.95M)
Operating Income173.13M
Interest Expense (17.50M)
Other Income/Expense-20.28M
Pretax Income152.85M
Income Tax (36.55M)
Net Income299.22M
Net Income
299.22M

Profitability Analysis

Gross Margin

42.1%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

15.8%

Healthy operating margins demonstrate effective cost control and strong business fundamentals.

Net Profit Margin

27.3%

Exceptional profitability. The company converts a significant portion of revenue to bottom-line earnings.

Effective Tax Rate

23.9%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.

42.09%
Gross Profit Margin
3Y+9.0%
5Y+13.0%
10Y+9.0%
15.81%
Operating Profit Margin
-2%
3Y+22.0%
5Y+27.0%
10Y+16.0%
27.32%
Net Profit Margin
146%
3Y+185.0%
5Y+101.0%
10Y+240.0%
19.42%
Return on Equity
136%
3Y+147.0%
5Y+88.0%
10Y+160.0%
12.41%
Return on Assets
124%
3Y+149.0%
5Y+72.0%
10Y+165.0%
6.85%
Return on Invested Capital
-11%
3Y+8.0%
5Y+36.0%
10Y+5.0%
ESE

ESCO Technologies Inc. Cash Conversion Engine

ESE ยท NYSE
Net Income299.22M
Depreciation & Amortization75.02M
Stock-Based Compensation10.67M
Change in Working Capital9.38M
Others-141.38M
Capital Expenditures-52.17M
Free Cash Flow189.77M

Cash Flow Quality Analysis

FCF Conversion Rate

63.4%

Moderate conversion rate. Some gap between earnings and cash flow may warrant investigation into working capital or non-cash items.

CapEx Intensity

21.6%

Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.

FCF Growth Trend

+117.2%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$9.38M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Solid cash generation: Positive free cash flow with reasonable earnings quality provides financial flexibility for growth investments, debt reduction, or shareholder returns.

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ESCO Technologies Inc. Funding & Solvency Profile

ESE ยท NYSE
Cash & Cash Equivalents92.25M
Net Receivables256.83M
Inventory237.09M
Other Current Assets140.62M
Total Current Assets727 M
Property, Plant & Equipment219.84M
Goodwill & Intangible Assets1.44B
Long-Term Investments0.00
Other Non-Current Assets0.00
Total Non-Current Assets220 M
Total Assets
2.39B

Financial Health Analysis

Current Ratio

1.45x

Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.

Debt-to-Equity Ratio

0.49x

Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.

Working Capital

226 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

30% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

Financial Health Insight

Conservative with tight liquidity: Low debt is positive, but current ratio warrants attention. Consider whether the company is efficiently deploying its equity capital.

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ESCO Technologies Inc. Street Expectations Map

ESE ยท NYSE

Wall Street analysts project that ESE stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 350.00, with estimates ranging from a low of 300.00 to a high of 400.00.

Lowest Target
300.00
1.55%
Consensus Target
350.00
18.47%
Highest Target
400.00
35.40%

The consensus 1-year price target stands at 350.00, with estimates ranging from a low of 300.00 to a high of 400.00.

Analyst Consensus Analysis

Upside Potential

+18.5%

Strong upside potential. Consensus indicates attractive return opportunity with favorable risk-reward profile.

Analyst Agreement

28.6% spread

Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.

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ESCO Technologies Inc. Insider Positioning

ESE ยท NYSE

During the last 12 months, insiders have sold $267K worth of ESE shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

1.2K

267.39K

Net Activity

-267K

-$267K

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

No buying activity

Top Sellers

1
KVM

Khilnani Vinod M

Director

1.2K sharesโ€ข2 transactions

$267K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $267K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

1 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

0.03%
Dividend Yield
-31%
3Y-66.0%
5Y-61.0%
10Y-86.0%
ย 

ese Dividend History

ESE
10Y CAGR +0%
Latest $0.08
Annual $0.4
Stable dividend payments
Last Period: +0%