ScoreWhy is ESAB Corp. ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 7.23
2
Negative results in Jun 25
- INTEREST COVERAGE RATIO(Q) Lowest at 567.32
- RAW MATERIAL COST(Y) Grown by 8.25% (YoY)
- DEBTORS TURNOVER RATIO(HY) Lowest at 6.17 times
3
With ROCE of 17.04%, it has a fair valuation with a 3.15 Enterprise value to Capital Employed
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -10.18%, its profits have risen by 14.7% ; the PEG ratio of the company is 1.7
4
Underperformed the market in the last 1 year
- Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -10.18% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to ESAB Corp. should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is ESAB Corp. for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
ESAB Corp.
-19.53%
0.54
38.50%
S&P 500
16.12%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.10%
EBIT Growth (5y)
7.13%
EBIT to Interest (avg)
7.23
Debt to EBITDA (avg)
1.94
Net Debt to Equity (avg)
0.41
Sales to Capital Employed (avg)
0.94
Tax Ratio
20.77%
Dividend Payout Ratio
10.32%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
16.35%
ROE (avg)
16.74%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
2.76
EV to EBIT
15.58
EV to EBITDA
12.31
EV to Capital Employed
2.18
EV to Sales
2.48
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
13.96%
ROE (Latest)
13.42%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
OPERATING PROFIT(Q)
Highest at USD 154.93 MM
OPERATING PROFIT MARGIN(Q)
Highest at 21.49 %
-8What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 260.57 MM
INTEREST(9M)
At USD 67.76 MM has Grown at 34.19%
ROCE(HY)
Lowest at 12.78%
RAW MATERIAL COST(Y)
Grown by 12.76% (YoY
EPS(Q)
Lowest at USD 0.61
Here's what is working for ESAB Corp.
Operating Profit
Highest at USD 154.93 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 21.49 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Depreciation
Highest at USD 38.7 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Depreciation
At USD 38.7 MM has Grown at 35.63%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (USD MM)
Here's what is not working for ESAB Corp.
Interest
At USD 67.76 MM has Grown at 34.19%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Cash Flow
Lowest at USD 260.57 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
EPS
Lowest at USD 0.61
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Raw Material Cost
Grown by 12.76% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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