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 -13.54%, 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 13.22% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -13.54% 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.
-13.54%
0.48
38.17%
S&P 500
13.22%
0.65
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
27.82%
EBIT Growth (5y)
33.73%
EBIT to Interest (avg)
7.23
Debt to EBITDA (avg)
1.94
Net Debt to Equity (avg)
0.41
Sales to Capital Employed (avg)
0.98
Tax Ratio
20.77%
Dividend Payout Ratio
6.96%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
16.35%
ROE (avg)
16.74%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
24
Industry P/E
Price to Book Value
4.03
EV to EBIT
18.47
EV to EBITDA
16.04
EV to Capital Employed
3.15
EV to Sales
3.11
PEG Ratio
1.70
Dividend Yield
NA
ROCE (Latest)
17.04%
ROE (Latest)
16.64%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at 43.9 %
NET SALES(Q)
Highest at USD 715.59 MM
OPERATING PROFIT(Q)
Highest at USD 143.5 MM
OPERATING PROFIT MARGIN(Q)
Highest at 20.05 %
-11What is not working for the Company
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
INTEREST(Q)
Highest at USD 25.29 MM
PRE-TAX PROFIT(Q)
Lowest at USD 85.33 MM
NET PROFIT(Q)
Lowest at USD 66.24 MM
Here's what is working for ESAB Corp.
Debt-Equity Ratio
Lowest at 43.9 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Net Sales
Highest at USD 715.59 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 143.5 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 20.05 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Depreciation
Highest at USD 33.01 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 33.01 MM has Grown at 68.82%
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 25.29 MM has Grown at 93.96%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 567.32
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at USD 25.29 MM
in the last five periods and Increased by 93.96% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Pre-Tax Profit
Lowest at USD 85.33 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 66.24 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Debtors Turnover Ratio
Lowest at 6.17 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 8.25% (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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