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.
-17.76%
0.54
38.50%
S&P 500
22.24%
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
19
Industry P/E
Price to Book Value
2.57
EV to EBIT
14.67
EV to EBITDA
11.60
EV to Capital Employed
2.05
EV to Sales
2.33
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
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 6.44
DIVIDEND PAYOUT RATIO(Y)
Highest at 12.93%
NET SALES(Q)
Highest at USD 745.6 MM
-12What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 272.08 MM
ROCE(HY)
Lowest at 11.29%
INTEREST(Q)
At USD 23.75 MM has Grown at 28.68%
RAW MATERIAL COST(Y)
Grown by 6.76% (YoY
OPERATING PROFIT MARGIN(Q)
Lowest at 18.32 %
PRE-TAX PROFIT(Q)
Lowest at USD 75.06 MM
NET PROFIT(Q)
Lowest at USD 58.06 MM
Here's what is working for ESAB Corp.
Dividend per share
Highest at USD 6.44 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 745.6 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Dividend Payout Ratio
Highest at 12.93%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for ESAB Corp.
Interest
At USD 23.75 MM has Grown at 28.68%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Cash Flow
Lowest at USD 272.08 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Operating Profit Margin
Lowest at 18.32 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at USD 75.06 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 58.06 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Raw Material Cost
Grown by 6.76% (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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