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 sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is ESAB Corp. for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
ESAB Corp.
-38.48%
0.54
38.50%
S&P 500
15.76%
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 Trend5What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 24.02%
DIVIDEND PER SHARE(HY)
Highest at USD 5.94
NET SALES(Q)
Highest at USD 807.63 MM
-22What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 258.87 MM
ROCE(HY)
Lowest at 8.58%
INTEREST COVERAGE RATIO(Q)
Lowest at 492.06
DEBT-EQUITY RATIO
(HY)
Highest at 91.47 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.78 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.94 times
INTEREST(Q)
Highest at USD 30.62 MM
PRE-TAX PROFIT(Q)
Lowest at USD 66.42 MM
NET PROFIT(Q)
Lowest at USD 48.46 MM
EPS(Q)
Lowest at USD 0.5
Here's what is working for ESAB Corp.
Dividend per share
Highest at USD 5.94 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Dividend Payout Ratio
Highest at 24.02% and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Net Sales
Highest at USD 807.63 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Depreciation
Highest at USD 53.64 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 53.64 MM has Grown at 49.34%
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.
Operating Cash Flow
Lowest at USD 258.87 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Interest
At USD 30.62 MM has Grown at 28.97%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 492.06
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at USD 30.62 MM
in the last five periods and Increased by 28.97% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Pre-Tax Profit
Lowest at USD 66.42 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 66.42 MM has Fallen at -22.25%
over average net sales of the previous four periods of USD 85.43 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 48.46 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Net Profit
At USD 48.46 MM has Fallen at -26.81%
over average net sales of the previous four periods of USD 66.2 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 0.5
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Highest at 91.47 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 3.78 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 5.94 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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