ESCO Technologies, Inc. (ESE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Coherent Corp.

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Keysight Technologies, Inc.

NCR Voyix Corp.

ESCO Technologies, Inc.

Cognex Corp.

Sensata Technologies Holding Plc

Novanta, Inc.

Onto Innovation, Inc.

Fortive Corp.

Why is ESCO Technologies, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 7.78% and Operating profit at 10.84% over the last 5 years

Flat results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 805.69
RAW MATERIAL COST(Y) Grown by 8.1% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 38.63 %

With ROE of 9.24%, it has a fair valuation with a 4.39 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 43.25%, its profits have risen by 20% ; the PEG ratio of the company is 2.4

Consistent Returns over the last 3 years

Along with generating 43.25% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ESCO Technologies, Inc. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is ESCO Technologies, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

ESCO Technologies, Inc.

65.44%

2.67

35.84%

S&P 500

18.81%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.71%

EBIT Growth (5y)

14.81%

EBIT to Interest (avg)

18.64

Debt to EBITDA (avg)

0.55

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

0.72

Tax Ratio

22.19%

Dividend Payout Ratio

6.55%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

9.99%

ROE (avg)

7.05%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.20

EV to EBIT

42.96

EV to EBITDA

29.40

EV to Capital Employed

5.07

EV to Sales

6.78

PEG Ratio

3.68

Dividend Yield

12.78%

ROCE (Latest)

11.81%

ROE (Latest)

8.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 276.63 MM

ROCE(HY)

Highest at 9.25%

CASH AND EQV(HY)

Highest at USD 205.17 MM

DEBT-EQUITY RATIO (HY)

Lowest at 6.87 %

INVENTORY TURNOVER RATIO(HY)

Highest at 3.45 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3.61 times

-5What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 7.22%

INTEREST(9M)

At USD 15.93 MM has Grown at 37.2%

RAW MATERIAL COST(Y)

Grown by 10.72% (YoY

Here's what is working for ESCO Technologies, Inc.

Operating Cash Flow

Highest at USD 276.63 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 205.17 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 6.87 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 3.45 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3.61 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for ESCO Technologies, Inc.

Interest

At USD 15.93 MM has Grown at 37.2%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Dividend Payout Ratio

Lowest at 7.22% and Fallen

In each year in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 10.72% (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