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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Coherent Corp.

Nova Ltd.

Rockwell Automation, Inc.

Keysight Technologies, Inc.

ESCO Technologies, Inc.

Cognex Corp.

NCR Voyix Corp.

Onto Innovation, Inc.

Novanta, Inc.

Fortive Corp.

Sensata Technologies Holding Plc

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 37.25%, its profits have risen by 20% ; the PEG ratio of the company is 2.4

Market Beating Performance

The stock has generated a return of 37.25% in the last 1 year, much higher than market (S&P 500) returns of 12.94%

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.

38.28%

2.54

35.61%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.78%

EBIT Growth (5y)

10.84%

EBIT to Interest (avg)

18.64

Debt to EBITDA (avg)

0.55

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

0.73

Tax Ratio

22.19%

Dividend Payout Ratio

8.13%

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

4.39

EV to EBIT

33.88

EV to EBITDA

25.39

EV to Capital Employed

4.29

EV to Sales

5.26

PEG Ratio

2.38

Dividend Yield

73.64%

ROCE (Latest)

12.67%

ROE (Latest)

9.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Bullish

OBV

No Trend

Bullish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 204.09 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.27 times

-12What is not working for the Company

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 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.06 times

INTEREST(Q)

Highest at USD 7.92 MM

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

Operating Cash Flow

Highest at USD 204.09 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debtors Turnover Ratio

Highest at 3.27 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at USD 20.62 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Depreciation

At USD 20.62 MM has Grown at 47.56%

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 ESCO Technologies, Inc.

Interest

At USD 7.92 MM has Grown at 260.87%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 805.69

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 7.92 MM

in the last five periods and Increased by 260.87% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 38.63 %

in the last five Semi-Annual periods

MOJO 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 3.06 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 8.1% (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