Esco Technologies Inc

Telecommunications
Telecommunications Equipment
www.escotechnologies.com

Earnings Score
Moat Score
Safety Score

Market Cap $3.69B
PE 36
Debt $142.00M
Cash $65.96M
EV $3.76B
FCF $91.38M

Earnings

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Sales & Net Margins

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Earnings	$101.88M
EBIT	$129.89M
ROE	8%
ROA	7%
FCF	$91.38M
Equity	$1.24B
Growth Stability	69%
PE	36.17
PEG	8.29
PB	2.98
P/FCF	40.33
P/S	3.59
Price/Cash	0.02
Debt/Equity	0.11
Debt/FCF	1.55
Net Margins	10%
Gross Margins	39%
Op. Margins	13%
Earnings CAGR	6%
Sales Growth YoY	9%
Sales Growth QoQ	14%
Sales CAGR	19%
FCF CAGR	5%
Equity CAGR	8%
Earnings Stability	0.1
Earnings Growth YoY	7%
Earnings Growth QoQ	17%
Earnings CAGR 5Y	4%

Sales CAGR 5Y	8%
FCF CAGR 5Y	-2%
Equity CAGR 5Y	6%
Earnings CAGR 3Y	13%
Sales CAGR 3Y	13%
FCF CAGR 3Y	7%
Equity CAGR 3Y	7%
Market Cap	$3.69B
Revenue	$1.03B
Dividend Yield	0%
Payout Ratio	8%
Assets	$1.84B
Total Debt	$142.00M
Cash	$65.96M
Shares Outstanding	25.77M
EV	3.76B
Earnings Score	7%
Moat Score	86%
Safety Score	91%
Final Score	61%
Working Capital	318.8M
Current Ratio	1.91
Gross Profit	$404.02M
Shares Growth 3y	-0%
Equity Growth QoQ	4%
Equity Growth YoY	9%

Assets & ROA

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Stockholders Equity & ROE

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ESCO Technologies Inc sells engineered products and systems for utility, industrial, aerospace, and commercial applications. The firm operates in three segments: Aerospace & Defense, Utility Solutions Group (USG) and RF Shielding and Test (Test). The Aerospace & Defense segment designs and manufactures specialty filtration and naval products. The USG segment provides diagnostic testing solutions. The Test segment provides its customers with the ability to identify, measure and contain magnetic, electromagnetic and acoustic energy.

SEC Filings

Direct access to Esco Technologies Inc (ESE) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-Q Dec 31
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-Q Dec 31
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Esco Technologies Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Esco Technologies Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 6%

Stability 10%

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Esco Technologies Inc Discounted Cash Flow

Fully customizable DCF calculator online for Esco Technologies Inc.

Years

Calculation mode

= $1.3B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$91M	$96M	$102M	$107M	$113M	$119M	$126M	$132M	$140M	$147M	$155M	$1.6B
DCF		$88M	$84M	$80M	$77M	$74M	$71M	$68M	$65M	$62M	$60M	$598M
Value	$1.3B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	09/2015	09/2016	05/2017	03/2018	09/2018	09/2019	09/2020	09/2021	09/2022	09/2023	09/2024	TTM
Net Margins	8%	8%	-	-	12%	10%	14%	9%	10%	10%	10%	10%
ROA	-	-	-	-	-	-	3%	5%	6%	7%	7%	7%
ROE	-	7%	-	-	12%	10%	11%	6%	8%	8%	8%	8%

Net Margins (9.92%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	09/2015	09/2016	05/2017	03/2018	09/2018	09/2019	09/2020	09/2021	09/2022	09/2023	09/2024	TTM
Debt over FCF	-	2.17	-	-	3.3	4.53	1.11	1.8	1.68	2.24	1.55	1.55
Debt over Equity	0.12	0.21	-	-	0.32	0.37	0.09	0.17	0.17	0.11	0.11	0.11
Growth Stability	-	-	-	-	100%	88%	100%	69%	100%	100%	100%	69%

Good Debt/FCF ratio (1.55)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.11)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (69%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	09/2015	09/2016	05/2017	03/2018	09/2018	09/2019	09/2020	09/2021	09/2022	09/2023	09/2024	CAGR 5Y
Revenue YoY growth	-	6%	-96%	-68%	10K%	5%	-10%	-2%	20%	11%	7%	8%
Earnings YoY growth	-	8%	-	-	-	-12%	26%	-38%	30%	12%	10%	4%
Equity YoY growth	-	5%	-	-	-	9%	16%	6%	3%	8%	9%	6%
FCF YoY growth	-	13%	-	-	-	-6%	12%	26%	7%	-47%	68%	-2%