Esco Technologies Inc
ESE
Communications Equipment, NEC
Mkt Cap
$2.787BPE
28.34Debt
$211MCash
$59.44MEV
$2.938BFCF
$73.22MP/E Ratio
28.34Debt
$211MCash
$59.44MEV
$2.938BFCF
$73.22MCharts data: {"Earnings":[{"time":"2014-09-29","value":410000},{"time":"2015-09-29","value":42512000},{"time":"2016-09-29","value":45882000},{"time":"2018-09-29","value":92136000},{"time":"2019-09-29","value":81039000},{"time":"2020-09-29","value":101980000},{"time":"2021-09-29","value":63496000},{"time":"2022-09-29","value":82320000},{"time":"2023-09-29","value":92545000}],"Sales":[{"time":"2014-09-29","value":531120000},{"time":"2015-09-29","value":537291000},{"time":"2016-09-29","value":571459000},{"time":"2017-05-24","value":25000000},{"time":"2018-03-13","value":8000000},{"time":"2018-09-29","value":771582000},{"time":"2019-09-29","value":812970000},{"time":"2020-09-29","value":732915000},{"time":"2021-09-29","value":715440000},{"time":"2022-09-29","value":857502000},{"time":"2023-09-29","value":956033000}],"Net Margins":[{"time":"2014-09-29","value":0.0007719536074710046},{"time":"2015-09-29","value":0.0791228589349161},{"time":"2016-09-29","value":0.08028922459879012},{"time":"2018-09-29","value":0.11941180587416503},{"time":"2019-09-29","value":0.09968264511605594},{"time":"2020-09-29","value":0.13914301112680189},{"time":"2021-09-29","value":0.0887509784188751},{"time":"2022-09-29","value":0.09599977609381669},{"time":"2023-09-29","value":0.09680105184653667}],"Assets":[{"time":"2014-09-29","value":845906000},{"time":"2015-09-29","value":864208000},{"time":"2016-09-29","value":978371000},{"time":"2018-09-29","value":1265122000},{"time":"2019-09-29","value":1466720000},{"time":"2020-09-29","value":1373523000},{"time":"2021-09-29","value":1577345000},{"time":"2022-09-29","value":1654456000},{"time":"2023-09-29","value":1683214000}],"Stockholders Equity":[{"time":"2014-09-29","value":580171000},{"time":"2015-09-29","value":584182000},{"time":"2016-09-29","value":615109000},{"time":"2018-09-29","value":759410000},{"time":"2019-09-29","value":826222000},{"time":"2020-09-29","value":961595000},{"time":"2021-09-29","value":1019696000},{"time":"2022-09-29","value":1048157000},{"time":"2023-09-29","value":1131142000}],"ROE":[{"time":"2014-09-29","value":0.0007066882005477695},{"time":"2015-09-29","value":0.07277184165208787},{"time":"2016-09-29","value":0.07459165773870972},{"time":"2018-09-29","value":0.12132576605522709},{"time":"2019-09-29","value":0.09808380798381065},{"time":"2020-09-29","value":0.10605296408571176},{"time":"2021-09-29","value":0.06226953915676829},{"time":"2022-09-29","value":0.07853785263085587},{"time":"2023-09-29","value":0.08181554570513694}],"ROA":[{"time":"2019-09-29","value":0.07521271953747137},{"time":"2020-09-29","value":0.03381304863478806},{"time":"2021-09-29","value":0.05114353549794116},{"time":"2022-09-29","value":0.06433232434105228},{"time":"2023-09-29","value":0.07066659379021324}]}
ESCO Technologies Inc. produces and supplies engineered products and systems for industrial and commercial markets worldwide. It operates through Aerospace & Defense, Utility Solutions Group, and RF Shielding and Test segments. The Aerospace & Defense segment designs and manufactures filtration products, including hydraulic filter elements and fluid control devices used in commercial aerospace applications; filter mechanisms used in micro-propulsion devices for satellites; and custom designed filters for manned aircraft and submarines. It also designs, develops, and manufactures elastomeric-based signature reduction solutions for U.S. naval vessels; and mission-critical bushings, pins, sleeves, and precision-tolerance machined components for landing gear, rotor heads, engine mounts, flight controls, and actuation systems for the aerospace and defense industries. The Utility Solutions Group segment provides diagnostic testing solutions that enable electric power grid operators to assess the integrity of high-voltage power delivery equipment; and decision support tools for the renewable energy industry, primarily wind and solar. The RF Shielding and Test segment designs and manufactures RF test and secure communication facilities, acoustic test enclosures, RF and magnetically shielded rooms, RF measurement systems, and broadcast and recording studios; and RF absorptive materials and filters, active compensation systems, antennas, antenna masts, turntables, electric and magnetic probes, RF test cells, proprietary measurement software, and other test accessories to perform various tests. It also provides services, such as calibration for antennas and field probes, chamber certification, field surveys, customer training, and various product tests. The company distributes its products through a network of distributors, sales representatives, direct sales teams, and in-house sales personnel. The company was incorporated in 1990 and is based in St. Louis, Missouri.
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DCF
Discounted Cash Flow Valuation of Esco Technologies Inc
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $73.22M | $78.29M | $83.55M | $88.98M | $94.57M | $100.3M | $106.2M | $112.2M | $118.3M | $124.4M | $130.7M | $1.307B |
| DCF | $68.08M | $63.17M | $58.51M | $54.07M | $49.88M | $45.91M | $42.18M | $38.67M | $35.38M | $32.3M | $323M | |
| Value | $811.1M | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 7.5%
Earnings Stability 9.4%
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 | 09-2016 | 05-2017 | 03-2018 | 09-2018 | 09-2019 | 09-2020 | 09-2021 | 09-2022 | 09-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 8% | - | - | 12% | 10% | 14% | 8.9% | 9.6% | 9.7% | 9.9% |
| ROA | - | - | - | - | 7.5% | 3.4% | 5.1% | 6.4% | 7.1% | 7% |
| ROE | 7.5% | - | - | 12% | 9.8% | 11% | 6.2% | 7.9% | 8.2% | 8.4% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +10.66%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -0.5%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +5.9%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +0.21%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +9.13%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -0.86%.
Safety & Stabiliy
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 | 09-2016 | 05-2017 | 03-2018 | 09-2018 | 09-2019 | 09-2020 | 09-2021 | 09-2022 | 09-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 2.17 | - | - | 3.30 | 4.53 | 1.11 | 1.80 | 1.68 | 2.24 | 2.88 |
| Debt Equity | 0.21 | - | - | 0.32 | 0.37 | 0.09 | 0.17 | 0.17 | 0.11 | 0.18 |
| MIN | ||||||||||
| Graham Stability | - | - | - | 100% | 88% | 100% | 69% | 100% | 100% | 69% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 2.88.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -0.38.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.69.
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 | 05-2017 | 09-2018 | 09-2020 | 09-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 68% | 4.4% | 9.3% | 11% | -53% |
| Net Income | - | 0.089% | -3.2% | 12% | -740% |
| Stockholders Equity | - | 8.3% | 5.6% | 7.9% | 0.52% |
| FCF | - | -5.6% | -11% | -47% | -6.9% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +4.38%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -52.8%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +0.09%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -744.56%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +8.29%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +0.52%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is -5.59%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -6.94%.