Esco Technologies Inc

Telecommunications
Telecommunications Equipment
www.escotechnologies.com

Earnings Score
Moat Score
Safety Score

Market Cap $4.21B
PE 38
Debt $132.00M
Cash $71.28M
EV $4.27B
FCF $119.44M

Earnings

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Sales & Net Margins

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Earnings	$110.19M
EBIT	$140.38M
ROE	9%
ROA	8%
FCF	$119.44M
Equity	$1.24B
Growth Stability	69%
PE	38.23
PEG	3.42
PB	3.41
P/FCF	35.27
P/S	3.99
Price/Cash	0.02
Debt/Equity	0.11
Debt/FCF	1.11
Net Margins	10%
Gross Margins	40%
Op. Margins	13%
Earnings CAGR	6%
Sales Growth YoY	13%
Sales Growth QoQ	-17%
Sales CAGR	22%
FCF CAGR	6%
Equity CAGR	9%
Earnings Stability	0.03
Earnings Growth YoY	55%
Earnings Growth QoQ	-31%
Earnings CAGR 5Y	11%

Sales CAGR 5Y	9%
FCF CAGR 5Y	-1%
Equity CAGR 5Y	6%
Earnings CAGR 3Y	11%
Sales CAGR 3Y	11%
FCF CAGR 3Y	12%
Equity CAGR 3Y	8%
Market Cap	$4.21B
Revenue	$1.06B
Dividend Yield	0%
Payout Ratio	7%
Assets	$1.80B
Total Debt	$132.00M
Cash	$71.28M
Shares Outstanding	25.78M
EV	4.27B
Earnings Score	6%
Moat Score	87%
Safety Score	92%
Final Score	62%
Working Capital	329.4M
Current Ratio	2.04
Gross Profit	$418.24M
Shares Growth 3y	-0%
Equity Growth QoQ	-0%
Equity Growth YoY	7%

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-Q Dec 31
- 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 3%

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Esco Technologies Inc Discounted Cash Flow

Fully customizable DCF calculator online for Esco Technologies Inc.

Years

Calculation mode

= $1.8B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$119M	$127M	$135M	$143M	$152M	$161M	$171M	$182M	$193M	$205M	$218M	$2.2B
DCF		$115M	$111M	$108M	$104M	$100M	$97M	$93M	$90M	$87M	$84M	$841M
Value	$1.8B

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%	8%
ROE	-	7%	-	-	12%	10%	11%	6%	8%	8%	8%	9%

Net Margins (9.5%)

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	1.11
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 (1.11)

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%	9%
Earnings YoY growth	-	8%	-	-	-	-12%	26%	-38%	30%	12%	10%	11%
Equity YoY growth	-	5%	-	-	-	9%	16%	6%	3%	8%	9%	6%
FCF YoY growth	-	13%	-	-	-	-6%	12%	26%	7%	-47%	68%	-1%