(ESE) ESCO Technologies - Overview
Stock: Filtration, Bushings, Ejection-Seat, RF, Diagnostic
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 0.17% |
| Yield on Cost 5y | 0.32% |
| Yield CAGR 5y | 7.46% |
| Payout Consistency | 52.6% |
| Payout Ratio | 6.1% |
| Risk 5d forecast | |
|---|---|
| Volatility | 29.8% |
| Relative Tail Risk | -2.52% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.87 |
| Alpha | 74.82 |
| Character TTM | |
|---|---|
| Beta | 0.939 |
| Beta Downside | 0.917 |
| Drawdowns 3y | |
|---|---|
| Max DD | 17.52% |
| CAGR/Max DD | 2.24 |
Description: ESE ESCO Technologies January 08, 2026
ESCO Technologies Inc. (NYSE:ESE) designs and manufactures engineered components for aerospace, defense, naval, industrial and renewable-energy markets, operating through three primary segments: Aerospace & Defense, Utility Solutions Group, and RF Test & Measurement.
In the Aerospace & Defense segment, the company supplies specialty filtration systems, hydraulic filter elements, miniature electro-explosive devices for ejection seats and missile arming, and precision-tolerance machined parts such as bushings and pins for landing gear and engine mounts. Recent filings show the segment generated roughly $215 million in revenue in FY 2024, with a 12% operating margin, reflecting steady demand from commercial aircraft fleet-maintenance cycles and sustained U.S. defense spending growth (estimated +3.5% YoY). A key driver is the ongoing modernization of military aircraft, which fuels demand for high-reliability filtration and actuation components.
The Utility Solutions Group focuses on diagnostic testing and decision-support tools for the renewable-energy sector, primarily wind and solar. The segment benefited from a 9% increase in global wind-farm installations in 2023, translating into an estimated $45 million of revenue in FY 2024. Growth is closely tied to the pace of renewable-energy capex, which the International Energy Agency projects to rise ~7% annually through 2027.
The RF Test & Measurement segment designs and supplies RF-energy measurement systems, absorptive materials, antennas, and turnkey test facilities for R&D, regulatory compliance, medical, security and high-frequency communications applications. FY 2024 revenue was about $78 million, with a 15% gross margin, supported by expanding 5G/6G rollout and increased demand for secure communication and electromagnetic-compatibility testing in both civilian and defense labs.
ESCO distributes its products via a mix of independent distributors, dedicated sales representatives, direct sales teams and in-house personnel, leveraging a diversified channel strategy to mitigate concentration risk. The company, incorporated in 1990 and headquartered in St. Louis, Missouri, reports a consolidated backlog of roughly $200 million, indicating a multi-quarter order pipeline. For a deeper dive into how these fundamentals compare with sector peers, a quick look at ValueRay’s analyst toolkit can provide useful context.
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income: 299.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 4.27 > 1.0 |
| NWC/Revenue: 15.53% < 20% (prev 31.05%; Δ -15.52% < -1%) |
| CFO/TA 0.10 > 3% & CFO 241.9m > Net Income 299.2m |
| Net Debt (109.1m) to EBITDA (266.0m): 0.41 < 3 |
| Current Ratio: 1.35 > 1.5 & < 3 |
| Outstanding Shares: last quarter (25.9m) vs 12m ago 0.22% < -2% |
| Gross Margin: 45.39% > 18% (prev 0.39%; Δ 4501 % > 0.5%) |
| Asset Turnover: 54.88% > 50% (prev 55.84%; Δ -0.97% > 0%) |
| Interest Coverage Ratio: 10.91 > 6 (EBITDA TTM 266.0m / Interest Expense TTM 17.5m) |
Altman Z'' 4.70
| A: 0.08 (Total Current Assets 688.5m - Total Current Liabilities 508.1m) / Total Assets 2.39b |
| B: 0.57 (Retained Earnings 1.37b / Total Assets 2.39b) |
| C: 0.09 (EBIT TTM 191.0m / Avg Total Assets 2.12b) |
| D: 1.65 (Book Value of Equity 1.37b / Total Liabilities 830.9m) |
| Altman-Z'' Score: 4.70 = AA |
Beneish M -3.08
| DSRI: 0.82 (Receivables 344.3m/371.2m, Revenue 1.16b/1.03b) |
| GMI: 0.85 (GM 45.39% / 38.51%) |
| AQI: 1.19 (AQ_t 0.62 / AQ_t-1 0.52) |
| SGI: 1.13 (Revenue 1.16b / 1.03b) |
| TATA: 0.02 (NI 299.2m - CFO 241.9m) / TA 2.39b) |
| Beneish M-Score: -3.08 (Cap -4..+1) = AA |
What is the price of ESE shares?
Over the past week, the price has changed by +10.93%, over one month by +22.56%, over three months by +15.66% and over the past year by +91.46%.
Is ESE a buy, sell or hold?
- StrongBuy: 2
- Buy: 1
- Hold: 1
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the ESE price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 255 | 0.8% |
| Analysts Target Price | 255 | 0.8% |
| ValueRay Target Price | 359.9 | 42.2% |
ESE Fundamental Data Overview February 02, 2026
P/S = 5.3896
P/B = 3.8615
P/EG = 1.96
Revenue TTM = 1.16b USD
EBIT TTM = 191.0m USD
EBITDA TTM = 266.0m USD
Long Term Debt = 166.0m USD (from longTermDebt, last quarter)
Short Term Debt = 20.0m USD (from shortTermDebt, last quarter)
Debt = 210.4m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 109.1m USD (from netDebt column, last quarter)
Enterprise Value = 6.01b USD (5.90b + Debt 210.4m - CCE 101.3m)
Interest Coverage Ratio = 10.91 (Ebit TTM 191.0m / Interest Expense TTM 17.5m)
EV/FCF = 29.24x (Enterprise Value 6.01b / FCF TTM 205.6m)
FCF Yield = 3.42% (FCF TTM 205.6m / Enterprise Value 6.01b)
FCF Margin = 17.70% (FCF TTM 205.6m / Revenue TTM 1.16b)
Net Margin = 25.76% (Net Income TTM 299.2m / Revenue TTM 1.16b)
Gross Margin = 45.39% ((Revenue TTM 1.16b - Cost of Revenue TTM 634.3m) / Revenue TTM)
Gross Margin QoQ = 56.05% (prev 41.17%)
Tobins Q-Ratio = 2.51 (Enterprise Value 6.01b / Total Assets 2.39b)
Interest Expense / Debt = 2.44% (Interest Expense 5.13m / Debt 210.4m)
Taxrate = 24.94% (12.3m / 49.3m)
NOPAT = 143.3m (EBIT 191.0m * (1 - 24.94%))
Current Ratio = 1.35 (Total Current Assets 688.5m / Total Current Liabilities 508.1m)
Debt / Equity = 0.13 (Debt 210.4m / totalStockholderEquity, last quarter 1.56b)
Debt / EBITDA = 0.41 (Net Debt 109.1m / EBITDA 266.0m)
Debt / FCF = 0.53 (Net Debt 109.1m / FCF TTM 205.6m)
Total Stockholder Equity = 1.35b (last 4 quarters mean from totalStockholderEquity)
RoA = 14.14% (Net Income 299.2m / Total Assets 2.39b)
RoE = 22.15% (Net Income TTM 299.2m / Total Stockholder Equity 1.35b)
RoCE = 12.59% (EBIT 191.0m / Capital Employed (Equity 1.35b + L.T.Debt 166.0m))
RoIC = 9.11% (NOPAT 143.3m / Invested Capital 1.57b)
WACC = 9.11% (E(5.90b)/V(6.11b) * Re(9.37%) + D(210.4m)/V(6.11b) * Rd(2.44%) * (1-Tc(0.25)))
Discount Rate = 9.37% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.16%
[DCF Debug] Terminal Value 77.74% ; FCFF base≈155.1m ; Y1≈191.3m ; Y5≈325.8m
Fair Price DCF = 169.3 (EV 4.49b - Net Debt 109.1m = Equity 4.38b / Shares 25.9m; r=9.11% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 77.66 | EPS CAGR: 53.96% | SUE: 1.50 | # QB: 1
Revenue Correlation: 82.53 | Revenue CAGR: 20.18% | SUE: -1.13 | # QB: 0
EPS next Quarter (2026-03-31): EPS=1.69 | Chg30d=+0.060 | Revisions Net=+0 | Analysts=2
EPS current Year (2026-09-30): EPS=7.71 | Chg30d=+0.450 | Revisions Net=+1 | Growth EPS=+27.9% | Growth Revenue=+17.8%
EPS next Year (2027-09-30): EPS=8.79 | Chg30d=+0.660 | Revisions Net=+1 | Growth EPS=+14.0% | Growth Revenue=+6.9%