Esco Technologies (ESE) AI Stock Analysis

• Market Cap: $5.67B
• Dividend Yield: 0.15%
• Average Volume (3M): 171.12K
• Price to Earnings (P/E): 49.4
• Beta (1Y): 0.92
• Revenue Growth: 10.65%
• EPS Growth: 15.22%
• Country: US
• Employees: 3,242
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.57
• Shares Outstanding: 25,824,688
• 10 Day Avg. Volume: 118,870
• 30 Day Avg. Volume: 171,124
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 4.95
• Enterprise Value/Gross Profit: 12.21
• Enterprise Value/Ebitda: 26.40
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: $238.00 ▲(10.82% Upside)

Esco Technologies' strong financial performance and positive earnings call outlook are the most significant factors driving the score. Technical indicators show a strong upward trend, but valuation concerns due to a high P/E ratio and low dividend yield slightly offset these strengths.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and demand for Esco's products, supporting long-term business expansion.

Record Backlog

A record backlog suggests sustained demand and future revenue visibility, enhancing financial stability and planning capabilities.

Aerospace & Defense Segment Success

Growth in Aerospace & Defense strengthens Esco's market position in a high-margin sector, contributing to robust financial performance.

Negative Factors

Utility Group Sales and Margin Challenges

Flat sales and margin challenges in the Utility Group may hinder overall profitability and require strategic adjustments to drive growth.

Renewables Market Uncertainty

Uncertainty in the renewables market could impact Esco's growth in this sector, affecting long-term diversification and revenue streams.

Tariff Impacts

Tariff impacts, though minimal, could increase costs and pressure margins, necessitating strategic cost management to maintain competitiveness.

Esco Technologies Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Esco Technologies generates revenue through the sale of its high-tech products and services across various sectors. Key revenue streams include the sale of test and measurement equipment, which is utilized by clients in aerospace and telecommunications industries for product testing and validation. Additionally, the company earns income from its environmental testing solutions that allow clients to ensure compliance with regulatory standards. Utility metering solutions also contribute significantly to its earnings, as they are essential for modern energy management. Esco maintains strategic partnerships with major players in the aerospace and energy sectors, enhancing its market reach and providing access to larger contracts. The company's commitment to research and development ensures a continuous pipeline of innovative products, further solidifying its revenue generation capabilities.

Esco Technologies Financial Statement Overview

Summary

Esco Technologies exhibits strong financial health with consistent revenue and profit growth, supported by efficient operations and a solid balance sheet. While the company shows robust profitability and stable leverage, attention to cash flow management is necessary to sustain long-term growth.

Income Statement

Esco Technologies demonstrates strong revenue growth with a 3.32% increase in TTM, supported by healthy gross and net profit margins of 40.57% and 10.37%, respectively. The EBIT and EBITDA margins are robust at 14.98% and 18.76%, indicating efficient operational management. The consistent upward trend in revenue and profitability highlights the company's competitive positioning in the industry.

Balance Sheet

The company maintains a solid balance sheet with a manageable debt-to-equity ratio of 0.43, reflecting prudent financial leverage. The return on equity stands at 9.05%, showcasing effective utilization of shareholder funds. The equity ratio of 52.52% indicates a strong equity base, providing financial stability. However, the increase in total debt over the period warrants monitoring.

Cash Flow

Operating cash flow is positive, with a coverage ratio of 0.32, and free cash flow to net income ratio at 0.76, indicating good cash generation relative to earnings. However, the free cash flow growth rate shows a decline of 3.00% in TTM, suggesting potential challenges in cash flow management. Continued focus on improving cash flow efficiency is advisable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.11B	1.03B	956.03M	857.50M	715.44M	732.91M
Gross Profit	449.32M	404.02M	375.66M	332.05M	270.39M	272.16M
EBITDA	207.78M	200.54M	178.24M	159.63M	124.97M	84.47M
Net Income	114.83M	101.88M	92.55M	82.32M	63.50M	99.41M
Balance Sheet
Total Assets	2.53B	1.84B	1.68B	1.65B	1.58B	1.37B
Cash, Cash Equivalents and Short-Term Investments	78.72M	65.96M	41.87M	97.72M	56.23M	52.56M
Total Debt	568.63M	179.83M	163.53M	177.85M	216.10M	114.43M
Total Liabilities	1.20B	601.27M	552.07M	606.30M	557.65M	411.93M
Stockholders Equity	1.33B	1.24B	1.13B	1.05B	1.02B	961.60M
Cash Flow
Free Cash Flow	121.43M	91.38M	42.12M	90.26M	87.65M	41.15M
Operating Cash Flow	160.39M	127.54M	76.89M	135.28M	123.14M	82.28M
Investing Cash Flow	-524.95M	-104.64M	-52.47M	-55.92M	-202.44M	140.95M
Financing Cash Flow	334.52M	-773.00K	-78.33M	-32.12M	81.47M	-236.22M

Esco Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 214.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESE, the sentiment is Positive. The current price of 214.77 is below the 20-day moving average (MA) of 215.23, above the 50-day MA of 209.90, and above the 200-day MA of 179.89, indicating a bullish trend. The MACD of 3.25 indicates Negative momentum. The RSI at 58.38 is Neutral, neither overbought nor oversold. The STOCH value of 52.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESE.

Esco Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BMI	―	$5.32B	38.45	21.45%	0.79%	12.11%	16.45%
OSIS	―	$4.73B	31.56	17.58%	―	9.37%	15.70%
ESE	―	$5.67B	49.44	9.01%	0.15%	10.65%	15.22%
ITRI	―	$4.98B	18.62	16.93%	―	0.14%	14.12%
VNT	―	$5.59B	14.14	35.82%	0.26%	1.76%	4.10%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ST	―	$4.64B	-166.39	-0.92%	1.51%	-7.98%	63.50%

Esco Technologies Corporate Events

Esco Technologies Shines in Earnings Call with Strong Growth

The recent earnings call for Esco Technologies was marked by a strong performance, showcasing significant achievements in revenue growth, strategic acquisitions, and increased guidance. Despite facing some challenges in specific segments like utilities and renewables, the overall sentiment was positive, reflecting the company’s robust market position and strategic direction.

ESCO Technologies Reports Strong Q3 2025 Results

ESCO Technologies Inc., headquartered in St. Louis, Missouri, is a global provider of highly engineered products and solutions, serving diverse end-markets including aviation, Navy, and industrial sectors. The company is known for its expertise in filtration, fluid control, and RF test and measurement products.

ESCO Technologies Reports Strong Q3 2025 Results

On August 7, 2025, ESCO Technologies reported its fiscal 2025 third-quarter results, highlighting a 27% increase in sales to $296 million and a 25% rise in adjusted EPS from continuing operations to $1.60. The company completed the sale of VACCO Industries, marking its exit from the space business, and integrated ESCO Maritime Solutions, significantly boosting its Navy business. This strategic shift resulted in a record backlog of $1.17 billion and a book-to-bill ratio of 2.53x, positioning ESCO for continued above-market growth. The company raised its full-year FY 2025 guidance, expecting adjusted EPS growth of 21%-24% over the previous year.

The most recent analyst rating on (ESE) stock is a Hold with a $161.00 price target. To see the full list of analyst forecasts on Esco Technologies stock, see the ESE Stock Forecast page.