No connection

Search Results

ESE

NEUTRAL
$319.9 Live
ESCO Technologies Inc. · NYSE
Target $365.0 (+14.1%)
$152.92 52W Range $325.54

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Apr 27, 2026
Market cap
$8.29B
P/E
66.65
ROE
8.9%
Profit margin
26.0%
Debt/Equity
0.14
Dividend yield
0.1%

AI Analysis

AI-powered fundamental assessment

Confidence
85%
ESE exhibits stable financial health with a Piotroski F-Score of 6/9 and an exceptionally low debt-to-equity ratio of 0.14. While revenue growth is robust at 35% YoY and earnings beats are consistent, the stock is trading at a severe premium, far exceeding its Graham Number ($80.68) and Intrinsic Value ($141.6). Heavy insider selling by the CEO and CFO, combined with a trailing P/E of 66.65, suggests the current price may have outpaced fundamental value. The strategic exit from the Space business and reliance on US Government defense spending add a layer of systemic risk despite strong analyst recommendations.

Key Strengths

Robust top-line growth with 35% YoY revenue increase
Excellent balance sheet with very low leverage (Debt/Equity 0.14)
Strong profitability with a 26.01% profit margin
Consistent track record of earnings beats over 25 quarters
Substantial 12-month backlog of $722 million providing revenue visibility

Key Risks

Extreme valuation premium with a P/E of 66.65 and P/S of 7.08
Bearish insider activity with significant selling by CEO and CFO
High concentration risk with 23% of revenue tied to US Government defense spending
Significant disconnect between current price ($319.90) and defensive fair value ($80.68)
Recent negative Q/Q EPS growth of -29.3%
AI Fair Value Estimate
Based on comprehensive analysis
$175.0
-45.3% below current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
61
Strong
Value
30
Future
85
Past
90
Health
80
Dividend
20
AI Verdict
Growth-Driven Premium
Key drivers: High Revenue Growth, Low Debt, Extreme Valuation Gap
Confidence
85%
Value
30/100

Ref P/E 66.65, PEG 1.67, Graham Number $80.68

Positives
  • Forward P/E (34.97) is significantly lower than trailing P/E
Watchpoints
  • Price is ~4x the Graham Number
  • P/E ratio is highly elevated
Future
85/100

Ref Growth rates and 10-K backlog data

Positives
  • 35% YoY Revenue Growth
  • Strong order backlog
Watchpoints
  • Dependence on Congressional appropriations
Past
90/100

Ref 25-quarter earnings track record

Positives
  • Long-term history of beating estimates
  • Strong 5-year price appreciation (+189%)
Watchpoints
No urgent risks highlighted.
Health
80/100

Ref Piotroski F-Score and Debt/Equity

Positives
  • Piotroski F-Score 6/9 (Stable)
  • Very low Debt/Equity (0.14)
Watchpoints
  • Quick ratio below 1.0 (0.84)
Dividend
20/100

Ref Yield 0.10%, Payout 6.65%

Positives
  • Very low payout ratio (6.65%) allows for growth
Watchpoints
  • Negligible dividend yield (0.10%)

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$319.9
Analyst Target
$365.0
Upside/Downside
+14.1%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for ESE and closest competitors.

Updated 2026-04-24
ESE
ESCO Technologies Inc.
Primary
5Y
+189.0%
3Y
+238.8%
1Y
+102.9%
6M
+44.7%
1M
+10.8%
1W
+1.6%
GDS
GDS Holdings Limited
Peer
5Y
-46.1%
3Y
+138.5%
1Y
+112.0%
6M
+7.2%
1M
-6.2%
1W
+3.2%
MAN
Manhattan Associates, Inc.
Peer
5Y
+9.2%
3Y
-15.7%
1Y
-16.6%
6M
-33.1%
1M
-2.5%
1W
+6.1%
SWK
Skyworks Solutions, Inc.
Peer
5Y
-63.4%
3Y
-38.4%
1Y
+9.3%
6M
-20.1%
1M
+9.2%
1W
+5.2%
QRV
Qorvo, Inc.
Peer
5Y
-56.5%
3Y
-12.4%
1Y
+42.1%
6M
-11.1%
1M
+6.2%
1W
+2.6%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
66.65
Forward P/E
34.97
PEG Ratio
1.67
P/B Ratio
5.31
P/S Ratio
7.08
EV/Revenue
7.17
EV/EBITDA
30.78
Market Cap
$8.29B

Profitability

Profit margins and return metrics

Profit Margin 26.01%
Operating Margin 13.25%
Gross Margin 41.92%
ROE 8.91%
ROA 5.49%

Growth

Revenue and earnings growth rates

Revenue Growth +35.0%
Earnings Growth +21.9%
Q/Q Revenue Growth +34.98%
Q/Q Earnings Growth +22.2%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
0.14
Low debt
Current Ratio
1.33
Good
Quick Ratio
0.84
Poor
Cash/Share
$4.01

Financial Statement Flow

Interactive flow visualization showing how money moves through the company Q4 2025

Revenue
$0.3B
Gross Margin
41.4%
Op. Margin
13.3%
Net Margin
9.9%
Total Assets
$2.4B
Liabilities
$0.8B
Equity
$1.6B
Debt/Equity
0.54x
Operating CF
$0.1B
CapEx
$-0.0B
Free Cash Flow
$0.1B
FCF Yield
88%

Quarterly Earnings History

EPS performance vs analyst estimates

2026-05-07
$N/A
2026-02-05
$1.64
+24.2% surprise
2025-11-20
$2.32
+8.7% surprise
2025-08-07
$1.6
-2.8% surprise

Technology Sector Comparison

Comparing ESE against 555 companies in the Technology sector (45 bullish, 190 neutral, 320 bearish)
P/E Ratio
66.65
This Stock
vs
82.84
Sector Avg
-19.5% (Discount)
Return on Equity (ROE)
8.91%
This Stock
vs
-34.19%
Sector Avg
-126.1% (Below Avg)
Profit Margin
26.01%
This Stock
vs
-12.18%
Sector Avg
-313.6% (Weaker)
Debt to Equity
0.14
This Stock
vs
0.73
Sector Avg
-81.6% (Less Debt)
Revenue Growth
35.0%
This Stock
vs
4463.53%
Sector Avg
-99.2% (Slower)
Current Ratio
1.33
This Stock
vs
3.62
Sector Avg
-63.2% (Weaker)

Similar Companies

Peer comparison within the same industry

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

PHILLIPPY ROBERT J
Director
Option Exercise
2026-02-05
1,349 shares · $321,602
VALDEZ GLORIA L
Director
Option Exercise
2026-02-05
1,349 shares · $321,602
CONNER PENELOPE M
Director
Option Exercise
2026-02-05
1,349 shares · $321,602
HESS JANICE L.
Director
Option Exercise
2026-02-05
1,349 shares · $321,602
KHILNANI VINOD M
Director
Option Exercise
2026-02-05
1,349 shares · $321,602
HESS JANICE L.
Director
Option Exercise
2025-12-01
5,623 shares · $1,152,546
SAYLER BRYAN H
Chief Executive Officer
Sell
2025-11-26
9,783 shares · $2,152,260
KHILNANI VINOD M
Director
Sell
2025-11-26
3,216 shares · $702,364
PHILLIPPY ROBERT J
Director
Sell
2025-11-25
3,700 shares · $823,370
TUCKER CHRISTOPHER L.
Chief Financial Officer
Sell
2025-11-25
5,000 shares · $1,100,750
SCHATZ DAVID M
General Counsel
Sell
2025-11-25
2,498 shares · $563,674
SCHATZ DAVID M
General Counsel
Sell
2025-11-25
2,498 shares · $563,674
TUCKER CHRISTOPHER L.
Chief Financial Officer
Stock Award
2025-11-17
7,167 shares
SCHATZ DAVID M
General Counsel
Stock Award
2025-11-17
3,795 shares
SAYLER BRYAN H
Chief Executive Officer
Stock Award
2025-11-17
19,467 shares
Insider transactions can signal confidence or concerns about company prospects

SEC Filings

Recent regulatory filings from the SEC EDGAR database

8-K
FORM 8-K
2026-04-16

ESE filed an 8-K on April 16, 2026, likely to announce its first-quarter financial results.

8-K
FORM 8-K
2026-04-15
10-Q
10-Q
2026-02-09

ESE filed its quarterly Form 10-Q on February 9, 2026. Specific financial highlights and risk factors were not provided in the available metadata.

8-K
FORM 8-K
2026-02-05

ESE filed an 8-K on February 5, 2026, likely to announce its fourth-quarter and full-year financial results.

DEF 14A
DEF 14A
2025-12-10

ESE filed a definitive proxy statement (DEF 14A) on December 10, 2025, providing shareholders with necessary information for an upcoming vote.

10-K
10-K
2025-12-01

ESCO Technologies Inc. recorded a $172.6 million after-tax gain from the July 2025 sale of VACCO Industries for approximately $270 million, using the proceeds primarily to reduce debt and strategically exit the Space business. The company faces significant risk from its reliance on U.S. Government defense spending, which accounted for approximately 23% of revenues from continuing operations in 2025.

8-K
FORM 8-K
2025-11-20
10-Q
10-Q
2025-08-11

ESE filed its quarterly Form 10-Q on August 11, 2025. Specific financial highlights and risk factors were not provided in the available metadata.

8-K
FORM 8-K
2025-08-07

ESE filed an 8-K on August 7, 2025, likely to announce its second-quarter financial results.

10-Q
10-Q
2025-05-09

ESE filed its quarterly Form 10-Q on May 9, 2025. Specific financial highlights and risk factors were not provided in the available metadata.

8-K
FORM 8-K
2025-05-07
8-K
FORM 8-K
2025-04-28
10-Q
10-Q
2025-02-10
8-K
FORM 8-K
2025-02-06
DEF 14A
FORM DEF 14A
2024-12-16
Data sourced from SEC EDGAR. AI summaries generated automatically.

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
STRONG_BUY
3 analysts
Deutsche Bank
2026-03-25
init
Buy
Stephens & Co.
2026-02-09
Maintains
Overweight Overweight
Stephens & Co.
2025-11-24
Maintains
Overweight Overweight

Past News Coverage

Recent headlines mentioning ESE from our newsroom.

Newest → oldest
TradingGPT V2 Copilot
Fundamentals • Valuation • Risk
Hi! I'm your fundamentals copilot.

Ask me to:
• Summarize the business quality
• Review valuation and multiples
• Highlight risks and red flags
• Explain growth and margin trends
Home
Terminal
AI Chat
Markets
Profile