Esco Technologies (ESE) AI Stock Analysis

• Market Cap: $5.29B
• Dividend Yield: 0.15%
• Average Volume (3M): 174.79K
• Price to Earnings (P/E): 42.0
• Beta (1Y): 0.89
• Revenue Growth: 13.13%
• EPS Growth: N/A
• Country: US
• Employees: 3,242
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.32
• Shares Outstanding: 25,824,688
• 10 Day Avg. Volume: 235,943
• 30 Day Avg. Volume: 174,787
• PEG Ratio: 0.10
• Price to Book (P/B): 3.55
• Price to Sales (P/S): 4.99
• P/FCF Ratio: 33.34
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 4.84
• Enterprise Value/Gross Profit: 12.20
• Enterprise Value/Ebitda: 22.92
• 1Y Price Target: $275.00
• Price Target Upside: 34.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 7.26
• Revenue Forecast (FY): $1.28B

• Rating: 68 Neutral
• Price Target: $223.00 ▲(9.30% Upside)

Esco Technologies' strong financial performance and positive earnings call sentiment are key strengths, contributing to a solid overall score. However, technical analysis indicates bearish momentum, and the valuation suggests the stock may be overvalued, which tempers the overall score.

Positive Factors

Strong Organic Sales Growth

Strong organic sales growth indicates robust demand for Esco's products, suggesting effective market penetration and customer retention, which can drive long-term revenue stability.

Robust Cash Flow Management

Strong cash flow management and debt reduction enhance Esco's financial flexibility, allowing for strategic investments and resilience against economic fluctuations.

Aerospace and Defense Segment Performance

The strong performance in the aerospace and defense segment underscores Esco's competitive position and ability to capitalize on industry growth, supporting future revenue and profit expansion.

Negative Factors

Challenges in Renewables Market

Policy headwinds in the renewables market could limit growth opportunities in this segment, potentially impacting Esco's diversification strategy and long-term revenue prospects.

Slight Margin Pressure in A&D Segment

Margin pressure in a key segment like aerospace and defense could affect overall profitability, requiring careful management to maintain competitive advantage and shareholder returns.

Decline in Revenue Growth Rate

A decline in revenue growth rate suggests potential challenges in maintaining momentum, which could impact Esco's ability to achieve long-term growth targets and market share expansion.

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 demonstrates strong financial health with robust profitability, efficient cash flow management, and a stable balance sheet. However, the company faces a challenge in revenue growth, which slightly tempers the overall financial performance score.

Income Statement

Esco Technologies has demonstrated strong profitability with a high net profit margin of 27.32% and a gross profit margin of 42.09% in the latest year. However, the revenue growth rate has declined by 1.09%, indicating a potential challenge in maintaining revenue momentum. The EBIT and EBITDA margins are healthy at 15.55% and 22.40%, respectively, showcasing efficient operational management.

Balance Sheet

The company's balance sheet is stable with a low debt-to-equity ratio of 0.15, reflecting prudent financial leverage. The return on equity is strong at 19.42%, indicating effective use of shareholder funds. The equity ratio stands at 64.35%, suggesting a solid equity base relative to total assets.

Cash Flow

Esco Technologies has shown impressive cash flow management with a significant free cash flow growth rate of 35.12%. The operating cash flow to net income ratio is 0.39, and the free cash flow to net income ratio is 0.82, indicating strong cash generation relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.16B	1.10B	1.03B	956.03M	857.50M	715.44M
Gross Profit	461.08M	461.08M	404.02M	375.66M	332.05M	270.39M
EBITDA	245.38M	245.38M	200.54M	178.24M	159.63M	124.97M
Net Income	299.22M	299.22M	101.88M	92.55M	82.32M	63.50M
Balance Sheet
Total Assets	2.39B	2.39B	1.84B	1.68B	1.65B	1.58B
Cash, Cash Equivalents and Short-Term Investments	101.35M	101.35M	65.96M	41.87M	97.72M	56.23M
Total Debt	210.40M	230.40M	179.83M	163.53M	177.85M	216.10M
Total Liabilities	830.94M	830.94M	601.27M	552.07M	606.30M	557.65M
Stockholders Equity	1.56B	1.54B	1.24B	1.13B	1.05B	1.02B
Cash Flow
Free Cash Flow	205.62M	164.07M	91.38M	42.12M	90.26M	87.65M
Operating Cash Flow	241.94M	200.40M	127.54M	76.89M	135.28M	123.14M
Investing Cash Flow	-255.79M	-255.79M	-104.64M	-52.47M	-55.92M	-202.44M
Financing Cash Flow	49.54M	49.54M	-773.00K	-78.33M	-32.12M	81.47M

Esco Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 204.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESE, the sentiment is Negative. The current price of 204.02 is below the 20-day moving average (MA) of 216.15, below the 50-day MA of 214.84, and above the 200-day MA of 187.77, indicating a neutral trend. The MACD of -1.80 indicates Positive momentum. The RSI at 38.87 is Neutral, neither overbought nor oversold. The STOCH value of 9.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ESE.

Esco Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BMI	78 Outperform	$5.11B	36.92	21.45%	0.85%	12.11%	16.45%
OSIS	71 Outperform	$4.56B	30.42	17.58%	―	9.37%	15.70%
ESE	68 Neutral	$5.29B	41.96	8.93%	0.15%	13.13%	―
VNT	67 Neutral	$5.17B	13.09	35.82%	0.28%	1.76%	4.10%
ITRI	66 Neutral	$4.46B	17.51	16.93%	―	0.14%	14.12%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ST	59 Neutral	$4.73B	―	-0.92%	1.50%	-8.07%	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.