Esco Technologies Story

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ESE -- USA Stock  

USD 107.37  1.40  1.32%

While some of us are excited about technology space, it makes sense to digest ESCO in greater detail to make a better assessment of its actual value. We will check why this entity may not get much respect from shareholders given the current market uncertainty. Is ESCO valuation sustainable? Here I will cover a perspective on valuation of ESCO to give you a better outlook on taking a position in this stock.
Published over three weeks ago
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What is the real value of ESCO?
The company has 114.43 M in debt with debt to equity (D/E) ratio of 0.12, which may show that the firm is not taking advantage of profits from borrowing. ESCO has a current ratio of 1.71, which is typical for the industry and considered as normal. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. ESCO has an asset utilization ratio of 74.91 percent. This indicates that the company is making $0.75 for each dollar of assets. An increasing asset utilization means that ESCO is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of Esco Technologies using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Esco Technologies based exclusively on its fundamental and basic technical indicators. By analyzing Esco Technologies's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Esco Technologies's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Esco Technologies. We calculate exposure to Esco Technologies's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Esco Technologies's related companies.

Esco Technologies Investment Alerts

Esco Technologies investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Esco Technologies performance across your portfolios.Please check all investment alerts for Esco Technologies

Esco Technologies Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Esco Technologies value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Esco Technologies competition to find correlations between indicators driving the intrinsic value of Esco Technologies.

How Esco Technologies utilizes its cash?

To perform a cash flow analysis of Esco Technologies, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Esco Technologies is receiving and how much cash it distributes out in a given period. The Esco Technologies cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Esco Technologies Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 94.62 Million

Breaking down Esco Technologies Indicators

The entity reported the last year's revenue of 732.92 M. Total Income to common stockholders was 25.46 M with profit before taxes, overhead, and interest of 275.5 M.

Margins Breakdown

ESCO profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or ESCO itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of ESCO profit margins.
Operating Margin10.45
EBITDA Margin0.23
Gross Margin0.34
Profit Margin0.13


ESCO Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. ESCO Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. The latest value of ESCO Earnings Before Interest Taxes and Depreciation Amortization USD is 154,292,105.

Will ESCO continue to surge?

Latest mean deviation is at 1.66. ESCO has relatively low volatility with skewness of 1.11 and kurtosis of 3.28. However, we advise all investors to independently investigate ESCO to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Conclusion on ESCO

Although few other entities under the scientific & technical instruments industry are still a bit expensive, ESCO may offer a potential longer-term growth to shareholders. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of ESCO as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to ESCO.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Esco Technologies. Please refer to our Terms of Use for any information regarding our disclosure principles.

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