ESCO Technologies Inc. (ESE) AI Stock Analysis

ESCO Technologies Inc. manufactures and supplies engineered products and systems for industrial and commercial sectors worldwide through three key segments. Its Aerospace & Defense segment produces critical filtration products, hydraulic filter elements, fluid control devices, satellite filters, signature reduction solutions for U.S. naval vessels, and precision-tolerance machined components. The Utility Solutions Group provides diagnostic testing equipment for electric power grid operators and decision support tools for wind and solar energy. Its RF Shielding and Test segment designs acoustic test enclosures, magnetically shielded rooms, RF measurement systems, antennas, and absorptive materials, while offering calibration and testing services.

Between FY2021 and FY2025, revenue grew at a 5-year CAGR of 8.4%, advancing from $715.4M to $1.10B. Gross margin expanded from 37.8% in FY2021 to 42.1% in FY2025, while operating margin rose from 11.5% to 15.8%. Annual net income increased from $63.5M in FY2021 to $299.2M in FY2025, lifting EPS from $2.66 to $6.34. In the latest quarter ended June 30, 2026, quarterly revenue growth YoY reached 14.4%, and quarterly earnings growth YoY was 24.8%. Trailing twelve months revenue reached $1.29B, with EPS of $5.39.

As of June 30, 2026, ESCO Technologies held $73.2M in cash and short-term investments against total debt of $129.1M, yielding net debt of $55.9M. The company maintains a current ratio of 1.38 and a debt-to-equity ratio of 0.08, supported by shareholders' equity of $1.62B. In FY2025, operating cash flow was $241.9M and free cash flow reached $189.8M. Cash deployment in FY2025 included $52.2M in capital expenditures and $8.3M paid in dividends, while the share count decreased 0.6% over 5 years.

At a share price of $249.12, ESCO Technologies has a market cap of $6.45B and an enterprise value of $6.95B. The stock trades at a trailing P/E of 46.2x and a forward P/E of 25.4x, higher than the median of its US-listed Technology peers at 28.1x and 18.8x, respectively. Its enterprise value-to-EBITDA ratio of 22.2x and price-to-sales of 5.0x also exceed peer medians of 16.6x and 2.8x. Over the past year, the stock returned 15.9%, trailing the S&P 500 return of 16.8%, but its 5-year return of 198.8% outperformed the S&P 500 return of 83.0%.

ESCO Technologies pays a quarterly dividend with an annual forward payout of $0.32 per share, representing a dividend yield of 0.13%. The payout ratio is 4.0%, and the company has paid dividends for 18 consecutive years. The 5-year annualized dividend growth rate is 0.0%, and the last ex-dividend date was October 1, 2026.

Wall Street sentiment includes 2 Strong Buy and 2 Buy ratings, with zero Hold, Sell, or Strong Sell ratings. The mean price target is $352.75, which stands 41.6% above the last close of $249.12. For the fiscal year ending September 30, 2026, analysts estimate revenue of $1.31B and EPS of $8.36, representing EPS growth of 38.6%. ESCO has delivered EPS beats in each of the last 4 quarters, and the next earnings date is November 19, 2026.

This page is an AI-written research summary of ESCO Technologies Inc. (ESE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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