Loading stock…

ESAB Corporation (ESAB) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

ESAB Corporation

ESABMarket cap $4.17BPrice $67.1

Country🇺🇸United States

SectorIndustrials

IndustryMachinery

ESAB makes welding and cutting equipment plus consumables used in shipbuilding, construction, and energy projects worldwide. It's a 100-year-old industrial name that quietly dominates niche markets, turning unglamorous metalwork into surprisingly consistent, high-margin recurring revenue.

In Bastion Portfolios?

52W Return-45%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+3%4

Revenue Forecast

Rev CAGR (1y)+8%5

Rev CAGR (3y)+7%5

Rev CAGR (5y)+7%6

Earnings Forecast

EPS Growth Y+1+49%9

EPS Growth Y+2+20%8

EPS Growth Y+3+17%8

Quality

Margins

EBIT Margin15%6

Net Income Margin6%4

Free Cash Flow Margin7%5

Debt

Net Debt/EBITDA4.12

Efficiency

ROE9%4

ROA3%5

Earnings Stability55

GEAR+WEAK33

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)118

P/E Ratio (Forward 3y)99

P/BV1.87

EV Multiples

EV/EBITDA Fwd116

EV/EBIT Fwd127

Yield

Free Cash Flow Yield4.7%6

Dividend Yield0.7%2

Momentum

Short term

1 month return-10%2

3 month return-22%1

YTD return-40%1

Mid term

Price vs 52wHigh49%1

1 year return-44%1

Long term

3 year return-1%3

5 year return+37%5

Risk Shield

Price Risk

Beta1.23

Volatility46%4

Free Cash Flow

Free Cash Flow Margin7%5

Free Cash Flow Yield4.7%6

Quality

ROCE9%5

Earnings Stability55

Net Debt/EBITDA4.12

02Growth

Is it actually growing, and how fast?

ESABESAB

Revenue FY25$2.8B

GROWTH RATING↗

AVERAGE53 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+3%4

Revenue, next 1Y+8%5

Revenue, next 3Y, CAGR+7%5

Revenue, next 5Y, CAGR+7%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+49%9

EPS growth, FY27E+20%8

EPS growth, FY28E+17%8

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 3%/yr over the last 3 years and is set to grow 7%/yr from here.

Earnings are set to grow faster than sales (EPS about 20%/yr vs revenue 7%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 53% of companies worldwide.

Revenue is set to grow 7%/yr over the next 3 years, in line with the market.5/10

Over five years revenue is set to grow 7%/yr, ahead of 50% of companies worldwide.6/10

WEAKNESSES

None flagged.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower that's speeding up. The one thing to watch: forward revenue growth is only about average.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK5 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-10%2

3-month return-22%1

YTD return-40%1

MID & LONG-TERM▾SCORE

% of 52-week high49%1

1-year return-44%1

3-year return-1%3

5-year return+37%5

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (-1.1% over three years and +37% over five), roughly average for the market.

WEAKNESSES

It's down 44% over the past year, now 51% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-10%), over three months (-22%) and so far this year (-40%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the one-year trend is weak.

04Value

Are you paying a fair price for it?

Stop guessing on ESAB Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community

Loading charts…

02Growth

Is it actually growing, and how fast?

ESABESAB

Revenue FY25$2.8B

GROWTH RATING↗

AVERAGE53 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+3%4

Revenue, next 1Y+8%5

Revenue, next 3Y, CAGR+7%5

Revenue, next 5Y, CAGR+7%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+49%9

EPS growth, FY27E+20%8

EPS growth, FY28E+17%8

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 3%/yr over the last 3 years and is set to grow 7%/yr from here.

Earnings are set to grow faster than sales (EPS about 20%/yr vs revenue 7%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 53% of companies worldwide.

Revenue is set to grow 7%/yr over the next 3 years, in line with the market.5/10

Over five years revenue is set to grow 7%/yr, ahead of 50% of companies worldwide.6/10

WEAKNESSES

None flagged.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower that's speeding up. The one thing to watch: forward revenue growth is only about average.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK5 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-10%2

3-month return-22%1

YTD return-40%1

MID & LONG-TERM▾SCORE

% of 52-week high49%1

1-year return-44%1

3-year return-1%3

5-year return+37%5

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (-1.1% over three years and +37% over five), roughly average for the market.

WEAKNESSES

It's down 44% over the past year, now 51% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-10%), over three months (-22%) and so far this year (-40%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on ESAB Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community