ESAB Corporation Common Stock (ESAB)

FairStock Score: 44/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses bought at a sensible price. ESAB has made welding consumables and equipment since 1904, sells through independent distributors and direct salespeople worldwide, and has recurring consumable demand. That can be a modest advantage, but the recent numbers show stress. In fiscal Q2 2026, the quarter ended 2026-07-03, revenue was $807.6M, up from $715.6M in fiscal Q2 2025, the quarter ended 2025-07-04. Yet net income fell to $32.4M from $66.9M, and diluted EPS dropped to $0.50 from $1.09. For fiscal year 2025, the period ended 2025-12-31, net income was $226.8M and diluted EPS $3.67, below fiscal year 2024's $264.8M and $4.31. The provided figures show profit growth of -51.63%, ROE of 8.73%, ROCE of 5.00%, and debt-to-equity of 0.98. FairStock's Altman Z-Score is 1.12 and Piotroski F-Score 4/9, neither a sign of fortress strength. Free cash flow is $196.6M, a 4.7% yield, respectable but not enough to ignore weak returns. At the 2026-10-13 close of $66.86, the P/E is 20.96 and P/B is 1.76, both FairStock calculations. The Graham Number is $54.14, so the price trades about 23.5% above that conservative value. EV/EBITDA is 14.04. FairStock calls ESAB a SLOW GROWER, with profit growing 7.6% annually over five years and revenue 7.8%. The 52-week range is $62.74 to $137.42; the stock is near the low, but cheapness alone is not a margin of safety if earnings keep falling. I would want evidence that margins and returns recover before paying over 20 times earnings.

In plain English: ESAB makes welding, cutting, and gas-control products used in factories and industrial work around the world. The company still sells more than before, but its recent profit fell sharply and it uses a fair amount of debt. Based on the given numbers, the shares look full or slightly expensive rather than a clear bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-07-03) · fiscal Q1 2026 10-Q (period ended 2026-04-03) · fiscal Q3 2025 10-Q (period ended 2025-10-03) · fiscal Q2 2025 10-Q (period ended 2025-07-04) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer