ESCO Technologies Inc. Common Stock (ESE)

FairStock Score: 46/100 — MIXED

Key Financials

AI Analysis

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

I look for businesses with durable demand, conservative finances, and a price that leaves room for error. ESCO sells engineered components and systems into aviation, navy, defense, and industrial markets—often mission-critical filtration, fluid-control, and electro-explosive devices. That niche can be sticky. In fiscal Q3 2026, the quarter ended 2026-06-30, revenue was $339.0M, net income $32.7M, and diluted EPS $1.26. A year earlier, fiscal Q3 2025, the quarter ended 2025-06-30, had revenue of $296.3M, net income $26.1M, and diluted EPS $1.01. So the latest quarter grew nicely. For full fiscal 2025, ESCO reported revenue of $1.1B, net income of $299.2M, and diluted EPS of $11.55; fiscal 2024 showed $919.1M revenue, $101.9M net income, and $3.94 EPS. The balance sheet looks conservative: debt-to-equity is 0.09 and Altman Z-Score is 6.20. Free cash flow over the trailing twelve months was $196.6M. But returns are only fair—ROE 9.50%, ROCE 5.11%—and the price is high. At the close on 2026-10-13, the shares were $260.43, with a FairStock P/E of 48.23, P/B of 4.17, PEG of 4.05, and FCF yield of 2.9%. The Graham Number is $87.09, leaving a margin of safety of -199.04%. FairStock scores it 46/100, with a Piotroski F-Score of 5/9. The Lynch category is STALWART. I admire the business, but I would want a much lower price before calling it a bargain.

In plain English: ESCO Technologies makes specialized parts and systems for airplanes, the Navy, defense, and factories. The business is profitable and growing, with sales and profit higher in the June 2026 quarter than a year earlier, and it uses very little borrowed money. At the recent price of $260.43, the shares look expensive compared with the company's profits and cash flow.

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

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

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