ESAB Stock Analysis: ESAB | NYSE
Metal Fabrication | NYSE, USA | Market Cap: 4.443m USD | 12M Return: -43.3% | US29605J1060 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 74.8M
EPS Trend: 96.5%
Qual. Beats: 0
Rev. Trend: 69.0%
Qual. Beats: 1
Warnings
Tailwinds
No distinct edge detected
Seasonality 4.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
ESAB Corporation (NYSE: ESAB) is a U.S.-based industrial company that formulates, develops, manufactures, and supplies consumables and equipment for cutting, joining, automated welding, and gas control. The company sells through independent distributors and direct sales personnel, operating across Europe, Asia Pacific, South America, and the Middle East. Founded in 1904 and headquartered in North Bethesda, Maryland, ESAB has a long heritage in the welding and fabrication industry.
The company was spun off as a public entity in April 2022 and is classified within the GICS Industrials sector, specifically in the Industrial Machinery & Supplies & Components sub-industry. Its business model spans both consumables (a recurring revenue stream, as items like welding electrodes, wires, and gases are used up during fabrication) and equipment (longer-life capital goods such as welding machines and cutting systems), giving it exposure to both aftermarket demand and broader industrial capex cycles. Welding consumables and equipment are widely used in construction, shipbuilding, oil and gas, automotive, and general manufacturing, tying ESABs performance to global industrial activity.
- Welding demand tracks global industrial production and capex cycles
- Steel and raw material costs pressure gross margins
- Automation and M&A expand high-margin product mix
| Net Income: 172.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -2.83 > 1.0 |
| NWC/Revenue: 24.96% < 20% (prev 23.74%; Δ 1.23% < -1%) |
| CFO/TA 0.04 > 3% & CFO 258.9m > Net Income 172.5m |
| Net Debt (2.35b) to EBITDA (443.5m): 5.29 < 3 |
| Current Ratio: 1.96 > 1.5 & < 3 |
| Outstanding Shares: last quarter (61.6m) vs 12m ago 0.44% < -2% |
| Gross Margin: 35.69% > 18% (prev 37.75%; Δ -2.06% > 0.5%) |
| Asset Turnover: 54.61% > 50% (prev 61.77%; Δ -7.16% > 0%) |
| Interest Coverage Ratio: 3.40 > 6 (EBIT TTM 332.6m / Interest Expense TTM 97.7m) |
| A: 0.11 (Total Current Assets 1.53b - Total Current Liabilities 779.0m) / Total Assets 6.56b |
| B: 0.13 (Retained Earnings 865.8m / Total Assets 6.56b) |
| C: 0.06 (EBIT TTM 332.6m / Avg Total Assets 5.50b) |
| D: 0.64 (Book Value of Equity 2.54b / Total Liabilities 3.98b) |
| Altman-Z'' = 2.26 = BBB |
| DSRI: 1.11 (Receivables 554.1m/456.1m, Revenue 3.00b/2.74b) |
| GMI: 1.06 (GM 37.75% / 35.69%) |
| AQI: 1.13 (AQ_t 0.69 / AQ_t-1 0.60) |
| SGI: 1.10 (Revenue 3.00b / 2.74b) |
| TATA: -0.01 (NI 172.5m - CFO 258.9m) / TA 6.56b) |
| Beneish M = -2.74 (Cap -4..+1) = A |
As of October 11, 2026, the stock is trading at USD 66.85 with a total of 1,093,117 shares traded. Over the past week, the price has changed by -4.36%, over one month by -8.02%, over three months by -23.29% and over the past year by -43.27%.
Current recommended Stop Loss: 62.60 (which is 6.4% or 1.3 ATR below the current price).
ESAB has received a consensus analysts rating of 4.73. Therefore, it is recommended to buy ESAB.
- StrongBuy: 9
- Buy: 1
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 126.9 | 89.8% |
P/E Trailing = 22.2617
P/E Forward = 10.661
P/S = 1.4791
P/B = 1.7971
P/EG = 0.679
Revenue TTM = 3.00b USD
EBIT TTM = 332.6m USD
EBITDA TTM = 443.5m USD
Long Term Debt = 2.39b USD (from longTermDebt, last quarter)
Short Term Debt = 32.0m USD (from shortTermDebt, last quarter)
Debt = 2.57b USD (from shortLongTermDebtTotal, last quarter) + Leases 142.2m
Net Debt = 2.35b USD (calculated: Debt 2.57b - CCE 217.5m)
Enterprise Value = 6.79b USD (4.44b + Debt 2.57b - CCE 217.5m)
Interest Coverage Ratio = 3.40 (Ebit TTM 332.6m / Interest Expense TTM 97.7m)
EV/FCF = 34.54x (Enterprise Value 6.79b / FCF TTM 196.6m)
FCF Yield = 2.90% (FCF TTM 196.6m / Enterprise Value 6.79b)
FCF Margin = 6.55% (FCF TTM 196.6m / Revenue TTM 3.00b)
Net Margin = 5.75% (Net Income TTM 172.5m / Revenue TTM 3.00b)
Gross Margin = 35.69% ((Revenue TTM 3.00b - Cost of Revenue TTM 1.93b) / Revenue TTM)
Gross Margin QoQ = 38.04% (prev 36.90%)
Tobins Q-Ratio = 1.03 (Enterprise Value 6.79b / Total Assets 6.56b)
Interest Expense / Debt = 3.81% (Interest Expense 97.7m / Debt 2.57b)
Taxrate = 21.22% (55.2m / 260.1m)
NOPAT = 262.0m (EBIT 332.6m * (1 - 21.22%))
Current Ratio = 1.96 (Total Current Assets 1.53b / Total Current Liabilities 779.0m)
Debt / Equity = 1.01 (Debt 2.57b / totalStockholderEquity, last quarter 2.54b)
Debt / EBITDA = 5.29 (Net Debt 2.35b / EBITDA 443.5m)
Debt / FCF = 11.94 (Net Debt 2.35b / FCF TTM 196.6m)
Total Stockholder Equity = 2.25b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.14% (Net Income 172.5m / Total Assets 6.56b)
RoE = 7.66% (Net Income TTM 172.5m / Total Stockholder Equity 2.25b)
RoCE = 7.16% (EBIT 332.6m / Capital Employed (Equity 2.25b + L.T.Debt 2.39b))
RoIC = 4.62% (NOPAT 262.0m / Invested Capital 5.67b)
WACC = 7.55% (E(4.44b)/V(7.01b) * Re(10.18%) + D(2.57b)/V(7.01b) * Rd(3.81%) * (1-Tc(0.21)))
Discount Rate = 10.18% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 33.89 | Cagr: 0.47%
[DCF] Terminal Value 73.10% ; FCFF base≈221.2m ; Y1≈194.0m ; Y5≈156.7m
[DCF] Fair Price = 2.70 (EV 2.52b - Net Debt 2.35b = Equity 167.8m / Shares 62.2m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 96.50 | EPS CAGR: 7.71% | SUE: -0.73 | # QB: 0
Revenue Correlation: 69.05 | Revenue CAGR: 2.22% | SUE: 1.23 | # QB: 1
EPS current Quarter (2026-09-30): EPS=1.35 | Chg30d=+0.17% | Revisions=-25% | Analysts=10
EPS current Year (2026-12-31): EPS=5.45 | Chg30d=-0.20% | Revisions=-25% | GrowthEPS=+3.3% | GrowthRev=+13.5%
EPS next Year (2027-12-31): EPS=6.48 | Chg30d=-0.68% | Revisions=-40% | GrowthEPS=+19.1% | GrowthRev=+9.4%
[Analyst] Revisions Ratio: -57% (up=0, down=4)