(ESAB) ESAB - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US29605J1060

Welding Consumables, Cutting Equipment, Automated Systems, Gas Control

Industrial Machinery & Supplies & Components
Market Cap in USD: 7,242m

IPO / Inception: 2022-04-05
12m vs SPY: -16.4%

EPS (Earnings per Share)

EPS CAGR: -47.08%
EPS Trend: -18.3%

Last SUE: -4.00
Qual. Beats: 0

Revenue

Rev. CAGR: 4.18%
Rev. Trend: 71.5%

Last SUE: 1.24
Qual. Beats: 1

Dividends

Dividend Yield	0.33%
Yield on Cost 5y	0.77%
Yield CAGR 5y	36.32%
Payout Consistency	100.0%
Payout Ratio	7.3%

Risk via 5d forecast
Volatility	31.1%
Value at Risk 5%th	44.3%
Relative Tail Risk	-13.21%

Reward TTM
Sharpe Ratio	0.10
Alpha	-18.00
CAGR/Max DD	1.44

Character TTM
Hurst Exponent	0.431
Beta	1.063
Beta Downside	1.166

Drawdowns 3y
Max DD	22.55%
Mean DD	7.55%
Median DD	6.50%

Description: ESAB ESAB January 07, 2026

ESAB Corp (NYSE:ESAB) designs, manufactures, and distributes welding and cutting consumables-such as electrodes, wires, fluxes, and cutting tips-and a broad portfolio of equipment ranging from portable welders to custom automated systems. The company also provides software and digital services that enable remote monitoring, productivity analytics, and electronic documentation for welding operations.

Its product line serves diverse end-markets, including general industry, infrastructure, renewable energy, medical & life sciences, transportation, construction, and traditional energy sectors. Sales are executed through a global network of independent distributors and a direct sales force across North America, South America, Europe, the Middle East, India, Africa, and the Asia-Pacific.

Key data points: ESAB reported FY2023 revenue of approximately $2.2 billion with an adjusted EBITDA margin near 12%, reflecting steady demand for high-value consumables. The company benefits from secular growth in renewable-energy projects, which are driving a 5-7% CAGR in welding-related spend, and from cyclical infrastructure stimulus in the U.S. and Europe that lifts equipment sales. A notable sector driver is the increasing adoption of Industry 4.0-enabled welding solutions, where ESAB’s digital platform is positioned to capture higher-margin recurring revenue.

For a deeper, data-rich analysis of ESAB’s valuation and risk profile, you might explore the detailed breakdown on ValueRay. 

Piotroski VR‑10 (Strict, 0-10) 5.5

Net Income (242.8m TTM) > 0 and > 6% of Revenue (6% = 167.5m TTM)

FCFTA 0.05 (>2.0%) and ΔFCFTA -2.57pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 23.80% (prev 21.18%; Δ 2.62pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.06 (>3.0%) and CFO 290.4m > Net Income 242.8m (YES >=105%, WARN >=100%)

Net Debt (1.25b) to EBITDA (527.0m) ratio: 2.37 <= 3.0 (WARN <= 3.5)

Current Ratio 1.99 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (60.9m) change vs 12m ago -0.24% (target <= -2.0% for YES)

Gross Margin 37.56% (prev 37.47%; Δ 0.10pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 62.37% (prev 67.56%; Δ -5.19pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 5.92 (EBITDA TTM 527.0m / Interest Expense TTM 76.3m) >= 6 (WARN >= 3)

Altman Z'' 2.17

(A) 0.14 = (Total Current Assets 1.33b - Total Current Liabilities 669.1m) / Total Assets 4.87b

(B) 0.16 = Retained Earnings (Balance) 769.2m / Total Assets 4.87b

(D) 0.08 = Book Value of Equity 215.1m / Total Liabilities 2.71b

Total Rating: 2.17 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 64.87

1. Piotroski 5.50pt

2. FCF Yield 2.80%

3. FCF Margin 8.52%

4. Debt/Equity 0.69

5. Debt/Ebitda 2.37

6. ROIC - WACC (= 3.05)%

7. RoE 12.35%

8. Rev. Trend 71.48%

9. EPS Trend -18.27%

What is the price of ESAB shares?

As of January 15, 2026, the stock is trading at USD 120.07 with a total of 252,891 shares traded.
Over the past week, the price has changed by +5.85%, over one month by +4.09%, over three months by -0.14% and over the past year by +0.35%.

Is ESAB a buy, sell or hold?

ESAB has received a consensus analysts rating of 3.91. Therefore, it is recommended to buy ESAB.

Strong Buy: 5
Buy: 2
Hold: 3
Sell: 0
Strong Sell: 1

What are the forecasts/targets for the ESAB price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	141.7	18%
Analysts Target Price	141.7	18%
ValueRay Target Price	142.4	18.6%

ESAB Fundamental Data Overview January 15, 2026

P/E Trailing = 26.6868
P/E Forward = 20.3252
P/S = 2.5936
P/B = 3.454
P/EG = 1.5949
Revenue TTM = 2.79b USD
EBIT TTM = 451.7m USD
EBITDA TTM = 527.0m USD
Long Term Debt = 1.33b USD (from longTermDebt, last quarter)
Short Term Debt = 24.7m USD (from shortTermDebt, last quarter)
Debt = 1.47b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.25b USD (from netDebt column, last quarter)
Enterprise Value = 8.49b USD (7.24b + Debt 1.47b - CCE 218.2m)
Interest Coverage Ratio = 5.92 (Ebit TTM 451.7m / Interest Expense TTM 76.3m)
EV/FCF = 35.67x (Enterprise Value 8.49b / FCF TTM 238.0m)
FCF Yield = 2.80% (FCF TTM 238.0m / Enterprise Value 8.49b)
FCF Margin = 8.52% (FCF TTM 238.0m / Revenue TTM 2.79b)
Net Margin = 8.70% (Net Income TTM 242.8m / Revenue TTM 2.79b)
Gross Margin = 37.56% ((Revenue TTM 2.79b - Cost of Revenue TTM 1.74b) / Revenue TTM)
Gross Margin QoQ = 37.00% (prev 37.18%)
Tobins Q-Ratio = 1.74 (Enterprise Value 8.49b / Total Assets 4.87b)
Interest Expense / Debt = 1.61% (Interest Expense 23.6m / Debt 1.47b)
Taxrate = 21.31% (17.7m / 83.0m)
NOPAT = 355.4m (EBIT 451.7m * (1 - 21.31%))
Current Ratio = 1.99 (Total Current Assets 1.33b / Total Current Liabilities 669.1m)
Debt / Equity = 0.69 (Debt 1.47b / totalStockholderEquity, last quarter 2.12b)
Debt / EBITDA = 2.37 (Net Debt 1.25b / EBITDA 527.0m)
Debt / FCF = 5.25 (Net Debt 1.25b / FCF TTM 238.0m)
Total Stockholder Equity = 1.97b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.42% (Net Income 242.8m / Total Assets 4.87b)
RoE = 12.35% (Net Income TTM 242.8m / Total Stockholder Equity 1.97b)
RoCE = 13.69% (EBIT 451.7m / Capital Employed (Equity 1.97b + L.T.Debt 1.33b))
RoIC = 11.44% (NOPAT 355.4m / Invested Capital 3.11b)
WACC = 8.39% (E(7.24b)/V(8.71b) * Re(9.83%) + D(1.47b)/V(8.71b) * Rd(1.61%) * (1-Tc(0.21)))
Discount Rate = 9.83% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.53%
[DCF Debug] Terminal Value 79.27% ; FCFF base≈264.6m ; Y1≈310.4m ; Y5≈470.7m
Fair Price DCF = 102.0 (EV 7.44b - Net Debt 1.25b = Equity 6.19b / Shares 60.7m; r=8.39% [WACC]; 5y FCF grow 18.42% → 2.90% )
EPS Correlation: -18.27 | EPS CAGR: -47.08% | SUE: -4.0 | # QB: 0
Revenue Correlation: 71.48 | Revenue CAGR: 4.18% | SUE: 1.24 | # QB: 1
EPS next Quarter (2026-03-31): EPS=1.44 | Chg30d=+0.000 | Revisions Net=+1 | Analysts=6
EPS next Year (2026-12-31): EPS=5.96 | Chg30d=-0.004 | Revisions Net=+0 | Growth EPS=+12.6% | Growth Revenue=+8.8%

Additional Sources for ESAB Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
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Fund Manager Positions: Dataroma | Stockcircle