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Founded in 1904, ESAB Corporation ( ESAB, we or the Company ), is a focused premier industrial compounder. ESAB provides its partners with fabrication technology advanced equipment, consumables, gas control equipment, robotics and digital solutions.
14.50% operating margin is respectable but not wide. ROIC at 10.65%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 3.7%, steady but not accelerating. Free cash flow declined 30% despite revenue growth, conversion is weakening.
Free cash flow declined 30% versus the prior year, cash generation momentum has weakened. ROIC dropped from 13.08% to 10.65%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$2.91B
▲ +3.7% YoY
Net Income (TTM)
$205M
▼ -14.4% YoY
Op. Margin
13.50%
▼ -1.8pp YoY
ROIC
9.03%
▼ -2.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$218M
▼ -29.8% YoY
Op. Cash Flow (TTM)
$272M
▼ -26.7% YoY
Net Debt
$1.14B
Cash & Equiv.
$1.00B
5Y CAGR: +7.8%
5Y CAGR: -4.5%
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