Intrinsiqq
Esab Corporation logoEsab CorporationESAB
$65.35-0.43%
Esab Corporation logo

Esab Corporation

ESAB

$65.35

-$0.28 (-0.43%)

⊜ Compare
ProfitabilitySolid marginsGrowthModeratingCash FlowHealthy conversionValuationFairly valued
What stands out

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.

What's changing

Revenue grew 3.7%, steady but not accelerating. Free cash flow declined 30% despite revenue growth, conversion is weakening.

What deserves caution

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.

Valuation context

23.7x earnings, 20.7x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.

Price History

-46.3%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market Cap$4.06B
EPS$2.76
P/E23.68
P/FCF20.66
EV/EBITDA13.84
FCF Yield4.8%
Div. Yield0.60%
Net Debt/FCF11.8x
52-Week Range
$64.56$134.82

Profitability & Returns

Revenue (TTM)

$3.00B

▲ +3.7% YoY

Net Income (TTM)

$169M

▼ -14.4% YoY

Op. Margin

12.07%

▼ -1.8pp YoY

ROIC

7.45%

▼ -2.4pp YoY

Cash Flow & Balance Sheet

FCF (TTM)

$197M

▼ -29.8% YoY

Op. Cash Flow (TTM)

$259M

▼ -26.7% YoY

Net Debt

$2.32B

Cash & Equiv.

$217M

5Y CAGR: +7.8%

5Y CAGR: -4.5%

Continue Research

SourceComputed from the 10-Q filed 30 Jul 2026, covering the period ending 3 Jul 2026, as reported to the SEC. Data last refreshed 2 Oct 2026. How this is calculated.

Price from market data, last close as of 16 Oct 2026. Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically.

Is Esab (ESAB) overvalued?

At a P/E of 23.7 and a price-to-free-cash-flow of 20.7, Esab (ESAB) trades above a two-stage DCF intrinsic value of about $17.61 per share, so at $65.35 the stock looks overvalued (73.1% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, Esab scores 41/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 0.6%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.

Frequently asked

What is Esab's fair value?+

Intrinsiqq's two-stage DCF estimates an intrinsic value of about $17.61 per share for ESAB, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $13.20. At today's $65.35, that puts the stock about 73.1% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.

Is Esab a high-quality business?+

Esab scores 41 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 12.1% operating margin and a 7.4% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Does Esab (ESAB) pay a dividend, and how much?+

Yes, Esab pays a regular dividend of about $0.40 per share per year (typically in quarterly installments), a yield of roughly 0.6% at the current price. That is a payout ratio of about 14.4% of earnings, so the dividend is amply covered by earnings. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For ESAB's full payout history, growth streak and dividend-safety score, see the dividends tab.

Is Esab a good stock to buy right now?+

That depends on valuation and quality together, not either alone. ESAB currently trades above its estimated intrinsic value and scores 41/100 on quality (mixed). It also yields about 0.6%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.

Related stocks: General Industrial Machinery & Equipment, NEC

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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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Intrinsiqq is a Netherlands-based company operating in Rotterdam, KvK 73238007.