Weak across most dimensions. This doesn't mean avoid, but the burden of proof is on the bull case.
Broad-market heuristics · Not a buy/sell signal
Valuation and growth
Valuation
Growth
25–30x, paying a growth premium
20–25x, moderate cash flow premium
2–5% CAGR, growing but slowly
2–5% CAGR, growing but slowly
Business Quality & Capital Allocation
Diluting 2–5%, watch for SBC
Modest contraction, within normal range
Net debt/FCF of 11.8x, high leverage
Below 8%, may not cover cost of capital
Esab (ESAB) quality: score, margins and returns
Esab (ESAB) scores 39/100 on Intrinsiqq's quality score (a lower-quality business), a weighted blend of 8 metrics each scored 0 to 100, on 12.1% operating margins and 7.4% ROIC. Every metric is computed from SEC filings; this is analysis, not investment advice.
Frequently asked
Is Esab (ESAB) a high-quality business?+
Esab scores 39 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which rates it a lower-quality business on these measures. Recent figures include a 12.1% operating margin and a 7.4% return on invested capital. Quality and price are separate questions: even a great business can be a poor investment if you overpay, so read this score alongside the valuation. The metric-by-metric breakdown is on this scorecard.
What does Esab's quality score measure?+
Intrinsiqq's quality score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, change in share count, and balance-sheet strength, each computed from ESAB's SEC filings rather than opinion or sentiment. A higher score means a more durable, capital-efficient business; it is not a buy or sell signal. Open each metric on this page to see exactly where Esab scores well and where it falls behind.
What is Esab's return on invested capital (ROIC)?+
Esab earns about 7.4% on its invested capital, which is modest. ROIC measures how much profit a company generates per dollar put to work; sustained ROIC above its cost of capital is one of the clearest signs of a real competitive moat. Compare it to ESAB's margins and growth on this scorecard to judge durability.
How profitable is Esab?+
Esab runs an operating margin of about 12.1% and a net margin of about 5.6%. Revenue has grown at roughly 7.8% a year recently. High, stable margins usually point to pricing power and operating discipline. Margins are most telling next to growth and returns on capital, all of which feed this quality score. This is analysis from SEC filings, not investment advice.
SourceQuality score computed 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.
Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically. Checks use broad-market heuristics, so sector norms may differ, and the valuation checks are more cyclical than the quality checks.
Peers
General Industrial Machinery & Equipment, NEC · Pick stocks to compare with ESAB
Held by ETFs
ESAB is in 89 US ETFs. The largest of them, with ESAB's weight in each:
Spot a number that looks wrong? Check it in ESAB's SEC filings or
Download this analysis as a PDF (Pro)
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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