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ESAB Corp ESAB

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Stock XNYS Rating as of
$102.82 +0.54 (0.53%)
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As of Delayed Price Closed
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Company Report

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ESAB Earnings: Full-Year Guidance Raised on Improved Margins

Krzysztof Smalec

Narrow-moat-rated ESAB posted solid first-quarter results, featuring a 9% year-over-year increase in adjusted EBITDA. Management raised its guidance for full-year 2024 and now expects adjusted EPS of $4.75 to $4.95 (up from $4.65 to $4.85), which reflects higher margins as well as a lower interest expense. We've raised our fair value estimate to $93 from $90 due to our slightly more optimistic operating margin assumptions and time value of money.

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Price vs Fair Value

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ESAB is trading at a 18% premium.
Price
$102.82
Fair Value
$29.00
Uncertainty
Medium
1-Star Price
$323.72
5-Star Price
$56.60
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

On an organic revenue basis, ESAB has outgrown its two main competitors since 2018.

Bears

As a result of its M&A-driven growth strategy, ESAB faces acquisition risk, including the possibility of overpaying for acquisitions and challenges integrating acquired companies.

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News

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Trading Information

Previous Close Price
$102.28
Day Range
$100.33–102.85
52-Week Range
$58.00–114.77
Bid/Ask
$0.00 / $163.21
Market Cap
$6.21 Bil
Volume/Avg
527,351 / 269,553

Key Statistics

Price/Earnings (Normalized)
21.56
Price/Sales
2.25
Dividend Yield (Trailing)
0.23%
Dividend Yield (Forward)
0.31%
Total Yield
0.23%

Company Profile

ESAB, spun off from Colfax in 2022, is a leading manufacturer of equipment and consumables used in welding, cutting, and joining applications. Alongside competitors Lincoln Electric and ITW’s Miller brand, ESAB is one of the top three players in the welding space. ESAB generated roughly $2.8 billion in revenue in 2023.
Sector
Industrials
Industry
Metal Fabrication
Stock Style Box
Small Core
Total Number of Employees
9,000
Website
https://www.esabcorporation.com

Competitors

Valuation

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Metric
ESAB
LECO
ITW
Price/Earnings (Normalized)
 21.5622.3823.93
Price/Book Value
 3.798.6823.22
Price/Sales
 2.252.804.42
Price/Cash Flow
 20.0319.2921.14
Price/Earnings
ESAB
LECO
ITW

Financial Strength

Metric
ESAB
LECO
ITW
Quick Ratio
 0.801.230.87
Current Ratio
 1.652.241.32
Interest Coverage
 4.9818.2715.16
Quick Ratio
ESAB
LECO
ITW

Profitability

Metric
ESAB
LECO
ITW
Return on Assets (Normalized)
 7.51%16.59%19.30%
Return on Equity (Normalized)
 18.72%44.77%98.30%
Return on Invested Capital (Normalized)
 12.67%24.82%28.19%
Return on Assets
ESAB
LECO
ITW
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