Company Reports

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.

ESAB is a leading manufacturer of equipment and consumables used in welding, cutting, and joining applications. The company is one of the top three players in the welding solutions space, alongside Lincoln Electric and ITW’s Miller brand.

ESAB is a leading manufacturer of equipment and consumables used in welding, cutting, and joining applications. The company is one of the top three players in the welding solutions space, alongside Lincoln Electric and ITW’s Miller brand.

Narrow-moat ESAB finished 2023 in a strong fashion as its full-year sales of $2.62 billion and adjusted EPS of $4.64 both came in above our estimates of $2.61 billion and $4.35, respectively. After rolling our model forward one year, we’ve raised our fair value estimate to $90 from $83, which reflects our slightly more optimistic midcycle operating margin assumptions and time value of money.

Following ESAB’s 2023 investor day, we are increasing our fair value estimate to $83 per share from $78, which reflects our slightly more optimistic revenue growth and midcycle margin assumptions.

ESAB is a leading manufacturer of equipment and consumables used in welding, cutting, and joining applications. The company is one of the top three players in the welding solutions space, alongside Lincoln Electric and ITW’s Miller brand.

We’re increasing our fair value estimate for narrow-moat-rated ESAB to $78 from $74 after the company posted strong third-quarter results, featuring a 23% year-over-year increase in adjusted EBITDA. Shares rallied by nearly 9% following the strong print but still trade around 12% below our updated fair value estimate.

ESAB is a leading manufacturer of equipment and consumables used in welding, cutting, and joining applications. The company is one of the top three players in the welding solutions space, alongside Lincoln Electric and ITW’s Miller brand.

We’ve raised our fair value estimate for narrow-moat-rated ESAB to $74 from $70 after the company reported strong second-quarter results and raised its full-year outlook for the second time this year. The fair value estimate adjustment is driven by our higher near-term revenue growth and operating margin projections, as well as time value of money.

ESAB is a leading manufacturer of equipment and consumables used in welding, cutting, and joining applications. The company is one of the top three players in the welding solutions space, alongside Lincoln Electric and ITW’s Miller brand.

ESAB is a leading manufacturer of equipment and consumables used in welding, cutting, and joining applications. The company is one of the top three players in the welding solutions space, alongside Lincoln Electric and ITW’s Miller brand.

Narrow-moat-rated ESAB reported solid first-quarter results, featuring a 12% year-over-year increase in adjusted EBITDA. After a strong start to the year, management raised its outlook for full-year 2023 and now anticipates core organic revenue growth of 3.5%-5.5% (up from 3%-5%), adjusted EBITDA of $430 million-$450 million (up from $420 million-$440 million), and adjusted EPS of $3.85-$4.05 (up from $3.80-$4.00). We’ve increased our fair value estimate to $70 from $65, which reflects our more optimistic operating margin assumptions as well as time value of money. We view the name as modestly undervalued, with shares currently trading in 4-star territory.

Narrow-moat-rated ESAB finished 2022 with a strong fourth quarter, as its full-year revenue of $2,593 million and adjusted EPS of $4.21 both came in above our estimates ($2,468 million and $4.09, respectively). After rolling our model forward one year, we've bumped our fair value estimate up to $65 from $64, mostly due to time value of money. We view the name as fairly valued, with the stock currently trading in 3-star territory.

ESAB is a leading manufacturer of equipment and consumables used in welding, cutting, and joining applications. The company is one of the top three players in the welding solutions space, alongside Lincoln Electric and ITW’s Miller brand.

ESAB is a leading manufacturer of equipment and consumables used in welding, cutting, and joining applications. The company is one of the top three players in the welding solutions space, alongside Lincoln Electric and ITW’s Miller brand.

Narrow-moat-rated ESAB delivered strong third-quarter results, as its adjusted EPS of $0.92 beat the FactSet consensus estimate by $0.07. We've maintained our $64 fair value estimate, as nothing in ESAB's third-quarter results fundamentally alters our long-term outlook for the firm. The stock was up over 7% following the earnings release, but we continue to see ESAB as undervalued, with shares currently trading in 5-star territory.

ESAB is a leading manufacturer of equipment and consumables used in welding, cutting, and joining applications. The company is one of the top three players in the welding solutions space, alongside Lincoln Electric and ITW’s Miller brand.

Narrow-moat-rated ESAB posted solid second-quarter results, with adjusted EBITDA of $111 million, up 6% from the same period last year. We have modestly lowered our fair value estimate to $64 from $65 due to our slightly more muted revenue growth projections, partially offset by time value of money. We view ESAB as undervalued, with the stock currently trading in 5-star territory.

ESAB is a leading manufacturer of equipment and consumables used in welding, cutting, and joining applications. The company is one of the top three players in the welding solutions space, alongside Lincoln Electric and ITW’s Miller brand.

Nothing in narrow moat rated ESAB’s first-quarter earnings results materially alters our long-term outlook for the firm. Therefore, we are maintaining our $65 fair value estimate. The stock is currently trading in 4-star territory, at a roughly 26% discount to our fair value estimate, which we view as an attractive entry point.