# ESAB Corporation (ESAB) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Industrials / Machinery. Price $75.02, market value $4.7 billion.

## Valuation
- **P/E (trailing): 23.5×** (5-yr avg 24.0×, 3-yr avg 27.9×). ESAB Corporation trades at 23.5× trailing earnings, close to its own five-year average of 24.0×. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 11.5×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 1.6×**. Each dollar of revenue is priced at 1.6×.
- **Price / book: 2.0×**. The shares trade at 2.0× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 12.4×**. Enterprise value is 12.4× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 4.2%** (5-yr avg 4.7%). Free cash flow equals 4.2% of the market value, in line with its five-year average of 4.7%.
- **Earnings yield: 4.3%**. The inverse of the P/E: 4.3% of the price is earned each year.

## Profitability
- **Gross margin: 37.0%**. ESAB Corporation keeps 37.0% of revenue after the direct cost of what it sells.
- **Operating margin: 12.1%**. 12.1% of revenue is left after running the business.
- **Net margin: 8.0%**. 8.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 10.5%**. 10.5% on shareholders' equity is solid.
- **Return on invested capital: 8.9%**. Return on all capital, debt included, is 8.9%.
- **Return on assets: 3.6%**. Each dollar of assets produces 3.6% of profit.

## Growth
- **Revenue growth (1 yr): 3.7%** (3-yr 3.1%/yr, 5-yr 7.8%/yr). Revenue grew 3.7% over the last year, against 7.8% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -14.8%** (3-yr -0.2%/yr, 5-yr 7.0%/yr). Earnings per share fell 14.8%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 7.0%/yr**. Free cash flow has compounded at 7.0% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.57**. Debt is 0.57 times equity, moderate leverage.
- **Net debt / EBITDA: 2.3×**. It would take 2.3 years of operating earnings to repay net borrowings, within the comfortable range.
- **Altman Z-score: 2.61**. A Z-score of 2.61 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.56%** ($0.42 per share, trailing). ESAB Corporation yields 0.56%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 10%** (12% of free cash flow). 10% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 4**. 4 straight years of increases.

## Analyst view
- **Analyst consensus: strong_buy** (11 analysts). 11 analysts cover ESAB Corporation; the consensus is strong_buy, with an average price target of $131.18 (+75% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -35.3%** (YTD -32.7%, 3-mo -14.6%). The shares are down 35.3% over twelve months including dividends.
- **From 52-week high: -45.4%** (2.5% above the low). Trading 45% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 37**. An RSI of 37 is neutral.
- **Beta (1 yr): 1.54** (volatility 44%). Beta of 1.54 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ESAB · Page: https://foliofundamentals.com/stocks/esab

Not investment advice.