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ESAB Corp
NYSE:ESAB

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ESAB Corp
NYSE:ESAB
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Price: 127.54 USD 1.66% Market Closed
Market Cap: 7.7B USD
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Intrinsic Value

The intrinsic value of one ESAB stock under the Base Case scenario is 85.72 USD. Compared to the current market price of 127.54 USD, ESAB Corp is Overvalued by 33%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

ESAB Intrinsic Value
85.72 USD
Overvaluation 33%
Intrinsic Value
Price
E
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Base Case
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Valuation Backtest
ESAB Corp

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Business Breakdown

ESAB Corp., a leading global provider of welding and cutting equipment, has carved out a significant niche in the industrial landscape since its founding in the early 1900s. Originally established to meet the growing demand for high-quality welding products, ESAB has evolved into a powerhouse recognized for its innovative technologies and comprehensive solutions. The company operates in diverse sectors, serving industries such as construction, manufacturing, shipbuilding, and automotive. With a robust portfolio that includes everything from advanced welding and cutting tools to automation systems and protective gear, ESAB is well-positioned to capitalize on the ongoing trends in industrial a...

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
ESAB Corp

Current Assets 1.2B
Cash & Short-Term Investments 253.7m
Receivables 420.9m
Other Current Assets 546.9m
Non-Current Assets 2.9B
PP&E 390.9m
Intangibles 2.2B
Other Non-Current Assets 304.5m
Current Liabilities 637.1m
Accounts Payable 320.3m
Accrued Liabilities 289m
Other Current Liabilities 27.8m
Non-Current Liabilities 1.6B
Long-Term Debt 1.1B
Other Non-Current Liabilities 530.2m
Efficiency

Earnings Waterfall
ESAB Corp

Revenue
2.8B USD
Cost of Revenue
-1.7B USD
Gross Profit
1B USD
Operating Expenses
-579.2m USD
Operating Income
454.7m USD
Other Expenses
-194.9m USD
Net Income
259.8m USD

Free Cash Flow Analysis
ESAB Corp

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

ESAB Corporation reported a robust third quarter of 2024, marked by significant volume growth and record adjusted EBITDA margins of 19.6%, an increase of 130 basis points year-over-year. Strong demand in high-growth markets like India and the Middle East helped offset slower conditions elsewhere. Equipment sales rose in the low double digits, while free cash flow reached a record $215 million. The company raised its revenue guidance to a midpoint of 0% to 1%, with adjusted EBITDA now expected between $500 million and $515 million. ESAB's strategic investments and acquisitions, like Linde Bangladesh, position it well for future growth and improved margins across key markets.

What is Earnings Call?
Fundamental Scores

ESAB Profitability Score
Profitability Due Diligence

ESAB Corp's profitability score is 54/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive Free Cash Flow
Positive 3-Year Average ROE
Positive Operating Income
54/100
Profitability
Score

ESAB Corp's profitability score is 54/100. The higher the profitability score, the more profitable the company is.

ESAB Solvency Score
Solvency Due Diligence

ESAB Corp's solvency score is 55/100. The higher the solvency score, the more solvent the company is.

Low D/E
High Altman Z-Score
Short-Term Solvency
Long-Term Solvency
55/100
Solvency
Score

ESAB Corp's solvency score is 55/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

ESAB Price Targets Summary
ESAB Corp

Wall Street analysts forecast ESAB stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for ESAB is 137.32 USD with a low forecast of 121.2 USD and a high forecast of 153.3 USD.

Lowest
Price Target
121.2 USD
5% Downside
Average
Price Target
137.32 USD
8% Upside
Highest
Price Target
153.3 USD
20% Upside
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Dividends

Dividend Yield
Lowest
Average
Highest
Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
Very
Unsafe
Unsafe
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Safe
0
25
50
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100
Shareholder Yield

Current shareholder yield for ESAB is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
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Buyback Yield
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Debt Paydown Yield
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Ownership

ESAB Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
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Profile

ESAB Corp

Country

United States of America

Industry

Machinery

Market Cap

7.7B USD

Dividend Yield

0.22%

Description

ESAB Corp is a US-based company operating in Machinery industry. The company is headquartered in North Bethesda, Maryland. The company went IPO on 2022-03-21. ESAB Corp is engaged in the production of welding and cutting equipment and consumables. The Company’s capabilities include manual welding and cutting equipment, welding consumables, welding automation and mechanized cutting systems. The Company’s product line includes Arc Welding Equipment, Cutting Automation, PPE and Accessories, Plasma, Filler Metals, Gas Equipment, Arc Gouging (CAC-A) and Exothermic Cutting, Welding Automation and Robotics, and ESAB Digital Solutions (EDS). The company offers products and solutions for virtually welding and cutting process and application. The Company’s brands include AlcoTec, Arcair, Exaton, GCE, Stoody, Thermal Dynamics, TurboTorch, Tweco, Victor Gas Equipment, and FirePower. The firm serve industries, such as automotive, general fabrication and civil construction, pipelines, pipe mills, power generation, process industry, repair and maintenance, shipbuilding and offshore, and transport and mobile machinery.

Contact

MARYLAND
North Bethesda
909 Rose Avenue, 8Th Floor
+13022529160.0

IPO

2022-03-21

Employees

-

Officers

President, CEO & Director
Mr. Shyam P. Kambeyanda
Executive VP & CFO
Mr. Kevin J. Johnson FCPA (Aust)
Senior VP, General Counsel & Corporate Secretary
Mr. Curtis E. Jewell
President of Fabrication Technology
Mr. Olivier Biebuyck
President of Americas
Ms. Eleanor L. Lukens
Chief Accounting Officer
Mr. Renato Negro
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Vice President of Corporate Communications
Ms. Tilea Coleman
Senior VP & Chief Human Resources Officer
Ms. Michele Campion
Senior Vice President of Strategy & Business Development
Mr. Vusa Mlingo
VP & GM of Gas Control
Mr. Piyush Sheth
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See Also

Discover More
What is the Intrinsic Value of one ESAB stock?

The intrinsic value of one ESAB stock under the Base Case scenario is 85.72 USD.

Is ESAB stock undervalued or overvalued?

Compared to the current market price of 127.54 USD, ESAB Corp is Overvalued by 33%.

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