ESAB Corporation

ESAB

Industrial - Machinery · Industrials

Price

$81.40

+2.82 (+3.59%)

Market Cap

$4.96B

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jul 3, 2026

How the score breaks down

Quality

Mixed

Growth

Mixed

Cash Flow

Strong

Stability

Good

Valuation

Strong

Dividends

Good

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Share count rising — dilution

+1.5% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 60.0M (2021) → 60.9M (2025)

Winston Score History

The full picture

ESAB Corporation makes tools and supplies used to cut and weld metal. Its main products include welding machines, electrodes, filler metals, and cutting equipment sold to manufacturers, construction companies, and repair shops around the world. ESAB is one of the largest welding and cutting companies globally, with roots going back over 100 years.

The company earns money by selling both equipment and the consumable supplies — like wire and rods — that customers need to keep buying repeatedly. ESAB operates across more than 40 countries, with significant revenue coming from Europe, North America, and emerging markets, giving it broad geographic diversification. Its competitive edge comes partly from that large installed base of equipment, which creates steady repeat demand for consumables. The main risk is that welding demand is tied closely to industrial activity and construction spending, so an economic slowdown can quickly reduce orders.

Politician Trades

4 trades / 12mo

3 Congressional buys and 1 sell on ESAB in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+12.9% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-54.5% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$44M/ year

↑ Rising (+12% vs prior year)

1.5% of revenue

Below sector average (4%)

R&D investment increasing — building for the future

Insider Activity

6.7%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$217M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

ESAB Corporation is a rare growth stock that's already generating positive cash flow while growing at 13%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

38.0%

Modest — 38.0% gross margin

Profit after running costs

Operating Margin

9.7%

Modest — 9.7% operating margin

Return on the money invested

ROCE

9.2%

Below par — 9.2% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+9.7%

Steady sales growth (+9.7% YoY)

Profit growth

EPS YoY

-35.3%

Earnings shrinking (-35.3% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

150%

Turns 150% of profit into real cash

Spare cash per sale

FCF Margin

6.5%

Modest free cash flow (6.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.94

Moderate — manageable debt (0.94)

Covers its interest

Interest Cover

6.74x

Adequate interest coverage (6.7x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

29.8x

Growth-priced — P/E 29.8

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+18.2

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (29.8 → 11.6)

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Dividends

Dividend

Dividend Yield

0.48%

Small dividend — 0.48% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+23.5%

Dividend growing fast (23.5% YoY)

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