ESCO Technologies

ESE

Hardware, Equipment & Parts · Technology

Price

$287.24

+2.67 (+0.94%)

Market Cap

$7.44B

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Exceptional

Cash Flow

Strong

Stability

Exceptional

Valuation

Mixed

Dividends

Weak

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Share count falling — buybacks

−1.2% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 26.2M (2021) → 25.9M (2025)

Winston Score History

The full picture

ESCO Technologies makes specialized equipment and systems used by utility companies, the military, and industrial businesses. Its three main business areas are utility solutions (tools that help electric and gas companies manage their networks), radio frequency shielding rooms used in aerospace and defense testing, and industrial filtration products. The company is based in St. Louis, Missouri, and sells to customers across North America, Europe, and Asia.

ESCO earns revenue by selling hardware, engineered systems, and related services rather than through subscriptions. With a market cap around $7.6 billion and a gross margin near 42%, the company benefits from selling highly technical, custom-built products that are difficult for customers to easily replace with a competitor's offering. Its main growth driver is rising investment in utility grid modernization and defense spending, though its relatively modest return on invested capital of 7.7% suggests the business must manage costs carefully to generate strong returns for shareholders.

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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

+14.4% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+24.8% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (15%)

Research and development spending

Insider Activity

0.6%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$73M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

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

Growth + cash flow

ESCO Technologies is a rare growth stock that's already generating positive cash flow while growing at 14%. 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

41.7%

Healthy — 41.7% gross margin

Profit after running costs

Operating Margin

12.1%

Healthy — 12.1% operating margin

Return on the money invested

ROCE

11.1%

Below par — 11.1% 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

+20.1%

Fast-growing sales (+20.1% YoY)

Profit growth

EPS YoY

+172.8%

Earnings growing fast (+172.8% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

101%

Turns 101% of profit into real cash

Spare cash per sale

FCF Margin

19.9%

Converts sales into free cash efficiently (19.9%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

0.07

Conservative — low debt load (0.07)

Covers its interest

Interest Cover

10.09x

Comfortably covers interest (10.1x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

23.7x

Growth-priced — P/E 23.7

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

Cheaper or dearer next year

P/E vs Forward

-11.1

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend

Dividend Yield

0.11%

Small dividend — 0.11% yield

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

Dividend record

Dividend Growth

+0.0%

Dividend flat

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