ESEESCO Technologies Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.7×) and margins widening.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
Margin-driven, fat margins on slower asset turns. ROE 19% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ESE?
ESCO Technologies Inc. earns 8.9% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 0.14 points below what the capital costs: growth destroys value
- Operating margin
- 14%
Operating margin · Scientific & Technical Instruments median 17% · 12 months to Q3 2026
- Cash conversion
- 1.72×
Cash conversion · 1.81× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.24%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 5.0% |
| FY2021 | 11% |
| FY2022 | 12% |
| FY2023 | 14% |
| FY2024 | 16% |
| FY2025 | 16% |
Details›
- Gross margin12 months to Q3 2026
- 42%
- Operating margin12 months to Q3 2026
- 14%
- Net margin12 months to Q3 2026
- 24%
- Free cash flow margin
- 16%
- Revenue, trailing twelve months
- $1.29B
- Free cash flow, trailing twelve months
- $207M
- Net income, trailing twelve months
- $315M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.9%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from ESE and who it buys from, as the companies report it.
- U.S. government23%
Share of revenue · FY2025 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; ESE’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.
Scientific & Technical Instruments
Ranks #4 of 11 by RyuScore