One-glance verdict
Overvalued
$40.10 our estimate vs market $73.06
Wall Street consensus: $119.73 (198.6% higher than our fair-value estimate)
82% above our estimate, beyond the bull case
Fundamentals snapshot
ESAB Corporation
ESAB · NYQ · Industrials · Metal Fabrication
Current price
$73.06
52-week range
$62.74 - $137.42
Market cap
$4.54B
Balance sheet
Stretched
5.24x Adequate
Net debt $2.32B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 5.6% last year.
- Reward Free cash flow was positive in 6/10 years.
- Reward Trades at 22.8x P/E vs peer median 25.0x (8.8% cheaper).
- Risk Operating margin compressed from 13.6% to 12.0% over 3 years.
What this company does
ESAB Corporation
ESAB Corporation sells professional welding and cutting equipment used in industries like construction and manufacturing. A large part of its sales (the money it receives from customers) comes from the materials people use up during a job, such as welding wire, which must be repurchased again and again. This creates a steady business because customers need to constantly restock these supplies to keep their equipment running, similar to how you have to keep buying ink for your printer.
How the company got here
ESAB was founded in Sweden in 1904 by an engineer who invented a new type of welding electrode, a key component in welding. For over a century, it grew into a global company focused on welding and cutting products. In 2012, it was acquired by an American industrial company named Colfax Corporation, which later expanded ESAB's offerings by buying other fabrication technology companies. A major turning point came in 2022 when Colfax decided to split into two separate, publicly traded companies; the medical technology part was renamed Enovis, and ESAB Corporation was spun off as an independent company focused entirely on fabrication and gas control technology.
What it actually does
ESAB makes the tools and materials needed to cut and join metals. Think of the equipment you might see in a car repair shop, a shipyard, or on a construction site for a skyscraper. Their products range from the actual welding and cutting machines to the wires and electrodes that are used up in the process, similar to how a printer needs ink cartridges. They also produce equipment that controls the flow of gases used in both industrial settings and even in hospitals for medical purposes.
Fabrication Technology
This is ESAB's largest and core business, representing the majority of its sales. It provides a wide range of products for welding and cutting, from handheld welders for small workshops to automated and robotic systems for large factories. A key part of this business is selling consumables (the materials like wire and electrodes that get used up during welding), which creates a steady, recurring stream of revenue, much like selling razor blades for a razor handle. This segment serves industries like manufacturing, construction, and transportation.
Gas Control
This is a smaller but important and growing part of ESAB's business. It focuses on equipment that controls the flow of gases for various applications. This includes regulators and systems for industrial gases used in welding and cutting, but also extends into more specialized areas. For example, this segment provides high-purity gas control equipment for medical uses in hospitals and for scientific laboratories.
What management is betting on now
The company's leadership is focused on growing by acquiring other companies that add new technology or give them access to new markets. They are also concentrating on selling more high-value products and expanding their gas control business, which has attractive, specialized customers. A core part of their strategy is using their internal operating system, called ESAB Business Excellence (EBX), to make their operations more efficient and increase their profit margins (the amount of profit they make from each dollar of sales).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$102.17M
FY2025 Q2
$28.12M
FY2025 Q3
$37.45M
FY2025 Q4
$70.30M
FY2026 Q2
$33.21M
FY2026 Q3
$15.68M
Revenue
$807.63M
Net income
$32.35M
Diluted EPS
0.50
Operating cash flow
$33.42M
Free cash flow
$15.68M
Fetching…
Sources
Revenue
$745.60M
Net income
$47.64M
Diluted EPS
0.78
Operating cash flow
$46.91M
Free cash flow
$33.21M
Fetching…
Sources
Revenue
$727.85M
Net income
$54.85M
Diluted EPS
0.90
Operating cash flow
$81.48M
Free cash flow
$70.30M
Fetching…
Sources
Revenue
$715.59M
Net income
$66.88M
Diluted EPS
1.09
Operating cash flow
$46.63M
Free cash flow
$37.45M
Fetching…
Sources
Revenue
$678.14M
Net income
$67.36M
Diluted EPS
1.10
Operating cash flow
$35.41M
Free cash flow
$28.12M
Fetching…
Sources
Revenue
$670.76M
Net income
$53.74M
Diluted EPS
0.87
Operating cash flow
$126.88M
Free cash flow
$102.17M
Fetching…
Sources
Is it cheap or expensive?
Fair value $40.10 vs current price $73.06
Wall Street consensus is the average analyst price target: $119.73 (198.6% higher than our fair-value estimate).
Our most-likely fair value is $40.10 a share — about 45.1% below today's price of $73.06, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $2.3B. Interest coverage 5.2x.
Net debt
$2.32B
Interest coverage
5.24x
ESAB Corporation's profit covers its interest bill about 5.2 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
ESAB
BASELINE
ESAB Corporation
Total debt $2.54B Interest coverage 5.24x This is the baseline the peer rows are being compared against.
Total debt $1.21B Interest coverage 14.28x +172% vs ESAB Carries about 2.7x more debt cushion than ESAB.
Total debt $9.37B Interest coverage 14.44x +175% vs ESAB Carries about 2.8x more debt cushion than ESAB.
Total debt $763.71M Interest coverage 16.86x +222% vs ESAB Carries about 3.2x more debt cushion than ESAB.
Total debt $164.67M Interest coverage 211.11x +3,927% vs ESAB Carries about 40.3x more debt cushion than ESAB.
Total debt $1.82B Interest coverage 6.95x +33% vs ESAB Carries about 1.3x more debt cushion than ESAB.
What you should know
The case for and against ESAB
3 Rewards
1 Risk
Rewards
-
Revenue grew 5.6% last year.
-
Free cash flow was positive in 6/10 years.
-
Trades at 22.8x P/E vs peer median 25.0x (8.8% cheaper).
Risks
-
Operating margin compressed from 13.6% to 12.0% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
22.76x
Forward P/E
11.46x
P/B
1.92x
P/S
1.51x
EV/EBITDA
12.90x
PEG ratio
0.73x
Profitability
How much profit each dollar creates
Gross margin
37.0%
Operating margin
12.0%
Net margin
5.7%
ROE
8.7%
ROA
5.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.98x
Current ratio
1.96x
Quick ratio
0.99x
Total debt
$2.54B
Total cash
$217.49M
Growth
How the business has been compounding
Revenue TTM
$3.00B
Revenue 5Y CAGR
4.0%
EPS TTM
3.21
EPS 5Y CAGR
-0.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$258.87M
Free CF TTM
$213.28M
FCF margin
7.1%
Dividend
Shareholder payout
Yield
0.7%
Payout ratio
13.1%
Last ex-div date
2026-10-02