Is the business good?
How good a business is ESAB?
ESAB Corporation earns 9.6% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
9.6%
Return on invested capital · cost of capital 9.0% · 0.63 points above what the capital costs: growth creates value
- Operating margin
- 14%
Operating margin · Metal Fabrication median 11% · 12 months to Q1 2026
- Cash conversion
- 1.05×
Cash conversion · 1.08× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −0.02%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 10% |
| FY2021 | 13% |
| FY2022 | 13% |
| FY2023 | 15% |
| FY2024 | 16% |
| FY2025 | 14% |
Details›
- Gross margin12 months to Q1 2026
- 37%
- Operating margin12 months to Q1 2026
- 14%
- Net margin12 months to Q1 2026
- 7.1%
- Free cash flow margin
- 7.5%
- R&D as % of revenue
- 1.6%
- Revenue, trailing twelve months
- $2.91B
- Free cash flow, trailing twelve months
- $218M
- Net income, trailing twelve months
- $207M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 9.6%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.