4 Analysts Have This To Say About ESAB

Providing a diverse range of perspectives from bullish to bearish, 4 analysts have published ratings on ESAB ESAB in the last three months.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $132.25, with a high estimate of $140.00 and a low estimate of $125.00. No alteration is observed as the current average remains at the previous average price target.

Investigating Analyst Ratings: An Elaborate Study

A comprehensive examination of how financial experts perceive ESAB is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to ESAB. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of ESAB compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of ESAB's stock. This analysis reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into ESAB's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on ESAB analyst ratings.

Get to Know ESAB Better

ESAB, spun off from Colfax in 2022, is a leading manufacturer of equipment and consumables used in welding, cutting, and joining applications. Alongside competitors Lincoln Electric and ITW's Miller brand, ESAB is one of the top three players in the welding space. ESAB generated roughly $2.7 billion in revenue in 2024.

Financial Insights: ESAB

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: ESAB's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2024, the company experienced a revenue decline of approximately -2.7%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: ESAB's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 8.01%, the company may face hurdles in effective cost management.

Return on Equity (ROE): ESAB's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.98%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): ESAB's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.32%, the company may face hurdles in achieving optimal financial returns.

Debt Management: ESAB's debt-to-equity ratio stands notably higher than the industry average, reaching 0.66. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Significance of Analyst Ratings Explained

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.