📊 AI Stock Rating — Summary

For the quarter ending October 3, 2025, ESAB reported revenue of $727.85 million and net income of $54.85 million, achieving an EPS of $0.9. The net margin stands at approximately 7.53%. Free cash flow for the quarter was $70.30 million, derived from an operating cash flow of $81.48 million and a capital expenditure of $11.18 million. Year-over-year growth factors indicate stability in financial performance. ESAB maintains a strong balance with total assets of $4.87 billion against total liabilities of $2.71 billion, resulting in equity of approximately $2.16 billion and net debt of $1.12 billion. The company paid $6.09 million in dividends signaling ongoing shareholder remuneration. Analyst price targets up to $150 suggest potential for further appreciation. The stable earnings, solid free cash flow, and strong equity base underpin the company's robust financial health, allowing for continued dividend distribution and operational investments. Analyst forecasts reflect confidence in value appreciation despite moderate leverage.

AI Score Breakdown

Revenue Growth — Score: 7/10

ESAB's revenue growth is stable with quarterly revenue reaching $727.85 million. Revenue growth appears consistent, driven by core business activities without reported significant volatility.

Profitability — Score: 8/10

With a net income of $54.85 million, the company holds a healthy net margin of 7.53% and an EPS of $0.9, indicating efficient operations and strong profitability.

Cash Flow Quality — Score: 8/10

The company successfully generated a free cash flow of $70.30 million. It maintains liquidity and has paid $6.09 million in dividends, indicating good cash flow management and quality.

Leverage & Balance Sheet — Score: 7/10

Total assets of $4.87 billion against total liabilities of $2.71 billion show a solid equity base of $2.16 billion. Net debt is moderate at $1.12 billion, reflecting manageable leverage.

Shareholder Returns — Score: 7/10

Despite no major buybacks, dividends remain consistent. Coupled with possible price appreciation indicated by analyst targets up to $150, the stock offers potential value growth.

Analyst Sentiment & Valuation — Score: 8/10

With analyst price targets between $140 and $150, sentiment appears positive. The valuation remains appealing, suggesting the stock may be undervalued relative to growth prospects.

⚠ AI-generated — informational only, not financial advice.