ESAB Corporation cash flow to debt ratio of 18.18% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

ESAB Corporation's free cash flow has decreased 29.75% from $303.62M last year to $213.28M, signaling decreasing performance

ESAB Corporation's debt to equity ratio is 0.95, which means that the company's assets are unhealthy financed, signaling financial risk.

ESAB Corporation's debt has increased relative to shareholder equity from 0.66 last year to 0.95 today, signaling weakened financials

ESAB Corporation has a net debt to EBITDA ratio of 2.54x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

ESAB Corporation's interest coverage ratio of 6.74 indicates that earnings with good margin can cover interest payments on company debt

ESAB Corporation's profit margin has decreased (40.53%) in the last year from 9.66% to 5.75%, signaling decreasing performance

ESAB Corporation's short-term assets of $1.26B exceed its short-term liabilities of $664.79M

ESAB Corporation's return on assets of 2.63% is lower than the 5.00% threshold, indicating inefficient asset utilization

ESAB Corporation's return on equity of 7.66%, is lower than 15.00%, indicating bad performance

ESAB Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

ESAB Corporation has insufficient public price history to evaluate earnings stability.

ESAB Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

ESAB Corporation has a free cash flow yield of 4.09%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

ESAB Corporation's yearly earnings has decreased 14.38% since last year from $264.84M to $226.77M, signaling decreasing performance

ESAB Corporation's yearly revenue has increased 3.71% since last year from $2.74B to $2.84B, signaling increasing performance

ROIC 6.13% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

ESAB Corporation's 3-year revenue CAGR of 3.10% is positive, indicating growing revenue over the past 3 years

ESAB Corporation had revenue growth in 4 out of 5 years, indicating consistent revenue performance

ESAB Corporation has insufficient public price history to evaluate ROE consistency.

ESAB Corporation is overvalued relative to its fair value price of 13.18 based on Discounted Cash Flow model

ESAB Corporation has an earnings yield of 3.29%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

ESAB Corporation is overvalued relative to its fair value price of 36.03 based on EBITDA multiple model

ESAB Corporation has an EV/EBITDA ratio of 13.14x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

ESAB Corporation has insufficient data to evaluate this check.

ESAB Corporation has a PEG-ratio over 1 which is considered overvalued

ESAB Corporation has a price-to-book ratio of 2.03x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

ESAB Corporation has a price-to-sales ratio of 1.75x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue