ESCO TechnologiesESE +1.00%82 Interest Coverage is 20.04 as of Mar. 2026, which is 47% above its 10-year median of 13.63. GuruFocus rates ESE with a GF Score™ of 82/100 and a GF Value™ of $186.16 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,671 Hardware companies, ESCO Technologies ranks worse than 55.66% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. ESCO Technologies's
Operating Income
for the
three
months ended in Mar. 2026 was $48 Mil. ESCO Technologies's Interest Expense for the
three
months ended in Mar. 2026 was $-2 Mil.
ESCO Technologies's interest coverage for the quarter that ended in Mar. 2026 was 20.04.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for ESCO Technologies's Interest Coverage or its related term are showing as below:
ESE'
s Interest Coverage Range Over the Past 10 Years
Min: 9.68 Med: 13.63 Max: 59.27
Current: 10.65
ESE's Interest Coverage is ranked worse than 55.66% of 1671
companies
in the Hardware industry
Industry Median: 13.79
vs ESE: 10.65
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
ESCO Technologies Interest Coverage Related Terms
ESCO Technologies Interest Coverage Historical Data
* Premium members only.
The historical data trend for ESCO Technologies's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
ESE vs ST, NOVT, CGNX: Interest Coverage Comparison
For the Scientific & Technical Instruments subindustry, ESCO Technologies's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
ESCO Technologies Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, ESCO Technologies's Interest Coverage distribution charts can be found below:
* The bar in red indicates where ESCO Technologies's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ESCO Technologies (ESE) has a Interest Coverage of 20.04 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ESCO Technologies and its competitors. This is 47% above median its historical median of 13.63. Over the past decade, ESCO Technologies' Interest Coverage has ranged from 9.68 to 59.27. According to the industry distribution chart, ESCO Technologies ranks #930 out of 1671 companies in the Hardware industry, placing it in the top 55.7%.
Is ESCO Technologies' Interest Coverage too high?
ESCO Technologies' current Interest Coverage of 20.04 is 47% above median its 10-year median of 13.63. Over the past 10 years, this metric has ranged from a low of 9.68 to a high of 59.27. The Hardware industry median Interest Coverage is 13.79. ESCO Technologies' value of 20.04 is 45.3% above this industry median. Based on the distribution chart, ESCO Technologies ranks #930 out of 1671 companies in the Hardware industry, which is below the industry midpoint. Overall, ESCO Technologies has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ESCO Technologies' Interest Coverage compare to ST and NOVT?
According to the Hardware industry distribution chart, ESCO Technologies ranks #930 out of 1671 companies for Interest Coverage. This places ESCO Technologies in the lower half of its industry. The industry median Interest Coverage is 13.79. ESCO Technologies' value of 20.04 is 45.3% above this benchmark. Historically, ESCO Technologies' own Interest Coverage has ranged from 9.68 to 59.27 over the past decade. While the company's 10-year median is 13.63 vs. the industry median of 13.79, ESCO Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Hardware company?
The median Interest Coverage among Hardware companies is 13.79, based on 1,671 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ESCO Technologies's current Interest Coverage of 20.04 is 45.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ESCO Technologies and its competitors. For the Hardware industry, the median Interest Coverage is 13.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ESCO Technologies's current Interest Coverage is 20.04, which is 47% above median its own 10-year median of 13.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ESCO Technologies stock overvalued right now?
Based on GuruFocus' analysis, ESCO Technologies (ESE) is currently considered Significantly Overvalued. The stock's GF Value™ is $186.16, compared to a current price of $346.51 — trading 86.1% above its estimated fair value. The current Interest Coverage is 20.04, which is 47% above median its 10-year median of 13.63 and 45.3% above the Hardware industry median of 13.79. ESCO Technologies' overall GF Score™ is 82/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For ESCO Technologies (ESE), the current Interest Coverage is 20.04 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is ESCO Technologies (ESE) Overvalued in 2026?
Based on GuruFocus' analysis, ESCO Technologies stock appears to be overvalued.
The current stock price of $346.51 is trading 86.1% above its estimated GF Value™ of $186.16.
GuruFocus considers ESCO Technologies to be Significantly Overvalued.
Key valuation signals for ESE:
Interest Coverage: 20.04 (47% above median its 10-year median of 13.63)
GF Value™: $186.16 vs. price of $346.51 (86.1% above fair value)
Industry Position: 45.3% above the Hardware median (#930 of 1671)
No single metric tells the full story. See the ESE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ESCO Technologies Inc sells engineered products and systems for utility, industrial, aerospace, and commercial applications. The firm operates in three segments: Aerospace & Defense (A&D), Utility Solutions Group (USG), and RF Test & Measurement (Test). The Aerospace and Defense segment designs and manufactures specialty filtration and naval products. The USG segment provides diagnostic testing solutions. The Test segment provides its customers with the ability to identify, measure, and contain magnetic, electromagnetic, and acoustic energy.
82GF Score
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