ESCO TechnologiesESE +1.00%82 Operating Margin % is 15.54% as of Mar. 2026, which is 14% 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 2,472 Hardware companies, ESCO Technologies ranks better than 87.18% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
ESCO Technologies Operating Margin % Related Terms
ESCO Technologies Operating Margin % Historical Data
* Premium members only.
The historical data trend for ESCO Technologies's Operating Margin % 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.
ESE vs ST, NOVT, CGNX: Operating Margin % Comparison
For the Scientific & Technical Instruments subindustry, ESCO Technologies's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, ESCO Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where ESCO Technologies's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
ESCO Technologies's Operating Margin % for the fiscal year that ended in Sep. 2025 is calculated as
* 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 Operating Margin % of 15.54% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on ESCO Technologies and its competitors. This is 14% above median its historical median of 13.63. Over the past decade, ESCO Technologies' Operating Margin % has ranged from 11.47 to 16.05. According to the industry distribution chart, ESCO Technologies ranks #317 out of 2472 companies in the Hardware industry, placing it in the top 12.8%.
Is ESCO Technologies' Operating Margin % too high?
ESCO Technologies' current Operating Margin % of 15.54% is 14% above median its 10-year median of 13.63. Over the past 10 years, this metric has ranged from a low of 11.47 to a high of 16.05. The Hardware industry median Operating Margin % is 3.80. ESCO Technologies' value of 15.54% is 308.9% above this industry median. Based on the distribution chart, ESCO Technologies ranks #317 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. 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' Operating Margin % compare to ST and NOVT?
According to the Hardware industry distribution chart, ESCO Technologies ranks #317 out of 2472 companies for Operating Margin %. This places ESCO Technologies in the top 13% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. ESCO Technologies' value of 15.54% is 308.9% above this benchmark. Historically, ESCO Technologies' own Operating Margin % has ranged from 11.47 to 16.05 over the past decade. While the company's 10-year median is 13.63 vs. the industry median of 3.80, 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 Operating Margin % for a Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,472 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ESCO Technologies's current Operating Margin % of 15.54% is 308.9% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on ESCO Technologies and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ESCO Technologies's current Operating Margin % is 15.54%, which is 14% 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 Operating Margin % is 15.54%, which is 14% above median its 10-year median of 13.63 and 308.9% above the Hardware industry median of 3.80. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For ESCO Technologies (ESE), the current Operating Margin % is 15.54% 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:
Operating Margin %: 15.54% (14% 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: 308.9% above the Hardware median (#317 of 2472)
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
Get the complete analysis for ESE
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ESE has been successfully added to your 
