ESCO TechnologiesESE -0.67%87 Return-on-Tangible-Asset is 14.72% as of Mar. 2026, which is 23% above its 10-year median of 11.97. GuruFocus rates ESE with a GF Score™ of 87/100 and a GF Value™ of $187.10 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,498 Hardware companies, ESCO Technologies ranks better than 98.8% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. ESCO Technologies's annualizedNet Income for the quarter that ended in Mar. 2026 was $139 Mil. ESCO Technologies's average total tangible assets for the quarter that ended in Mar. 2026 was $944 Mil. Therefore, ESCO Technologies's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 14.72%.
The historical rank and industry rank for ESCO Technologies's Return-on-Tangible-Asset or its related term are showing as below:
ESE'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 9.93 Med: 11.97 Max: 32.71
Current: 32.66
During the past 13 years, ESCO Technologies's highest Return-on-Tangible-Asset was 32.71%. The lowest was 9.93%. And the median was 11.97%.
ESE's Return-on-Tangible-Asset is ranked better than 98.8% of 2498
companies
in the Hardware industry
Industry Median: 2.44
vs ESE: 32.66
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
ESCO Technologies Return-on-Tangible-Asset Related Terms
ESCO Technologies Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for ESCO Technologies's Return-on-Tangible-Asset 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, CGNX, TRMB: Return-on-Tangible-Asset Comparison
For the Scientific & Technical Instruments subindustry, ESCO Technologies's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Hardware Industry
For the Hardware industry and Technology sector, ESCO Technologies's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where ESCO Technologies's Return-on-Tangible-Asset falls into.
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 14.72% mean?
ESCO Technologies (ESE) has a Return-on-Tangible-Asset of 14.72% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on ESCO Technologies and its competitors. This is 23% above median its historical median of 11.97. Over the past decade, ESCO Technologies' Return-on-Tangible-Asset has ranged from 9.93 to 32.71. According to the industry distribution chart, ESCO Technologies ranks #30 out of 2498 companies in the Hardware industry, placing it in the top 1.2%.
Is ESCO Technologies' Return-on-Tangible-Asset too high?
ESCO Technologies' current Return-on-Tangible-Asset of 14.72% is 23% above median its 10-year median of 11.97. Over the past 10 years, this metric has ranged from a low of 9.93 to a high of 32.71. The Hardware industry median Return-on-Tangible-Asset is 2.44. ESCO Technologies' value of 14.72% is 503.3% above this industry median. Based on the distribution chart, ESCO Technologies ranks #30 out of 2498 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 87/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ESCO Technologies' Return-on-Tangible-Asset compare to ST and CGNX?
According to the Hardware industry distribution chart, ESCO Technologies ranks #30 out of 2498 companies for Return-on-Tangible-Asset. This places ESCO Technologies in the top 1% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.44. ESCO Technologies' value of 14.72% is 503.3% above this benchmark. Historically, ESCO Technologies' own Return-on-Tangible-Asset has ranged from 9.93 to 32.71 over the past decade. While the company's 10-year median is 11.97 vs. the industry median of 2.44, 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 Return-on-Tangible-Asset for a Hardware company?
The median Return-on-Tangible-Asset among Hardware companies is 2.44, based on 2,498 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ESCO Technologies's current Return-on-Tangible-Asset of 14.72% is 503.3% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on ESCO Technologies and its competitors. For the Hardware industry, the median Return-on-Tangible-Asset is 2.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ESCO Technologies's current Return-on-Tangible-Asset is 14.72%, which is 23% above median its own 10-year median of 11.97. 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 $187.10, compared to a current price of $329.12 — trading 75.9% above its estimated fair value. The current Return-on-Tangible-Asset is 14.72%, which is 23% above median its 10-year median of 11.97 and 503.3% above the Hardware industry median of 2.44. ESCO Technologies' overall GF Score™ is 87/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For ESCO Technologies (ESE), the current Return-on-Tangible-Asset is 14.72% 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 $329.12 is trading 75.9% above its estimated GF Value™ of $187.10.
GuruFocus considers ESCO Technologies to be Significantly Overvalued.
Key valuation signals for ESE:
Return-on-Tangible-Asset: 14.72% (23% above median its 10-year median of 11.97)
GF Value™: $187.10 vs. price of $329.12 (75.9% above fair value)
Industry Position: 503.3% above the Hardware median (#30 of 2498)
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.
87GF Score
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