ESCO TechnologiesESE -2.90%82 Return-on-Tangible-Equity is 121.35% as of Mar. 2026, which is 96% above its 10-year median of 61.76. GuruFocus rates ESE with a GF Score™ of 82/100 and a GF Value™ of $186.54 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,379 Hardware companies, ESCO Technologies ranks better than 97.77% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. ESCO Technologies's annualized net income for the quarter that ended in Mar. 2026 was $139 Mil. ESCO Technologies's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $114 Mil. Therefore, ESCO Technologies's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 121.35%.
The historical rank and industry rank for ESCO Technologies's Return-on-Tangible-Equity or its related term are showing as below:
ESE'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 37.75 Med: 61.76 Max: 4080.78
Current: 341.29
During the past 13 years, ESCO Technologies's highest Return-on-Tangible-Equity was 4,080.78%. The lowest was 37.75%. And the median was 61.76%.
ESE's Return-on-Tangible-Equity is ranked better than 97.77% of 2379
companies
in the Hardware industry
Industry Median: 5.26
vs ESE: 341.29
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
ESCO Technologies Return-on-Tangible-Equity Related Terms
ESCO Technologies Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for ESCO Technologies's Return-on-Tangible-Equity 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-Equity Comparison
For the Scientific & Technical Instruments subindustry, ESCO Technologies's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Hardware Industry
For the Hardware industry and Technology sector, ESCO Technologies's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where ESCO Technologies's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 121.35% mean?
ESCO Technologies (ESE) has a Return-on-Tangible-Equity of 121.35% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on ESCO Technologies and its competitors. This is 96% above median its historical median of 61.76. Over the past decade, ESCO Technologies' Return-on-Tangible-Equity has ranged from 37.75 to 4,080.78. According to the industry distribution chart, ESCO Technologies ranks #53 out of 2379 companies in the Hardware industry, placing it in the top 2.2%.
Is ESCO Technologies' Return-on-Tangible-Equity too high?
ESCO Technologies' current Return-on-Tangible-Equity of 121.35% is 96% above median its 10-year median of 61.76. Over the past 10 years, this metric has ranged from a low of 37.75 to a high of 4,080.78. The Hardware industry median Return-on-Tangible-Equity is 5.26. ESCO Technologies' value of 121.35% is 2207% above this industry median. Based on the distribution chart, ESCO Technologies ranks #53 out of 2379 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' Return-on-Tangible-Equity compare to ST and CGNX?
According to the Hardware industry distribution chart, ESCO Technologies ranks #53 out of 2379 companies for Return-on-Tangible-Equity. This places ESCO Technologies in the top 2% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.26. ESCO Technologies' value of 121.35% is 2207% above this benchmark. Historically, ESCO Technologies' own Return-on-Tangible-Equity has ranged from 37.75 to 4,080.78 over the past decade. While the company's 10-year median is 61.76 vs. the industry median of 5.26, 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-Equity for a Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.26, based on 2,379 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ESCO Technologies's current Return-on-Tangible-Equity of 121.35% is 2207% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on ESCO Technologies and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ESCO Technologies's current Return-on-Tangible-Equity is 121.35%, which is 96% above median its own 10-year median of 61.76. 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 $186.54, compared to a current price of $339.90 — trading 82.2% above its estimated fair value. The current Return-on-Tangible-Equity is 121.35%, which is 96% above median its 10-year median of 61.76 and 2207% above the Hardware industry median of 5.26. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For ESCO Technologies (ESE), the current Return-on-Tangible-Equity is 121.35% 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 $339.90 is trading 82.2% above its estimated GF Value™ of $186.54.
GuruFocus considers ESCO Technologies to be Significantly Overvalued.
Key valuation signals for ESE:
Return-on-Tangible-Equity: 121.35% (96% above median its 10-year median of 61.76)
GF Value™: $186.54 vs. price of $339.90 (82.2% above fair value)
Industry Position: 2207% above the Hardware median (#53 of 2379)
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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