ESCO TechnologiesESE +1.00%82 ROA % is 5.78% as of Mar. 2026, which is 2% above its 10-year median of 5.67. 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 2,498 Hardware companies, ESCO Technologies ranks better than 93.8% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. ESCO Technologies's annualizedNet Income for the quarter that ended in Mar. 2026 was $139 Mil.
ESCO Technologies's average Total Assets over the quarter that ended in Mar. 2026 was $2,402 Mil. Therefore, ESCO Technologies's annualized ROA % for the quarter that ended in Mar. 2026 was 5.78%.
The historical rank and industry rank for ESCO Technologies's ROA % or its related term are showing as below:
ESE'
s ROA % Range Over the Past 10 Years
Min: 4.31 Med: 5.67 Max: 14.08
Current: 13.33
During the past 13 years, ESCO Technologies's highest ROA % was 14.08%. The lowest was 4.31%. And the median was 5.67%.
ESE's ROA % is ranked better than 93.8% of 2498
companies
in the Hardware industry
Industry Median: 2.27
vs ESE: 13.33
ESCO Technologies (NYSE:ESE) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
ESCO Technologies ROA % Related Terms
ESCO Technologies ROA % Historical Data
* Premium members only.
The historical data trend for ESCO Technologies's ROA % 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.
For the Scientific & Technical Instruments subindustry, ESCO Technologies's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Hardware Industry
For the Hardware industry and Technology sector, ESCO Technologies's ROA % distribution charts can be found below:
* The bar in red indicates where ESCO Technologies's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
ESCO Technologies (ESE) has a ROA % of 5.78% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on ESCO Technologies and its competitors. This is near median its historical median of 5.67. Over the past decade, ESCO Technologies' ROA % has ranged from 4.31 to 14.08. According to the industry distribution chart, ESCO Technologies ranks #155 out of 2498 companies in the Hardware industry, placing it in the top 6.2%.
Is ESCO Technologies' ROA % too high?
ESCO Technologies' current ROA % of 5.78% is near median its 10-year median of 5.67. Over the past 10 years, this metric has ranged from a low of 4.31 to a high of 14.08. The Hardware industry median ROA % is 2.27. ESCO Technologies' value of 5.78% is 154.6% above this industry median. Based on the distribution chart, ESCO Technologies ranks #155 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 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ESCO Technologies' ROA % compare to ST and NOVT?
According to the Hardware industry distribution chart, ESCO Technologies ranks #155 out of 2498 companies for ROA %. This places ESCO Technologies in the top 6% of its industry — outperforming the majority of peers. The industry median ROA % is 2.27. ESCO Technologies' value of 5.78% is 154.6% above this benchmark. Historically, ESCO Technologies' own ROA % has ranged from 4.31 to 14.08 over the past decade. While the company's 10-year median is 5.67 vs. the industry median of 2.27, 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 ROA % for a Hardware company?
The median ROA % among Hardware companies is 2.27, based on 2,498 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ESCO Technologies's current ROA % of 5.78% is 154.6% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on ESCO Technologies and its competitors. For the Hardware industry, the median ROA % is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ESCO Technologies's current ROA % is 5.78%, which is near median its own 10-year median of 5.67. 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 ROA % is 5.78%, which is near median its 10-year median of 5.67 and 154.6% above the Hardware industry median of 2.27. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For ESCO Technologies (ESE), the current ROA % is 5.78% 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:
ROA %: 5.78% (near median its 10-year median of 5.67)
GF Value™: $186.16 vs. price of $346.51 (86.1% above fair value)
Industry Position: 154.6% above the Hardware median (#155 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.
82GF Score
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