ESCO TechnologiesESE -2.09%87 3-Year ROIIC % is 7.02 as of Sep. 2025, which is 39% above its 10-year median of 5.05. GuruFocus rates ESE with a GF Score™ of 87/100 and a GF Value™ of $186.72 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,371 Hardware companies, ESCO Technologies ranks better than 57.19% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
ESCO Technologies's 3-Year ROIIC % for the quarter that ended in Sep. 2025 was 7.02%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for ESCO Technologies's 3-Year ROIIC % or its related term are showing as below:
ESE's 3-Year ROIIC % is ranked better than 57.19% of 2371
companies
in the Hardware industry
Industry Median: 2.35
vs ESE: 7.02
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
ESCO Technologies 3-Year ROIIC % Related Terms
ESCO Technologies 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for ESCO Technologies's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Hardware Industry
For the Hardware industry and Technology sector, ESCO Technologies's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where ESCO Technologies's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
ESCO Technologies (ESE) has a 3-Year ROIIC % of 7.02 as of Sep. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on ESCO Technologies and its competitors. This is 39% above median its historical median of 5.05. According to the industry distribution chart, ESCO Technologies ranks #1015 out of 2371 companies in the Hardware industry, placing it in the top 42.8%.
Is ESCO Technologies' 3-Year ROIIC % too high?
ESCO Technologies' current 3-Year ROIIC % of 7.02 is 39% above median its 10-year median of 5.05. The Hardware industry median 3-Year ROIIC % is 2.35. ESCO Technologies' value of 7.02 is 198.7% above this industry median. Based on the distribution chart, ESCO Technologies ranks #1015 out of 2371 companies in the Hardware industry, which is above the industry midpoint. 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' 3-Year ROIIC % compare to ST and CGNX?
According to the Hardware industry distribution chart, ESCO Technologies ranks #1015 out of 2371 companies for 3-Year ROIIC %. This puts ESCO Technologies in the upper half of its industry. The industry median 3-Year ROIIC % is 2.35. ESCO Technologies' value of 7.02 is 198.7% above this benchmark. While the company's 10-year median is 5.05 vs. the industry median of 2.35, 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 3-Year ROIIC % for a Hardware company?
The median 3-Year ROIIC % among Hardware companies is 2.35, based on 2,371 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ESCO Technologies's current 3-Year ROIIC % of 7.02 is 198.7% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on ESCO Technologies and its competitors. For the Hardware industry, the median 3-Year ROIIC % is 2.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ESCO Technologies's current 3-Year ROIIC % is 7.02, which is 39% above median its own 10-year median of 5.05. 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 $186.72, compared to a current price of $332.78 — trading 78.2% above its estimated fair value. The current 3-Year ROIIC % is 7.02, which is 39% above median its 10-year median of 5.05 and 198.7% above the Hardware industry median of 2.35. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For ESCO Technologies (ESE), the current 3-Year ROIIC % is 7.02 as of Sep. 2025. 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 $332.78 is trading 78.2% above its estimated GF Value™ of $186.72.
GuruFocus considers ESCO Technologies to be Significantly Overvalued.
Key valuation signals for ESE:
3-Year ROIIC %: 7.02 (39% above median its 10-year median of 5.05)
GF Value™: $186.72 vs. price of $332.78 (78.2% above fair value)
Industry Position: 198.7% above the Hardware median (#1015 of 2371)
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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