CluenexESAB ESAB
ESAB scores average on business quality (4.6 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What ESAB does
ESAB manufactures cutting and welding equipment, supplying industrial fabrication shops and heavy manufacturers who rely on its consumable electrodes and gas apparatus for daily operations.
- What it does best
ESAB converts revenue into free cash flow effectively, posting a fcf margin of 25% that sits in the top quartile of its sector. This cash generation stems from a sticky consumable model where customers repeatedly buy proprietary welding rods, locking in recurring demand that rivals struggle to displace.
- The main risk
A debt-to-equity ratio of 0.6 alongside net debt of $1.0 billion leaves the balance sheet exposed to cyclical downturns in industrial manufacturing demand. If heavy fabrication budgets contract, cash flow generation could stall under servicing obligations.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin rests at 13.8% alongside a net margin of 5.6% and an ROE of 7.7%, indicating that profitability remains constrained relative to heavy capital commitments.
A gross margin of 36.9% reflects moderate pricing power anchored in consumable welding products that lock in industrial users, though its sector percentile ranks near the middle of the pack at 52%.
Revenue growth sits at 3.7% with trailing sales reaching $3.0 billion, showing modest expansion compared to historical annual summary figures that show uneven top-line progression.
Net debt stands at $1.0 billion against $186 million in cash, while free cash flow pulled back to $197 million from $304 million previously, leaving the balance sheet softer.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 sold $95K outside pre-planned sales.
Our sealed record on ESAB
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
ESAB scores average on the Cluenex quality check (4.6 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: 1 sold $95K outside pre-planned sales.
Oct 27, 2026.
See ESAB today
- Today's verdict on ESAB, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “ESAB (ESAB)”, https://cluenex.com/stocks/esab/, data as of Oct 10, 2026.