ESCO Technologies Inc. ESE

Competitive advantage analysis · technology

Corporate Default
Overall moat score
68/100
Moderate

About ESCO Technologies Inc.

ESCO Technologies Inc. provides engineered components and systems for aviation, navy, defense, and industrial customers. The Aerospace & Defense segment designs and manufactures specialty filtration products, including hydraulic filter elements and fluid control devices used in commercial and defense aerospace applications; miniature electro-explosive devices for military aircraft ejection seats and missile arming devices; manufactures and sells mission-critical bushings, pins, sleeves, … Full ESE analysis →

Competitive advantage assessment

Key strengths

  • ROIC Sustainably Above Peers ROIC at 80.0th percentile exceeds peers and WACC, demonstrating superior capital allocation.
  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.87), demonstrating pricing resilience across cycles.

Key risks

  • Liquidity Concerns Liquidity is concerning (score 0.16), raising questions about short-term obligations.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
69

Where ESE ranks in Scientific & Technical Instruments

ESCO Technologies Inc. ranks #9 of 34 scored companies in Scientific & Technical Instruments by moat score — the top 26%. The widest moat in the group is Garmin Ltd. (GRMN) at 85/100.

Moat scores for companies ranked near ESE in Scientific & Technical Instruments
# Company Moat score Rating
5 Keysight Technologies Inc. KEYS 71/100 Moderate
6 Vontier Corporation VNT 70/100 Moderate
7 Cognex Corporation CGNX 70/100 Moderate
8 Fortive Corporation FTV 69/100 Moderate
9 ESCO Technologies Inc. ESE 68/100 Moderate
10 Trimble Inc. TRMB 66/100 Moderate
11 Itron, Inc. ITRI 66/100 Moderate
12 Novanta Inc. NOVT 62/100 Moderate
13 Sono-Tek Corporation SOTK 62/100 Moderate

See every General Corporate company ranked by moat score →

How ESE scores on the Corporate Default defenses

Pricing Power

Score 68 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 74 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 78 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 77 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 53 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 60 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding ESE's moat

What is ESCO Technologies Inc.'s moat score?

ESCO Technologies Inc. (ESE) scores 68 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #9 of 34 scored companies in Scientific & Technical Instruments, the top 26%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 33 companies in Scientific & Technical Instruments. Its strongest defense is Customer Stickiness (78/100) and its weakest is Resilience (53/100).

How does ESCO Technologies Inc. compare with other Scientific & Technical Instruments companies?

ESCO Technologies Inc. ranks #9 of 34 scored companies in Scientific & Technical Instruments by moat score. The widest moat in Scientific & Technical Instruments is Garmin Ltd. (GRMN) at 84/100. The companies ranked closest are Fortive Corporation (FTV) at 69 just above it and Trimble Inc. (TRMB) at 66 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 33 companies in Scientific & Technical Instruments. The defenses are then weighted to produce the overall score out of 100.

Why is ESCO Technologies Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for ESCO Technologies Inc.?

The Corporate Default template measures 6 defenses, and ESE scores: Pricing Power (68), Cost Advantage (74), Customer Stickiness (78), Capital Efficiency (77), Resilience (53), Scale & Market Position (60). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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