ESE - ESCO Technologies: A Growing Conglomerate But Few Immediate Catalysts
2024-07-10 11:35:28 ET
Summary
- ESCO Technologies Inc. is a conglomerate with three business segments showing growth and solid margins.
- The recent acquisition of the Signature Management & Power business is expected to be accretive to the aerospace & defense segment, growing overall sales well beyond a billion.
- Despite fair valuations and recent deal, shares of ESCO Technologies still trade at a small premium, making me constructive but cautious on the shares.
In the summer of last year, I called ESCO Technologies Inc. ( ESE ) a conglomerate which traded at a premium. The company originally has been a spin-off from Emerson Electric ( EMR ) back in the 1990s. In the three decades since this separation, the company has created real value for investors, and continues to grow the business, all which looks quite attractive....
ESCO Technologies: A Growing Conglomerate But Few Immediate Catalysts