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....
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For further details see:
ESCO Technologies: A Growing Conglomerate But Few Immediate Catalysts