ESCO Technologies Inc.
ESE Technology Scientific & Technical Instruments
ESCO Technologies Inc.’s revenue for fiscal 2025 (year ended September 2025) was $1.1 billion, up 19.2% from fiscal 2024. In the quarter to June 2026, revenue grew 14.4%, EPS grew 24.8%, free cash flow fell 22.1% and total debt fell 83.8%, each against the same quarter a year earlier. Dividend growth for ten consecutive years, revenue growth for three, operating cash flow growth for three.
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ESCO Technologies Inc. (ESE) Altman Z-score
ESCO Technologies Inc.'s Altman Z-score for fiscal 2025 is 5.34, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 5.34 | 0.22 |
| FY2024 | 5.11 | 0.43 |
| FY2023 | 4.69 | 1.11 |
| FY2022 | 3.57 | (0.09) |
| FY2021 | 3.67 | (1.00) |
| FY2020 | 4.67 | 1.15 |
| FY2019 | 3.52 | (0.21) |
| FY2018 | 3.73 | 0.63 |
| FY2017 | 3.10 | (0.60) |
| FY2016 | 3.70 | (0.09) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.07 | — | 0.09 | |
| Retained earnings / total assets | 0.57 | — | 0.80 | |
| EBIT / total assets | 0.07 | — | 0.24 | |
| Market value of equity / total liabilities | 6.27 | — | 3.76 | |
| Sales / total assets | 0.45 | — | 0.45 | |
| Altman Z-score | Safe zone | 5.34 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 4.69 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| BMI Badger Meter, Inc. compare | 14.8× |
| CGNX Cognex Corporation compare | 8.3× |
| NOVT Novanta Inc. compare | 6.6× |
| ESE ESCO Technologies Inc. | 5.3× |
| TRMB Trimble Inc. compare | 4.4× |
| FTV Fortive Corporation compare | 3.2× |
| VNT Vontier Corporation compare | 2.9× |
| ITRI Itron, Inc. compare | 2.5× |
| ST Sensata Technologies Holding N.V. compare | 2.1× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets