Forensic Analysis · Industrials / Manufacturing / Defense · as of Aug 11, 2026

Esab Corp (ESAB)

A forensic read on Esab Corp built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.

D · Weak — demands caution

Forensic grade

Safe

Financial health

4.2

Distress distance

Clean

Earnings quality

Forensic signals

27.8

P / E (ttm)

10.5%

ROE

$5.4B

Market cap

0.51%

Dividend yield

3.7%

Revenue growth

This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.

Esab Corp earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 4.2, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).

What the filings flag

+21.2%

FY2024→FY2025

Accruals ratio (% of NOA). Net operating assets grew +21.2% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The build is led by receivables up +22% against revenue +4% and inventory up +19% against +5% in cost of sales. The cash-flow cross-check is more mixed: reported earnings ran in line with operating cash by 1% of net operating assets, diverging from the balance-sheet accrual read.

8.3%

FY2025

Return on invested capital. Return on invested capital is 8.3% in the latest fiscal year and steady — around its ~9% cost of capital, so growth is roughly value-neutral.

+0.6%/yr

FY2022–FY2025

Share count. Diluted share count changed +2% over the last 3 years to FY2025 (+0.6%/yr). Roughly flat — the count is neither shrinking nor growing meaningfully. Per-share value isn't being meaningfully helped or hurt by the count.

Key fundamentals

Latest Revenue$2.84B

Revenue Growth YoY+3.7%

Revenue CAGR (3yr)+3.1%

Net Margin8.0%

Free Cash Flow$213.3M

Return on Equity10.5%

Debt / Equity0.57x

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Data from SEC EDGAR public filings · metrics as of Aug 11, 2026. Forensic signals flag probability, not certainty.