What does utility solutions — goodwill impairment mean?

A write-down of the value of goodwill due to a decline in the segment's business prospects.

How do you interpret utility solutions — goodwill impairment?

A loss signals that past acquisitions are underperforming or that market conditions for the segment have deteriorated.

How does utility solutions — goodwill impairment compare across companies?

Standard impairment testing result; peers report this to reflect adjustments to the carrying value of acquired businesses.

ESCO Technologies ESE Utility Solutions — Goodwill Impairment

Discontinued — last reported Q4 '20

Similar metrics at other companies

AESUtilities — Goodwill impairment expense

$0-100%

IES

IESCInfrastructure Solutions — Goodwill impairment expense

$0—

HUBBUtility Solutions — Goodwill, Written off Related to Sale of Business Unit

$0—

ESIPerformance Solutions — Goodwill Impairment

$0-100%

RRXPower Efficiency Solutions — Goodwill, impairment loss

$0—

ESWater Distribution — Goodwill impairment

$0-100%

Other financials

Income statement

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Revenue$309.3M+33.5%

Gross profit$131.3M+32.3%

Net income$34.7M+11.9%

EPS (diluted)$1.34+11.7%

Balance sheet

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Cash & equivalents$92.3M+60.7%

Total debt$212.7M+45.8%

Total equity$1.6B+24.1%

Total assets$2.4B+41.8%

Cash flow

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Operating cash flow$6.4M-73.4%

CapEx$7.2M-25.7%

Free cash flow$63.0M+117%

Valuation

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Market cap$8.9B+77.4%

Enterprise value$9.02B+76.6%

P/E28.9×-13.6×

P/S7.1×+1.9×

Profitability

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Gross margin41.9%-1.0pp

Net margin24.7%+12.3pp

FCF margin20.5%+7.3pp

Returns & leverage

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Return on equity21.5%+11.9pp

Debt / equity0.1×0.0×

Current ratio1.5×-0.6×

Where this comes from

Reported directly by ESCO Technologies in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The official record: ESCO Technologies’s 10-K, filed November 29, 2021, on SEC EDGAR. View the filing →

Questions, answered.

What does utility solutions — goodwill impairment mean?: A write-down of the value of goodwill due to a decline in the segment's business prospects.
How do you interpret utility solutions — goodwill impairment?: A loss signals that past acquisitions are underperforming or that market conditions for the segment have deteriorated.
How does utility solutions — goodwill impairment compare across companies?: Standard impairment testing result; peers report this to reflect adjustments to the carrying value of acquired businesses.