Should Quality Investors Include EXPONENT INC (NASDAQ:EXPO) in Their Portfolio?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if EXPONENT INC (NASDAQ:EXPO) is suited for quality investing. Investors should of course do their own research, but we spotted EXPONENT INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of EXPONENT INC

• EXPO has achieved substantial revenue growth over the past 5 years, with a 6.01% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a robust ROIC excluding cash and goodwill at 25.49%, EXPO showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• EXPO maintains a healthy Debt/Free Cash Flow Ratio of 0.0, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a favorable Profit Quality (5-year) ratio of 110.0%, EXPO showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• EXPO has demonstrated consistent growth in EBIT over the past 5 years, with a strong 7.03%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• EXPO has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

What else is there to say on the fundamentals of EXPO?

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, EXPO scores 6 out of 10 in our fundamental rating. EXPO was compared to 80 industry peers in the Professional Services industry. EXPO gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, EXPO is valued expensive at the moment.

Our latest full fundamental report of EXPO contains the most current fundamental analsysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.