EXPONENT INC (EXPO) Stock Fundamental Analysis
NASDAQ:EXPO - Nasdaq - US30214U1025 - Common Stock - Currency: USD
EXPO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. Both the health and profitability get an excellent rating, making EXPO a very profitable company, without any liquidiy or solvency issues. EXPO does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year EXPO was profitable.
In the past year EXPO had a positive cash flow from operations.
EXPO had positive earnings in each of the past 5 years.
Each year in the past 5 years EXPO had a positive operating cash flow.
1.2 Ratios
EXPO has a better Return On Assets (13.82%) than 90.24% of its industry peers.
With a decent Return On Equity value of 23.90%, EXPO is doing good in the industry, outperforming 76.83% of the companies in the same industry.
The Return On Invested Capital of EXPO (15.56%) is better than 82.93% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EXPO is significantly above the industry average of 12.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.82% | ||
| ROE | 23.9% | ||
| ROIC | 15.56% |
ROA(3y)15.66%
ROA(5y)15.2%
ROE(3y)28.66%
ROE(5y)26.61%
ROIC(3y)18.56%
ROIC(5y)16.83%
1.3 Margins
Looking at the Profit Margin, with a value of 18.87%, EXPO belongs to the top of the industry, outperforming 89.02% of the companies in the same industry.
EXPO's Profit Margin has been stable in the last couple of years.
The Operating Margin of EXPO (23.84%) is better than 90.24% of its industry peers.
In the last couple of years the Operating Margin of EXPO has remained more or less at the same level.
EXPO's Gross Margin of 92.78% is amongst the best of the industry. EXPO outperforms 98.78% of its industry peers.
In the last couple of years the Gross Margin of EXPO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.84% | ||
| PM (TTM) | 18.87% | ||
| GM | 92.78% |
OM growth 3Y-2.87%
OM growth 5Y0.97%
PM growth 3Y-3.48%
PM growth 5Y-0.25%
GM growth 3Y-0.15%
GM growth 5Y-0.21%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EXPO is creating value.
The number of shares outstanding for EXPO has been increased compared to 1 year ago.
EXPO has less shares outstanding than it did 5 years ago.
There is no outstanding debt for EXPO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 9.81 indicates that EXPO is not in any danger for bankruptcy at the moment.
EXPO has a Altman-Z score of 9.81. This is amongst the best in the industry. EXPO outperforms 95.12% of its industry peers.
There is no outstanding debt for EXPO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9.81 |
ROIC/WACC1.71
WACC9.08%
2.3 Liquidity
EXPO has a Current Ratio of 3.32. This indicates that EXPO is financially healthy and has no problem in meeting its short term obligations.
EXPO has a Current ratio of 3.32. This is amongst the best in the industry. EXPO outperforms 89.02% of its industry peers.
A Quick Ratio of 3.32 indicates that EXPO has no problem at all paying its short term obligations.
The Quick ratio of EXPO (3.32) is better than 90.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.32 | ||
| Quick Ratio | 3.32 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.54% over the past year.
Measured over the past 5 years, EXPO shows a small growth in Earnings Per Share. The EPS has been growing by 6.74% on average per year.
The Revenue has been growing slightly by 3.27% in the past year.
Measured over the past years, EXPO shows a small growth in Revenue. The Revenue has been growing by 6.01% on average per year.
EPS 1Y (TTM)3.54%
EPS 3Y3.72%
EPS 5Y6.74%
EPS Q2Q%-11.86%
Revenue 1Y (TTM)3.27%
Revenue growth 3Y6.2%
Revenue growth 5Y6.01%
Sales Q2Q%0.17%
3.2 Future
Based on estimates for the next years, EXPO will show a small growth in Earnings Per Share. The EPS will grow by 2.98% on average per year.
Based on estimates for the next years, EXPO will show a small growth in Revenue. The Revenue will grow by 5.35% on average per year.
EPS Next Y-5.38%
EPS Next 2Y1.55%
EPS Next 3Y2.98%
EPS Next 5YN/A
Revenue Next Year3.02%
Revenue Next 2Y5.09%
Revenue Next 3Y5.35%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 34.80 indicates a quite expensive valuation of EXPO.
62.20% of the companies in the same industry are cheaper than EXPO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.46. EXPO is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 32.63, the valuation of EXPO can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EXPO indicates a slightly more expensive valuation: EXPO is more expensive than 63.41% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. EXPO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.8 | ||
| Fwd PE | 32.63 |
4.2 Price Multiples
EXPO's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EXPO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.98 | ||
| EV/EBITDA | 24 |
4.3 Compensation for Growth
EXPO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.16
EPS Next 2Y1.55%
EPS Next 3Y2.98%
5. Dividend
5.1 Amount
EXPO has a Yearly Dividend Yield of 1.62%. Purely for dividend investing, there may be better candidates out there.
EXPO's Dividend Yield is rather good when compared to the industry average which is at 2.11. EXPO pays more dividend than 80.49% of the companies in the same industry.
EXPO's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
5.2 History
On average, the dividend of EXPO grows each year by 28.57%, which is quite nice.
EXPO has paid a dividend for at least 10 years, which is a reliable track record.
EXPO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)28.57%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
EXPO pays out 55.92% of its income as dividend. This is a bit on the high side, but may be sustainable.
EXPO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP55.92%
EPS Next 2Y1.55%
EPS Next 3Y2.98%
71.34
-1.17 (-1.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners95.82%
Inst Owner Change0.23%
Ins Owners0.93%
Ins Owner Change2.24%
Market Cap3.62B
Analysts77.78
Price Target93.84 (31.54%)
Short Float %3.9%
Short Ratio6.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
Yearly Dividend1.07
Dividend Growth(5Y)28.57%
DP55.92%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.01%
Min EPS beat(2)6.21%
Max EPS beat(2)11.81%
EPS beat(4)4
Avg EPS beat(4)7.79%
Min EPS beat(4)2.12%
Max EPS beat(4)11.81%
EPS beat(8)5
Avg EPS beat(8)4.91%
EPS beat(12)8
Avg EPS beat(12)5.53%
EPS beat(16)12
Avg EPS beat(16)6.6%
Revenue beat(2)2
Avg Revenue beat(2)0.71%
Min Revenue beat(2)0.08%
Max Revenue beat(2)1.35%
Revenue beat(4)2
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)1.35%
Revenue beat(8)5
Avg Revenue beat(8)1.06%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-14.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.8 | ||
| Fwd PE | 32.63 | ||
| P/S | 6.48 | ||
| P/FCF | 26.98 | ||
| P/OCF | 25.61 | ||
| P/B | 8.2 | ||
| P/tB | 8.37 | ||
| EV/EBITDA | 24 |
EPS(TTM)2.05
EY2.87%
EPS(NY)2.19
Fwd EY3.06%
FCF(TTM)2.64
FCFY3.71%
OCF(TTM)2.79
OCFY3.9%
SpS11.02
BVpS8.7
TBVpS8.53
PEG (NY)N/A
PEG (5Y)5.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.82% | ||
| ROE | 23.9% | ||
| ROCE | 21.06% | ||
| ROIC | 15.56% | ||
| ROICexc | 25.39% | ||
| ROICexgc | 25.97% | ||
| OM | 23.84% | ||
| PM (TTM) | 18.87% | ||
| GM | 92.78% | ||
| FCFM | 24% |
ROA(3y)15.66%
ROA(5y)15.2%
ROE(3y)28.66%
ROE(5y)26.61%
ROIC(3y)18.56%
ROIC(5y)16.83%
ROICexc(3y)30.54%
ROICexc(5y)30.82%
ROICexgc(3y)31.45%
ROICexgc(5y)31.86%
ROCE(3y)25.12%
ROCE(5y)22.78%
ROICexcg growth 3Y-10.75%
ROICexcg growth 5Y-4.18%
ROICexc growth 3Y-10.36%
ROICexc growth 5Y-3.84%
OM growth 3Y-2.87%
OM growth 5Y0.97%
PM growth 3Y-3.48%
PM growth 5Y-0.25%
GM growth 3Y-0.15%
GM growth 5Y-0.21%
F-Score5
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 73.16% | ||
| Cap/Sales | 1.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.77% | ||
| Profit Quality | 127.16% | ||
| Current Ratio | 3.32 | ||
| Quick Ratio | 3.32 | ||
| Altman-Z | 9.81 |
F-Score5
WACC9.08%
ROIC/WACC1.71
Cap/Depr(3y)141.73%
Cap/Depr(5y)120.6%
Cap/Sales(3y)2.21%
Cap/Sales(5y)1.87%
Profit Quality(3y)105.59%
Profit Quality(5y)110.44%
High Growth Momentum
Growth
EPS 1Y (TTM)3.54%
EPS 3Y3.72%
EPS 5Y6.74%
EPS Q2Q%-11.86%
EPS Next Y-5.38%
EPS Next 2Y1.55%
EPS Next 3Y2.98%
EPS Next 5YN/A
Revenue 1Y (TTM)3.27%
Revenue growth 3Y6.2%
Revenue growth 5Y6.01%
Sales Q2Q%0.17%
Revenue Next Year3.02%
Revenue Next 2Y5.09%
Revenue Next 3Y5.35%
Revenue Next 5YN/A
EBIT growth 1Y18.03%
EBIT growth 3Y3.15%
EBIT growth 5Y7.03%
EBIT Next Year26.28%
EBIT Next 3Y11.81%
EBIT Next 5YN/A
FCF growth 1Y71.24%
FCF growth 3Y5.33%
FCF growth 5Y10.11%
OCF growth 1Y51.28%
OCF growth 3Y5.08%
OCF growth 5Y5.99%