EXPONENT INC (EXPO)
US30214U1025 - Common Stock
EXPO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 81 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year EXPO was profitable.
EXPO had a positive operating cash flow in the past year.
Each year in the past 5 years EXPO has been profitable.
EXPO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.50%, EXPO belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
EXPO has a better Return On Equity (28.15%) than 86.25% of its industry peers.
The Return On Invested Capital of EXPO (17.35%) is better than 83.75% 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 12.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.5% | ||
| ROE | 28.15% | ||
| ROIC | 17.35% |
ROA(3y)15.92%
ROA(5y)15.33%
ROE(3y)28.11%
ROE(5y)26.15%
ROIC(3y)19.26%
ROIC(5y)17.2%
1.3 Margins
EXPO has a better Profit Margin (18.68%) than 87.50% of its industry peers.
In the last couple of years the Profit Margin of EXPO has remained more or less at the same level.
Looking at the Operating Margin, with a value of 20.74%, EXPO belongs to the top of the industry, outperforming 88.75% of the companies in the same industry.
EXPO's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 92.65%, EXPO belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
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 | 20.74% | ||
| PM (TTM) | 18.68% | ||
| GM | 92.65% |
OM growth 3Y-0.11%
OM growth 5Y-2.97%
PM growth 3Y-3.27%
PM growth 5Y-0.38%
GM growth 3Y-0.71%
GM growth 5Y-0.17%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EXPO is creating value.
The number of shares outstanding for EXPO remains at a similar level compared to 1 year ago.
The number of shares outstanding for EXPO has been reduced compared to 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
EXPO has an Altman-Z score of 12.91. This indicates that EXPO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of EXPO (12.91) is better than 97.50% 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 | 12.91 |
ROIC/WACC1.88
WACC9.22%
2.3 Liquidity
A Current Ratio of 2.34 indicates that EXPO has no problem at all paying its short term obligations.
EXPO has a Current ratio of 2.34. This is amongst the best in the industry. EXPO outperforms 81.25% of its industry peers.
A Quick Ratio of 2.34 indicates that EXPO has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.34, EXPO belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 2.34 |
3. Growth
3.1 Past
The earnings per share for EXPO have decreased by -0.51% in the last year.
Measured over the past 5 years, EXPO shows a small growth in Earnings Per Share. The EPS has been growing by 7.87% on average per year.
Looking at the last year, EXPO shows a small growth in Revenue. The Revenue has grown by 4.54% in the last year.
EXPO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.18% yearly.
EPS 1Y (TTM)-0.51%
EPS 3Y7.95%
EPS 5Y7.87%
EPS growth Q2Q-6.82%
Revenue 1Y (TTM)4.54%
Revenue growth 3Y10.31%
Revenue growth 5Y7.18%
Revenue growth Q2Q-3.53%
3.2 Future
The Earnings Per Share is expected to grow by 3.67% on average over the next years.
The Revenue is expected to grow by 3.18% on average over the next years.
EPS Next Y-6.37%
EPS Next 2Y1.17%
EPS Next 3Y3.67%
EPS Next 5YN/A
Revenue Next Year-2.99%
Revenue Next 2Y1.65%
Revenue Next 3Y3.18%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 48.37, which means the current valuation is very expensive for EXPO.
Based on the Price/Earnings ratio, EXPO is valued a bit more expensive than 76.25% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.28, EXPO is valued quite expensively.
The Price/Forward Earnings ratio is 51.67, which means the current valuation is very expensive for EXPO.
70.00% of the companies in the same industry are cheaper than EXPO, based on the Price/Forward Earnings ratio.
EXPO is valuated expensively when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.37 | ||
| Fwd PE | 51.67 |
4.2 Price Multiples
EXPO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. EXPO is more expensive than 76.25% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EXPO is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.06 | ||
| EV/EBITDA | 38.2 |
4.3 Compensation for Growth
The excellent profitability rating of EXPO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6.14
EPS Next 2Y1.17%
EPS Next 3Y3.67%
5. Dividend
5.1 Amount
EXPO has a Yearly Dividend Yield of 1.21%.
EXPO's Dividend Yield is a higher than the industry average which is at 2.08.
With a Dividend Yield of 1.21, EXPO pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
The dividend of EXPO is nicely growing with an annual growth rate of 28.64%!
EXPO has paid a dividend for at least 10 years, which is a reliable track record.
EXPO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)28.64%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
53.92% of the earnings are spent on dividend by EXPO. This is a bit on the high side, but may be sustainable.
The dividend of EXPO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP53.92%
EPS Next 2Y1.17%
EPS Next 3Y3.67%
EXPONENT INC
NASDAQ:EXPO (5/3/2024, 7:00:01 PM)
After market: 94.33 0 (0%)94.33
+1.91 (+2.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.78B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.37 | ||
| Fwd PE | 51.67 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)6.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.5% | ||
| ROE | 28.15% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.74% | ||
| PM (TTM) | 18.68% | ||
| GM | 92.65% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.34 | ||
| Quick Ratio | 2.34 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-0.51%
EPS 3Y7.95%
EPS 5Y
EPS growth Q2Q
EPS Next Y-6.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.54%
Revenue growth 3Y10.31%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y