EXPONENT INC (EXPO) Stock Fundamental Analysis
NASDAQ:EXPO - Nasdaq - US30214U1025 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to EXPO. EXPO was compared to 82 industry peers in the Professional Services industry. EXPO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. EXPO is valued expensive and it does not seem to be growing.
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.
In the past 5 years EXPO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.02%, EXPO belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
EXPO has a Return On Equity of 25.89%. This is in the better half of the industry: EXPO outperforms 78.05% of its industry peers.
The Return On Invested Capital of EXPO (14.39%) is better than 81.71% of its industry peers.
EXPO had an Average Return On Invested Capital over the past 3 years of 18.56%. This is significantly above the industry average of 12.98%.
The 3 year average ROIC (18.56%) for EXPO is well above the current ROIC(14.39%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.02% | ||
| ROE | 25.89% | ||
| ROIC | 14.39% |
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
With an excellent Profit Margin value of 19.52%, EXPO belongs to the best of the industry, outperforming 89.02% of the companies in the same industry.
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 21.41%, EXPO belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
EXPO's Operating Margin has been stable in the last couple of years.
EXPO's Gross Margin of 92.83% is amongst the best of the industry. EXPO outperforms 97.56% of its industry peers.
EXPO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.41% | ||
| PM (TTM) | 19.52% | ||
| GM | 92.83% |
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
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 has been increased compared to 1 year ago.
EXPO has less shares outstanding than it did 5 years ago.
EXPO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 9.57 indicates that EXPO is not in any danger for bankruptcy at the moment.
EXPO has a Altman-Z score of 9.57. This is amongst the best in the industry. EXPO outperforms 97.56% of its industry peers.
EXPO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9.57 |
ROIC/WACC1.58
WACC9.1%
2.3 Liquidity
EXPO has a Current Ratio of 2.74. This indicates that EXPO is financially healthy and has no problem in meeting its short term obligations.
EXPO's Current ratio of 2.74 is amongst the best of the industry. EXPO outperforms 86.59% of its industry peers.
A Quick Ratio of 2.74 indicates that EXPO has no problem at all paying its short term obligations.
EXPO's Quick ratio of 2.74 is amongst the best of the industry. EXPO outperforms 86.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.74 | ||
| Quick Ratio | 2.74 |
3. Growth
3.1 Past
EXPO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.54%.
The Earnings Per Share has been growing slightly by 6.74% on average over the past years.
The Revenue has been growing slightly by 4.05% 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)4.05%
Revenue growth 3Y6.2%
Revenue growth 5Y6.01%
Sales Q2Q%0.17%
3.2 Future
EXPO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.98% yearly.
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
Based on the Price/Earnings ratio of 37.82, the valuation of EXPO can be described as expensive.
EXPO's Price/Earnings ratio is a bit more expensive when compared to the industry. EXPO is more expensive than 67.07% of the companies in the same industry.
EXPO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.60.
A Price/Forward Earnings ratio of 35.46 indicates a quite expensive valuation of EXPO.
63.41% of the companies in the same industry are cheaper than EXPO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.43. EXPO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.82 | ||
| Fwd PE | 35.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EXPO indicates a slightly more expensive valuation: EXPO is more expensive than 67.07% of the companies listed in the same industry.
EXPO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.6 | ||
| EV/EBITDA | 29.15 |
4.3 Compensation for Growth
The excellent profitability rating of EXPO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.61
EPS Next 2Y1.55%
EPS Next 3Y2.98%
5. Dividend
5.1 Amount
EXPO has a Yearly Dividend Yield of 1.51%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.98, EXPO pays a better dividend. On top of this EXPO pays more dividend than 80.49% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.36, EXPO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
5.2 History
The dividend of EXPO is nicely growing with an annual growth rate of 28.57%!
EXPO has been paying a dividend for at least 10 years, so it has 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)28.57%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
EXPO pays out 53.41% 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.
DP53.41%
EPS Next 2Y1.55%
EPS Next 3Y2.98%
NASDAQ:EXPO (5/21/2025, 3:25:02 PM)
77.53
-1.79 (-2.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners95.9%
Inst Owner Change-0.16%
Ins Owners0.94%
Ins Owner Change2.25%
Market Cap3.94B
Analysts77.78
Price Target93.84 (21.04%)
Short Float %3.69%
Short Ratio5.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
Yearly Dividend1.07
Dividend Growth(5Y)28.57%
DP53.41%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.97%
Min EPS beat(2)2.12%
Max EPS beat(2)11.81%
EPS beat(4)4
Avg EPS beat(4)12.23%
Min EPS beat(4)2.12%
Max EPS beat(4)23.95%
EPS beat(8)4
Avg EPS beat(8)4%
EPS beat(12)8
Avg EPS beat(12)5.57%
EPS beat(16)12
Avg EPS beat(16)8.43%
Revenue beat(2)1
Avg Revenue beat(2)-0.53%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)1.35%
Revenue beat(4)2
Avg Revenue beat(4)1.24%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)6.78%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)-14.81%
PT rev (3m)-20.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)-2.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.82 | ||
| Fwd PE | 35.46 | ||
| P/S | 7.05 | ||
| P/FCF | 28.6 | ||
| P/OCF | 27.23 | ||
| P/B | 9.35 | ||
| P/tB | 9.54 | ||
| EV/EBITDA | 29.15 |
EPS(TTM)2.05
EY2.64%
EPS(NY)2.19
Fwd EY2.82%
FCF(TTM)2.71
FCFY3.5%
OCF(TTM)2.85
OCFY3.67%
SpS11
BVpS8.3
TBVpS8.13
PEG (NY)N/A
PEG (5Y)5.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.02% | ||
| ROE | 25.89% | ||
| ROCE | 19.47% | ||
| ROIC | 14.39% | ||
| ROICexc | 24.88% | ||
| ROICexgc | 25.49% | ||
| OM | 21.41% | ||
| PM (TTM) | 19.52% | ||
| GM | 92.83% | ||
| FCFM | 24.64% |
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-Score6
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 71.62% | ||
| Cap/Sales | 1.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 111.83% | ||
| Profit Quality | 126.23% | ||
| Current Ratio | 2.74 | ||
| Quick Ratio | 2.74 | ||
| Altman-Z | 9.57 |
F-Score6
WACC9.1%
ROIC/WACC1.58
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)4.05%
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 1Y7.4%
EBIT growth 3Y3.15%
EBIT growth 5Y7.03%
EBIT Next Year34.12%
EBIT Next 3Y12.46%
EBIT Next 5YN/A
FCF growth 1Y23.97%
FCF growth 3Y5.33%
FCF growth 5Y10.11%
OCF growth 1Y13.49%
OCF growth 3Y5.08%
OCF growth 5Y5.99%