EXPONENT INC (EXPO) Stock Fundamental Analysis
NASDAQ:EXPO - US30214U1025 - Common Stock
72.29 USD
+1.81 (+2.57%)
72.29 USD
0 (0%)
Overall EXPO gets a fundamental rating of 6 out of 10. We evaluated EXPO against 81 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
EXPO had positive earnings in the past year.
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
The Return On Assets of EXPO (13.54%) is better than 91.36% of its industry peers.
EXPO has a better Return On Equity (24.04%) than 79.01% of its industry peers.
The Return On Invested Capital of EXPO (13.57%) is better than 77.78% 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 12.68%.
The last Return On Invested Capital (13.57%) for EXPO is well below the 3 year average (18.56%), which needs to be investigated, but indicates that EXPO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.54% | ||
| ROE | 24.04% | ||
| ROIC | 13.57% |
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
EXPO has a better Profit Margin (18.35%) than 88.89% of its industry peers.
EXPO's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 20.46%, EXPO belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Operating Margin of EXPO has remained more or less at the same level.
EXPO has a better Gross Margin (92.62%) than 98.77% of its industry peers.
EXPO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.46% | ||
| PM (TTM) | 18.35% | ||
| GM | 92.62% |
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
EXPO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 9.49 indicates that EXPO is not in any danger for bankruptcy at the moment.
The Altman-Z score of EXPO (9.49) is better than 96.30% 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 | 9.49 |
ROIC/WACC1.53
WACC8.9%
2.3 Liquidity
A Current Ratio of 3.15 indicates that EXPO has no problem at all paying its short term obligations.
EXPO has a Current ratio of 3.15. This is amongst the best in the industry. EXPO outperforms 86.42% of its industry peers.
EXPO has a Quick Ratio of 3.15. This indicates that EXPO is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of EXPO (3.15) is better than 87.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.15 | ||
| Quick Ratio | 3.15 |
3. Growth
3.1 Past
EXPO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.44%.
EXPO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.74% yearly.
Looking at the last year, EXPO shows a small growth in Revenue. The Revenue has grown by 3.47% in the last year.
EXPO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.01% yearly.
EPS 1Y (TTM)-2.44%
EPS 3Y3.72%
EPS 5Y6.74%
EPS Q2Q%-8.77%
Revenue 1Y (TTM)3.47%
Revenue growth 3Y6.2%
Revenue growth 5Y6.01%
Sales Q2Q%0.33%
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 3.43% on average per year.
EXPO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.51% yearly.
EPS Next Y-4.74%
EPS Next 2Y1.79%
EPS Next 3Y3.43%
EPS Next 5YN/A
Revenue Next Year3.1%
Revenue Next 2Y5.27%
Revenue Next 3Y5.51%
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 36.15 indicates a quite expensive valuation of EXPO.
Based on the Price/Earnings ratio, EXPO is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
EXPO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.24.
The Price/Forward Earnings ratio is 32.91, which means the current valuation is very expensive for EXPO.
Based on the Price/Forward Earnings ratio, EXPO is valued a bit more expensive than 62.96% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EXPO to the average of the S&P500 Index (22.81), we can say EXPO is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.15 | ||
| Fwd PE | 32.91 |
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 67.90% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as EXPO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.19 | ||
| EV/EBITDA | 27.44 |
4.3 Compensation for Growth
The excellent profitability rating of EXPO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.36
EPS Next 2Y1.79%
EPS Next 3Y3.43%
5. Dividend
5.1 Amount
EXPO has a Yearly Dividend Yield of 1.70%.
EXPO's Dividend Yield is rather good when compared to the industry average which is at 2.25. EXPO pays more dividend than 80.25% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.34, EXPO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
The dividend of EXPO is nicely growing with an annual growth rate of 28.57%!
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 58.36% 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.
DP58.36%
EPS Next 2Y1.79%
EPS Next 3Y3.43%
72.29
+1.81 (+2.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners95.7%
Inst Owner Change3.31%
Ins Owners0.94%
Ins Owner Change1.69%
Market Cap3.65B
Analysts77.78
Price Target89.76 (24.17%)
Short Float %4.3%
Short Ratio6.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend1.07
Dividend Growth(5Y)28.57%
DP58.36%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.77%
Min EPS beat(2)3.34%
Max EPS beat(2)6.21%
EPS beat(4)4
Avg EPS beat(4)5.87%
Min EPS beat(4)2.12%
Max EPS beat(4)11.81%
EPS beat(8)6
Avg EPS beat(8)5.81%
EPS beat(12)8
Avg EPS beat(12)5.15%
EPS beat(16)12
Avg EPS beat(16)6.06%
Revenue beat(2)1
Avg Revenue beat(2)-0.18%
Min Revenue beat(2)-0.43%
Max Revenue beat(2)0.08%
Revenue beat(4)2
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)1.35%
Revenue beat(8)4
Avg Revenue beat(8)0.24%
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)-4.35%
PT rev (3m)-4.35%
EPS NQ rev (1m)0.66%
EPS NQ rev (3m)1.33%
EPS NY rev (1m)0.68%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)-1.28%
Revenue NQ rev (3m)-1.72%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.15 | ||
| Fwd PE | 32.91 | ||
| P/S | 6.51 | ||
| P/FCF | 30.19 | ||
| P/OCF | 28.24 | ||
| P/B | 8.53 | ||
| P/tB | 8.71 | ||
| EV/EBITDA | 27.44 |
EPS(TTM)2
EY2.77%
EPS(NY)2.2
Fwd EY3.04%
FCF(TTM)2.39
FCFY3.31%
OCF(TTM)2.56
OCFY3.54%
SpS11.1
BVpS8.47
TBVpS8.3
PEG (NY)N/A
PEG (5Y)5.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.54% | ||
| ROE | 24.04% | ||
| ROCE | 18.37% | ||
| ROIC | 13.57% | ||
| ROICexc | 21.59% | ||
| ROICexgc | 22.07% | ||
| OM | 20.46% | ||
| PM (TTM) | 18.35% | ||
| GM | 92.62% | ||
| FCFM | 21.57% |
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 Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 84.31% | ||
| Cap/Sales | 1.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.74% | ||
| Profit Quality | 117.59% | ||
| Current Ratio | 3.15 | ||
| Quick Ratio | 3.15 | ||
| Altman-Z | 9.49 |
F-Score6
WACC8.9%
ROIC/WACC1.53
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)-2.44%
EPS 3Y3.72%
EPS 5Y6.74%
EPS Q2Q%-8.77%
EPS Next Y-4.74%
EPS Next 2Y1.79%
EPS Next 3Y3.43%
EPS Next 5YN/A
Revenue 1Y (TTM)3.47%
Revenue growth 3Y6.2%
Revenue growth 5Y6.01%
Sales Q2Q%0.33%
Revenue Next Year3.1%
Revenue Next 2Y5.27%
Revenue Next 3Y5.51%
Revenue Next 5YN/A
EBIT growth 1Y-3.43%
EBIT growth 3Y3.15%
EBIT growth 5Y7.03%
EBIT Next Year27.12%
EBIT Next 3Y12.22%
EBIT Next 5YN/A
FCF growth 1Y39.65%
FCF growth 3Y5.33%
FCF growth 5Y10.11%
OCF growth 1Y24.49%
OCF growth 3Y5.08%
OCF growth 5Y5.99%