EXPONENT INC (EXPO) Stock Fundamental Analysis
NASDAQ:EXPO - Nasdaq - US30214U1025 - Common Stock - Currency: USD
Overall EXPO gets a fundamental rating of 6 out of 10. We evaluated EXPO against 82 industry peers in the Professional Services industry. EXPO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
EXPO had a positive operating cash flow in the past year.
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 Return On Assets of 13.82%. This is amongst the best in the industry. EXPO outperforms 89.02% of its industry peers.
EXPO's Return On Equity of 23.90% is fine compared to the rest of the industry. EXPO outperforms 75.61% of its industry peers.
EXPO has a Return On Invested Capital of 15.56%. This is amongst the best in the industry. EXPO outperforms 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 12.61%.
| 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.
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 23.84%, EXPO belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
EXPO's Operating Margin has been stable in the last couple of years.
The Gross Margin of EXPO (92.78%) is better than 98.78% of its industry peers.
EXPO's Gross Margin has been stable in the last couple of years.
| 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
EXPO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
EXPO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, EXPO has less shares outstanding
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 10.10 indicates that EXPO is not in any danger for bankruptcy at the moment.
The Altman-Z score of EXPO (10.10) is better than 98.78% 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 | 10.1 |
ROIC/WACC1.72
WACC9.05%
2.3 Liquidity
A Current Ratio of 3.32 indicates that EXPO has no problem at all paying its short term obligations.
EXPO has a better Current ratio (3.32) than 89.02% of its industry peers.
EXPO has a Quick Ratio of 3.32. This indicates that EXPO is financially healthy and has no problem in meeting its short term obligations.
EXPO has a Quick ratio of 3.32. This is amongst the best in the industry. EXPO outperforms 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.
EXPO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.74% yearly.
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.
EXPO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.35% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 36.63, 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 63.41% of the companies in the same industry.
EXPO is valuated rather expensively when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 34.35, the valuation of EXPO can be described as expensive.
Based on the Price/Forward Earnings ratio, EXPO is valued a bit more expensive than the industry average as 62.20% of the companies are valued more cheaply.
EXPO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.63 | ||
| Fwd PE | 34.35 |
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 64.63% 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 | 28.41 | ||
| EV/EBITDA | 25.1 |
4.3 Compensation for Growth
EXPO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.43
EPS Next 2Y1.55%
EPS Next 3Y2.98%
5. Dividend
5.1 Amount
EXPO has a Yearly Dividend Yield of 1.59%.
Compared to an average industry Dividend Yield of 2.12, 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 2.39, EXPO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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 55.92% of its income as dividend. 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.
DP55.92%
EPS Next 2Y1.55%
EPS Next 3Y2.98%
75.1
-0.53 (-0.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners95.82%
Inst Owner Change-0.28%
Ins Owners0.93%
Ins Owner Change1.63%
Market Cap3.81B
Analysts77.78
Price Target93.84 (24.95%)
Short Float %3.92%
Short Ratio5.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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)-0.84%
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 | 36.63 | ||
| Fwd PE | 34.35 | ||
| P/S | 6.82 | ||
| P/FCF | 28.41 | ||
| P/OCF | 26.96 | ||
| P/B | 8.63 | ||
| P/tB | 8.81 | ||
| EV/EBITDA | 25.1 |
EPS(TTM)2.05
EY2.73%
EPS(NY)2.19
Fwd EY2.91%
FCF(TTM)2.64
FCFY3.52%
OCF(TTM)2.79
OCFY3.71%
SpS11.02
BVpS8.7
TBVpS8.53
PEG (NY)N/A
PEG (5Y)5.43
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 | 10.1 |
F-Score5
WACC9.05%
ROIC/WACC1.72
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%