EXPONENT INC (EXPO) Stock Fundamental Analysis
USA - NASDAQ:EXPO - US30214U1025 - Common Stock
69.34 USD
-0.82 (-1.17%)
69.34 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to EXPO. EXPO was compared to 81 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 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.
In the past 5 years EXPO has always been profitable.
In the past 5 years EXPO always reported a positive cash flow from operatings.
1.2 Ratios
EXPO has a better Return On Assets (13.54%) than 91.46% of its industry peers.
With a decent Return On Equity value of 24.04%, EXPO is doing good in the industry, outperforming 78.05% of the companies in the same industry.
EXPO has a Return On Invested Capital of 13.57%. This is in the better half of the industry: EXPO outperforms 78.05% 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 12.93%.
The 3 year average ROIC (18.56%) for EXPO is well above the current ROIC(13.57%). The reason for the recent decline needs to be investigated.
| 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 Profit Margin of 18.35%. This is amongst the best in the industry. EXPO outperforms 87.80% of its industry peers.
EXPO's Profit Margin has been stable in the last couple of years.
The Operating Margin of EXPO (20.46%) is better than 87.80% 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 92.62% is amongst the best of the industry. EXPO outperforms 98.78% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EXPO is creating value.
EXPO has more shares outstanding than it did 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
An Altman-Z score of 9.22 indicates that EXPO is not in any danger for bankruptcy at the moment.
EXPO has a Altman-Z score of 9.22. This is amongst the best in the industry. EXPO outperforms 95.12% 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 | 9.22 |
ROIC/WACC1.55
WACC8.78%
2.3 Liquidity
A Current Ratio of 3.15 indicates that EXPO has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.15, EXPO belongs to the best of the industry, outperforming 86.59% of the companies in the same industry.
A Quick Ratio of 3.15 indicates that EXPO has no problem at all paying its short term obligations.
EXPO has a better Quick ratio (3.15) than 87.80% 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%.
The Earnings Per Share has been growing slightly by 6.74% on average over the past years.
The Revenue has been growing slightly by 3.47% 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)-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
The Earnings Per Share is expected to grow by 3.43% on average over the next years.
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
EXPO is valuated quite expensively with a Price/Earnings ratio of 34.67.
62.20% of the companies in the same industry are cheaper than EXPO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.38, EXPO is valued a bit more expensive.
EXPO is valuated quite expensively with a Price/Forward Earnings ratio of 31.57.
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 is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.67 | ||
| Fwd PE | 31.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EXPO is valued a bit more expensive than 65.85% 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 | 28.96 | ||
| EV/EBITDA | 26.24 |
4.3 Compensation for Growth
The excellent profitability rating of EXPO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.14
EPS Next 2Y1.79%
EPS Next 3Y3.43%
5. Dividend
5.1 Amount
EXPO has a Yearly Dividend Yield of 1.71%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.09, EXPO pays a better dividend. On top of this EXPO pays more dividend than 80.49% of the companies listed in the same industry.
EXPO's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
5.2 History
On average, the dividend of EXPO grows each year by 28.57%, which is quite nice.
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
58.36% 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.
DP58.36%
EPS Next 2Y1.79%
EPS Next 3Y3.43%
69.34
-0.82 (-1.17%)
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 Change-0.04%
Market Cap3.50B
Analysts77.78
Price Target89.76 (29.45%)
Short Float %3.81%
Short Ratio4.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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)0%
PT rev (3m)-4.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.66%
EPS NY rev (1m)0%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.67 | ||
| Fwd PE | 31.57 | ||
| P/S | 6.25 | ||
| P/FCF | 28.96 | ||
| P/OCF | 27.09 | ||
| P/B | 8.19 | ||
| P/tB | 8.35 | ||
| EV/EBITDA | 26.24 |
EPS(TTM)2
EY2.88%
EPS(NY)2.2
Fwd EY3.17%
FCF(TTM)2.39
FCFY3.45%
OCF(TTM)2.56
OCFY3.69%
SpS11.1
BVpS8.47
TBVpS8.3
PEG (NY)N/A
PEG (5Y)5.14
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 | 9.22 |
F-Score6
WACC8.78%
ROIC/WACC1.55
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%