ENPRO INC (NPO) Stock Fundamental Analysis
USA - NYSE:NPO - US29355X1072 - Common Stock
228.92 USD
+2.92 (+1.29%)
228.92 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to NPO. NPO was compared to 129 industry peers in the Machinery industry. While NPO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NPO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
NPO had positive earnings in the past year.
NPO had a positive operating cash flow in the past year.
In the past 5 years NPO has always been profitable.
In the past 5 years NPO always reported a positive cash flow from operatings.
1.2 Ratios
NPO has a Return On Assets (3.56%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 5.65%, NPO is in line with its industry, outperforming 41.09% of the companies in the same industry.
With a Return On Invested Capital value of 5.70%, NPO perfoms like the industry average, outperforming 43.41% of the companies in the same industry.
NPO had an Average Return On Invested Capital over the past 3 years of 4.85%. This is significantly below the industry average of 10.00%.
The 3 year average ROIC (4.85%) for NPO is below the current ROIC(5.70%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 5.65% | ||
| ROIC | 5.7% |
ROA(3y)3.85%
ROA(5y)5.21%
ROE(3y)7.13%
ROE(5y)10.37%
ROIC(3y)4.85%
ROIC(5y)3.67%
1.3 Margins
With a decent Profit Margin value of 7.83%, NPO is doing good in the industry, outperforming 62.79% of the companies in the same industry.
In the last couple of years the Profit Margin of NPO has grown nicely.
Looking at the Operating Margin, with a value of 14.71%, NPO is in the better half of the industry, outperforming 68.99% of the companies in the same industry.
In the last couple of years the Operating Margin of NPO has grown nicely.
NPO has a Gross Margin of 42.81%. This is in the better half of the industry: NPO outperforms 79.84% of its industry peers.
NPO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.71% | ||
| PM (TTM) | 7.83% | ||
| GM | 42.81% |
OM growth 3Y20.57%
OM growth 5Y22.1%
PM growth 3Y-31.01%
PM growth 5Y16.96%
GM growth 3Y2.8%
GM growth 5Y4.84%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NPO is destroying value.
NPO has more shares outstanding than it did 1 year ago.
NPO has more shares outstanding than it did 5 years ago.
NPO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.77 indicates that NPO is not in any danger for bankruptcy at the moment.
The Altman-Z score of NPO (4.77) is better than 77.52% of its industry peers.
The Debt to FCF ratio of NPO is 3.16, which is a good value as it means it would take NPO, 3.16 years of fcf income to pay off all of its debts.
NPO has a better Debt to FCF ratio (3.16) than 68.22% of its industry peers.
NPO has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
NPO has a better Debt to Equity ratio (0.31) than 62.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 4.77 |
ROIC/WACC0.58
WACC9.76%
2.3 Liquidity
NPO has a Current Ratio of 2.49. This indicates that NPO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of NPO (2.49) is better than 64.34% of its industry peers.
A Quick Ratio of 1.65 indicates that NPO should not have too much problems paying its short term obligations.
NPO has a Quick ratio of 1.65. This is in the better half of the industry: NPO outperforms 72.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.77% over the past year.
NPO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.23% yearly.
Looking at the last year, NPO shows a small growth in Revenue. The Revenue has grown by 4.99% in the last year.
NPO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.75% yearly.
EPS 1Y (TTM)12.77%
EPS 3Y7.77%
EPS 5Y13.23%
EPS Q2Q%-2.4%
Revenue 1Y (TTM)4.99%
Revenue growth 3Y7.66%
Revenue growth 5Y-2.75%
Sales Q2Q%5.96%
3.2 Future
NPO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.81% yearly.
Based on estimates for the next years, NPO will show a small growth in Revenue. The Revenue will grow by 6.32% on average per year.
EPS Next Y12.71%
EPS Next 2Y12.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.04%
Revenue Next 2Y6.32%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 31.62 indicates a quite expensive valuation of NPO.
NPO's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.79. NPO is around the same levels.
With a Price/Forward Earnings ratio of 25.84, NPO can be considered very expensive at the moment.
NPO's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of NPO to the average of the S&P500 Index (23.21), we can say NPO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.62 | ||
| Fwd PE | 25.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NPO is valued a bit more expensive than the industry average as 62.02% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NPO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.71 | ||
| EV/EBITDA | 19.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NPO does not grow enough to justify the current Price/Earnings ratio.
NPO has a very decent profitability rating, which may justify a higher PE ratio.
NPO's earnings are expected to grow with 12.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.49
PEG (5Y)2.39
EPS Next 2Y12.81%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, NPO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.79, NPO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, NPO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
The dividend of NPO has a limited annual growth rate of 3.59%.
NPO has paid a dividend for at least 10 years, which is a reliable track record.
As NPO did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)3.59%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
30.50% of the earnings are spent on dividend by NPO. This is a low number and sustainable payout ratio.
The dividend of NPO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.5%
EPS Next 2Y12.81%
EPS Next 3YN/A
228.92
+2.92 (+1.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.23%
Inst Owner Change-0.74%
Ins Owners0.81%
Ins Owner Change1.43%
Market Cap4.82B
Analysts83.33
Price Target245.82 (7.38%)
Short Float %2.15%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend1.21
Dividend Growth(5Y)3.59%
DP30.5%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.37%
Min EPS beat(2)-4.14%
Max EPS beat(2)12.87%
EPS beat(4)2
Avg EPS beat(4)1.55%
Min EPS beat(4)-8.04%
Max EPS beat(4)12.87%
EPS beat(8)4
Avg EPS beat(8)-0.07%
EPS beat(12)8
Avg EPS beat(12)7.31%
EPS beat(16)12
Avg EPS beat(16)9.74%
Revenue beat(2)2
Avg Revenue beat(2)1.27%
Min Revenue beat(2)0.94%
Max Revenue beat(2)1.6%
Revenue beat(4)3
Avg Revenue beat(4)0.63%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)2.3%
Revenue beat(8)3
Avg Revenue beat(8)-2.34%
Revenue beat(12)6
Avg Revenue beat(12)-0.65%
Revenue beat(16)6
Avg Revenue beat(16)-4.58%
PT rev (1m)0%
PT rev (3m)8.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.3%
EPS NY rev (1m)0%
EPS NY rev (3m)4.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.62 | ||
| Fwd PE | 25.84 | ||
| P/S | 4.46 | ||
| P/FCF | 32.71 | ||
| P/OCF | 25.82 | ||
| P/B | 3.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.68 |
EPS(TTM)7.24
EY3.16%
EPS(NY)8.86
Fwd EY3.87%
FCF(TTM)7
FCFY3.06%
OCF(TTM)8.86
OCFY3.87%
SpS51.33
BVpS71.07
TBVpS-7.74
PEG (NY)2.49
PEG (5Y)2.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 5.65% | ||
| ROCE | 7.21% | ||
| ROIC | 5.7% | ||
| ROICexc | 5.99% | ||
| ROICexgc | 28.63% | ||
| OM | 14.71% | ||
| PM (TTM) | 7.83% | ||
| GM | 42.81% | ||
| FCFM | 13.63% |
ROA(3y)3.85%
ROA(5y)5.21%
ROE(3y)7.13%
ROE(5y)10.37%
ROIC(3y)4.85%
ROIC(5y)3.67%
ROICexc(3y)5.6%
ROICexc(5y)4.22%
ROICexgc(3y)28.57%
ROICexgc(5y)20.51%
ROCE(3y)6.14%
ROCE(5y)4.67%
ROICexcg growth 3Y48.7%
ROICexcg growth 5Y32.78%
ROICexc growth 3Y36.64%
ROICexc growth 5Y12.93%
OM growth 3Y20.57%
OM growth 5Y22.1%
PM growth 3Y-31.01%
PM growth 5Y16.96%
GM growth 3Y2.8%
GM growth 5Y4.84%
F-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.16 | ||
| Debt/EBITDA | 1.79 | ||
| Cap/Depr | 38.95% | ||
| Cap/Sales | 3.64% | ||
| Interest Coverage | 4.2 | ||
| Cash Conversion | 71.8% | ||
| Profit Quality | 174.11% | ||
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 4.77 |
F-Score7
WACC9.76%
ROIC/WACC0.58
Cap/Depr(3y)32.4%
Cap/Depr(5y)29.28%
Cap/Sales(3y)3%
Cap/Sales(5y)2.61%
Profit Quality(3y)335.65%
Profit Quality(5y)218.98%
High Growth Momentum
Growth
EPS 1Y (TTM)12.77%
EPS 3Y7.77%
EPS 5Y13.23%
EPS Q2Q%-2.4%
EPS Next Y12.71%
EPS Next 2Y12.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.99%
Revenue growth 3Y7.66%
Revenue growth 5Y-2.75%
Sales Q2Q%5.96%
Revenue Next Year7.04%
Revenue Next 2Y6.32%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y18.75%
EBIT growth 3Y29.8%
EBIT growth 5Y18.75%
EBIT Next Year19.76%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y46.86%
FCF growth 3Y1.78%
FCF growth 5Y-5.69%
OCF growth 1Y40.2%
OCF growth 3Y5.63%
OCF growth 5Y-3.61%