ENPRO INC (NPO) Stock Fundamental Analysis
NYSE:NPO - New York Stock Exchange, Inc. - US29355X1072 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to NPO. NPO was compared to 127 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.
NPO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NPO has a Return On Assets (3.39%) which is in line with its industry peers.
NPO has a Return On Equity (5.81%) which is comparable to the rest of the industry.
The Return On Invested Capital of NPO (5.51%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for NPO is significantly below the industry average of 10.78%.
The last Return On Invested Capital (5.51%) for NPO is above the 3 year average (4.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 5.81% | ||
| ROIC | 5.51% |
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
NPO's Profit Margin of 7.98% is fine compared to the rest of the industry. NPO outperforms 62.20% of its industry peers.
In the last couple of years the Profit Margin of NPO has grown nicely.
Looking at the Operating Margin, with a value of 15.23%, NPO is in the better half of the industry, outperforming 71.65% of the companies in the same industry.
In the last couple of years the Operating Margin of NPO has grown nicely.
NPO has a better Gross Margin (42.92%) than 78.74% of its industry peers.
NPO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.23% | ||
| PM (TTM) | 7.98% | ||
| GM | 42.92% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NPO is destroying value.
Compared to 1 year ago, NPO has more shares outstanding
The number of shares outstanding for NPO has been increased compared to 5 years ago.
The debt/assets ratio for NPO has been reduced compared to a year ago.
2.2 Solvency
NPO has an Altman-Z score of 3.96. This indicates that NPO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.96, NPO is in the better half of the industry, outperforming 65.35% of the companies in the same industry.
The Debt to FCF ratio of NPO is 4.43, which is a neutral value as it means it would take NPO, 4.43 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.43, NPO is in line with its industry, outperforming 56.69% of the companies in the same industry.
A Debt/Equity ratio of 0.42 indicates that NPO is not too dependend on debt financing.
NPO's Debt to Equity ratio of 0.42 is in line compared to the rest of the industry. NPO outperforms 53.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 4.43 | ||
| Altman-Z | 3.96 |
ROIC/WACC0.56
WACC9.82%
2.3 Liquidity
A Current Ratio of 2.95 indicates that NPO has no problem at all paying its short term obligations.
NPO's Current ratio of 2.95 is fine compared to the rest of the industry. NPO outperforms 75.59% of its industry peers.
NPO has a Quick Ratio of 2.21. This indicates that NPO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.21, NPO is in the better half of the industry, outperforming 77.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.95 | ||
| Quick Ratio | 2.21 |
3. Growth
3.1 Past
NPO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.15%, which is quite good.
Measured over the past years, NPO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.23% on average per year.
The Revenue has been growing slightly by 2.92% in the past year.
NPO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.75% yearly.
EPS 1Y (TTM)18.15%
EPS 3Y7.77%
EPS 5Y13.23%
EPS Q2Q%21.02%
Revenue 1Y (TTM)2.92%
Revenue growth 3Y7.66%
Revenue growth 5Y-2.75%
Sales Q2Q%6.1%
3.2 Future
Based on estimates for the next years, NPO will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.32% on average per year.
Based on estimates for the next years, NPO will show a small growth in Revenue. The Revenue will grow by 5.01% on average per year.
EPS Next Y7.48%
EPS Next 2Y10.32%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.76%
Revenue Next 2Y5.01%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
The Price/Earnings ratio is 28.23, which means the current valuation is very expensive for NPO.
Compared to the rest of the industry, the Price/Earnings ratio of NPO is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.48. NPO is around the same levels.
A Price/Forward Earnings ratio of 24.29 indicates a rather expensive valuation of NPO.
NPO's Price/Forward Earnings is on the same level as the industry average.
NPO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.23 | ||
| Fwd PE | 24.29 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NPO.
NPO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.17 | ||
| EV/EBITDA | 17.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of NPO may justify a higher PE ratio.
PEG (NY)3.77
PEG (5Y)2.13
EPS Next 2Y10.32%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NPO has a yearly dividend return of 0.61%, which is pretty low.
Compared to an average industry Dividend Yield of 1.82, NPO has a dividend in line with its industry peers.
With a Dividend Yield of 0.61, NPO pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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.
NPO has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)3.59%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
NPO pays out 30.04% of its income as dividend. This is a sustainable payout ratio.
The dividend of NPO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.04%
EPS Next 2Y10.32%
EPS Next 3YN/A
205.79
+1.85 (+0.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.18%
Inst Owner Change0%
Ins Owners0.77%
Ins Owner Change2.37%
Market Cap4.33B
Analysts85.71
Price Target226.78 (10.2%)
Short Float %2.32%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend1.21
Dividend Growth(5Y)3.59%
DP30.04%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.19%
Min EPS beat(2)5.51%
Max EPS beat(2)12.87%
EPS beat(4)3
Avg EPS beat(4)5.47%
Min EPS beat(4)-8.04%
Max EPS beat(4)12.87%
EPS beat(8)5
Avg EPS beat(8)0.94%
EPS beat(12)9
Avg EPS beat(12)10.26%
EPS beat(16)13
Avg EPS beat(16)11.53%
Revenue beat(2)2
Avg Revenue beat(2)1.95%
Min Revenue beat(2)1.6%
Max Revenue beat(2)2.3%
Revenue beat(4)2
Avg Revenue beat(4)0.24%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)2.3%
Revenue beat(8)2
Avg Revenue beat(8)-2.56%
Revenue beat(12)5
Avg Revenue beat(12)-2.04%
Revenue beat(16)5
Avg Revenue beat(16)-7.76%
PT rev (1m)4.71%
PT rev (3m)-3.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.23 | ||
| Fwd PE | 24.29 | ||
| P/S | 4.07 | ||
| P/FCF | 30.17 | ||
| P/OCF | 24.38 | ||
| P/B | 2.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.97 |
EPS(TTM)7.29
EY3.54%
EPS(NY)8.47
Fwd EY4.12%
FCF(TTM)6.82
FCFY3.31%
OCF(TTM)8.44
OCFY4.1%
SpS50.59
BVpS69.48
TBVpS-9.95
PEG (NY)3.77
PEG (5Y)2.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 5.81% | ||
| ROCE | 6.98% | ||
| ROIC | 5.51% | ||
| ROICexc | 6.15% | ||
| ROICexgc | 31.17% | ||
| OM | 15.23% | ||
| PM (TTM) | 7.98% | ||
| GM | 42.92% | ||
| FCFM | 13.48% |
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-Score8
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 4.43 | ||
| Debt/EBITDA | 2.36 | ||
| Cap/Depr | 33.8% | ||
| Cap/Sales | 3.2% | ||
| Interest Coverage | 4.28 | ||
| Cash Conversion | 67.53% | ||
| Profit Quality | 169.02% | ||
| Current Ratio | 2.95 | ||
| Quick Ratio | 2.21 | ||
| Altman-Z | 3.96 |
F-Score8
WACC9.82%
ROIC/WACC0.56
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)18.15%
EPS 3Y7.77%
EPS 5Y13.23%
EPS Q2Q%21.02%
EPS Next Y7.48%
EPS Next 2Y10.32%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.92%
Revenue growth 3Y7.66%
Revenue growth 5Y-2.75%
Sales Q2Q%6.1%
Revenue Next Year4.76%
Revenue Next 2Y5.01%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y27.84%
EBIT growth 3Y29.8%
EBIT growth 5Y18.75%
EBIT Next Year17.51%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y65.32%
FCF growth 3Y1.78%
FCF growth 5Y-5.69%
OCF growth 1Y51.28%
OCF growth 3Y5.63%
OCF growth 5Y-3.61%