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 80 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. While showing a medium growth rate, EXPO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
EXPO had positive earnings in the past year.
EXPO had a positive operating cash flow in the past year.
In the past 5 years EXPO has always been profitable.
EXPO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of EXPO (14.02%) is better than 87.50% of its industry peers.
Looking at the Return On Equity, with a value of 25.89%, EXPO is in the better half of the industry, outperforming 76.25% of the companies in the same industry.
EXPO has a Return On Invested Capital of 14.39%. This is in the better half of the industry: EXPO outperforms 78.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EXPO is above the industry average of 13.70%.
The 3 year average ROIC (18.56%) for EXPO is well above the current ROIC(14.39%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.02% | ||
| ROE | 25.89% | ||
| ROIC | 14.39% |
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 19.52%. This is amongst the best in the industry. EXPO outperforms 88.75% of its industry peers.
In the last couple of years the Profit Margin of EXPO has remained more or less at the same level.
With an excellent Operating Margin value of 21.41%, EXPO belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
EXPO's Operating Margin has been stable in the last couple of years.
EXPO's Gross Margin of 92.83% is amongst the best of the industry. EXPO outperforms 98.75% of its industry peers.
EXPO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.41% | ||
| PM (TTM) | 19.52% | ||
| GM | 92.83% |
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.
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.
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
EXPO has an Altman-Z score of 10.11. This indicates that EXPO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of EXPO (10.11) is better than 100.00% 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 | 10.11 |
ROIC/WACC1.61
WACC8.96%
2.3 Liquidity
EXPO has a Current Ratio of 2.74. This indicates that EXPO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.74, EXPO belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
A Quick Ratio of 2.74 indicates that EXPO has no problem at all paying its short term obligations.
The Quick ratio of EXPO (2.74) is better than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.74 | ||
| Quick Ratio | 2.74 |
3. Growth
3.1 Past
EXPO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.72%, which is quite good.
Measured over the past 5 years, EXPO shows a small growth in Earnings Per Share. The EPS has been growing by 6.74% on average per year.
EXPO shows a small growth in Revenue. In the last year, the Revenue has grown by 4.05%.
EXPO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.01% yearly.
EPS 1Y (TTM)8.72%
EPS 3Y3.72%
EPS 5Y6.74%
EPS Q2Q%12.2%
Revenue 1Y (TTM)4.05%
Revenue growth 3Y6.2%
Revenue growth 5Y6.01%
Sales Q2Q%8.69%
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 3.73% on average per year.
The Revenue is expected to grow by 5.83% on average over the next years.
EPS Next Y-4.58%
EPS Next 2Y2.02%
EPS Next 3Y3.73%
EPS Next 5YN/A
Revenue Next Year3.55%
Revenue Next 2Y5.6%
Revenue Next 3Y5.83%
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
EXPO is valuated quite expensively with a Price/Earnings ratio of 40.35.
EXPO's Price/Earnings ratio is a bit more expensive when compared to the industry. EXPO is more expensive than 71.25% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. EXPO is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 42.28 indicates a quite expensive valuation of EXPO.
68.75% of the companies in the same industry are cheaper than EXPO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of EXPO to the average of the S&P500 Index (22.10), we can say EXPO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.35 | ||
| Fwd PE | 42.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EXPO is valued a bit more expensive than 70.00% of the companies 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 | 31.59 | ||
| EV/EBITDA | 31.63 |
4.3 Compensation for Growth
The excellent profitability rating of EXPO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.99
EPS Next 2Y2.02%
EPS Next 3Y3.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.45%, EXPO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.97, EXPO pays a bit more dividend than its industry peers.
EXPO's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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 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 53.41% 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.
DP53.41%
EPS Next 2Y2.02%
EPS Next 3Y3.73%
85.54
+2.65 (+3.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners95.9%
Inst Owner Change3.07%
Ins Owners0.94%
Ins Owner Change-2.31%
Market Cap4.35B
Analysts77.78
Price Target110.16 (28.78%)
Short Float %3.16%
Short Ratio6.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Yearly Dividend1.07
Dividend Growth(5Y)28.57%
DP53.41%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.97%
Min EPS beat(2)2.12%
Max EPS beat(2)11.81%
EPS beat(4)4
Avg EPS beat(4)12.23%
Min EPS beat(4)2.12%
Max EPS beat(4)23.95%
EPS beat(8)4
Avg EPS beat(8)4%
EPS beat(12)8
Avg EPS beat(12)5.57%
EPS beat(16)12
Avg EPS beat(16)8.43%
Revenue beat(2)1
Avg Revenue beat(2)-0.53%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)1.35%
Revenue beat(4)2
Avg Revenue beat(4)1.24%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)6.78%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)-6.9%
PT rev (3m)-6.9%
EPS NQ rev (1m)-12.2%
EPS NQ rev (3m)-12.2%
EPS NY rev (1m)-5.85%
EPS NY rev (3m)-5.85%
Revenue NQ rev (1m)-1.75%
Revenue NQ rev (3m)-1.75%
Revenue NY rev (1m)-1.83%
Revenue NY rev (3m)-1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.35 | ||
| Fwd PE | 42.28 | ||
| P/S | 7.78 | ||
| P/FCF | 31.59 | ||
| P/OCF | 30.08 | ||
| P/B | 10.32 | ||
| P/tB | 10.54 | ||
| EV/EBITDA | 31.63 |
EPS(TTM)2.12
EY2.48%
EPS(NY)2.02
Fwd EY2.36%
FCF(TTM)2.71
FCFY3.17%
OCF(TTM)2.84
OCFY3.32%
SpS10.99
BVpS8.29
TBVpS8.12
PEG (NY)N/A
PEG (5Y)5.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.02% | ||
| ROE | 25.89% | ||
| ROCE | 19.47% | ||
| ROIC | 14.39% | ||
| ROICexc | 24.88% | ||
| ROICexgc | 25.49% | ||
| OM | 21.41% | ||
| PM (TTM) | 19.52% | ||
| GM | 92.83% | ||
| FCFM | 24.64% |
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 Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 71.62% | ||
| Cap/Sales | 1.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 111.83% | ||
| Profit Quality | 126.23% | ||
| Current Ratio | 2.74 | ||
| Quick Ratio | 2.74 | ||
| Altman-Z | 10.11 |
F-Score6
WACC8.96%
ROIC/WACC1.61
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)8.72%
EPS 3Y3.72%
EPS 5Y6.74%
EPS Q2Q%12.2%
EPS Next Y-4.58%
EPS Next 2Y2.02%
EPS Next 3Y3.73%
EPS Next 5YN/A
Revenue 1Y (TTM)4.05%
Revenue growth 3Y6.2%
Revenue growth 5Y6.01%
Sales Q2Q%8.69%
Revenue Next Year3.55%
Revenue Next 2Y5.6%
Revenue Next 3Y5.83%
Revenue Next 5YN/A
EBIT growth 1Y7.4%
EBIT growth 3Y3.15%
EBIT growth 5Y7.03%
EBIT Next Year27.54%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y23.97%
FCF growth 3Y5.33%
FCF growth 5Y10.11%
OCF growth 1Y13.49%
OCF growth 3Y5.08%
OCF growth 5Y5.99%