EXPONENT INC (EXPO) Stock Fundamental Analysis
USA - NASDAQ:EXPO - US30214U1025 - Common Stock
69.31 USD
+0.35 (+0.51%)
69.31 USD
0 (0%)
Taking everything into account, EXPO scores 6 out of 10 in our fundamental rating. EXPO was compared to 86 industry peers in the Professional Services industry. EXPO gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
In the past year EXPO had a positive cash flow from operations.
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 91.86% of its industry peers.
The Return On Equity of EXPO (24.04%) is better than 77.91% of its industry peers.
With a decent Return On Invested Capital value of 13.57%, EXPO is doing good in the industry, outperforming 77.91% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EXPO is significantly above the industry average of 13.28%.
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 88.37% of its industry peers.
EXPO's Profit Margin has been stable in the last couple of years.
EXPO has a better Operating Margin (20.46%) than 88.37% of its industry peers.
EXPO's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 92.62%, EXPO belongs to the best of the industry, outperforming 98.84% of the companies in the same industry.
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
EXPO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, EXPO has more shares outstanding
The number of shares outstanding for EXPO has been reduced compared to 5 years ago.
EXPO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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's Altman-Z score of 9.22 is amongst the best of the industry. EXPO outperforms 95.35% 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/WACC1.57
WACC8.66%
2.3 Liquidity
EXPO has a Current Ratio of 3.15. This indicates that EXPO is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.15, EXPO belongs to the best of the industry, outperforming 87.21% 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's Quick ratio of 3.15 is amongst the best of the industry. EXPO outperforms 88.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.15 | ||
| Quick Ratio | 3.15 |
3. Growth
3.1 Past
The earnings per share for EXPO have decreased by -2.44% in the last year.
The Earnings Per Share has been growing slightly by 6.74% on average over the past years.
EXPO shows a small growth in Revenue. In the last year, the Revenue has grown by 3.47%.
The Revenue has been growing slightly by 6.01% on average over the past years.
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
Based on estimates for the next years, EXPO will show a small growth in Earnings Per Share. The EPS will grow by 3.43% on average per year.
The Revenue is expected to grow by 5.51% on average over the next years.
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
Based on the Price/Earnings ratio of 34.66, the valuation of EXPO can be described as expensive.
Based on the Price/Earnings ratio, EXPO is valued a bit more expensive than the industry average as 61.63% of the companies are valued more cheaply.
EXPO is valuated rather expensively when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 31.56, which means the current valuation is very expensive for EXPO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EXPO indicates a slightly more expensive valuation: EXPO is more expensive than 61.63% of the companies listed in the same industry.
EXPO's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.66 | ||
| Fwd PE | 31.56 |
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 65.12% 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 | 28.95 | ||
| EV/EBITDA | 26.23 |
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
With a Yearly Dividend Yield of 1.74%, EXPO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.92, EXPO pays a better dividend. On top of this EXPO pays more dividend than 81.40% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.31, EXPO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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.
EXPO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP58.36%
EPS Next 2Y1.79%
EPS Next 3Y3.43%
69.31
+0.35 (+0.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners98.32%
Inst Owner Change-0.78%
Ins Owners0.94%
Ins Owner Change0.03%
Market Cap3.50B
Revenue(TTM)560.51M
Net Income(TTM)102.84M
Analysts77.78
Price Target89.76 (29.51%)
Short Float %4.93%
Short Ratio5.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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 | 34.66 | ||
| Fwd PE | 31.56 | ||
| P/S | 6.24 | ||
| P/FCF | 28.95 | ||
| P/OCF | 27.08 | ||
| P/B | 8.18 | ||
| P/tB | 8.35 | ||
| EV/EBITDA | 26.23 |
EPS(TTM)2
EY2.89%
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
Graham Number19.52
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%
ROICexgc growth 3Y-10.75%
ROICexgc 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
WACC8.66%
ROIC/WACC1.57
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%
EXPONENT INC / EXPO FAQ
What is the fundamental rating for EXPO stock?
ChartMill assigns a fundamental rating of 6 / 10 to EXPO.
What is the valuation status for EXPO stock?
ChartMill assigns a valuation rating of 1 / 10 to EXPONENT INC (EXPO). This can be considered as Overvalued.
Can you provide the profitability details for EXPONENT INC?
EXPONENT INC (EXPO) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for EXPO stock?
The Price/Earnings (PE) ratio for EXPONENT INC (EXPO) is 34.66 and the Price/Book (PB) ratio is 8.18.
Can you provide the dividend sustainability for EXPO stock?
The dividend rating of EXPONENT INC (EXPO) is 6 / 10 and the dividend payout ratio is 58.36%.