EXPONENT INC (EXPO) Stock Fundamental Analysis
NASDAQ:EXPO - Nasdaq - US30214U1025 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to EXPO. EXPO was compared to 82 industry peers in the Professional Services industry. Both the health and profitability get an excellent rating, making EXPO a very profitable company, without any liquidiy or solvency issues. 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.
Each year in the past 5 years EXPO has been profitable.
In the past 5 years EXPO always reported a positive cash flow from operatings.
1.2 Ratios
EXPO has a Return On Assets of 13.82%. This is amongst the best in the industry. EXPO outperforms 90.24% of its industry peers.
With a decent Return On Equity value of 23.90%, EXPO is doing good in the industry, outperforming 76.83% of the companies in the same industry.
EXPO has a Return On Invested Capital of 15.56%. This is amongst the best in the industry. EXPO outperforms 82.93% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EXPO is significantly above the industry average of 12.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.82% | ||
| ROE | 23.9% | ||
| ROIC | 15.56% |
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
Looking at the Profit Margin, with a value of 18.87%, EXPO belongs to the top of the industry, outperforming 89.02% of the companies in the same industry.
In the last couple of years the Profit Margin of EXPO has remained more or less at the same level.
EXPO has a better Operating Margin (23.84%) than 90.24% 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 has a better Gross Margin (92.78%) than 98.78% of its industry peers.
EXPO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.84% | ||
| PM (TTM) | 18.87% | ||
| GM | 92.78% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
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
EXPO has an Altman-Z score of 10.14. This indicates that EXPO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of EXPO (10.14) is better than 96.34% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.14 |
ROIC/WACC1.73
WACC8.99%
2.3 Liquidity
EXPO has a Current Ratio of 3.32. 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 3.32, EXPO belongs to the top of the industry, outperforming 89.02% of the companies in the same industry.
EXPO has a Quick Ratio of 3.32. This indicates that EXPO is financially healthy and has no problem in meeting its short term obligations.
EXPO's Quick ratio of 3.32 is amongst the best of the industry. EXPO outperforms 90.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.32 | ||
| Quick Ratio | 3.32 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.54% over the past year.
The Earnings Per Share has been growing slightly by 6.74% on average over the past years.
Looking at the last year, EXPO shows a small growth in Revenue. The Revenue has grown by 3.27% in the last 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)3.54%
EPS 3Y3.72%
EPS 5Y6.74%
EPS Q2Q%-11.86%
Revenue 1Y (TTM)3.27%
Revenue growth 3Y6.2%
Revenue growth 5Y6.01%
Sales Q2Q%0.17%
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 2.98% on average per year.
EXPO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.35% yearly.
EPS Next Y-5.38%
EPS Next 2Y1.55%
EPS Next 3Y2.98%
EPS Next 5YN/A
Revenue Next Year3.02%
Revenue Next 2Y5.09%
Revenue Next 3Y5.35%
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
The Price/Earnings ratio is 36.25, which means the current valuation is very expensive for EXPO.
Based on the Price/Earnings ratio, EXPO is valued a bit more expensive than 63.41% of the companies in the same industry.
EXPO is valuated rather expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 34.00, EXPO can be considered very expensive at the moment.
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 62.20% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. EXPO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.25 | ||
| Fwd PE | 34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EXPO is valued a bit more expensive than 63.41% of the companies in the same industry.
EXPO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.11 | ||
| EV/EBITDA | 25.23 |
4.3 Compensation for Growth
EXPO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.38
EPS Next 2Y1.55%
EPS Next 3Y2.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.56%, EXPO has a reasonable but not impressive dividend return.
EXPO's Dividend Yield is rather good when compared to the industry average which is at 2.06. EXPO pays more dividend than 80.49% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.37, EXPO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
The dividend of EXPO is nicely growing with an annual growth rate of 28.57%!
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
EXPO pays out 55.92% of its income as dividend. 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.
DP55.92%
EPS Next 2Y1.55%
EPS Next 3Y2.98%
74.32
-1.66 (-2.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners95.82%
Inst Owner Change0%
Ins Owners0.93%
Ins Owner Change2.24%
Market Cap3.77B
Analysts77.78
Price Target93.84 (26.26%)
Short Float %4.02%
Short Ratio6.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend1.07
Dividend Growth(5Y)28.57%
DP55.92%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.01%
Min EPS beat(2)6.21%
Max EPS beat(2)11.81%
EPS beat(4)4
Avg EPS beat(4)7.79%
Min EPS beat(4)2.12%
Max EPS beat(4)11.81%
EPS beat(8)5
Avg EPS beat(8)4.91%
EPS beat(12)8
Avg EPS beat(12)5.53%
EPS beat(16)12
Avg EPS beat(16)6.6%
Revenue beat(2)2
Avg Revenue beat(2)0.71%
Min Revenue beat(2)0.08%
Max Revenue beat(2)1.35%
Revenue beat(4)2
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)1.35%
Revenue beat(8)5
Avg Revenue beat(8)1.06%
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)-14.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.25 | ||
| Fwd PE | 34 | ||
| P/S | 6.75 | ||
| P/FCF | 28.11 | ||
| P/OCF | 26.68 | ||
| P/B | 8.54 | ||
| P/tB | 8.71 | ||
| EV/EBITDA | 25.23 |
EPS(TTM)2.05
EY2.76%
EPS(NY)2.19
Fwd EY2.94%
FCF(TTM)2.64
FCFY3.56%
OCF(TTM)2.79
OCFY3.75%
SpS11.02
BVpS8.7
TBVpS8.53
PEG (NY)N/A
PEG (5Y)5.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.82% | ||
| ROE | 23.9% | ||
| ROCE | 21.06% | ||
| ROIC | 15.56% | ||
| ROICexc | 25.39% | ||
| ROICexgc | 25.97% | ||
| OM | 23.84% | ||
| PM (TTM) | 18.87% | ||
| GM | 92.78% | ||
| FCFM | 24% |
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-Score5
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 73.16% | ||
| Cap/Sales | 1.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.77% | ||
| Profit Quality | 127.16% | ||
| Current Ratio | 3.32 | ||
| Quick Ratio | 3.32 | ||
| Altman-Z | 10.14 |
F-Score5
WACC8.99%
ROIC/WACC1.73
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)3.54%
EPS 3Y3.72%
EPS 5Y6.74%
EPS Q2Q%-11.86%
EPS Next Y-5.38%
EPS Next 2Y1.55%
EPS Next 3Y2.98%
EPS Next 5YN/A
Revenue 1Y (TTM)3.27%
Revenue growth 3Y6.2%
Revenue growth 5Y6.01%
Sales Q2Q%0.17%
Revenue Next Year3.02%
Revenue Next 2Y5.09%
Revenue Next 3Y5.35%
Revenue Next 5YN/A
EBIT growth 1Y18.03%
EBIT growth 3Y3.15%
EBIT growth 5Y7.03%
EBIT Next Year26.28%
EBIT Next 3Y11.81%
EBIT Next 5YN/A
FCF growth 1Y71.24%
FCF growth 3Y5.33%
FCF growth 5Y10.11%
OCF growth 1Y51.28%
OCF growth 3Y5.08%
OCF growth 5Y5.99%