EXPONENT INC (EXPO) Stock Fundamental Analysis
USA - NASDAQ:EXPO - US30214U1025 - Common Stock
70.16 USD
+1.17 (+1.7%)
70.16 USD
0 (0%)
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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
EXPO had positive earnings in the past year.
In the past year EXPO had a positive cash flow from operations.
Each year in the past 5 years EXPO has 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 (13.54%) is better than 91.46% of its industry peers.
EXPO's Return On Equity of 24.04% is fine compared to the rest of the industry. EXPO outperforms 78.05% of its industry peers.
EXPO has a better Return On Invested Capital (13.57%) than 78.05% 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 12.76%.
The last Return On Invested Capital (13.57%) for EXPO is well below the 3 year average (18.56%), which needs to be investigated, but indicates that EXPO had better years and this may not be a problem.
| 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
Looking at the Profit Margin, with a value of 18.35%, EXPO belongs to the top of the industry, outperforming 87.80% 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 Operating Margin of 20.46%. This is amongst the best in the industry. EXPO outperforms 87.80% of its industry peers.
EXPO's Operating Margin has been stable in the last couple of years.
The Gross Margin of EXPO (92.62%) is better than 98.78% of its industry peers.
In the last couple of years the Gross Margin of EXPO has remained more or less at the same level.
| 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
Compared to 5 years ago, EXPO has less shares outstanding
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
An Altman-Z score of 9.19 indicates that EXPO is not in any danger for bankruptcy at the moment.
EXPO's Altman-Z score of 9.19 is amongst the best of the industry. EXPO outperforms 95.12% 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 | 9.19 |
ROIC/WACC1.56
WACC8.7%
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 86.59% 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.
The Quick ratio of EXPO (3.15) is better than 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.15 | ||
| Quick Ratio | 3.15 |
3. Growth
3.1 Past
EXPO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.44%.
EXPO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.74% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
EXPO is valuated quite expensively with a Price/Earnings ratio of 35.08.
60.98% of the companies in the same industry are cheaper than EXPO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.41. EXPO is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 31.94 indicates a quite expensive valuation of EXPO.
Based on the Price/Forward Earnings ratio, EXPO is valued a bit more expensive than 62.20% of the companies 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 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.08 | ||
| Fwd PE | 31.94 |
4.2 Price Multiples
65.85% of the companies in the same industry are cheaper than EXPO, based on the Enterprise Value to EBITDA ratio.
EXPO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.3 | ||
| EV/EBITDA | 26.1 |
4.3 Compensation for Growth
EXPO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.2
EPS Next 2Y1.79%
EPS Next 3Y3.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.69%, EXPO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.07, EXPO pays a better dividend. On top of this EXPO pays more dividend than 82.93% of the companies listed in the same industry.
EXPO's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
On average, the dividend of EXPO grows each year by 28.57%, which is quite nice.
EXPO has paid a dividend for at least 10 years, which is a reliable track record.
EXPO has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of EXPO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP58.36%
EPS Next 2Y1.79%
EPS Next 3Y3.43%
70.16
+1.17 (+1.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners95.7%
Inst Owner Change3.31%
Ins Owners0.94%
Ins Owner Change-0.11%
Market Cap3.54B
Analysts77.78
Price Target89.76 (27.94%)
Short Float %3.81%
Short Ratio4.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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)0.68%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.28%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.08 | ||
| Fwd PE | 31.94 | ||
| P/S | 6.32 | ||
| P/FCF | 29.3 | ||
| P/OCF | 27.41 | ||
| P/B | 8.28 | ||
| P/tB | 8.45 | ||
| EV/EBITDA | 26.1 |
EPS(TTM)2
EY2.85%
EPS(NY)2.2
Fwd EY3.13%
FCF(TTM)2.39
FCFY3.41%
OCF(TTM)2.56
OCFY3.65%
SpS11.1
BVpS8.47
TBVpS8.3
PEG (NY)N/A
PEG (5Y)5.2
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%
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 Turnover0.74
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 | 9.19 |
F-Score6
WACC8.7%
ROIC/WACC1.56
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%