ENPRO INC (NPO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NPO - US29355X1072 - Common Stock
233.93 USD
-4.33 (-1.82%)
233.93 USD
0 (0%)
Taking everything into account, NPO scores 5 out of 10 in our fundamental rating. NPO was compared to 132 industry peers in the Machinery industry. NPO has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, NPO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- NPO had positive earnings in the past year.
- In the past year NPO had a positive cash flow from operations.
- 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
- With a Return On Assets value of 3.60%, NPO perfoms like the industry average, outperforming 52.27% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 5.68%, NPO is in line with its industry, outperforming 45.45% of the companies in the same industry.
- NPO has a Return On Invested Capital (5.78%) which is comparable to the rest of the industry.
- NPO had an Average Return On Invested Capital over the past 3 years of 4.85%. This is significantly below the industry average of 10.24%.
- The last Return On Invested Capital (5.78%) for NPO is above the 3 year average (4.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 5.68% | ||
| ROIC | 5.78% |
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 has a Profit Margin of 7.81%. This is in the better half of the industry: NPO outperforms 65.15% of its industry peers.
- NPO's Profit Margin has improved in the last couple of years.
- NPO's Operating Margin of 14.62% is fine compared to the rest of the industry. NPO outperforms 69.70% of its industry peers.
- NPO's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 42.71%, NPO belongs to the top of the industry, outperforming 80.30% of the companies in the same industry.
- NPO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.62% | ||
| PM (TTM) | 7.81% | ||
| GM | 42.71% |
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
- NPO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- NPO has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for NPO has been increased compared to 5 years ago.
- NPO has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.97 indicates that NPO is not in any danger for bankruptcy at the moment.
- NPO has a better Altman-Z score (4.97) than 72.73% of its industry peers.
- NPO has a debt to FCF ratio of 2.93. This is a good value and a sign of high solvency as NPO would need 2.93 years to pay back of all of its debts.
- The Debt to FCF ratio of NPO (2.93) is better than 71.21% of its industry peers.
- NPO has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of NPO (0.29) is better than 64.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.93 | ||
| Altman-Z | 4.97 |
ROIC/WACC0.6
WACC9.56%
2.3 Liquidity
- NPO has a Current Ratio of 2.44. This indicates that NPO is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 2.44, NPO is doing good in the industry, outperforming 63.64% of the companies in the same industry.
- A Quick Ratio of 1.69 indicates that NPO should not have too much problems paying its short term obligations.
- NPO has a better Quick ratio (1.69) than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
- NPO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.83%, which is quite good.
- The Earnings Per Share has been growing by 13.23% on average over the past years. This is quite good.
- Looking at the last year, NPO shows a small growth in Revenue. The Revenue has grown by 6.44% in the last year.
- NPO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.75% yearly.
EPS 1Y (TTM)13.83%
EPS 3Y7.77%
EPS 5Y13.23%
EPS Q2Q%14.37%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y7.66%
Revenue growth 5Y-2.75%
Sales Q2Q%9.85%
3.2 Future
- NPO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.26% yearly.
- NPO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.02% yearly.
EPS Next Y13.82%
EPS Next 2Y12.83%
EPS Next 3Y14.26%
EPS Next 5YN/A
Revenue Next Year8.47%
Revenue Next 2Y9.27%
Revenue Next 3Y9.02%
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 stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 31.23, the valuation of NPO can be described as expensive.
- NPO's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of NPO to the average of the S&P500 Index (28.60), we can say NPO is valued inline with the index average.
- With a Price/Forward Earnings ratio of 26.40, NPO can be considered very expensive at the moment.
- NPO's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of NPO to the average of the S&P500 Index (25.83), we can say NPO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.23 | ||
| Fwd PE | 26.4 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NPO indicates a slightly more expensive valuation: NPO is more expensive than 62.88% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of NPO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.41 | ||
| EV/EBITDA | 20.31 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- NPO has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as NPO's earnings are expected to grow with 14.26% in the coming years.
PEG (NY)2.26
PEG (5Y)2.36
EPS Next 2Y12.83%
EPS Next 3Y14.26%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.52%, NPO is not a good candidate for dividend investing.
- NPO's Dividend Yield is comparable with the industry average which is at 1.01.
- Compared to an average S&P500 Dividend Yield of 1.82, NPO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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 30.09% of its income as dividend. This is a sustainable payout ratio.
- NPO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP30.09%
EPS Next 2Y12.83%
EPS Next 3Y14.26%
ENPRO INC / NPO FAQ
What is the ChartMill fundamental rating of ENPRO INC (NPO) stock?
ChartMill assigns a fundamental rating of 5 / 10 to NPO.
Can you provide the valuation status for ENPRO INC?
ChartMill assigns a valuation rating of 2 / 10 to ENPRO INC (NPO). This can be considered as Overvalued.
What is the profitability of NPO stock?
ENPRO INC (NPO) has a profitability rating of 7 / 10.
What is the earnings growth outlook for ENPRO INC?
The Earnings per Share (EPS) of ENPRO INC (NPO) is expected to grow by 13.82% in the next year.
Is the dividend of ENPRO INC sustainable?
The dividend rating of ENPRO INC (NPO) is 5 / 10 and the dividend payout ratio is 30.09%.