ENPRO INC (NPO) Stock Fundamental Analysis
USA - NYSE:NPO - US29355X1072 - Common Stock
227.4 USD
+9.51 (+4.36%)
227.4 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to NPO. NPO was compared to 128 industry peers in the Machinery industry. While NPO has a great profitability rating, there are some minor concerns on its financial health. NPO is valied quite expensively at the moment, while it does show a decent growth rate.
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
NPO has a Return On Assets (3.56%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 5.65%, NPO is in line with its industry, outperforming 40.63% of the companies in the same industry.
NPO has a Return On Invested Capital (5.70%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for NPO is significantly below the industry average of 10.02%.
The last Return On Invested Capital (5.70%) for NPO is above the 3 year average (4.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 5.65% | ||
| ROIC | 5.7% |
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 better Profit Margin (7.83%) than 62.50% of its industry peers.
In the last couple of years the Profit Margin of NPO has grown nicely.
NPO's Operating Margin of 14.71% is fine compared to the rest of the industry. NPO outperforms 68.75% of its industry peers.
NPO's Operating Margin has improved in the last couple of years.
NPO has a Gross Margin of 42.81%. This is in the better half of the industry: NPO outperforms 78.91% of its industry peers.
In the last couple of years the Gross Margin of NPO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.71% | ||
| PM (TTM) | 7.83% | ||
| GM | 42.81% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NPO is destroying value.
Compared to 1 year ago, NPO has more shares outstanding
Compared to 5 years ago, NPO has more shares outstanding
Compared to 1 year ago, NPO has an improved debt to assets ratio.
2.2 Solvency
NPO has an Altman-Z score of 4.65. This indicates that NPO is financially healthy and has little risk of bankruptcy at the moment.
NPO has a Altman-Z score of 4.65. This is in the better half of the industry: NPO outperforms 76.56% of its industry peers.
The Debt to FCF ratio of NPO is 3.16, which is a good value as it means it would take NPO, 3.16 years of fcf income to pay off all of its debts.
NPO has a better Debt to FCF ratio (3.16) than 67.19% of its industry peers.
NPO has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.31, NPO is doing good in the industry, outperforming 61.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 4.65 |
ROIC/WACC0.58
WACC9.87%
2.3 Liquidity
A Current Ratio of 2.49 indicates that NPO has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.49, NPO is in the better half of the industry, outperforming 64.84% of the companies in the same industry.
NPO has a Quick Ratio of 1.65. This is a normal value and indicates that NPO is financially healthy and should not expect problems in meeting its short term obligations.
NPO's Quick ratio of 1.65 is fine compared to the rest of the industry. NPO outperforms 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
NPO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.77%, which is quite good.
The Earnings Per Share has been growing by 13.23% on average over the past years. This is quite good.
NPO shows a small growth in Revenue. In the last year, the Revenue has grown by 4.99%.
NPO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.75% yearly.
EPS 1Y (TTM)12.77%
EPS 3Y7.77%
EPS 5Y13.23%
EPS Q2Q%-2.4%
Revenue 1Y (TTM)4.99%
Revenue growth 3Y7.66%
Revenue growth 5Y-2.75%
Sales Q2Q%5.96%
3.2 Future
Based on estimates for the next years, NPO will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.81% on average per year.
The Revenue is expected to grow by 6.32% on average over the next years.
EPS Next Y12.71%
EPS Next 2Y12.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.04%
Revenue Next 2Y6.32%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NPO is valuated quite expensively with a Price/Earnings ratio of 31.41.
The rest of the industry has a similar Price/Earnings ratio as NPO.
Compared to an average S&P500 Price/Earnings ratio of 27.41, NPO is valued at the same level.
NPO is valuated quite expensively with a Price/Forward Earnings ratio of 25.67.
NPO's Price/Forward Earnings is on the same level as the industry average.
NPO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.41 | ||
| Fwd PE | 25.67 |
4.2 Price Multiples
NPO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. NPO is more expensive than 61.72% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as NPO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.5 | ||
| EV/EBITDA | 19.02 |
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.
NPO's earnings are expected to grow with 12.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.47
PEG (5Y)2.37
EPS Next 2Y12.81%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.54%, NPO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.74, NPO has a dividend in line with its industry peers.
With a Dividend Yield of 0.54, NPO pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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
30.50% of the earnings are spent on dividend by NPO. This is a low number and sustainable payout ratio.
The dividend of NPO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.5%
EPS Next 2Y12.81%
EPS Next 3YN/A
227.4
+9.51 (+4.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners102.8%
Inst Owner Change-0.74%
Ins Owners0.77%
Ins Owner Change1.43%
Market Cap4.79B
Analysts83.33
Price Target245.82 (8.1%)
Short Float %2.29%
Short Ratio4.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend1.21
Dividend Growth(5Y)3.59%
DP30.5%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.37%
Min EPS beat(2)-4.14%
Max EPS beat(2)12.87%
EPS beat(4)2
Avg EPS beat(4)1.55%
Min EPS beat(4)-8.04%
Max EPS beat(4)12.87%
EPS beat(8)4
Avg EPS beat(8)-0.07%
EPS beat(12)8
Avg EPS beat(12)7.31%
EPS beat(16)12
Avg EPS beat(16)9.74%
Revenue beat(2)2
Avg Revenue beat(2)1.27%
Min Revenue beat(2)0.94%
Max Revenue beat(2)1.6%
Revenue beat(4)3
Avg Revenue beat(4)0.63%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)2.3%
Revenue beat(8)3
Avg Revenue beat(8)-2.34%
Revenue beat(12)6
Avg Revenue beat(12)-0.65%
Revenue beat(16)6
Avg Revenue beat(16)-4.58%
PT rev (1m)8.4%
PT rev (3m)13.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.3%
EPS NY rev (1m)4.86%
EPS NY rev (3m)4.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.77%
Revenue NY rev (1m)2.37%
Revenue NY rev (3m)2.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.41 | ||
| Fwd PE | 25.67 | ||
| P/S | 4.43 | ||
| P/FCF | 32.5 | ||
| P/OCF | 25.65 | ||
| P/B | 3.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.02 |
EPS(TTM)7.24
EY3.18%
EPS(NY)8.86
Fwd EY3.9%
FCF(TTM)7
FCFY3.08%
OCF(TTM)8.86
OCFY3.9%
SpS51.33
BVpS71.07
TBVpS-7.74
PEG (NY)2.47
PEG (5Y)2.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 5.65% | ||
| ROCE | 7.21% | ||
| ROIC | 5.7% | ||
| ROICexc | 5.99% | ||
| ROICexgc | 28.63% | ||
| OM | 14.71% | ||
| PM (TTM) | 7.83% | ||
| GM | 42.81% | ||
| FCFM | 13.63% |
ROA(3y)3.85%
ROA(5y)5.21%
ROE(3y)7.13%
ROE(5y)10.37%
ROIC(3y)4.85%
ROIC(5y)3.67%
ROICexc(3y)5.6%
ROICexc(5y)4.22%
ROICexgc(3y)28.57%
ROICexgc(5y)20.51%
ROCE(3y)6.14%
ROCE(5y)4.67%
ROICexcg growth 3Y48.7%
ROICexcg growth 5Y32.78%
ROICexc growth 3Y36.64%
ROICexc growth 5Y12.93%
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%
F-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.16 | ||
| Debt/EBITDA | 1.79 | ||
| Cap/Depr | 38.95% | ||
| Cap/Sales | 3.64% | ||
| Interest Coverage | 4.2 | ||
| Cash Conversion | 71.8% | ||
| Profit Quality | 174.11% | ||
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 4.65 |
F-Score7
WACC9.87%
ROIC/WACC0.58
Cap/Depr(3y)32.4%
Cap/Depr(5y)29.28%
Cap/Sales(3y)3%
Cap/Sales(5y)2.61%
Profit Quality(3y)335.65%
Profit Quality(5y)218.98%
High Growth Momentum
Growth
EPS 1Y (TTM)12.77%
EPS 3Y7.77%
EPS 5Y13.23%
EPS Q2Q%-2.4%
EPS Next Y12.71%
EPS Next 2Y12.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.99%
Revenue growth 3Y7.66%
Revenue growth 5Y-2.75%
Sales Q2Q%5.96%
Revenue Next Year7.04%
Revenue Next 2Y6.32%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y18.75%
EBIT growth 3Y29.8%
EBIT growth 5Y18.75%
EBIT Next Year17.68%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y46.86%
FCF growth 3Y1.78%
FCF growth 5Y-5.69%
OCF growth 1Y40.2%
OCF growth 3Y5.63%
OCF growth 5Y-3.61%