ENPRO INC (NPO) Stock Fundamental Analysis
NYSE:NPO - New York Stock Exchange, Inc. - US29355X1072 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to NPO. NPO was compared to 128 industry peers in the Machinery industry. NPO scores excellent on profitability, but there are some minor concerns on its financial health. NPO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NPO was profitable.
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's Return On Assets of 3.39% is in line compared to the rest of the industry. NPO outperforms 45.31% of its industry peers.
NPO has a Return On Equity of 5.81%. This is comparable to the rest of the industry: NPO outperforms 41.41% of its industry peers.
With a Return On Invested Capital value of 5.51%, NPO perfoms like the industry average, outperforming 41.41% of the companies in the same 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 10.71%.
The last Return On Invested Capital (5.51%) for NPO is above the 3 year average (4.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 5.81% | ||
| ROIC | 5.51% |
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
The Profit Margin of NPO (7.98%) is better than 62.50% of its industry peers.
In the last couple of years the Profit Margin of NPO has grown nicely.
The Operating Margin of NPO (15.23%) is better than 71.88% of its industry peers.
NPO's Operating Margin has improved in the last couple of years.
NPO has a better Gross Margin (42.92%) than 78.91% of its industry peers.
NPO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.23% | ||
| PM (TTM) | 7.98% | ||
| GM | 42.92% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NPO is destroying value.
The number of shares outstanding for NPO has been increased compared to 1 year ago.
Compared to 5 years ago, NPO has more shares outstanding
The debt/assets ratio for NPO has been reduced compared to a year ago.
2.2 Solvency
NPO has an Altman-Z score of 3.93. This indicates that NPO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.93, NPO is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
The Debt to FCF ratio of NPO is 4.43, which is a neutral value as it means it would take NPO, 4.43 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NPO (4.43) is comparable to the rest of the industry.
NPO has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
NPO has a Debt to Equity ratio of 0.42. This is comparable to the rest of the industry: NPO outperforms 54.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 4.43 | ||
| Altman-Z | 3.93 |
ROIC/WACC0.56
WACC9.79%
2.3 Liquidity
NPO has a Current Ratio of 2.95. This indicates that NPO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of NPO (2.95) is better than 75.00% of its industry peers.
NPO has a Quick Ratio of 2.21. This indicates that NPO is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.21, NPO is doing good in the industry, outperforming 78.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.95 | ||
| Quick Ratio | 2.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.15% over the past year.
NPO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.23% yearly.
NPO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.92%.
Measured over the past years, NPO shows a decrease in Revenue. The Revenue has been decreasing by -2.75% on average per year.
EPS 1Y (TTM)18.15%
EPS 3Y7.77%
EPS 5Y13.23%
EPS Q2Q%21.02%
Revenue 1Y (TTM)2.92%
Revenue growth 3Y7.66%
Revenue growth 5Y-2.75%
Sales Q2Q%6.1%
3.2 Future
The Earnings Per Share is expected to grow by 10.32% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.01% on average over the next years.
EPS Next Y7.48%
EPS Next 2Y10.32%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.76%
Revenue Next 2Y5.01%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
With a Price/Earnings ratio of 27.89, NPO can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as NPO.
NPO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.45.
The Price/Forward Earnings ratio is 24.00, which indicates a rather expensive current valuation of NPO.
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 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.89 | ||
| Fwd PE | 24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NPO is on the same level as its industry peers.
NPO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.81 | ||
| EV/EBITDA | 17.77 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NPO does not grow enough to justify the current Price/Earnings ratio.
NPO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.73
PEG (5Y)2.11
EPS Next 2Y10.32%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NPO has a yearly dividend return of 0.61%, which is pretty low.
NPO's Dividend Yield is comparable with the industry average which is at 1.83.
Compared to an average S&P500 Dividend Yield of 2.38, NPO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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.
As NPO did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)3.59%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
30.04% 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.
DP30.04%
EPS Next 2Y10.32%
EPS Next 3YN/A
203.29
+1.75 (+0.87%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.18%
Inst Owner Change1.2%
Ins Owners0.77%
Ins Owner Change2.37%
Market Cap4.28B
Analysts85.71
Price Target226.78 (11.55%)
Short Float %2.89%
Short Ratio3.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend1.21
Dividend Growth(5Y)3.59%
DP30.04%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.19%
Min EPS beat(2)5.51%
Max EPS beat(2)12.87%
EPS beat(4)3
Avg EPS beat(4)5.47%
Min EPS beat(4)-8.04%
Max EPS beat(4)12.87%
EPS beat(8)5
Avg EPS beat(8)0.94%
EPS beat(12)9
Avg EPS beat(12)10.26%
EPS beat(16)13
Avg EPS beat(16)11.53%
Revenue beat(2)2
Avg Revenue beat(2)1.95%
Min Revenue beat(2)1.6%
Max Revenue beat(2)2.3%
Revenue beat(4)2
Avg Revenue beat(4)0.24%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)2.3%
Revenue beat(8)2
Avg Revenue beat(8)-2.56%
Revenue beat(12)5
Avg Revenue beat(12)-2.04%
Revenue beat(16)5
Avg Revenue beat(16)-7.76%
PT rev (1m)4.71%
PT rev (3m)-3.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.89 | ||
| Fwd PE | 24 | ||
| P/S | 4.02 | ||
| P/FCF | 29.81 | ||
| P/OCF | 24.08 | ||
| P/B | 2.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.77 |
EPS(TTM)7.29
EY3.59%
EPS(NY)8.47
Fwd EY4.17%
FCF(TTM)6.82
FCFY3.35%
OCF(TTM)8.44
OCFY4.15%
SpS50.59
BVpS69.48
TBVpS-9.95
PEG (NY)3.73
PEG (5Y)2.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 5.81% | ||
| ROCE | 6.98% | ||
| ROIC | 5.51% | ||
| ROICexc | 6.15% | ||
| ROICexgc | 31.17% | ||
| OM | 15.23% | ||
| PM (TTM) | 7.98% | ||
| GM | 42.92% | ||
| FCFM | 13.48% |
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-Score8
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 4.43 | ||
| Debt/EBITDA | 2.36 | ||
| Cap/Depr | 33.8% | ||
| Cap/Sales | 3.2% | ||
| Interest Coverage | 4.28 | ||
| Cash Conversion | 67.53% | ||
| Profit Quality | 169.02% | ||
| Current Ratio | 2.95 | ||
| Quick Ratio | 2.21 | ||
| Altman-Z | 3.93 |
F-Score8
WACC9.79%
ROIC/WACC0.56
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)18.15%
EPS 3Y7.77%
EPS 5Y13.23%
EPS Q2Q%21.02%
EPS Next Y7.48%
EPS Next 2Y10.32%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.92%
Revenue growth 3Y7.66%
Revenue growth 5Y-2.75%
Sales Q2Q%6.1%
Revenue Next Year4.76%
Revenue Next 2Y5.01%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y27.84%
EBIT growth 3Y29.8%
EBIT growth 5Y18.75%
EBIT Next Year17.51%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y65.32%
FCF growth 3Y1.78%
FCF growth 5Y-5.69%
OCF growth 1Y51.28%
OCF growth 3Y5.63%
OCF growth 5Y-3.61%