Exponent, Inc.
Exponent, Inc. Fundamental Analysis
Exponent, Inc. (EXPO) shows moderate financial fundamentals with a PE ratio of 33.30, profit margin of 18.21%, and ROE of 25.51%. The company generates $0.6B in annual revenue with moderate year-over-year growth of 4.05%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze EXPO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentEXPO demonstrates superior asset utilization.
Valuation Score
WeakEXPO trades at a premium to fair value.
Growth Score
WeakEXPO faces weak or negative growth trends.
Financial Health Score
ExcellentEXPO maintains a strong and stable balance sheet.
Profitability Score
ExcellentEXPO achieves industry-leading margins.
Key Financial Metrics
Is EXPO Expensive or Cheap?
P/E Ratio
EXPO trades at 33.30 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, EXPO's PEG of 22.76 indicates potential overvaluation.
Price to Book
The market values Exponent, Inc. at 9.04 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 23.90 times EBITDA. This signals the market has high growth expectations.
How Well Does EXPO Make Money?
Net Profit Margin
For every $100 in sales, Exponent, Inc. keeps $18.21 as profit after all expenses.
Operating Margin
Core operations generate 20.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.51 in profit for every $100 of shareholder equity.
ROA
Exponent, Inc. generates $13.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Exponent, Inc. produces operating cash flow of $131.18M, showing steady but balanced cash generation.
Free Cash Flow
Exponent, Inc. generates strong free cash flow of $121.95M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.44 in free cash annually.
FCF Yield
EXPO converts 3.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
22.76
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How EXPO Stacks Against Its Sector Peers
| Metric | EXPO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.30 | 26.71 | Worse (Expensive) |
| ROE | 25.51% | 1311.00% | Weak |
| Net Margin | 18.21% | -29317.00% (disorted) | Strong |
| Debt/Equity | 0.21 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 2.40 | 10.53 | Strong Liquidity |
| ROA | 13.63% | -1537638.00% (disorted) | Strong |
EXPO outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Exponent, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
37.96%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
36.23%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
37.84%
Industry Style: Cyclical, Value, Infrastructure
High Growth