EnPro Industries, Inc.
EnPro Industries, Inc. Fundamental Analysis
EnPro Industries, Inc. (NPO) shows weak financial fundamentals with a PE ratio of 142.95, profit margin of 3.54%, and ROE of 2.69%. The company generates $1.1B in annual revenue with weak year-over-year growth of -1.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NPO's fundamental strength across five key dimensions:
Efficiency Score
WeakNPO struggles to generate sufficient returns from assets.
Valuation Score
ModerateNPO shows balanced valuation metrics.
Growth Score
WeakNPO faces weak or negative growth trends.
Financial Health Score
ExcellentNPO maintains a strong and stable balance sheet.
Profitability Score
ModerateNPO maintains healthy but balanced margins.
Key Financial Metrics
Is NPO Expensive or Cheap?
P/E Ratio
NPO trades at 142.95 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NPO's PEG of -2.69 indicates potential undervaluation.
Price to Book
The market values EnPro Industries, Inc. at 3.75 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 20.07 times EBITDA. This signals the market has high growth expectations.
How Well Does NPO Make Money?
Net Profit Margin
For every $100 in sales, EnPro Industries, Inc. keeps $3.54 as profit after all expenses.
Operating Margin
Core operations generate 14.13 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.69 in profit for every $100 of shareholder equity.
ROA
EnPro Industries, Inc. generates $1.52 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
EnPro Industries, Inc. produces operating cash flow of $200.87M, showing steady but balanced cash generation.
Free Cash Flow
EnPro Industries, Inc. generates strong free cash flow of $157.54M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.48 in free cash annually.
FCF Yield
NPO converts 2.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
142.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.69
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.32
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How NPO Stacks Against Its Sector Peers
| Metric | NPO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 142.95 | 26.49 | Worse (Expensive) |
| ROE | 2.69% | 1307.00% | Weak |
| Net Margin | 3.54% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.42 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 2.32 | 10.48 | Strong Liquidity |
| ROA | 1.52% | -1549792.00% (disorted) | Weak |
NPO outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews EnPro Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-14.26%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
821.26%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-22.65%
Industry Style: Cyclical, Value, Infrastructure
Declining