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Exponent

Nasdaq:EXPO
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EXPO
Nasdaq
$3B
Market Cap
  1. Home
  2. US
  3. Commercial Services
Company description

Exponent, Inc., together with its subsidiaries, operates as a science and engineering consulting company worldwide. The last earnings update was 207 days ago. More info.


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EXPO Share Price and Events
Price Volatility
EXPO
Industry
5yr Volatility vs Market

EXPO Value

 Is Exponent undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Exponent to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Exponent.

NasdaqGS:EXPO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:EXPO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.827 (1 + (1- 21%) (0%))
0.827
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.83
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (0.827 * 7.05%)
8.78%

Discounted Cash Flow Calculation for NasdaqGS:EXPO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Exponent is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:EXPO DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 79.90 75.00 83.30 87.90 91.33
Source Analyst x2 Analyst x1 Analyst x1 Analyst x1 Est @ 3.9%
Present Value
Discounted (@ 8.78%)
73.45 63.39 64.72 62.78 59.97
Present value of next 5 years cash flows $324.31
NasdaqGS:EXPO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $91.33 × (1 + 2.95%) ÷ (8.78% – 2.95%)
$1,613.62
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $1,613.62 ÷ (1 + 8.78%)5
$1,059.54
NasdaqGS:EXPO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $324.31 + $1,059.54
$1,383.85
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,383.85 / 52.04
$26.59
NasdaqGS:EXPO Discount to Share Price
Calculation Result
Value per share (USD) From above. $26.59
Current discount Discount to share price of $53.80
= -1 x ($53.80 - $26.59) / $26.59
-102.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Exponent is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Exponent's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Exponent's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:EXPO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-29) in USD $0.94
NasdaqGS:EXPO Share Price ** NasdaqGS (2018-09-18) in USD $53.8
United States of America Professional Services Industry PE Ratio Median Figure of 39 Publicly-Listed Professional Services Companies 26.26x
United States of America Market PE Ratio Median Figure of 3,820 Publicly-Listed Companies 19.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Exponent.

NasdaqGS:EXPO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:EXPO Share Price ÷ EPS (both in USD)

= 53.8 ÷ 0.94

57.16x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Exponent is overvalued based on earnings compared to the US Professional Services industry average.
  • Exponent is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Exponent's expected growth come at a high price?
Raw Data
NasdaqGS:EXPO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 57.16x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
12.7%per year
United States of America Professional Services Industry PEG Ratio Median Figure of 35 Publicly-Listed Professional Services Companies 1.61x
United States of America Market PEG Ratio Median Figure of 2,650 Publicly-Listed Companies 1.41x

*Line of best fit is calculated by linear regression .

NasdaqGS:EXPO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 57.16x ÷ 12.7%

4.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Exponent is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Exponent's assets?
Raw Data
NasdaqGS:EXPO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-29) in USD $6.13
NasdaqGS:EXPO Share Price * NasdaqGS (2018-09-18) in USD $53.8
United States of America Professional Services Industry PB Ratio Median Figure of 62 Publicly-Listed Professional Services Companies 2.43x
United States of America Market PB Ratio Median Figure of 6,378 Publicly-Listed Companies 1.94x
NasdaqGS:EXPO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:EXPO Share Price ÷ Book Value per Share (both in USD)

= 53.8 ÷ 6.13

8.78x

* Primary Listing of Exponent.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Exponent is overvalued based on assets compared to the US Professional Services industry average.
X
Value checks
We assess Exponent's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. Exponent has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

EXPO Future Performance

 How is Exponent expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Exponent expected to grow at an attractive rate?
  • Exponent's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Exponent's earnings growth is positive but not above the United States of America market average.
  • Exponent's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:EXPO Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:EXPO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 12.7%
NasdaqGS:EXPO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 6.7%
United States of America Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 15.2%
United States of America Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 6.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 16%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:EXPO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:EXPO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31
2021-12-31 437 90 1
2020-12-31 414 107 84 1
2019-12-31 386 99 76 5
2018-12-31 360 89 70 5
NasdaqGS:EXPO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-06-29 346 79 50
2018-03-30 340 73 45
2017-12-29 330 68 41
2017-09-29 320 57 55
2017-06-30 312 70 52
2017-03-31 301 65 49
2016-12-30 299 67 47
2016-09-30 296 63 47
2016-07-01 297 60 47
2016-04-01 299 59 49
2016-01-01 296 60 44
2015-10-02 296 56 43
2015-07-03 295 52 42

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Exponent's earnings are expected to grow by 12.7% yearly, however this is not considered high growth (20% yearly).
  • Exponent's revenue is expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:EXPO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Exponent Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:EXPO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 1.57 1.57 1.57 1.00
2019-12-31 1.38 1.42 1.33 3.00
2018-12-31 1.29 1.31 1.27 3.00
NasdaqGS:EXPO Past Financials Data
Date (Data in USD Millions) EPS *
2018-06-29 0.94
2018-03-30 0.85
2017-12-29 0.78
2017-09-29 1.05
2017-06-30 0.99
2017-03-31 0.92
2016-12-30 0.90
2016-09-30 0.88
2016-07-01 0.89
2016-04-01 0.91
2016-01-01 0.82
2015-10-02 0.81
2015-07-03 0.79

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Exponent will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Exponent's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Exponent has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

EXPO Past Performance

  How has Exponent performed over the past 5 years?

  • Exponent's last earnings update was 207 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Exponent's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Exponent's year on year earnings growth rate has been positive over the past 5 years.
  • Exponent's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Exponent's 1-year earnings growth is negative, it can't be compared to the US Professional Services industry average.
Earnings and Revenue History
Exponent's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Exponent Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:EXPO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-29 345.73 49.70 25.50
2018-03-30 339.88 45.07 26.02
2017-12-29 329.66 41.31 26.20
2017-09-29 319.70 55.40 25.59
2017-06-30 311.50 52.04 25.28
2017-03-31 300.71 48.71 24.43
2016-12-30 299.20 47.48 23.72
2016-09-30 296.23 46.94 23.16
2016-07-01 296.58 47.37 23.38
2016-04-01 298.51 48.62 23.32
2016-01-01 295.71 43.60 23.29
2015-10-02 295.56 42.99 23.49
2015-07-03 295.32 42.31 23.89
2015-04-03 292.38 41.88 23.55
2015-01-02 289.21 40.70 23.76
2014-10-03 288.60 40.18 23.34
2014-07-04 284.43 40.23 22.67
2014-04-04 284.02 39.82 22.61
2014-01-03 280.04 38.64 22.35
2013-09-27 276.06 38.39 22.04
2013-06-28 272.69 37.52 21.85
2013-03-29 269.08 37.00 21.31
2012-12-28 266.56 37.23 20.79
2012-09-28 262.04 36.48 20.07
2012-06-29 256.70 35.00 19.52
2012-03-30 248.95 32.89 19.36
2011-12-30 246.67 32.70 19.77
2011-09-30 240.77 31.15 19.46

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Exponent has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Exponent used its assets more efficiently than the US Professional Services industry average last year based on Return on Assets.
  • Exponent has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Exponent's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Exponent has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

EXPO Health

 How is Exponent's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Exponent's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Exponent is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Exponent's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Exponent's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Exponent has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Exponent Company Filings, last reported 2 months ago.

NasdaqGS:EXPO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-29 318.77 0.00 193.31
2018-03-30 306.63 0.00 178.64
2017-12-29 289.09 0.00 196.40
2017-09-29 300.08 0.00 165.59
2017-06-30 289.40 0.00 162.00
2017-03-31 284.71 0.00 154.90
2016-12-30 273.35 0.00 173.72
2016-09-30 266.82 0.00 150.42
2016-07-01 279.05 0.00 162.06
2016-04-01 272.54 0.00 155.05
2016-01-01 262.80 0.00 171.59
2015-10-02 256.79 0.00 151.29
2015-07-03 259.59 0.00 149.86
2015-04-03 253.82 0.00 145.03
2015-01-02 244.29 0.00 154.40
2014-10-03 240.54 0.00 141.62
2014-07-04 245.92 0.00 144.54
2014-04-04 241.59 0.00 137.45
2014-01-03 235.06 0.00 156.12
2013-09-27 230.64 0.00 135.04
2013-06-28 223.24 0.00 123.06
2013-03-29 218.12 0.00 111.04
2012-12-28 216.43 0.00 134.15
2012-09-28 208.13 0.00 109.74
2012-06-29 196.70 0.00 109.03
2012-03-30 199.46 0.00 103.68
2011-12-30 186.72 0.00 109.70
2011-09-30 178.16 0.00 90.65
  • Exponent has no debt.
  • Exponent has not taken on any debt in the past 5 years.
  • Exponent has no debt, it does not need to be covered by operating cash flow.
  • Exponent has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Exponent's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Exponent has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

EXPO Dividends

 What is Exponent's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.97%
Current annual income from Exponent dividends. Estimated to be 1.13% next year.
If you bought $2,000 of Exponent shares you are expected to receive $19 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Exponent's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.36%).
  • Exponent's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:EXPO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 23 Stocks 1.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2649 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:EXPO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 0.69 1.00
2020-12-31 0.64 1.00
2019-12-31 0.57 1.00
2018-12-31 0.53 1.00
NasdaqGS:EXPO Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-07-19 0.520 1.015
2018-04-19 0.520 1.092
2018-02-01 0.520 1.335
2017-10-18 0.420 1.151
2017-07-18 0.420 1.221
2017-04-19 0.420 1.408
2017-02-01 0.420 1.439
2016-07-19 0.360 1.313
2016-02-03 0.360 1.407
2015-07-21 0.300 1.266
2015-04-22 0.300 1.360
2015-02-04 0.300 1.360
2014-10-22 0.250 1.252
2014-07-22 0.250 1.367
2014-04-23 0.250 1.396
2014-02-05 0.250 1.371
2013-10-16 0.150 0.791
2013-07-23 0.150 0.882
2013-04-17 0.150 1.049
2013-02-19 0.150 1.149

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Exponent has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Exponent only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of Exponent's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
X
Income/ dividend checks
We assess Exponent's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Exponent afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Exponent has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

EXPO Management

 What is the CEO of Exponent's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Catherine Corrigan, image provided by Google.
Catherine Corrigan
COMPENSATION $2,183,885
AGE 49
TENURE AS CEO 0.3 years
CEO Bio

Dr. Catherine Ford Corrigan, Ph. D., PE, has been the President of Exponent Inc. since July 29, 2016 and its Chief Executive Officer and Director since May 31, 2018. She served as Group Vice President of Transportation at Exponent Inc. from May 2012 to July 29, 2016 and previously served as its Principal Scientist. Dr. Corrigan joined Exponent in 1996 and was promoted to Principal in the Biomechanics practice in 2002. With a background in biomechanics of human injury, with emphasis on the areas of human tolerance, occupant kinematics and rigid-body dynamics. Dr. Corrigan's work includes analysis of traumatic injuries associated with transportation, falls, consumer products and the workplace. Her research activities have included studies of bone and joint mechanics, the structural consequences of aging in the skeleton and the mechanics of central nervous system injury. Dr. Corrigan's experience also includes computerized accident simulation, finite element stress analysis, accident reconstruction and the mechanics of cellular materials. Dr. Corrigan was a researcher in the Orthopaedic Biomechanics Laboratory at Beth Israel Hospital and Harvard Medical School. Dr. Corrigan holds an appointment as Adjunct Professor in the Department of Mechanical Engineering at Temple University in Philadelphia. She earned her Ph.D. in Medical Engineering and Medical Physics in 1996, M.S. in Mechanical Engineering from the Massachusetts Institute of Technology in 1992 and her B.S. in Bioengineering from the University of Pennsylvania.

CEO Compensation
  • Catherine's compensation has increased by more than 20% in the past year.
  • Catherine's compensation is higher than average for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Exponent management team in years:

14.9
Average Tenure
58
Average Age
  • The average tenure for the Exponent management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Paul Johnston

TITLE
Executive Chairman
COMPENSATION
$2M
AGE
64
TENURE
0.3 yrs

Catherine Corrigan

TITLE
President
COMPENSATION
$2M
AGE
49
TENURE
0.3 yrs

Richard Schlenker

TITLE
Executive VP
COMPENSATION
$2M
AGE
52
TENURE
19.2 yrs

Harri Kytomaa

TITLE
Group VP of Engineering Sciences & Principal Engineer
COMPENSATION
$904K
AGE
59
TENURE
19.7 yrs

Steven Murray

TITLE
Group VP of Mechanics & Materials and Principal Engineer
COMPENSATION
$1M
AGE
43
TENURE
10.7 yrs

Bernard Ross

TITLE
Co-Founder

Subbaiah Malladi

TITLE
CTO & Principal Engineer
COMPENSATION
$1M
AGE
71
TENURE
19.9 yrs

Sally Shepard

TITLE
Chief Human Resources Officer
AGE
57
TENURE
1.4 yrs

Eric Anderson

TITLE
VP & Corporate Controller

Robert Caligiuri

TITLE
Corporate VP of Materials & Corrosion Engineering and Principal Engineer
COMPENSATION
$1M
AGE
66
TENURE
28.7 yrs
Board of Directors Tenure

Average tenure and age of the Exponent board of directors in years:

1
Average Tenure
63
Average Age
  • The average tenure for the Exponent board of directors is less than 3 years, this suggests a new board.
Board of Directors

Paul Johnston

TITLE
Executive Chairman
COMPENSATION
$2M
AGE
64
TENURE
0.3 yrs

Catherine Corrigan

TITLE
President
COMPENSATION
$2M
AGE
49
TENURE
0.3 yrs

Bernard Ross

TITLE
Co-Founder

John Shoven

TITLE
Lead Independent Director
COMPENSATION
$207K
AGE
71
TENURE
0.3 yrs

Karen Richardson

TITLE
Director
COMPENSATION
$206K
AGE
55
TENURE
4.8 yrs

Debra Zumwalt

TITLE
Director
COMPENSATION
$210K
AGE
62
TENURE
4.3 yrs

Carol Lindstrom

TITLE
Director
COMPENSATION
$212K
AGE
64
TENURE
1.6 yrs
Recent Insider Trading
  • Exponent insiders have only sold shares in the past 3 months.
Who owns this company?
X
Management checks
We assess Exponent's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Exponent has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

EXPO News

External News
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Simply Wall St News

Should You Be Worried When Exponent Inc’s (NASDAQ:EXPO) Insiders Sell?

large-cap stock … It is widely considered that insider selling stock in their own companies is potentially a bearish signal … The MIT Press (1998) published an article showing that stocks following insider selling underperformed the market by 2.7%

Simply Wall St -

Spotlight On Exponent Inc's (NASDAQ:EXPO) Fundamentals

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Exponent Inc (NASDAQ:EXPO) due to its excellent fundamentals in more than one area.

Simply Wall St -

Where Exponent Inc's (NASDAQ:EXPO) Earnings Growth Stands Against Its Industry

After reading Exponent Inc's (NASDAQ:EXPO) most recent earnings announcement (29 June 2018), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. … EXPO's trailing twelve-month earnings (from 29 June 2018) of US$49.70m has

Simply Wall St -

How Does Exponent Inc (NASDAQ:EXPO) Fare As A Dividend Stock?

Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. … In the past 5 years Exponent Inc (NASDAQ:EXPO) has returned an average of 1.00% per year to investors in the form of dividend payouts. … Does Exponent tick all the boxes of a great dividend stock?

Simply Wall St -

Why Exponent Inc (NASDAQ:EXPO) May Not Be As Efficient As Its Industry

I am writing today to help inform people who are new to the stock market. … and want to begin learning the link between Exponent Inc (NASDAQ:EXPO)’s return fundamentals and stock market performance. … Exponent Inc (NASDAQ:EXPO) performed in line with its research and consulting services industry on the basis of its ROE – producing a return of 14.70% relative to the peer average of 16.79% over the past 12 months.

Simply Wall St -

Exponent Inc (NASDAQ:EXPO): An Investing Strategy To Help You Win

The risk of investing in the stock market is a systematic crash. … But this risk is also an opportunity for those that understand the fickle nature of the market. … and has a market cap of US$2.57b, putting it in the

Simply Wall St -

Should You Buy Exponent Inc (NASDAQ:EXPO)?

This means that the opportunity to buy Exponent at a good price has disappeared! … This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again. … EXPO’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value.

Simply Wall St -

What Is Driving Exponent Inc's (NASDAQ:EXPO) Margins In The Next Few Years?

To help investors get a top level understanding, this article will interpret Exponent's margin performance to assist in analysing the revenue and cost anatomy behind the earnings expectations for the future and the impact it has on shareholder returns relative to the wider industry. … Margin Calculation for EXPO Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 45.07 Million ÷ 339.88 Million = 13.26% The past five years have seen Exponent's margin expand, with 6.72% in average net income growth exceeding a 4.20% average growth in revenue, which means that the previous increase in revenue has coincided with a larger portion falling to the bottom line. … Based on future expectations, EXPO's profit margin will keep on expanding, with 6.47% in expected annual revenue growth and annual net income growth forecasted at 22.08%.

Simply Wall St -

Should You Buy Exponent Inc (NASDAQ:EXPO) When Prices Drop?

High quality companies, such as Exponent Inc, are impacted by general market panic and sell-off, but the fundamentals of these companies stay the same. … Generally, large-cap stocks are well-resourced and well-established meaning that a bear market will cause it to rejig some short-term capital allocations, but stock market volatility is hardly detrimental to its financial health and business operations. … Its cash and short-term investment is also sufficient to cover other upcoming liabilities, which means EXPO is financially robust in the face of a volatile market.

Simply Wall St -

Does Exponent Inc's (NASDAQ:EXPO) PE Ratio Signal A Selling Opportunity?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for EXPO Price per share = $77.8 Earnings per share = $1.567 ∴ Price-Earnings Ratio = $77.8 ÷ $1.567 = 49.7x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you accidentally compared lower growth firms with EXPO, then EXPO’s P/E would naturally be higher since investors would reward EXPO’s higher growth with a higher price. … Alternatively, if you inadvertently compared riskier firms with EXPO, EXPO’s P/E would again be higher since investors would reward EXPO’s lower risk with a higher price as well.

Simply Wall St -

EXPO Company Info

Map
Description

Exponent, Inc., together with its subsidiaries, operates as a science and engineering consulting company worldwide. Its services include analysis of product development, product recall, regulatory compliance, and the discovery of potential problems related to products, people, property, and impending litigation. The company operates in two segments, Engineering and Other Scientific, and Environmental and Health. The Engineering and Other Scientific segment provides services in the areas of biomechanics, biomedical engineering, buildings and structures, civil engineering, construction consulting, electrical engineering and computer science, human factors, industrial structures, materials and corrosion engineering, mechanical engineering, polymer science and materials chemistry, statistical and data sciences, thermal sciences, and vehicle analysis. The Environmental and Health segment offers services in the areas of chemical regulation and food safety, ecological and biological sciences, environmental and earth sciences, and health sciences. The company offers approximately 90 different technical disciplines to solve complicated issues facing industry and government. It serves clients in chemical, construction, consumer products, energy, food, beverage and nutrition, government, life sciences, insurance, manufacturing, technology, industrial equipment, transportation, and other sectors of the economy. The company was formerly known as The Failure Group, Inc. and changed its name to Exponent, Inc. in 1998. Exponent, Inc. was founded in 1967 and is headquartered in Menlo Park, California.

Details
Name: Exponent, Inc.
EXPO
Exchange: NasdaqGS
Founded: 1967
$2,791,813,430
52,037,529
Website: http://www.exponent.com
Address: Exponent, Inc.
149 Commonwealth Drive,
Menlo Park,
California, 94025,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS EXPO Common Stock Nasdaq Global Select US USD 17. Aug 1990
DB EP5 Common Stock Deutsche Boerse AG DE EUR 17. Aug 1990
Number of employees
Current staff
Staff numbers
1,075
Exponent employees.
Industry
Research and Consulting Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/09/18 21:04
End of day share price update: 2018/09/18 00:00
Last estimates confirmation: 2018/09/12
Last earnings update: 2018/06/29
Last annual earnings update: 2017/12/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.