NasdaqGS:EXPO

Stock Analysis Report

Executive Summary

Exponent, Inc., together with its subsidiaries, operates as a science and engineering consulting company worldwide.

Rewards

Earnings are forecast to grow 6.28% per year

Earnings grew by 51.2% over the past year

Risk Analysis

No risks detected for EXPO from our risk checks.


Snowflake Analysis

Flawless balance sheet with outstanding track record.


Similar Companies

Share Price & News

How has Exponent's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EXPO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

EXPO

-1.6%

US Professional Services

-1.2%

US Market


1 Year Return

33.4%

EXPO

24.7%

US Professional Services

15.5%

US Market

Return vs Industry: EXPO exceeded the US Professional Services industry which returned 24.7% over the past year.

Return vs Market: EXPO exceeded the US Market which returned 15.5% over the past year.


Shareholder returns

EXPOIndustryMarket
7 Day1.0%-1.6%-1.2%
30 Day1.3%3.0%1.4%
90 Day-8.3%-1.5%4.7%
1 Year34.8%33.4%25.8%24.7%18.0%15.5%
3 Year112.6%105.7%53.3%48.4%44.8%35.4%
5 Year247.9%227.6%83.0%73.0%67.3%48.9%

Price Volatility Vs. Market

How volatile is Exponent's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Exponent undervalued compared to its fair value and its price relative to the market?

43.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EXPO ($64.94) is trading above our estimate of fair value ($48.01)

Significantly Below Fair Value: EXPO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EXPO is poor value based on its PE Ratio (43.1x) compared to the Professional Services industry average (19.6x).

PE vs Market: EXPO is poor value based on its PE Ratio (43.1x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: EXPO is poor value based on its PEG Ratio (6.9x)


Price to Book Ratio

PB vs Industry: EXPO is overvalued based on its PB Ratio (9.5x) compared to the US Professional Services industry average (2.6x).


Next Steps

Future Growth

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

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EXPO's forecast earnings growth (6.3% per year) is above the savings rate (1.7%).

Earnings vs Market: EXPO's earnings (6.3% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: EXPO's earnings are forecast to grow, but not significantly.

Revenue vs Market: EXPO's revenue (6.4% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: EXPO's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EXPO's Return on Equity is forecast to be high in 3 years time (21.9%)


Next Steps

Past Performance

How has Exponent performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EXPO has high quality earnings.

Growing Profit Margin: EXPO's current net profit margins (21.2%) are higher than last year (14.9%).


Past Earnings Growth Analysis

Earnings Trend: EXPO's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: EXPO's earnings growth over the past year (51.2%) exceeds its 5-year average (12.7% per year).

Earnings vs Industry: EXPO earnings growth over the past year (51.2%) exceeded the Professional Services industry 23.5%.


Return on Equity

High ROE: EXPO's Return on Equity (22.2%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Exponent's financial position?


Financial Position Analysis

Short Term Liabilities: EXPO's short term assets ($351.5M) exceed its short term liabilities ($101.0M).

Long Term Liabilities: EXPO's short term assets ($351.5M) exceed its long term liabilities ($86.2M).


Debt to Equity History and Analysis

Debt Level: EXPO is debt free.

Reducing Debt: EXPO has not had any debt for past 5 years.

Debt Coverage: EXPO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: EXPO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: EXPO has a low level of unsold assets or inventory.

Debt Coverage by Assets: EXPO's debt is not covered by short term assets (assets are -9.894746151305E+16x debt).


Next Steps

Dividend

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

0.98%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.7%industryaverage1.1%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: EXPO's dividend (0.99%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: EXPO's dividend (0.99%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, EXPO has been paying a dividend for less than 10 years.

Growing Dividend: EXPO's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.5%), EXPO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EXPO's dividends in 3 years are forecast to be well covered by earnings (41.1% payout ratio).


Next Steps

Management

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

16.2yrs

Average management tenure


CEO

Catherine Corrigan (50yo)

1.6yrs

Tenure

US$2,143,065

Compensation

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 T ...


CEO Compensation Analysis

Compensation vs Market: Catherine's total compensation ($USD2.14M) is below average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: Catherine's compensation has been consistent with company performance over the past year.


Management Age and Tenure

16.2yrs

Average Tenure

59yo

Average Age

Experienced Management: EXPO's management team is seasoned and experienced (16.2 years average tenure).


Board Age and Tenure

2.2yrs

Average Tenure

64yo

Average Age

Experienced Board: EXPO's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: EXPO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$110,81325 Nov 19
Harri Kytomaa
EntityIndividual
Role
Other Key Executive
Group VP & Principal Engineer
Shares1,800
Max PriceUS$61.56
SellUS$140,17015 Aug 19
Harri Kytomaa
EntityIndividual
Role
Other Key Executive
Group VP & Principal Engineer
Shares2,000
Max PriceUS$70.09
SellUS$210,93012 Aug 19
John Pye
EntityIndividual
Shares3,000
Max PriceUS$70.31
SellUS$102,45308 May 19
Carol Lindstrom
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,800
Max PriceUS$56.92
SellUS$133,13326 Feb 19
Harri Kytomaa
EntityIndividual
Role
Other Key Executive
Group VP & Principal Engineer
Shares2,366
Max PriceUS$56.27
BuyUS$4,59311 Feb 19
John Pye
EntityIndividual
Shares96
Max PriceUS$50.92
BuyUS$19,34011 Feb 19
Richard Schlenker
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares403
Max PriceUS$50.92
BuyUS$3,15911 Feb 19
Harri Kytomaa
EntityIndividual
Role
Other Key Executive
Group VP & Principal Engineer
Shares66
Max PriceUS$50.92

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Richard Schlenker (53yo)

    Executive VP

    • Tenure: 20.4yrs
    • Compensation: US$1.83m
  • Subbaiah Malladi (72yo)

    CTO & Principal Engineer

    • Tenure: 21.2yrs
    • Compensation: US$697.53k
  • Paul Johnston (65yo)

    Executive Chairman

    • Tenure: 1.6yrs
    • Compensation: US$2.43m
  • Robert Caligiuri (67yo)

    Corporate VP of Materials & Corrosion Engineering and Principal Engineer

    • Tenure: 29.9yrs
    • Compensation: US$393.26k
  • Sally Shepard (58yo)

    Chief Human Resources Officer

    • Tenure: 2.7yrs
    • Compensation: US$980.14k
  • Bernard Ross

    Co-Founder

    • Tenure: 0yrs
  • Harri Kytomaa (60yo)

    Group VP & Principal Engineer

    • Tenure: 20.9yrs
    • Compensation: US$879.05k
  • Catherine Corrigan (50yo)

    President

    • Tenure: 1.6yrs
    • Compensation: US$2.14m
  • Eric Anderson

    VP & Corporate Controller

    • Tenure: 0yrs
  • Steven Murray (44yo)

    Group VP & Principal Engineer

    • Tenure: 11.9yrs
    • Compensation: US$1.42m

Board Members

  • John Shoven (72yo)

    Lead Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$221.58k
  • Debra Zumwalt (63yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$217.83k
  • Paul Johnston (65yo)

    Executive Chairman

    • Tenure: 1.6yrs
    • Compensation: US$2.43m
  • Bernard Ross

    Co-Founder

    • Tenure: 0yrs
  • Catherine Corrigan (50yo)

    President

    • Tenure: 1.6yrs
    • Compensation: US$2.14m
  • Carol Lindstrom (65yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$205.75k
  • Karen Richardson (56yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$217.83k

Company Information

Exponent, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Exponent, Inc.
  • Ticker: EXPO
  • Exchange: NasdaqGS
  • Founded: 1967
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$3.293b
  • Shares outstanding: 51.83m
  • Website: https://www.exponent.com

Number of Employees


Location

  • Exponent, Inc.
  • 149 Commonwealth Drive
  • Menlo Park
  • California
  • 94025
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EXPONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1990
EP5DB (Deutsche Boerse AG)YesCommon StockDEEURAug 1990

Biography

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 complian ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/05 23:35
End of Day Share Price2019/12/05 00:00
Earnings2019/09/27
Annual Earnings2018/12/28


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.