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 6.2% per year

Earnings have grown 14% per year over the past 5 years

Risk Analysis

No risks detected for EXPO from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven 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

0.2%

EXPO

-2.6%

US Professional Services

-2.8%

US Market


1 Year Return

25.0%

EXPO

-13.0%

US Professional Services

-15.9%

US Market

Return vs Industry: EXPO exceeded the US Professional Services industry which returned -11.9% over the past year.

Return vs Market: EXPO exceeded the US Market which returned -14.9% over the past year.


Shareholder returns

EXPOIndustryMarket
7 Day0.2%-2.6%-2.8%
30 Day-7.8%-22.2%-18.8%
90 Day0.3%-22.5%-24.0%
1 Year26.3%25.0%-12.3%-13.0%-14.2%-15.9%
3 Year150.4%142.5%14.9%11.4%9.9%2.8%
5 Year234.0%214.8%29.5%22.7%27.2%13.3%

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?

45.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EXPO ($70.64) is trading above our estimate of fair value ($54.46)

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 (45.1x) compared to the Professional Services industry average (11.9x).

PE vs Market: EXPO is poor value based on its PE Ratio (45.1x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: EXPO is poor value based on its PEG Ratio (7.3x)


Price to Book Ratio

PB vs Industry: EXPO is overvalued based on its PB Ratio (10.4x) compared to the US Professional Services industry average (1.7x).


Next Steps

Future Growth

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

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EXPO's forecast earnings growth (6.2% per year) is above the savings rate (1.7%).

Earnings vs Market: EXPO's earnings (6.2% per year) are forecast to grow slower than the US market (12.2% per year).

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

Revenue vs Market: EXPO's revenue (5.4% per year) is forecast to grow slower than the US market (7.1% per year).

High Growth Revenue: EXPO's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EXPO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Exponent performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EXPO has high quality earnings.

Growing Profit Margin: EXPO's current net profit margins (21.1%) are higher than last year (20.4%).


Past Earnings Growth Analysis

Earnings Trend: EXPO's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: EXPO's earnings growth over the past year (13.9%) is below its 5-year average (14% per year).

Earnings vs Industry: EXPO earnings growth over the past year (13.9%) underperformed the Professional Services industry 13.9%.


Return on Equity

High ROE: EXPO's Return on Equity (23.5%) is considered high.


Next Steps

Financial Health

How is Exponent's financial position?


Financial Position Analysis

Short Term Liabilities: EXPO's short term assets ($364.0M) exceed its short term liabilities ($124.0M).

Long Term Liabilities: EXPO's short term assets ($364.0M) exceed its long term liabilities ($89.2M).


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: Insufficient data to determine if EXPO's debt is covered by short term assets.


Next Steps

Dividend

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

1.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EXPO's dividend (1.08%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.04%).

High Dividend: EXPO's dividend (1.08%) is low compared to the top 25% of dividend payers in the US market (5.7%).


Stability and Growth of Payments

Stable Dividend: EXPO is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: EXPO is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: EXPO is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EXPO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

16.5yrs

Average management tenure


CEO

Catherine Corrigan (50yo)

1.92s

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 ($USD2.14M) is below average for companies of similar size in the US market ($USD5.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Paul Johnston
Executive Chairman1.92yrsUS$2.43m0.12% $4.3m
Catherine Corrigan
President1.92yrsUS$2.14m0.12% $4.4m
Richard Schlenker
Executive VP20.75yrsUS$1.83m0.49% $18.0m
Sally Shepard
Chief Human Resources Officer3yrsUS$980.14k0.028% $1.0m
Harri Kytomaa
Group VP & Principal Engineer21.25yrsUS$879.05k0.024% $873.0k
Steven Murray
Group VP & Principal Engineer12.25yrsUS$1.42m0.080% $2.9m
Bernard Ross
Co-Founderno datano datano data
Subbaiah Malladi
CTO & Principal Engineer21.5yrsUS$697.53kno data
Eric Anderson
VP & Corporate Controllerno datano datano data
Robert Caligiuri
Corporate VP of Materials & Corrosion Engineering and Principal Engineer30.25yrsUS$393.26kno data

16.5yrs

Average Tenure

59yo

Average Age

Experienced Management: EXPO's management team is seasoned and experienced (16.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Johnston
Executive Chairman1.92yrsUS$2.43m0.12% $4.3m
Catherine Corrigan
President1.92yrsUS$2.14m0.12% $4.4m
Bernard Ross
Co-Founderno datano datano data
John Shoven
Lead Independent Director1.92yrsUS$221.58k0.13% $4.7m
Debra Zumwalt
Independent Director5.92yrsUS$217.83k0.039% $1.4m
Carol Lindstrom
Independent Director3.17yrsUS$205.75k0.011% $399.4k
Karen Richardson
Independent Director6.33yrsUS$217.83k0.045% $1.7m

2.5yrs

Average Tenure

64yo

Average Age

Experienced Board: EXPO's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$3.660b
  • Shares outstanding: 51.82m
  • 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 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 23:48
End of Day Share Price2020/04/03 00:00
Earnings2020/01/03
Annual Earnings2020/01/03


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.