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Exponent (EXPO)
:EXPO
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Exponent
(NASDAQ:EXPO)
69Neutral
Exponent (EXPO) vs. S&P 500 (SPY)
Market Cap
$4.06B
Dividend Yield1.42%
Average Volume (3M)366.65K
Price to Earnings (P/E)39.2
Beta (1Y)0.93
Revenue Growth3.27%
EPS Growth3.94%
CountryUS
Employees966
SectorIndustrials
Sector Strength91
IndustryConsulting Services
Share Statistics
EPS (TTM)0.52
Shares Outstanding50,751,480
10 Day Avg. Volume301,343
30 Day Avg. Volume366,652
Financial Highlights & Ratios
PEG Ratio15.84
Price to Book (P/B)9.86
Price to Sales (P/S)0.00
P/FCF Ratio29.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$100.00Price Target Upside24.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Exponent Business Overview & Revenue Model
Company DescriptionExponent (EXPO) is a multidisciplinary engineering and scientific consulting firm that operates across various sectors including engineering, environmental sciences, health, and human factors. The company provides a wide array of services such as failure analysis, accident reconstruction, and product safety evaluations. Exponent serves a diverse clientele, including corporations, law firms, insurance companies, and government agencies, offering expertise to address complex scientific and technical challenges.
How the Company Makes MoneyExponent makes money primarily through consulting fees charged for its expert services. The company's revenue model is centered around providing specialized technical consulting across different industries. Key revenue streams include fees for project-based work, retainer agreements, and advisory services. Exponent's earnings are bolstered by its reputation for delivering high-quality, expert analysis and solutions which attract repeat business and long-term partnerships. The firm also benefits from its ability to address emerging and complex technological and regulatory issues, which allows it to sustain demand for its services.
Exponent Financial Statement Overview
Summary
Exponent exhibits strong financial health with consistent revenue growth and profitability. The balance sheet is solid with low leverage, and cash flows are robust, supporting operational sustainability. However, careful attention to operational efficiency and cash management could enhance future financial performance.Income Statement
Exponent demonstrated stable revenue growth with a 4.56% increase from 2022 to 2023 and a strong gross profit margin of 92.26% in 2023. The net profit margin was 18.70%, indicating healthy profitability. However, there was a decline in EBIT and EBITDA margins from the previous year, which could indicate operational challenges.75
Positive
Balance Sheet
The company maintains a strong equity position with a debt-to-equity ratio of 0.08 in 2023, highlighting low leverage risk. Stockholders' equity grew steadily, indicating strong capitalization. The equity ratio was 55.06%, reflecting robust financial stability.80
Positive
Cash Flow
Exponent showed robust free cash flow growth of 23.88% from 2022 to 2023. The operating cash flow to net income ratio was 1.27, suggesting efficient cash generation relative to reported earnings. However, the free cash flow to net income ratio slightly declined to 1.11, indicating a potential area for improvement in cash management.78
Positive
| Breakdown | ||||
| Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 558.51M | 536.77M | 513.29M | 466.27M | 399.90M | Gross Profit |
| 558.51M | 495.23M | 478.21M | 433.68M | 96.14M | EBIT |
| 119.56M | 111.32M | 140.84M | 108.93M | 83.25M | EBITDA |
| 129.25M | 120.24M | 147.92M | 115.41M | 90.12M | Net Income Common Stockholders |
| 109.00M | 100.34M | 102.33M | 101.20M | 82.55M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 258.90M | 187.15M | 161.46M | 297.69M | 242.53M | Total Assets |
| 777.27M | 646.78M | 586.66M | 683.74M | 580.10M | Total Debt |
| 81.48M | 28.26M | 18.60M | 14.97M | 20.33M | Net Debt |
| -177.42M | -158.89M | -142.86M | -282.72M | -177.19M | Total Liabilities |
| 356.20M | 290.69M | 265.91M | 266.67M | 218.60M | Stockholders Equity |
| 421.07M | 356.08M | 320.75M | 417.06M | 361.50M |
| Cash Flow | Free Cash Flow | |||
| 137.60M | 111.00M | 81.76M | 117.74M | 98.33M | Operating Cash Flow |
| 144.54M | 127.35M | 93.81M | 124.57M | 103.31M | Investing Cash Flow |
| -6.94M | -16.36M | -12.04M | 38.18M | 5.02M | Financing Cash Flow |
| -65.11M | -86.01M | -215.98M | -62.75M | -88.36M |
Exponent Technical Analysis
Neutral
80.05
Price Trends
79.64
Positive
84.29
Negative
93.76
Negative
Market Momentum
-0.30
Negative
55.15
Neutral
79.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXPO, the sentiment is Neutral. The current price of 80.05 is above the 20-day moving average (MA) of 78.06, above the 50-day MA of 79.64, and below the 200-day MA of 93.76, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 55.15 is Neutral, neither overbought nor oversold. The STOCH value of 79.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EXPO.
Exponent Risk Analysis
Exponent disclosed 34 risk factors in its most recent earnings report. Exponent reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Exponent Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $16.31B | 19.21 | 75.34% | 1.61% | 14.07% | 116.33% | |
76 Outperform | $2.64B | 22.95 | 24.88% | ― | 8.83% | 92.48% | |
75 Outperform | $1.33B | 26.39 | 23.18% | 0.93% | 8.49% | 21.06% | |
74 Outperform | $5.72B | 22.79 | 12.46% | ― | 1.59% | -16.79% | |
69 Neutral | $4.06B | 39.15 | 25.87% | 1.42% | 3.27% | 3.94% | |
68 Neutral | $1.62B | 15.06 | 11.64% | 0.64% | 1.95% | 17.98% | |
64 Neutral | $4.43B | 12.01 | 5.16% | 249.23% | 4.03% | -11.73% |
* Industrials Sector Average
Performance Comparison
EXPO
Exponent
79.96
-15.64
-16.36%
BAH
Booz Allen
129.30
-22.41
-14.77%
CRAI
Cra International
195.43
22.64
13.10%
FCN
FTI Consulting
167.50
-57.30
-25.49%
HURN
Huron Consulting
152.95
66.24
76.39%
ICFI
Icf International
87.78
-58.78
-40.11%
Exponent Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 2.87%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Exponent's resilience in maintaining flat revenues despite headwinds in staffing and challenges in proactive services. Strong performance in reactive services and strategic hiring indicate optimism. However, declines in net income, EBITDA, and billable hours, coupled with macroeconomic uncertainties affecting proactive engagements, present challenges.Q1-2025 Updates
Positive Updates
Resilience of Diversified Business Model
Despite a 5% to 6% headwind in technical full-time equivalent employees, Exponent achieved approximately flat revenues due to strong activity from key industries, particularly in reactive services like failure analysis.
Sequential Headcount Growth
Exponent reported a 2% sequential headcount growth, attributed to lower turnover than expected and mid-70s utilization.
Strong Performance in Reactive Services
Reactive services, which constitute 60% of the business, showed growth in low single digits, driven by demand in disputes and failure analysis across chemicals, transportation, and utilities industries.
Maintained Revenue and Margin Guidance
Despite macroeconomic uncertainties, Exponent maintained its revenue and margin guidance for fiscal 2025, expecting revenue growth in low single digits.
Negative Updates
Decline in Net Income and EBITDA
Net income for Q1 2025 decreased to $26.7 million from $30.1 million in the prior year. EBITDA decreased by 6% to $37.5 million, driven by increased stock-based compensation and operating expenses.
Decrease in Billable Hours and Technical Employees
Billable hours decreased by 4% year-over-year, and average technical full-time equivalent employees decreased by 4% compared to a year ago.
Easing in Consumer Electronics Industry
Revenues were impacted by easing in the consumer electronics industry due to the timing of clients' product development life cycles.
Challenges in Proactive Services
Proactive services saw a slight decline, with clients delaying work due to macroeconomic uncertainty, particularly in regulatory consulting.
Company Guidance
During the first quarter of 2025, Exponent, Inc. reported approximately flat total revenues at $145.5 million, with net revenues also flat at $137.4 million compared to the same period in 2024. The company's net income decreased to $26.7 million, or $0.52 per diluted share, from $30.1 million, or $0.59 per diluted share, in the prior year. The EBITDA margin declined to 27.3% of net revenues, down from 29.2% in the previous year, primarily due to increased stock-based compensation and other operating expenses. The company faced a 4% decrease in billable hours, totaling approximately 376,000, and a similar 4% decrease in average technical full-time equivalent employees, now at 966. Despite these challenges, Exponent achieved a mid-70s utilization rate and sequential headcount growth of 2%. Looking ahead, for the second quarter and fiscal year 2025, Exponent expects revenue before reimbursements to decline in the low single digits and EBITDA margins to range between 26% and 27%, maintaining their full-year guidance for low single-digit growth. The company anticipates year-end headcount to increase by approximately 4% from the beginning of the year, with full-year utilization expected to reach 72% to 73%.Exponent Corporate Events
DividendsFinancial Disclosures
Exponent Announces Quarterly Dividend Amid Financial Resilience
Positive
May 1, 2025
On May 1, 2025, Exponent, Inc. announced a quarterly cash dividend of $0.30 per share, payable on June 20, 2025, to stockholders of record as of June 6, 2025. The company’s first-quarter financial results for 2025 showed resilience despite a slight decrease in net income and EBITDA compared to the previous year. Exponent’s engineering and scientific consulting services continued to drive demand across the transportation, utilities, and chemicals industries. The company remains well-positioned to navigate economic volatility and anticipates modest revenue growth for the full fiscal year 2025, despite facing headwinds in the second quarter.
Spark’s Take on EXPO Stock
According to Spark, TipRanks’ AI Analyst, EXPO is a Outperform.
Exponent’s overall stock score of 70 reflects its solid financial performance and strategic initiatives to return value to shareholders, such as dividend announcements. Despite a strong balance sheet and cash flow, challenges in operational efficiency and modest revenue growth projections pose risks. The stock’s technical indicators suggest potential bearish sentiment, and current valuation metrics indicate it might be overvalued. Investors should consider these factors alongside the company’s long-term growth strategies and market position.
To see Spark’s full report on EXPO stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.