Education
About Us
Working with TipRanks
Follow Us
Exponent (EXPO)
NASDAQ:EXPO
Top Page
Exponent
(NASDAQ:EXPO)
Rating:69Neutral
Price Target:
$85.00
▲(12.12%Upside)
Exponent (EXPO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.81B
Dividend Yield1.6%
Average Volume (3M)272.54K
Price to Earnings (P/E)36.7
Beta (1Y)0.94
Revenue Growth3.27%
EPS Growth3.94%
CountryUS
Employees966
SectorIndustrials
Sector Strength85
IndustryConsulting Services
Share Statistics
EPS (TTM)0.52
Shares Outstanding50,751,480
10 Day Avg. Volume261,464
30 Day Avg. Volume272,543
Financial Highlights & Ratios
PEG Ratio16.03
Price to Book (P/B)15.98
Price to Sales (P/S)0.00
P/FCF Ratio62.69
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue1.62
Enterprise Value/Gross Profit10.58
Enterprise Value/Ebitda6.44
Forecast
1Y Price Target
$100.00Price Target Upside31.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Exponent Business Overview & Revenue Model
Company DescriptionExponent (EXPO) is a leading engineering and scientific consulting firm that provides solutions across various sectors, including engineering, safety, health, and environmental consulting. The company specializes in multidisciplinary services that address complex technical challenges, offering expertise in areas such as product safety, failure analysis, regulatory compliance, and risk assessment. Exponent's core services cater to industries like automotive, utilities, pharmaceuticals, and consumer electronics, among others.
How the Company Makes MoneyExponent makes money primarily through consulting fees charged to its clients for its specialized engineering and scientific advisory services. The company's revenue model is based on offering expert consulting services to solve complex technical problems, which often involve high-stakes litigation support, risk management, and product development. Exponent's key revenue streams include project-based consulting fees, retainer agreements, and long-term contracts with both private sector clients and government agencies. The company benefits from significant partnerships with major corporations across various industries, leveraging its expertise to address critical issues and improve operational efficiency for its clients.
Exponent Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: -2.21%|
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 Financial Statement Overview
Summary
Exponent demonstrates strong profitability with consistent net profit margins and improving EBIT and EBITDA margins. Solid financial health is indicated by a low debt-to-equity ratio and robust ROE, despite slight increases in liabilities and fluctuating gross profit margins.Income Statement
Exponent demonstrates strong profitability with a consistent net profit margin and improving EBIT and EBITDA margins. Revenue growth has been steady over recent years, indicating a solid upward trajectory. However, recent gross profit margins show slight fluctuations, which may need attention to maintain efficiency.85
Very Positive
Balance Sheet
The balance sheet reflects solid financial health with a low debt-to-equity ratio, indicating prudent leverage management. The equity ratio is strong, ensuring stability. Return on Equity (ROE) is robust, showcasing effective utilization of equity to generate profits. Slight increases in liabilities should be monitored, but overall, the company maintains a healthy financial position.80
Positive
Cash Flow
Exponent's cash flow position is strong, with consistent free cash flow generation. The operating cash flow to net income ratio is healthy, reflecting effective cash management. Although free cash flow growth shows some variability, the company maintains a stable cash flow foundation.78
Positive
| Breakdown | |||||
| TTM | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 | Mar 2021 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 559.09M | 558.51M | 536.77M | 513.29M | 466.27M | 399.90M | Gross Profit |
| 336.52M | 142.28M | 177.30M | 199.59M | 156.80M | 96.14M | EBIT |
| 133.28M | 119.56M | 111.32M | 140.84M | 108.93M | 83.25M | EBITDA |
| 150.63M | 129.25M | 120.24M | 147.92M | 115.41M | 90.12M | Net Income Common Stockholders |
| 105.51M | 109.00M | 100.34M | 102.33M | 101.20M | 82.55M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 245.11M | 258.90M | 187.15M | 161.46M | 297.69M | 242.53M | Total Assets |
| 763.24M | 777.27M | 646.78M | 586.66M | 683.74M | 580.10M | Total Debt |
| 80.12M | 81.48M | 28.26M | 18.60M | 14.97M | 20.33M | Net Debt |
| -164.99M | -177.42M | -158.89M | -142.86M | -282.72M | -177.19M | Total Liabilities |
| 321.83M | 356.20M | 290.69M | 265.91M | 266.67M | 218.60M | Stockholders Equity |
| 441.41M | 421.07M | 356.08M | 320.75M | 417.06M | 361.50M |
| Cash Flow | Free Cash Flow | ||||
| 134.17M | 137.60M | 111.00M | 81.76M | 117.74M | 98.33M | Operating Cash Flow |
| 141.38M | 144.54M | 127.35M | 93.81M | 124.57M | 103.31M | Investing Cash Flow |
| -7.21M | -6.94M | -16.36M | -12.04M | 38.18M | 5.02M | Financing Cash Flow |
| -57.93M | -65.11M | -86.01M | -215.98M | -62.75M | -88.36M |
Exponent Technical Analysis
Negative
75.81
Price Trends
77.61
Negative
81.62
Negative
90.95
Negative
Market Momentum
-0.52
Positive
40.21
Neutral
10.50
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXPO, the sentiment is Negative. The current price of 75.81 is below the 20-day moving average (MA) of 77.14, below the 50-day MA of 77.61, and below the 200-day MA of 90.95, indicating a bearish trend. The MACD of -0.52 indicates Positive momentum. The RSI at 40.21 is Neutral, neither overbought nor oversold. The STOCH value of 10.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $12.82B | 14.25 | 90.74% | 2.13% | 14.07% | 116.33% | |
78 Outperform | $1.24B | 24.69 | 23.18% | 1.08% | 8.49% | 21.06% | |
76 Outperform | $2.32B | 20.21 | 24.88% | ― | 8.83% | 92.48% | |
69 Neutral | $3.81B | 36.73 | 25.87% | 1.60% | 3.27% | 3.94% | |
68 Neutral | $5.53B | 22.02 | 12.46% | ― | 1.59% | -16.79% | |
68 Neutral | $1.60B | 14.94 | 11.64% | 0.64% | 1.95% | 17.98% | |
66 Neutral | $4.50B | 12.26 | 5.40% | 3.65% | 4.17% | -12.02% |
* Industrials Sector Average
Performance Comparison
EXPO
Exponent
75.81
-19.47
-20.43%
BAH
Booz Allen
102.17
-48.16
-32.04%
CRAI
Cra International
182.80
12.32
7.23%
FCN
FTI Consulting
162.07
-47.52
-22.67%
HURN
Huron Consulting
135.41
38.67
39.97%
ICFI
Icf International
86.08
-53.48
-38.32%
Exponent Corporate Events
Executive/Board ChangesShareholder Meetings
Exponent Holds Annual Stockholders Meeting on June 5
Neutral
Jun 10, 2025
On June 5, 2025, Exponent held its annual stockholders meeting, where key decisions were made regarding company governance and financial oversight. The stockholders elected six directors, including George H. Brown and Catherine Ford Corrigan, Ph.D., and ratified KPMG LLP as the independent registered public accounting firm for fiscal 2025. Additionally, the stockholders approved the executive compensation for fiscal 2024.
The most recent analyst rating on (EXPO) stock is a Buy with a $120.00 price target. To see the full list of analyst forecasts on Exponent stock, see the EXPO Stock Forecast page.
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.