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Exponent (EXPO)
NASDAQ:EXPO
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Exponent
(NASDAQ:EXPO)
70Outperform
Exponent (EXPO) vs. S&P 500 (SPY)
Market Cap
$4.02B
Dividend Yield1.44%
Average Volume (3M)361.76K
Price to Earnings (P/E)37.4
Beta (1Y)0.97
Revenue Growth4.05%
EPS Growth8.71%
CountryUS
Employees1,168
SectorIndustrials
Sector Strength70
IndustryConsulting Services
Share Statistics
EPS (TTM)2.11
Shares Outstanding50,757,380
10 Day Avg. Volume346,240
30 Day Avg. Volume361,765
Financial Highlights & Ratios
PEG Ratio4.29
Price to Book (P/B)N/A
Price to Sales (P/S)7.54
Price to Cash Flow (P/CF)17.90
P/FCF Ratio17.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
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
Negative
79.15
Price Trends
81.93
Negative
86.87
Negative
95.63
Negative
Market Momentum
-0.80
Negative
45.79
Neutral
34.95
Neutral
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 79.15 is below the 20-day moving average (MA) of 79.38, below the 50-day MA of 81.93, and below the 200-day MA of 95.63, indicating a bearish trend. The MACD of -0.80 indicates Negative momentum. The RSI at 45.79 is Neutral, neither overbought nor oversold. The STOCH value of 34.95 is Neutral, 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $2.40B | 21.34 | 21.32% | ― | 8.80% | 97.52% | |
78 Outperform | $13.78B | 16.22 | 75.34% | 1.79% | 14.07% | 116.33% | |
73 Outperform | $5.73B | 20.72 | 12.46% | ― | 1.59% | -16.79% | |
70 Outperform | $1.58B | 14.75 | 11.60% | 0.65% | 2.88% | 33.76% | |
70 Outperform | $4.02B | 37.37 | 28.05% | 1.44% | 4.05% | 8.71% | |
70 Neutral | $1.11B | 24.11 | 21.96% | 1.12% | 10.17% | 24.74% | |
63 Neutral | $4.28B | 11.33 | 5.43% | 214.88% | 4.12% | -8.65% |
* Industrials Sector Average
Performance Comparison
EXPO
Exponent
79.15
-14.91
-15.85%
BAH
Booz Allen
119.59
-23.40
-16.36%
CRAI
Cra International
164.04
15.84
10.69%
FCN
FTI Consulting
162.68
-48.68
-23.03%
HURN
Huron Consulting
134.14
40.51
43.27%
ICFI
Icf International
85.72
-55.53
-39.31%
Exponent Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -11.55% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive financial results, such as revenue growth and increased net income, alongside challenges like reduced headcount and lower EBITDA margins. The company anticipates modest revenue growth in 2025 due to current headcount deficits.Highlights
Revenue Growth
Total revenues increased 11% to $136.8 million in Q4 2024 and 4% for the full fiscal year to $558.5 million.
Increase in Net Income
Net income for Q4 2024 was $23.6 million, a 13% increase from $20.9 million in the prior year period.
Growth in Chemical Industry Engagement
The chemicals industry showed a resurgence with increased activity in litigation and regulatory engagement, contributing to a growth of 11% in the Environmental and Health segment for Q4.
Improved Utilization Rate
Utilization rate increased to 68% in Q4 2024, up from 65% in the same period of 2023.
Strong Performance in Utility Sector
Increased activity in the utility sector was driven by risk-related work and infrastructure management.
Lowlights
Headcount Reduction
Average technical full-time equivalent employees in Q4 decreased by 6% year over year, with a 5% to 6% headwind on year-over-year growth due to reductions in headcount.
Lower EBITDA Margins
EBITDA margin was 25.2% of net revenues in Q4 2024, down from 26.8% in the same period of the previous year.
Decreased General and Administrative Expenses
G&A expenses declined 3% to $5.7 million for Q4, primarily due to the postponement of the in-person managers meeting.
Anticipated Revenue Challenges
For 2025, net revenues are expected to grow in the low single digits due to a starting headcount deficit and the return to a fifty-two-week fiscal year.
Company Guidance
During the Exponent, Inc. Q4 2024 earnings call, the company provided guidance indicating a 5% to 6% headwind on year-over-year growth due to reductions in headcount. They anticipate net revenues for Q1 2025 to be down in the low single digits compared to Q1 2024, while full-year revenue growth in 2025 is expected to be in the low single digits. The company plans to increase headcount by approximately 1% to 2% each quarter in 2025, aiming for year-over-year growth by Q3 and ending the year with at least a 4% increase in headcount. EBITDA margins are projected to be 25% to 26% for Q1 and 25.25% to 27% for the full year 2025. Utilization rates are expected to be 74% to 75% in Q1 and 72% to 73% for the year, with a realized rate increase of 3% to 3.5%.Exponent Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Exponent Announces Quarterly Dividend Amidst Revenue Growth
Positive
Feb 6, 2025
Exponent, Inc. announced a quarterly cash dividend of $0.30 per share to be paid in March 2025, reflecting its commitment to returning value to shareholders. The company’s financial results for the fourth quarter and fiscal year 2024 showed revenue growth driven by increased demand in consumer electronics and utilities, alongside improved EBITDA margins. Exponent anticipates continued growth in 2025 as it expands its team to meet rising industry demands in areas such as transportation and digital health.
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.