Exponent (EXPO) AI Stock Analysis

• Market Cap: $3.62B
• Dividend Yield: 1.67%
• Average Volume (3M): 377.11K
• Price to Earnings (P/E): 35.2
• Beta (1Y): 0.87
• Revenue Growth: 4.90%
• EPS Growth: -1.52%
• Country: US
• Employees: 966
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 0.55
• Shares Outstanding: 50,501,137
• 10 Day Avg. Volume: 305,736
• 30 Day Avg. Volume: 377,107
• PEG Ratio: 4.81
• Price to Book (P/B): 10.80
• Price to Sales (P/S): 8.14
• P/FCF Ratio: 33.04
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $76.00
• Price Target Upside: 10.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $80.00 ▲(15.84% Upside)

Exponent's strong financial performance and positive earnings call are the primary drivers of its stock score. The company's robust cash flow and profitability metrics, along with increased demand in key sectors, support a favorable outlook. However, the high P/E ratio and mixed technical indicators suggest caution. The absence of significant corporate events means the score is primarily influenced by financial and earnings data.

Positive Factors

Revenue Growth

Exponent's consistent revenue growth highlights its strong market position and ability to expand its customer base, ensuring long-term business sustainability.

Cash Flow Generation

Strong cash flow generation provides Exponent with the financial flexibility to invest in growth opportunities and weather economic fluctuations.

Market Demand

Increased demand in key sectors demonstrates Exponent's ability to capitalize on industry trends, supporting sustained revenue and market share growth.

Negative Factors

Decreased Activity in Consumer Electronics

Decreased activity in consumer electronics could limit growth in this segment, affecting overall revenue diversification and market expansion.

Increased G&A Expenses

Rising G&A expenses can pressure margins and reduce profitability, potentially impacting Exponent's ability to maintain cost efficiency.

Potential Revenue Headwind

Expected revenue headwinds in the fourth quarter could impact short-term financial performance, challenging Exponent's growth momentum.

Exponent Business Overview & Revenue Model

Company Description

Exponent (EXPO) is a technology company that specializes in providing data analytics solutions and software tools designed to enhance decision-making processes for businesses across various industries. The company operates primarily in the technology and data analytics sectors, offering a suite of products that includes predictive analytics, machine learning platforms, and business intelligence tools aimed at helping organizations optimize their operations and drive growth.

How the Company Makes Money

Exponent generates revenue through a subscription-based model for its software products, allowing customers to access its analytics tools and services on a recurring basis. The company also earns money through professional services, including consulting and support, which help clients implement and utilize their technologies effectively. Key revenue streams include subscriptions from enterprise clients, data integration services, and partnerships with other technology firms that enhance its product offerings. Additionally, Exponent may engage in strategic alliances that leverage its analytics capabilities, further driving sales and customer acquisition.

Exponent Financial Statement Overview

Summary

Exponent demonstrates strong financial health with consistent revenue and profit growth, efficient cost management, and robust cash flow generation. The company's low leverage and high return on equity reflect a stable financial foundation. While revenue growth has slowed, the company maintains strong profitability and cash flow metrics, positioning it well for future growth opportunities.

Income Statement

Exponent's income statement shows strong profitability with a consistent increase in revenue over the years. The TTM data indicates a gross profit margin of 40.33% and a net profit margin of 18.35%, reflecting efficient cost management and strong bottom-line performance. Revenue growth is steady, albeit at a slower pace recently, with a TTM growth rate of 1.93%. EBIT and EBITDA margins are robust, indicating healthy operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a manageable debt-to-equity ratio of 0.21 in the TTM period, indicating low leverage. Return on equity is strong at 24.77%, showcasing effective use of shareholder funds. The equity ratio is healthy, suggesting a stable capital structure. However, a slight increase in debt levels over the periods warrants monitoring.

Cash Flow

Cash flow analysis reveals a positive trajectory with a TTM free cash flow growth rate of 63.5%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.84, and the free cash flow to net income ratio is 0.94, both suggesting efficient conversion of income to cash. The company maintains a solid cash flow position, supporting its operational and strategic initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	571.36M	558.51M	536.77M	513.29M	466.27M	399.90M
Gross Profit	230.45M	142.28M	135.76M	164.50M	124.21M	96.14M
EBITDA	149.54M	129.25M	120.24M	147.92M	115.41M	90.12M
Net Income	104.84M	109.00M	100.34M	102.33M	101.20M	82.55M
Balance Sheet
Total Assets	570.95M	777.27M	646.78M	586.66M	683.74M	580.10M
Cash, Cash Equivalents and Short-Term Investments	207.38M	258.90M	187.15M	161.46M	297.69M	242.53M
Total Debt	82.60M	81.48M	28.26M	18.60M	14.97M	20.33M
Total Liabilities	358.59M	356.20M	290.69M	265.91M	266.67M	218.60M
Stockholders Equity	402.86M	421.07M	356.08M	320.75M	417.06M	361.50M
Cash Flow
Free Cash Flow	122.90M	137.60M	111.00M	81.76M	117.74M	98.33M
Operating Cash Flow	132.20M	144.54M	127.35M	93.81M	124.57M	103.31M
Investing Cash Flow	-9.30M	-6.94M	-16.36M	-12.04M	38.18M	5.02M
Financing Cash Flow	-134.34M	-65.11M	-86.01M	-215.98M	-62.75M	-88.36M

Exponent Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 69.06
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 69.06 is below the 20-day moving average (MA) of 69.78, above the 50-day MA of 69.01, and below the 200-day MA of 75.30, indicating a neutral trend. The MACD of 0.55 indicates Positive momentum. The RSI at 51.25 is Neutral, neither overbought nor oversold. The STOCH value of 31.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EXPO.

Exponent Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPO	78 Outperform	$3.62B	35.18	25.79%	1.67%	4.90%	-1.52%
CRAI	75 Outperform	$1.19B	21.76	27.83%	1.06%	8.69%	34.58%
FCN	75 Outperform	$5.17B	21.28	13.30%	―	-0.95%	-10.54%
HURN	73 Outperform	$2.85B	27.74	21.20%	―	12.50%	29.40%
ICFI	65 Neutral	$1.44B	14.71	9.88%	0.70%	-3.81%	-7.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BAH	62 Neutral	$10.06B	12.66	74.72%	2.65%	2.42%	3.05%

Exponent Corporate Events

Exponent’s Earnings Call: Revenue Growth Amid Challenges

In the recent earnings call, Exponent demonstrated a strong quarter characterized by significant revenue growth and heightened demand in reactive engagements. Despite these positive developments, the company acknowledged challenges such as decreased activity in consumer electronics, increased expenses, and potential revenue headwinds.

Exponent Reports Strong Q3 2025 Financial Results

Exponent, Inc. is a leading engineering and scientific consulting firm that operates across multiple industries, offering specialized expertise in failure analysis and risk management. The company reported strong financial results for the third quarter of 2025, with notable revenue growth driven by increased demand in various sectors, despite challenges in the consumer electronics space.

Exponent Announces Dividend and Share Repurchase Plan

On October 30, 2025, Exponent, Inc. announced a quarterly cash dividend of $0.30 per share, payable on December 19, 2025, and authorized an additional $100 million for share repurchases. The company reported strong financial results for the third quarter of 2025, with an 8% increase in total revenues and a 10% increase in revenues before reimbursements compared to the same period in 2024. Exponent’s net income rose to $28.0 million, driven by increased demand for its services across various sectors, despite lower activity in consumer electronics. The company is strategically increasing headcount to support growth and has maintained its revenue guidance while raising its margin guidance for the full year.

The most recent analyst rating on (EXPO) stock is a Hold with a $74.00 price target. To see the full list of analyst forecasts on Exponent stock, see the EXPO Stock Forecast page.