Exponent (EXPO) AI Stock Analysis

• Market Cap: $3.50B
• Dividend Yield: 1.73%
• Average Volume (3M): 449.69K
• Price to Earnings (P/E): 34.7
• Beta (1Y): 0.95
• Revenue Growth: 3.47%
• EPS Growth: -2.16%
• Country: US
• Employees: 966
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 0.52
• Shares Outstanding: 50,501,137
• 10 Day Avg. Volume: 491,015
• 30 Day Avg. Volume: 449,691
• 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: 1.09
• Enterprise Value/Revenue: 6.81
• Enterprise Value/Gross Profit: 12.01
• Enterprise Value/Ebitda: 26.03
• 1Y Price Target: $76.50
• Price Target Upside: 12.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: $77.00 ▲(13.19% Upside)

Exponent's overall stock score reflects strong financial performance and strategic growth initiatives, tempered by high valuation and mixed technical indicators. The earnings call highlighted both opportunities and challenges, with strategic expansions and demand resilience offset by declines in net income and utilization. Investors should monitor cash flow management and market conditions closely.

Positive Factors

Revenue Growth

Exponent's strong revenue growth indicates robust demand for its services, supporting long-term business expansion and market penetration.

Strategic Expansion

Engagement in transformative innovations positions Exponent for future growth, leveraging emerging technologies to expand its market reach.

Strong Litigation-Related Activity

Growth in litigation-related activities highlights Exponent's strong position in high-demand sectors, ensuring steady revenue streams.

Negative Factors

Decline in Net Income

A decline in net income may impact Exponent's profitability, potentially affecting its ability to reinvest in growth and innovation.

Decline in Utilization

Reduced utilization and billable hours can limit revenue potential, indicating challenges in operational efficiency and resource management.

Environmental and Health Segment Challenges

Challenges in the environmental and health segment suggest potential revenue headwinds, impacting overall growth in these critical areas.

Exponent Business Overview & Revenue Model

Company Description

Exponent, Inc., together with its subsidiaries, operates as a science and engineering consulting company worldwide. It 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 and sciences, buildings and structures, civil engineering, construction consulting, data sciences, electrical engineering and computer science, human factors, materials and corrosion engineering, mechanical engineering, polymer science and materials chemistry, thermal sciences, and vehicle engineering. 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 technical disciplines to solve pressing and complicated challenges facing stakeholders. 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.

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 performance with robust profitability and stable growth. The company maintains a healthy balance sheet with effective leverage management and strong equity positions. Cash flow generation remains consistent, supporting ongoing operations and investments. Areas for improvement include maintaining gross profit margins and monitoring liabilities.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	560.51M	558.51M	536.77M	513.29M	466.27M	399.90M
Gross Profit	318.06M	142.28M	135.76M	164.50M	124.21M	96.14M
EBITDA	146.72M	129.25M	120.24M	147.92M	115.41M	90.12M
Net Income	102.84M	109.00M	100.34M	102.33M	101.20M	82.55M
Balance Sheet
Total Assets	759.43M	777.27M	646.78M	586.66M	683.74M	580.10M
Cash, Cash Equivalents and Short-Term Investments	231.80M	258.90M	187.15M	161.46M	297.69M	242.53M
Total Debt	80.32M	81.48M	28.26M	18.60M	14.97M	20.33M
Total Liabilities	331.65M	356.20M	290.69M	265.91M	266.67M	218.60M
Stockholders Equity	427.78M	421.07M	356.08M	320.75M	417.06M	361.50M
Cash Flow
Free Cash Flow	120.92M	137.60M	111.00M	81.76M	117.74M	98.33M
Operating Cash Flow	129.26M	144.54M	127.35M	93.81M	124.57M	103.31M
Investing Cash Flow	-8.34M	-6.94M	-16.36M	-12.04M	38.18M	5.02M
Financing Cash Flow	-92.80M	-65.11M	-86.01M	-215.98M	-62.75M	-88.36M

Exponent Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 68.03
• 50DMA: Negative
• 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 Negative. The current price of 68.03 is below the 20-day moving average (MA) of 69.64, below the 50-day MA of 70.24, and below the 200-day MA of 78.58, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 39.30 is Neutral, neither overbought nor oversold. The STOCH value of 26.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EXPO.

Exponent Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRAI	78 Outperform	$1.30B	24.65	28.70%	0.99%	9.28%	44.19%
BAH	76 Outperform	$12.65B	12.60	97.54%	2.09%	9.25%	75.69%
FCN	75 Outperform	$5.16B	22.42	13.14%	―	-0.89%	-23.72%
EXPO	73 Outperform	$3.50B	34.74	25.05%	1.73%	3.47%	-2.16%
HURN	72 Outperform	$2.55B	25.77	22.13%	―	8.99%	35.56%
ICFI	71 Outperform	$1.73B	16.43	10.77%	0.60%	-0.47%	10.03%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Exponent Corporate Events

Exponent Declares Quarterly Dividend Amid Revenue Growth

On July 31, 2025, Exponent, Inc. announced a quarterly cash dividend of $0.30 per share, to be paid on September 19, 2025, reflecting its commitment to returning value to shareholders. The company reported its second-quarter financial results for 2025, showing a slight increase in total revenues to $142.0 million, though net income decreased to $26.6 million compared to the previous year. Despite flat revenues, Exponent experienced growth in dispute-related activities in sectors like construction, automotive, and medical devices, while facing softer demand in chemical regulatory work. The firm is optimistic about opportunities in digital health, AI usability, and distributed energy systems, and anticipates continued growth in the second half of 2025.

Exponent Holds Annual Stockholders Meeting on June 5

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.