Exponent (EXPO) AI Stock Analysis

• Market Cap: $3.60B
• Dividend Yield: 1.66%
• Average Volume (3M): 377.11K
• Price to Earnings (P/E): 35.5
• 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: 49,887,226
• 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: $85.50
• Price Target Upside: 18.32% 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 ▲(10.71% Upside)

Exponent's overall stock score reflects its strong financial performance, positive technical indicators, and robust earnings call results. The company's solid financial foundation and strategic initiatives support its growth prospects, despite valuation concerns and sector-specific challenges. The positive momentum and demand in key sectors bolster confidence in its future performance.

Positive Factors

Revenue Growth

Exponent's robust revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Cash Generation

Strong cash generation enhances Exponent's ability to reinvest in growth opportunities and maintain financial flexibility.

Market Position

Exponent's strong demand in key sectors like energy and life sciences solidifies its competitive market position and growth prospects.

Negative Factors

Decreased Activity

Decreased activity in consumer electronics could limit growth in this segment, potentially impacting overall revenue diversification.

Increased Expenses

Rising general and administrative expenses may pressure margins and reduce profitability if not managed effectively.

Potential Revenue Headwind

Anticipated revenue headwinds due to fewer workdays could impact short-term financial performance and growth forecasts.

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 multiple streams, primarily by selling its software solutions via subscription-based models and one-time licensing fees. The company also earns income from providing professional services, including consulting and training for businesses looking to integrate and maximize the use of its analytics tools. Key revenue streams include recurring subscription fees from software users, project fees from consulting engagements, and potentially revenue-sharing agreements with partners for joint ventures or integrated solutions. Significant partnerships with industry leaders in technology and analytics further bolster its earnings, as they allow Exponent to expand its market reach and enhance its product offerings.

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	761.45M	777.27M	646.78M	586.66M	683.74M	593.77M
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	232.28M
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: Negative
• Last Price: 72.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 72.26 is below the 20-day moving average (MA) of 72.61, above the 50-day MA of 71.87, and below the 200-day MA of 72.58, indicating a neutral trend. The MACD of 0.46 indicates Negative momentum. The RSI at 48.88 is Neutral, neither overbought nor oversold. The STOCH value of 58.57 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	$1.41B	25.88	27.83%	0.97%	8.69%	34.58%
EXPO	78 Outperform	$3.60B	35.49	25.79%	1.66%	4.90%	-1.52%
FCN	76 Outperform	$5.41B	22.29	13.30%	―	-0.95%	-10.54%
HURN	75 Outperform	$3.17B	30.79	21.20%	―	12.50%	29.40%
ICFI	74 Outperform	$1.75B	17.86	9.88%	0.65%	-3.81%	-7.05%
BAH	65 Neutral	$11.69B	14.71	74.72%	2.60%	2.42%	3.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Exponent Corporate Events

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.