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Enpro (NPO)
NYSE:NPO

Enpro (NPO) AI Stock Analysis

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Enpro

(NYSE:NPO)

Rating:78Outperform
Price Target:
$210.00
▲(9.09%Upside)
The overall score of 78 reflects Enpro's solid financial performance, positive technical indicators, and strong earnings call sentiment. Valuation concerns temper the score slightly, but the company's strategic financial moves and growth prospects remain promising.

Enpro (NPO) vs. SPDR S&P 500 ETF (SPY)

Enpro Business Overview & Revenue Model

Company DescriptionEnPro Industries, Inc. engages in the design, development, manufacture, marketing, and service of engineered industrial products in the United States, Europe, and internationally. It operates through three segments: Sealing Technologies, Advanced Surface Technologies, and Engineered Materials. The Sealing Technologies segment offers single-use hygienic seals, tubing, components and assemblies; metallic, non-metallic, and composite material gaskets; compression packing products; hydraulic components; expansion joints; wall penetration products; and dynamic, flange, resilient metal, elastomeric, and custom-engineered mechanical seals for chemical and petrochemical processing, pulp and paper processing, power generation, food and pharmaceutical processing, primary metal manufacturing, mining, water and waste treatment, heavy-duty trucking, aerospace, medical, filtration, and semiconductor fabrication industries. This segment also provides aseptic fluid transfer products for the pharmaceutical and biopharmaceutical industries. The Advanced Surface Technologies segment offers cleaning, coating, testing, refurbishment, and verification services for critical components and assemblies used in semiconductor manufacturing equipment, as well as for critical applications in the space, aerospace, and defense markets; and specialized optical filters and thin-film coatings for various applications in the industrial technology, life sciences, and semiconductor markets. The Engineered Materials segment provides self-lubricating, non-rolling, metal polymer, engineered plastics, and fiber reinforced composite bearing products for various applications in the automotive, pharmaceutical, pulp and paper, natural gas, health, power generation, machine tools, air treatment, refining, petrochemical, and general industrial markets. The company was incorporated in 2002 and is headquartered in Charlotte, North Carolina.
How the Company Makes MoneyAs a non-profit organization, Enpro does not make money in the traditional sense of generating profits. Instead, it relies on a variety of funding sources to support its operations and projects. These sources include grants from government agencies, contributions from private donors, corporate sponsorships, and partnerships with other non-profit organizations. Enpro may also organize fundraising events and campaigns to gather financial support from the public. Additionally, the organization could receive funds through service contracts for consulting and implementing environmental projects with various stakeholders. All revenue generated is reinvested into the organization's mission-driven activities and programs.

Enpro Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 23.79%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
Enpro demonstrated strong performance in Q1 2025, with notable revenue and EBITDA growth driven by the Sealing Technologies and AST segments. Despite challenges in commercial vehicle demand and semiconductor spending, the company's strategic initiatives and financial health position it well for continued success.
Q1-2025 Updates
Positive Updates
Strong Revenue Growth in Q1 2025
Enpro reported a 6% increase in organic sales, with the Sealing Technologies segment growing by 4.5% and Advanced Surface Technologies (AST) by 9.1% year-over-year.
Impressive EBITDA Margin Expansion
Total company adjusted EBITDA increased by over 16%, with margins expanding to 24.8% this quarter.
Outstanding Performance in Sealing Technologies
Sealing Technologies saw a 4.7% sales increase, with EBITDA margins exceeding 32% and strong performance in aerospace, general industrial, and food and pharma markets.
Advanced Surface Technologies Segment Growth
AST sales increased by more than 9% year-over-year, driven by double-digit growth in precision cleaning solutions and optical coatings, with EBITDA margins improving to 21.9%.
Solid Financial Position and Guidance Maintenance
Enpro maintains its guidance for 2025 with expectations of low to mid-single-digit sales growth and adjusted EBITDA between $262 million and $277 million. The company also amended its credit agreement to provide an $800 million revolving credit facility.
Negative Updates
Commercial Vehicle OEM Demand Weakness
Continued weakness in commercial vehicle OEM demand, which was more pronounced in the second half of 2024, impacting Sealing Technologies.
Choppy Semiconductor Capital Equipment Spending
Despite overall growth, semiconductor capital equipment spending remains choppy, affecting the AST segment.
Minimal Impact from Tariffs
While Enpro's exposure to tariffs is minimal and manageable, the broader macroeconomic impacts remain uncertain.
Company Guidance
During the Enpro Q1 2025 earnings call, the company provided full-year guidance, expecting total Enpro sales growth in the low to mid-single digits, adjusted EBITDA between $262 million and $277 million, and adjusted diluted earnings per share ranging from $7 to $7.70. The first quarter reported sales of $273.2 million, marking a 6% increase year-over-year, with total company adjusted EBITDA of $67.8 million, reflecting a 16% increase compared to the prior year period. The Sealing Technologies segment reported a 4.7% increase in sales to $179.6 million, with adjusted segment EBITDA margins exceeding 32%. The Advanced Surface Technologies segment saw a 9.1% year-over-year sales increase to nearly $94 million, resulting in a 19% improvement in adjusted segment EBITDA with a margin rate of around 22%. The company emphasized its strong balance sheet and financial flexibility, with a net leverage ratio of 1.5 times trailing 12-month EBITDA as of March 31, 2025, allowing it to pursue strategic growth initiatives and acquisitions.

Enpro Financial Statement Overview

Summary
Enpro demonstrates strong profitability with significant improvements in EBIT and EBITDA margins. Its solid balance sheet with moderate leverage and consistent cash flow generation reflect good financial health, though revenue growth is only modest.
Income Statement
78
Positive
Enpro's income statement shows strong profitability with a Gross Profit Margin of 42.92% and a Net Profit Margin of 7.98% for TTM (Trailing-Twelve-Months). The company has improved its EBIT and EBITDA margins significantly over time, reflecting operational efficiency. Revenue growth is modest, but the upward trajectory in net income is a positive indicator of financial health.
Balance Sheet
70
Positive
The balance sheet is solid with a Debt-to-Equity Ratio of 0.44, indicating moderate leverage. The Equity Ratio of 58.31% for TTM (Trailing-Twelve-Months) suggests a stable capital structure. Return on Equity (ROE) has been improving, reflecting better utilization of shareholder funds, though there's room for further enhancement.
Cash Flow
75
Positive
Cash flow analysis reveals consistent Free Cash Flow generation with a growth rate of 10.38% over the last period. The Operating Cash Flow to Net Income Ratio of 2.09 indicates strong cash conversion efficiency. The company maintains a healthy Free Cash Flow to Net Income Ratio, reflecting effective cash management.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.06B1.05B1.06B1.10B1.14B1.07B
Gross Profit
456.80M444.80M426.80M423.30M436.60M375.80M
EBIT
157.00M142.30M76.80M129.10M228.70M-10.30M
EBITDA
254.90M235.60M177.20M166.20M144.70M57.60M
Net Income Common Stockholders
84.90M72.90M22.20M3.90M177.90M-23.30M
Balance SheetCash, Cash Equivalents and Short-Term Investments
240.30M236.30M369.80M334.40M338.10M229.50M
Total Assets
2.51B2.49B2.50B2.65B2.97B2.08B
Total Debt
646.90M650.30M697.40M790.70M1.13B491.30M
Net Debt
406.60M414.00M327.60M456.30M787.80M261.80M
Total Liabilities
1.04B1.06B1.07B1.23B1.65B956.70M
Stockholders Equity
1.46B1.43B1.41B1.40B1.27B1.08B
Cash FlowFree Cash Flow
143.50M130.00M173.90M98.00M123.20M33.10M
Operating Cash Flow
177.60M162.90M207.80M127.40M142.00M51.40M
Investing Cash Flow
-33.90M-241.50M-7.40M268.60M-651.20M216.10M
Financing Cash Flow
-70.00M-50.50M-170.90M-373.10M618.20M-167.30M

Enpro Technical Analysis

Technical Analysis Sentiment
Positive
Last Price192.50
Price Trends
50DMA
167.02
Positive
100DMA
174.16
Positive
200DMA
169.43
Positive
Market Momentum
MACD
6.26
Negative
RSI
65.19
Neutral
STOCH
82.01
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NPO, the sentiment is Positive. The current price of 192.5 is above the 20-day moving average (MA) of 185.43, above the 50-day MA of 167.02, and above the 200-day MA of 169.43, indicating a bullish trend. The MACD of 6.26 indicates Negative momentum. The RSI at 65.19 is Neutral, neither overbought nor oversold. The STOCH value of 82.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NPO.

Enpro Risk Analysis

Enpro disclosed 26 risk factors in its most recent earnings report. Enpro 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

Enpro Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
NPNPO
78
Outperform
$4.01B47.415.90%0.65%2.92%
75
Outperform
$2.35B25.6323.87%0.09%0.43%34.59%
KAKAI
74
Outperform
$3.93B35.4113.38%0.41%6.83%-1.84%
MWMWA
73
Outperform
$3.85B26.8517.68%1.09%10.96%43.44%
CXCXT
66
Neutral
$3.19B19.1816.23%1.22%9.28%-8.45%
MIMIR
66
Neutral
$4.58B-0.68%7.25%87.34%
66
Neutral
$4.52B12.345.41%3.62%4.15%-12.18%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NPO
Enpro
192.50
48.79
33.95%
EPAC
Enerpac Tool Group
42.81
4.96
13.10%
CXT
Crane NXT
55.26
-4.42
-7.41%
KAI
Kadant
322.50
42.32
15.10%
MWA
Mueller Water Products
23.85
6.79
39.80%
MIR
Mirion Technologies
20.42
10.08
97.49%

Enpro Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Enpro Issues $450M Senior Notes Due 2033
Positive
May 29, 2025

Enpro Inc., on May 29, 2025, completed the redemption of its 5.75% Senior Notes due 2026 by issuing a conditional notice of redemption and depositing the required funds with the trustee. Concurrently, Enpro issued $450 million in 6.125% Senior Notes due 2033, which are unsecured and unsubordinated, with a maturity date of June 1, 2033. The issuance of these Senior Notes is aimed at strengthening Enpro’s financial structure, with guarantees provided by its domestic subsidiaries. This strategic financial maneuver is expected to impact Enpro’s debt management and enhance its market position.

The most recent analyst rating on (NPO) stock is a Buy with a $220.00 price target. To see the full list of analyst forecasts on Enpro stock, see the NPO Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Enpro Announces $450M Senior Notes Offering
Neutral
May 14, 2025

On May 14, 2025, Enpro Inc. announced the pricing of a $450 million offering of 6.125% Senior Notes due 2033. This move is part of Enpro’s strategy to manage its debt, as the proceeds will be used to redeem its outstanding 5.75% senior notes due 2026 and repay part of its borrowings under a senior secured revolving credit facility. The offering is expected to close on May 29, 2025, and it reflects Enpro’s efforts to optimize its financial structure and potentially improve its market position by addressing existing debt obligations.

The most recent analyst rating on (NPO) stock is a Buy with a $220.00 price target. To see the full list of analyst forecasts on Enpro stock, see the NPO Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Enpro Announces $450 Million Senior Notes Offering
Neutral
May 13, 2025

On May 13, 2025, Enpro Inc. announced its plan to offer $450 million in senior notes due 2033, targeting qualified institutional buyers and non-U.S. persons. The proceeds are intended to redeem outstanding notes due 2026, repay part of its revolving credit facility, and cover associated fees and expenses, impacting the company’s financial strategy and debt management.

The most recent analyst rating on (NPO) stock is a Buy with a $220.00 price target. To see the full list of analyst forecasts on Enpro stock, see the NPO Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Enpro Shareholders Approve Key Proposals at Annual Meeting
Neutral
May 1, 2025

On April 30, 2025, Enpro Inc. held its annual meeting of shareholders, where several key proposals were voted upon. The shareholders approved the Amended and Restated 2020 Equity Compensation Plan, elected directors, approved executive compensation, and ratified PricewaterhouseCoopers LLP as the company’s independent registered public accounting firm for 2025.

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.