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Enpro (NPO)
NYSE:NPO
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Enpro (NPO) AI Stock Analysis

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NPO

Enpro

(NYSE:NPO)

Rating:71Outperform
Price Target:
$248.00
▲(13.04% Upside)
Enpro's strong financial performance and positive earnings call outlook are the most significant factors supporting the stock score. The technical analysis indicates a bullish trend, but the high valuation and overbought RSI suggest caution. The company's strategic initiatives and successful refinancing efforts further bolster its position, despite modest revenue growth and valuation concerns.

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 MoneyEnpro generates revenue through a combination of grants, donations, and service fees. The organization applies for government and private grants aimed at environmental projects, which serve as a significant revenue stream. Additionally, Enpro receives donations from individuals and corporate sponsors who support its mission. Service fees are collected for consulting and educational programs provided to businesses seeking to implement sustainable practices. Partnerships with other nonprofits, governmental agencies, and educational institutions also enhance its funding opportunities and outreach efforts, contributing to its overall earnings.

Enpro Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
Enpro's earnings call highlighted significant growth in sales, particularly in the AST segment, and raised full-year guidance, indicating a positive outlook. However, challenges such as a decline in adjusted EBITDA, foreign exchange headwinds, and weak commercial vehicle OEM demand presented notable lowlights. The overall sentiment is balanced with a lean towards positive due to the strong financial positioning and growth prospects.
Q2-2025 Updates
Positive Updates
Strong Organic Sales Growth
Enpro delivered a 6% organic sales growth in Q2 2025, driven by a 14.5% increase in the Advanced Surface Technologies (AST) segment and growth in Sealing Technologies.
Sealing Technologies Performance
Sealing Technologies sales increased by 1.9%, with a strong performance in aerospace, food, and pharma markets, achieving an adjusted segment EBITDA margin of 33.8%.
Advanced Surface Technologies Growth
AST segment sales increased by 14.5%, driven by leading-edge precision cleaning solutions and optical coatings, with a focus on in-chamber semiconductor tools.
Improved Financial Outlook
Enpro raised its full-year 2025 guidance, expecting a 5% to 7% sales growth and adjusted EBITDA between $270 million to $280 million, up from previous expectations.
Strong Balance Sheet and Cash Flow
Enpro ended Q2 with a net debt of $364 million and a net leverage ratio of 1.4x, with free cash flow for the first half of 2025 reaching $52.8 million.
Successful Debt Refinancing
Completed a $450 million senior notes offering, reducing expected net interest expense for 2025, and doubled the revolving credit facility to $800 million.
Negative Updates
Decline in Adjusted EBITDA
Adjusted EBITDA for Q2 2025 decreased by 3.9% year-over-year, with a total company adjusted EBITDA margin of 24.7%, impacted by increased operating expenses and foreign exchange headwinds.
Impact of Foreign Exchange Headwinds
Transactional foreign exchange headwinds impacted adjusted segment EBITDA margins, with $2.8 million in AST and $1.9 million in Sealing Technologies.
Challenges in Commercial Vehicle OEM Demand
Continued weakness in commercial vehicle OEM demand affected Sealing Technologies, although offset by other strong market performances.
Nuclear Order Timing Issues
Timing issues with nuclear orders affected year-over-year performance comparisons, although underlying demand remains strong.
Company Guidance
During the Enpro's Second Quarter 2025 Earnings Conference Call, the company raised its full-year 2025 guidance, expecting sales growth between 5% and 7%, up from low to mid-single-digit projections. Adjusted EBITDA is now forecasted at $270 million to $280 million, with adjusted diluted earnings per share ranging from $7.60 to $8.10. The Sealing Technologies segment reported a 1.9% sales increase to $187.5 million, with an adjusted EBITDA margin of 33.8%, down from 35.5% last year. Meanwhile, Advanced Surface Technologies (AST) saw a 14.5% sales increase to $100.9 million, though its EBITDA margin fell to 19.6% due to FX headwinds and growth-supporting operating expenses. The company also highlighted a net debt of $364 million and a net leverage ratio of 1.4x trailing 12-month adjusted EBITDA, supported by a recent $450 million senior notes offering.

Enpro Financial Statement Overview

Summary
Enpro demonstrates strong profitability with a solid gross profit margin and improving net profit margin. The balance sheet shows moderate leverage and a stable capital structure, while cash flow analysis indicates effective cash management. However, revenue growth is modest, suggesting room for improvement.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.08B1.05B1.06B1.10B1.14B1.07B
Gross Profit462.60M444.80M426.80M423.30M436.60M375.80M
EBITDA250.50M235.60M177.20M166.20M144.70M57.60M
Net Income84.60M72.90M22.20M3.90M177.90M-23.30M
Balance Sheet
Total Assets2.38B2.49B2.50B2.65B2.97B2.08B
Cash, Cash Equivalents and Short-Term Investments107.10M236.30M369.80M334.40M338.10M229.50M
Total Debt476.20M650.30M697.40M790.70M1.13B491.30M
Total Liabilities879.20M1.06B1.07B1.23B1.65B956.70M
Stockholders Equity1.50B1.43B1.41B1.40B1.27B1.08B
Cash Flow
Free Cash Flow106.10M130.00M173.90M98.00M123.20M33.10M
Operating Cash Flow134.40M162.90M207.80M127.40M142.00M51.40M
Investing Cash Flow-27.80M-241.50M-7.40M268.60M-651.20M216.10M
Financing Cash Flow-44.80M-50.50M-170.90M-373.10M618.20M-167.30M

Enpro Technical Analysis

Technical Analysis Sentiment
Positive
Last Price219.39
Price Trends
50DMA
212.01
Positive
100DMA
192.60
Positive
200DMA
184.83
Positive
Market Momentum
MACD
1.50
Positive
RSI
51.52
Neutral
STOCH
25.38
Neutral
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 219.39 is below the 20-day moving average (MA) of 222.16, above the 50-day MA of 212.01, and above the 200-day MA of 184.83, indicating a neutral trend. The MACD of 1.50 indicates Positive momentum. The RSI at 51.52 is Neutral, neither overbought nor oversold. The STOCH value of 25.38 is Neutral, 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$4.19B28.2817.33%1.00%10.19%20.71%
73
Outperform
$2.30B26.2421.91%0.09%2.82%7.50%
71
Outperform
$4.62B54.925.78%0.56%4.99%169.24%
69
Neutral
$3.51B23.3713.98%1.10%10.28%-16.81%
69
Neutral
$3.85B36.4112.21%0.40%1.74%-7.64%
65
Neutral
$5.36B562.650.67%7.88%
64
Neutral
$10.75B15.697.62%2.01%2.75%-15.14%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NPO
Enpro
219.39
74.79
51.72%
EPAC
Enerpac Tool Group
42.69
3.43
8.74%
CXT
Crane NXT
61.10
6.27
11.44%
KAI
Kadant
326.95
25.03
8.29%
MWA
Mueller Water Products
26.78
7.56
39.33%
MIR
Mirion Technologies
22.90
13.25
137.31%

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.

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.Date of analysis: Aug 06, 2025