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Enpro (NPO)
NYSE:NPO

Enpro (NPO) AI Stock Analysis

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Enpro

(NYSE:NPO)

Rating:70Outperform
Price Target:
$205.00
▲( 16.74% Upside)
Enpro's stock score reflects a strong financial foundation, with significant profitability and effective cash flow management. Positive earnings call sentiment and growth in key segments support the stock's outlook. However, technical indicators suggest caution due to potential overbought conditions, and valuation concerns arise from a high P/E ratio, indicating the stock may be overvalued. Despite these headwinds, strategic growth initiatives and a solid financial position provide a positive long-term outlook.

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 (NPO) generates revenue primarily through donations, grants, and sponsorships from individuals, corporations, and governmental agencies interested in supporting environmental causes. The organization may also host fundraising events and campaigns to engage the public and raise funds. Additionally, Enpro could establish partnerships with businesses and other non-profits to co-develop projects that align with its mission, sometimes sharing in any resulting funding or resources. While it does not operate for profit, Enpro manages its funds to ensure the sustainability of its projects and initiatives.

Enpro Financial Statement Overview

Summary
Enpro's financial statements reflect strong profit margins and improved operational efficiency, as shown by the income statement. However, revenue growth is a concern, and missing balance sheet data limits deeper analysis. The cash flow statement indicates robust performance with strong free cash flow growth, though the free cash flow to net income ratio has declined.
Income Statement
72
Positive
The income statement shows a stable gross profit margin at approximately 42.4% in TTM, demonstrating strong cost management. Net profit margin improved significantly from 2.1% in 2023 to 5.9% in TTM, indicating enhanced operational efficiency. However, the revenue decreased slightly by 1.0% from 2023 to TTM, which poses a concern. The EBIT margin increased to 14% in TTM from 7.3% in 2023, reflecting improved operational performance. EBITDA margin also saw an increase to 21.3% in TTM from 16.7% in 2023, showing enhanced profitability.
Balance Sheet
45
Neutral
The balance sheet metrics indicate potential concerns due to missing data on assets and equity in TTM, leading to an inability to calculate critical ratios like debt-to-equity. In 2023, the debt-to-equity ratio was 0.49, showing manageable leverage. The equity ratio in 2023 was 56.4%, reflecting a strong equity base. ROE was modest at 1.6% in 2023, suggesting room for improvement in profitability.
Cash Flow
68
Positive
The cash flow statement highlights a solid performance with a free cash flow growth rate of 26.5% from 2023 to TTM, indicating improved cash generation. The operating cash flow to net income ratio was 1.68 in TTM, showcasing strong cash flow relative to earnings. However, the free cash flow to net income ratio decreased from 7.8 in 2023 to 1.34 in TTM, suggesting less free cash flow available for expansion or shareholder returns.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.05B1.06B1.10B1.14B1.07B
Gross Profit
444.80M426.80M423.30M436.60M375.80M
EBIT
142.30M76.80M129.10M228.70M-10.30M
EBITDA
235.60M177.20M166.20M144.70M57.60M
Net Income Common Stockholders
72.90M22.20M3.90M177.90M-23.30M
Balance SheetCash, Cash Equivalents and Short-Term Investments
236.30M369.80M334.40M338.10M229.50M
Total Assets
2.49B2.50B2.65B2.97B2.08B
Total Debt
650.30M697.40M790.70M1.13B491.30M
Net Debt
414.00M327.60M456.30M787.80M261.80M
Total Liabilities
1.06B1.07B1.23B1.65B956.70M
Stockholders Equity
1.43B1.41B1.40B1.27B1.08B
Cash FlowFree Cash Flow
130.00M173.90M98.00M123.20M33.10M
Operating Cash Flow
162.90M207.80M127.40M142.00M51.40M
Investing Cash Flow
-241.50M-7.40M268.60M-651.20M216.10M
Financing Cash Flow
-50.50M-170.90M-373.10M618.20M-167.30M

Enpro Technical Analysis

Technical Analysis Sentiment
Positive
Last Price175.60
Price Trends
50DMA
163.12
Positive
100DMA
171.87
Positive
200DMA
167.23
Positive
Market Momentum
MACD
7.15
Negative
RSI
58.51
Neutral
STOCH
47.86
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 175.6 is above the 20-day moving average (MA) of 170.36, above the 50-day MA of 163.12, and above the 200-day MA of 167.23, indicating a bullish trend. The MACD of 7.15 indicates Negative momentum. The RSI at 58.51 is Neutral, neither overbought nor oversold. The STOCH value of 47.86 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 1 New Risks
1.
Debt incurred in the future to refinance existing indebtedness, to fund strategic acquisitions or for other needs may be at interest rates greater than the rates applicable to the Company's current indebtedness. Q4, 2024

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
72
Outperform
$2.30B25.1423.87%0.09%0.43%34.59%
MIMIR
72
Outperform
$4.13B-0.68%7.25%87.34%
NPNPO
70
Outperform
$3.76B44.495.90%0.68%2.92%
CXCXT
69
Neutral
$3.00B17.9916.23%1.24%9.28%-8.45%
MWMWA
69
Neutral
$3.85B26.8517.68%1.07%10.96%43.44%
64
Neutral
$4.39B11.815.20%249.38%3.96%-12.36%
KAKAI
64
Neutral
$3.64B32.7913.38%0.42%6.83%-1.84%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NPO
Enpro
175.60
28.73
19.56%
EPAC
Enerpac Tool Group
42.54
4.34
11.36%
CXT
Crane NXT
51.99
-8.92
-14.64%
KAI
Kadant
305.08
32.99
12.12%
MWA
Mueller Water Products
24.57
5.99
32.24%
MIR
Mirion Technologies
18.84
8.11
75.58%

Enpro Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 12.73%|
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 Corporate Events

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
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.