Exponent Inc (EXPO) stock analysis

P/E below its 5-year median

Exponent's P/E of 37.6 is below its own 5-year median of 44.6.

P/E above the industry

Exponent's P/E of 37.6 is above the Management and Public Relations Services median of 25.4.

EV/EBITDA below its 5-year median

Exponent's EV/EBITDA of 26.8 is below its 5-year median of 33.6.

P/B above the industry

Exponent's price-to-book of 13.48 is above the Management and Public Relations Services median of 2.11.

Trading above fair value

The share price of $87.31 is above our fair value estimate of $70.23.

Margin of safety under 20%

The price is 24.3% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 4.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 1.8% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 9.4% over the last twelve months, against a 5-year average of 5.1% a year.

Growing faster than the industry

Revenue grew 15.4% over the last twelve months; the Management and Public Relations Services median is 7.2%.

Guidance raised

Exponent raised its full fiscal year 2026 EBITDA 1 to be 27.8% to 28.1% of revenues before reimbursements outlook on Jul 30, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 32.3% over the last twelve months and averaged 27.5% over five years.

Return on capital over 10%

Return on invested capital was 51.7%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Exponent's return on equity of 32.3% is above the Management and Public Relations Services median of 0.4%.

Earnings grew over 5 years

Net income grew 5.1% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 17.4% over the last twelve months, against a 5-year average of 19.6%.

Net margin above the industry

Exponent's net margin of 17.4% is above the Management and Public Relations Services median of 0.2%.

No debt

Exponent has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 1.93 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 9.78; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Exponent paid dividends worth 1.4% of the share price over the last twelve months.

Yield below Treasuries

The 1.4% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Exponent yields 1.4%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 53.2% of net income.

Covered by free cash flow

Dividends take 43.4% of free cash flow.