Exponent Inc (NASDAQ: EXPO)

Sector: Industrials Industry: Engineering & Construction CIK: 0000851520
Market Cap 3.81 Bn
P/B 9.47
P/E 36.39
P/S 6.68
ROIC (Qtr) 17.24
Div Yield % 1.98
Rev 1y % (Qtr) 7.96
Total Debt (Qtr) 82.60 Mn
Debt/Equity (Qtr) 0.21

About

Exponent, Inc., a science and engineering consulting firm, operates under the stock symbol EXPO in the industry of providing solutions to complex problems. With over 50 years of experience, Exponent has established itself as a leading provider of engineering and scientific consulting services to clients worldwide. The company's main business activities revolve around providing specialized services through its two primary segments: Engineering and Other Scientific, and Environmental and Health. These services span across various countries and regions,...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 132.20M provides robust 1.60x coverage of total debt 82.60M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 207.38M provide 31.95x coverage of short-term debt 6.49M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 752.84M provides 9.11x coverage of total debt 82.60M, indicating robust asset backing and low credit risk.
  • Strong operating cash flow of 132.20M provides 5.39x coverage of SG&A expenses 24.55M, showing efficient operational cost management.
  • Robust free cash flow of 122.90M exceeds capital expenditure of 9.30M by 13.22x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 132.20M barely covers its investment activities of (9.30M), with a coverage ratio of -14.22, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 132.20M provides thin coverage of dividend payments of (60.88M) with a -2.17 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Retained earnings of 658.79M provide limited buffer against comprehensive income items of (2.40M), which is -274.27x, indicating elevated exposure to market risks.
  • Operating cash flow of 132.20M is outpaced by equity issuance of (69.21M) (-1.91 ratio), indicating concerning reliance on equity markets for funding operations.
  • R&D investment of 0 represents just 0x of SG&A expenses of 24.55M, indicating potential underinvestment in innovation relative to administrative overhead.

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Engineering & Construction
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 PWR Quanta Services, Inc. 62.71 Bn 61.60 2.31 6.02 Bn
2 FER Ferrovial SE 48.08 Bn 14.25 5.05 -
3 FIX Comfort Systems Usa Inc 35.76 Bn 42.69 4.30 0.39 Bn
4 EME EMCOR Group, Inc. 29.29 Bn 25.91 1.80 0.42 Bn
5 APG APi Group Corp 17.37 Bn 111.36 2.27 3.05 Bn
6 MTZ Mastec Inc 17.01 Bn 51.39 1.24 2.77 Bn
7 J Jacobs Solutions Inc. 16.94 Bn 58.56 1.41 2.71 Bn
8 BLD TopBuild Corp 13.35 Bn 23.52 2.55 3.09 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.81 1.61
EV to Cash from Ops. EV/CFO 27.71 6.94
EV to Debt EV to Debt 44.35 11.81
EV to EBIT EV/EBIT 25.35 17.80
EV to EBITDA EV/EBITDA 28.63 13.77
EV to Free Cash Flow [EV/FCF] EV/FCF 29.80 55.77
EV to Market Cap EV to Market Cap 0.96 1.20
EV to Revenue EV/Rev 6.41 1.65
Price to Book Value [P/B] P/B 9.47 5.81
Price to Earnings [P/E] P/E 36.39 35.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.72 2.51
Dividend Payout Ratio % Div Payout % (Qtr) 57.60 25.81
Dividend per Basic Share Div per Share (Qtr) 1.18 0.24
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 48.84 4.05
Interest Coverage Interest Coverage 0.00 80.15
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -48.18 -166.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -5.61 637.72
Dividend Growth (1y) % Div 1y % (Qtr) 7.27 5.87
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -1.42 92.47
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 6.37 8.04
EBIT Growth (1y) % EBIT 1y % (Qtr) -1.10 85.34
EBT Growth (1y) % EBT 1y % (Qtr) -1.10 42.07
EPS Growth (1y) % EPS 1y % (Qtr) -1.44 43.76
FCF Growth (1y) % FCF 1y % (Qtr) -19.94 -20.95
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 6.60 32.46
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.75 1.14
Cash Payout Ratio Cash Payout (Qtr) 0.43 0.05
Cash Ratio Cash Ratio (Qtr) 1.34 0.38
Current Ratio Curr Ratio (Qtr) 2.69 1.55
Debt to Equity Ratio Debt/Equity (Qtr) 0.21 0.89
Interest Cover Ratio Interest Cover Ratio 0.00 80.15
Times Interest Earned Times Interest Earned 0.00 80.15
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 27.10 0.40
EBIT Margin % EBIT Margin % (Qtr) 25.29 -2.31
EBT Margin % EBT Margin % (Qtr) 25.29 -4.59
Gross Margin % Gross Margin % (Qtr) 24.90 20.38
Net Profit Margin % Net Margin % (Qtr) 18.30 -5.96