📊 EXPO Key Takeaways
Is EXPO a Good Investment? Thesis Analysis
Exponent demonstrates robust financial health with strong profitability metrics (20.6% operating margin, 18.2% net margin) and exceptional cash generation (122.3M free cash flow, 21% FCF margin). The company maintains an fortress balance sheet with 2.40x current ratio, zero debt, and substantial cash reserves of 221.9M, providing strategic flexibility. However, flat revenue growth and declining diluted EPS present near-term headwinds that warrant monitoring.
Why Buy EXPO? Key Strengths
- Exceptional free cash flow generation with 122.3M FCF and 21% FCF margin demonstrating high-quality earnings conversion
- Superior profitability with 20.6% operating margin and 18.2% net margin, well above typical consulting services benchmarks
- Fortress balance sheet with zero long-term debt, 221.9M cash reserves, and 2.40x current ratio providing strategic optionality
- Strong return on equity of 27.2% and ROA of 13.6% indicating efficient capital deployment
- Significant insider activity with 24 Form 4 filings suggesting management confidence
EXPO Investment Risks to Consider
- Flat revenue growth of 0% YoY indicates stagnation in top-line expansion and potential market saturation concerns
- Diluted EPS declining 1.9% YoY despite flat net income suggests share dilution from equity issuance or option exercises
- High profitability multiples may create difficult comps and pressure margins if consulting demand weakens
- Lack of operating expense control visibility with no gross margin data limits assessment of operational scalability
- Management's high insider trading activity (24 filings in 90 days) requires context to assess motivation
Key Metrics to Watch
- Revenue growth trajectory - need return to positive growth to validate business momentum
- Operating margin sustainability - monitor for compression as firm scales or faces competitive pressures
- Free cash flow generation - track consistency of 20%+ FCF margins as indicator of earnings quality
- Headcount and utilization rates - key drivers for professional services margins and growth
- Client concentration and contract backlog - assess revenue stability and forward visibility
EXPO Financial Metrics
💡 AI Analyst Insight
The 21.0% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 2.40x current ratio provides a solid financial cushion.
EXPO Profitability Ratios
EXPO vs Default Sector
How EXPONENT INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is EXPO Overvalued or Undervalued?
Based on fundamental analysis, EXPONENT INC appears fundamentally strong relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
EXPO Balance Sheet & Liquidity
EXPO 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: EXPONENT INC's revenue has grown significantly by 25% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.94 reflects profitable operations.
EXPO Growth Metrics (YoY)
EXPO Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $136.3M | $26.0M | $0.50 |
| Q2 2025 | $140.5M | $26.6M | $0.52 |
| Q1 2025 | $144.9M | $26.7M | $0.52 |
| Q3 2024 | $133.3M | $24.5M | $0.48 |
| Q2 2024 | $140.2M | $25.7M | $0.50 |
| Q1 2024 | $140.3M | $29.1M | $0.56 |
| Q3 2023 | $127.2M | $24.4M | $0.47 |
| Q2 2023 | $130.3M | $25.7M | $0.49 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
EXPO Capital Allocation
EXPO SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for EXPONENT INC (CIK: 0000851520)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EXPO
What is the AI rating for EXPO?
EXPONENT INC (EXPO) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are EXPO's key strengths?
Claude: Exceptional free cash flow generation with 122.3M FCF and 21% FCF margin demonstrating high-quality earnings conversion. Superior profitability with 20.6% operating margin and 18.2% net margin, well above typical consulting services benchmarks.
What are the risks of investing in EXPO?
Claude: Flat revenue growth of 0% YoY indicates stagnation in top-line expansion and potential market saturation concerns. Diluted EPS declining 1.9% YoY despite flat net income suggests share dilution from equity issuance or option exercises.
What is EXPO's revenue and growth?
EXPONENT INC reported revenue of $582.0M.
Does EXPO pay dividends?
EXPONENT INC pays dividends, with $61.5M distributed to shareholders in the trailing twelve months.
Where can I find EXPO SEC filings?
Official SEC filings for EXPONENT INC (CIK: 0000851520) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EXPO's EPS?
EXPONENT INC has a diluted EPS of $2.07.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is EXPO a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, EXPONENT INC has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is EXPO stock overvalued or undervalued?
Valuation metrics for EXPO: ROE of 27.2% (sector avg: 15%), net margin of 18.2% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy EXPO stock in 2026?
Our dual AI analysis gives EXPONENT INC a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is EXPO's free cash flow?
EXPONENT INC's operating cash flow is $131.7M, with capital expenditures of $9.4M. FCF margin is 21.0%.
How does EXPO compare to other Default stocks?
Vs Default sector averages: Net margin 18.2% (avg: 12%), ROE 27.2% (avg: 15%), current ratio 2.40 (avg: 1.8).