Exponent, Inc. shares show a positive technical situation which suggests a continuation of the upward dynamic over the medium term.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company presents an interesting fundamental situation from a short-term investment perspective.
● The company has a poor ESG score according to Refinitiv, which ranks companies by sector.
Strengths
● The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
● The group's activity appears highly profitable thanks to its outperforming net margins.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
Weaknesses
● With an expected P/E ratio at 48.36 and 46.27 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● Based on current prices, the company has particularly high valuation levels.
● In relation to the value of its tangible assets, the company's valuation appears relatively high.
● The valuation of the company is particularly high given the cash flows generated by its activity.
● The company is not the most generous with respect to shareholders' compensation.
● Over the past twelve months, analysts' consensus has been significantly revised downwards.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.
Exponent, Inc., together with its subsidiaries, is a science and engineering consulting firm. The Company serves clients in chemicals, construction, consumer products, energy, food, beverage and nutrition, government, life sciences, insurance, manufacturing, technology, industrial equipment, transportation, and other sectors. It provides engineering and scientific consulting services to clients around the world. Its service offerings are provided on a project- by-project basis. The Company has two segments: Engineering and Other Scientific, and Environmental and Health. The Engineering and Other Scientific segment is a service group providing technical consulting in different practices, primarily in engineering. The Environmental and Health segment provides services in the area of environmental, epidemiology and health risk analysis. This segment provides a range of consulting services relating to environmental hazards and risks and the impact on both human health and the environment.
EXPONENT, INC. 
