Exponent Inc. Common Stock (EXPO)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Exponent is an asset-light science and engineering consultancy. In fiscal Q2 2026, the quarter ended 2026-07-03, revenue was $171.6M, net income was $29.4M, and diluted EPS was $0.60. A year earlier, in fiscal Q2 2025, the quarter ended 2025-07-04, revenue was $142.0M, net income was $26.6M, and diluted EPS was $0.52. That is real operating momentum, with a 17.13% net margin in the latest quarter. The balance sheet is conservative, with debt-to-equity of 0.28, an Altman Z-Score of 7.76, and a Piotroski F-Score of 6/9. FairStock's calculations show a 31.2% ROE, an 11.29% ROCE, and $108.6M of trailing free cash flow, a 3.2% yield at the 2026-10-13 close. The likely moat is reputation, specialized expertise, and long client relationships, though consulting is people-based and lacks obvious structural protection. Growth has been steady but not rapid: revenue rose from $536.8M in FY2023 to $582.0M in FY2025, yet net income fell from $109.0M to $106.0M and diluted EPS from $2.11 to $2.07. FairStock calls it a slow grower, with five-year profit growth of 5.1% and revenue growth of 7.8%. At $71.26, the FairStock P/E is 31.96, P/B is 11.74, PEG is 2.99, and EV/EBITDA is 24.68. The Graham Number is $17.45, a negative margin of safety of about 308%. Quality is evident, but the price leaves little room for error. I prefer businesses that convert revenue into cash without heavy capital needs, and Exponent does that. But I also insist on a margin of safety. Here the business is better than the price is attractive.

In plain English: Exponent is a science and engineering consulting firm. The business looks strong because it earns high profits, carries little debt, and recently grew sales and earnings. But the stock looks expensive compared with those profits and assets, so it may be priced for a lot of good news.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-07-03) · fiscal Q1 2026 10-Q (period ended 2026-04-03) · fiscal Q3 2025 10-Q (period ended 2025-10-03) · fiscal Q2 2025 10-Q (period ended 2025-07-04) · FY2025 10-K (period ended 2026-01-02) · FY2024 10-K (period ended 2025-01-03) · FY2023 10-K (period ended 2023-12-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer