Exponent vs UL Solutions
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KIRA’s take AI analyst
I put Exponent and UL Solutions side by side, using each one’s latest annual report. Here is what stands out:
- UL Solutions is the larger business, with $3.1B of revenue in fiscal 2025 against $582M for Exponent, about 5.2 times as much.
- UL Solutions grew revenue faster (6.4%, against 4.2%).
- Exponent kept more of each dollar of sales as operating profit (20.6% operating margin, against 17.1%).
- Exponent turned more of its sales into free cash flow (21.0% FCF margin, against 13.2%).
- Exponent earned a higher return on the capital invested in it (52.2%, against 26.8%).
- Investors pay more for each dollar of Exponent’s earnings: a P/E of 34.7x against 29.4x for UL Solutions.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
Exponent
EXPO
6/9
Operating marginNet marginFCF marginReturn on capitalNet debt / EBITDAShare count change
UL Solutions
ULS
3/9
Revenue growthReturn on equityPiotroski F-score
Side by side
Best in the row
| Latest fiscal year | EXPO FY25 | ULS FY25 |
|---|---|---|
| Size | ||
| Market cap | $3.8B | $14.9B |
| Revenue | $582M | $3.1B |
| Free cash flow | $122M | $403M |
| Net income | $106M | $325M |
| Growth | ||
| Revenue growth | 4.2% | 6.4% |
| 5-year growth | 7.8% | — |
| Share count change | −0.6% | 1.0% |
| Profitability | ||
| Gross margin | — | 49.5% |
| Operating margin | 20.6% | 17.1% |
| Net margin | 18.2% | 10.7% |
| FCF margin | 21.0% | 13.2% |
| Return on capital | 52.2% | 26.8% |
| Return on equity | 26.1% | 30.0% |
| Balance sheet | ||
| Net debt | −$222M | $196M |
| Net debt / EBITDA | −1.7x | 0.3x |
| Dividends and buybacks | $158M | $104M |
| Valuation & quality | ||
| P/E | 34.7x | 29.4x |
| Piotroski F-score | 4 | 7 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.