80.0 2027-29 PROJECTIONS Ann'l Total Price Gain Return High 215 (+25%) 7% ויוייי אוו, ENPRO INC. NYSE-NPO TIMELINESS 4 Lowered 11/22/24 SAFETY 3 New 4/18/14 TECHNICAL 3 Raised 1/3/25 BETA 1.30 (1.00 = Market) 18-Month Target Price Range Low-High Midpoint (% to Mid) $132-$270 $201 (20%) High: 61.2 70.2 Low: 41.0 56.3 38.1 LEGENDS 13.0 x "Cash Flow" p sh Relative Price Strength Options: Yes Shaded area indicates recession 94.8 94.8 75.7 76.7 113.5 127.7 161.7 197.9 37.5 61.4 55.5 55.4 30.0 71.1 76.1 91.7 136.7 P/E RECENT 170.87 PATIO 23.7 Median: 28.0 PIE RATIO Trailing: 26.0 RELATIVE DIV'D 1.32 0.7% YLD VALUE LINE 69.2 Target Price Range 2027 2028 2029 -320 -200 -160 120 -100 -80 -60 -40 Low 145 (-15%) -3% Institutional Decisions % TOT. RETURN 11/24 THIS VL ARITH.* 102024 2Q2024 3Q2024 STOCK INDEX 18 to Buy to Sell 114 110 107 121 Hld's(000) 20889 125 100 20999 24136 Percent 45 shares traded 1 yr. 57.3 32.1 30 15 3 yr. 102.2 28.2 5 yr. 221.6 88.1 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 58.98 39.84 42.40 53.67 57.21 54.49 50.38 55.12 55.59 60.65 73.87 58.01 52.30 4.96 d1.48 3.34 4.50 4.66 4.00 3.29 4.11 3.14 5.99 6.79 3.64 5.69 2.54 d3.51 1.34 2.06 1.90 1.17 3.00 2.24 2022 .85 1.42 .44 3.19 .38 6.85 2023 2024 2025 54.59 52.80 50.66 49.55 49.10 Sales per sh 9.14 12.51 11.09 11.65 12.25 "Cash Flow" per sh 5.55 7.53 6.54 © VALUE LINE PUB. LLC 27-29 52.00 15.20 7.55 Earnings per sh A 10.50 -- -- -- .80 .84 .88 .96 1.00 1.04 1.08 1.12 1.16 1.20 1.24 Div'ds Decl'd per sh D 1.40 2.48 1.10 1.07 1.53 1.72 20.06 15.46 23.35 23.99 26.43 29.21 19.80 20.15 20.40 20.60 20.70 21.00 12.6 23.0 19.0 19.9 45.1 .76 1.46 1.19 1.27 2.53 1.46 1.73 1.68 1.68 1.90 3.02 1.04 .89 .90 1.41 1.62 1.60 1.65 Cap'l Spending per sh 1.75 26.34 21.04 24.20 21.85 80.7 39.0 NMF 16.78 41.81 41.60 42.67 52.52 60.56 67.02 67.42 70.50 71.15 Book Value per sh B 74.00 21.36 21.59 20.74 24.4 23.3 20.79 20.54 20.92 20.82 20.91 21.00 22.00 Common Shs Outst'g C 25.00 NMF 24.7 16.3 18.4 Bold figures are Avg Ann'l P/E Ratio 17.0 1.03 Value Line Relative P/E Ratio .95 estimates Avg Ann'l Div'd Yield .8% CAPITAL STRUCTURE as of 9/30/24 Total Debt $641.8 mill. Due in 5 Yrs $600.0 mill. LT Debt $627.8 mill. LT Interest $35.0 mill. 1040 1080 Sales ($mill) 1300 29.0% 100 29.5% Operating Margin 32.5% (30% of Cap'l) 24.7% 105 Depreciation ($mill) 165 Net Profit ($mill) 20.0% Income Tax Rate 115 265 22.0% Leases, Uncapitalized Annual rentals $11.6 mill. Pension Assets-12/23 $266.7 mill. 1.8% 2.6% .8% 5.0% 4.4% 325.9 239.2 221.9 551.5 444.9 .6% 435.9 15.3% Net Profit Margin 20.4% 500 Working Cap'l ($mill) 800 Oblig. $258.7 mill. 557.9 631.9 708.0 618.3 462.5 625 600 Long-Term Debt ($mill) 500 Common Stock 20,992,277 shares as of 10/28/24 637.4 459.8 358.5 902.8 862.7 886.9 1480 1565 Shr. Equity ($mill) B 1850 3.7% 5.2% 3.5% 5.9% 6.0% 1.1% 7.5% 8.5% Return on Total Cap'l 12.0% .9% 10.5% Return on Shr. Equity 14.5% MARKET CAP: $3.6 billion (Mid Cap) 9.0% Retained to Com Eq 16% All Div'ds to Net Prof 12.5% 13% Other CURRENT POSITION 2022 2023 ($MILL.) Cash Assets Receivables 9/30/24 334.4 369.8 206.9 137.1 116.7 134.8 Inventory (LIFO) Other 151.9 60.8 Current Assets Accts Payable Debt Due Current Liab. 142.6 143.3 21.2 34.2 684.2 650.3 519.2 73.4 68.7 61.7 15.6 8.1 14.0 122.5 119.6 112.7 211.5 196.4 188.4 Past of change (per sh) 10 Yrs. Sales -.5% 1.5% "Cash Flow" 9.5% 15.5% 6.5% Earnings 14.5% 24.0% Dividends 4.5% Book Value 9.5% 14.0% Cal- ANNUAL RATES 5 Yrs. to '27-'29 -3.5% QUARTERLY SALES ($ mill.) 9.5% 4.0% 2.5% Full Year endar Mar.31 Jun.30 Sep.30 Dec.31 2021 279.3 298.6 283.1 280.8 1141.8 2022 270.1 277.1 280.1 271.9 1099.2 13.2 4.25 1.96 NMF 1.23 1.26 NMF 1.27 .88 .76 1.4% 1.6% 1.2% 1.3% 1.5% 1.9% 1.2% 1.1% 1.0% 1219.3 1204.4 1187.7 1309.6 1532.0 1205.7 1074.0 1141.8 1099.2 1059.3 12.7% 16.9% 12.5% 13.1% 13.9% 13.0% 13.7% 15.4% 29.9% 28.6% 57.5 58.1 57.1 63.8 73.7 67.9 70.8 75.8 103.1 94.5 22.0 31.6 9.9 65.5 67.2 7.8 46.0 115.3 157.4 137.4 145 32.5% 6.8% 7.0% 23.1% 13.6% 18.7% 20.0% 4.3% 10.1% 14.3% 13.0% 13.9% 377.0 333.9 472.7 453.9 350 625.2 487.5 963.9 775.1 638.7 1078.5 1266.6 1395.1 1409.7 3.4% 5.5% 8.1% 7.8% 3.5% 6.9% 2.8% 7.3% 7.8% 4.3% 9.1% 11.3% 9.7% 10.0% 3.5% 3.0% NMF 5.2% 5.4% NMF 2.3% 7.3% 9.6% 8.0% 8.0% 57% NMF 29% 30% NMF 47% 19% 15% 18% 18% United States, 60%; Europe, 15%; Other, 25%. Offs./Dirs. own 1.7% of common stock; BlackRock, 15.9%; Vanguard, 11.1%, Cap. Int'l Inv., 6.5%; Dimensional Fund, 6.1% (3/24 proxy). Has 3,500 employees. Chairman: Gordon D. Harnett. CEO/Pres.: Eric Vaillan- court. Addr.: 5605 Carnegie Blvd, Suite 500, Charlotte, NC 28209. Inc: NC. Tel.: (704) 731-1500. Internet: www.enproindustries.com. $7.30). The reduced figure equates to an annual earnings climb just shy of 5%, and BUSINESS: Enpro Inc. is a leading industrial technology company focused on critical applications across a diverse group of growing end markets: semiconductor, photonics, industrial process, aerospace, food, biopharma, and life sciences. Sold the engineered materials arm (GGB) 11/22. The company has 13 manufacturing facilities in six countries and sells through distributors. 2023 sales: Enpro ran into some mounting troubles in the third quarter. Sales and highs over the last 90 days. This phenomenon points to the investment com- munity's strong belief that the portfolio transformation has this company set up well for the long haul. The negative reverberations will like- ly be felt into 2025. Taking cautious Past Est'd 21-23 earnings rose nicely on a year-over-year less than half of our original projection, basis, but missed consensus expectations, but the stock has still risen to all-time leading to a reduced outlook (more color below). Steep declines in commercial vehicle OEM sales were cited as worri- some for the sealing technologies arm. Too, a delay in the recovery in critical in- chamber tools dinged results at the ad- vanced surface technologies branch. Management lowered its expectations 2023 282.6 276.9 250.7 249.1 1059.3 for 2024, and we are following suit. 2024 257.5 271.9 260.9 249.7 1040 The overall bounce back of semiconductor 2025 270 280 270 260 1080 capital equipment spending is now going EARNINGS PER SHARE A Full to be more protracted than expected at endar Mar.31 Jun.30 Sep.30 Dec.31 Year first blush. Leadership stated the business 2021 1.37 1.55 1.40 1.23 5.55 is well-positioned for gains down the road, 2022 1.83 2.32 1.91 1.47 7.53 but the near term could now be slightly 2023 1.95 1.83 1.58 1.19 6.54 more bumpy. In turn, the top line for 2024 2024 1.57 2.08 1.74 1.46 6.85 2025 1.75 2.25 1.90 1.65 7.55 is now expected to be down by a low- single-digit percentage versus 2023. Also, Full adjusted earnings per share are pegged in Year a bracket of $6.75 to $7.00 (previously 1.04 $7.00 to $7.60). We are placing our top-line 1.08 target at $1.04 billion, representing a year-over-year dip approaching 2%, and translating to share earnings of $6.85 (was Cal- Cal- QUARTERLY DIVIDENDS PAID D endar Mar.31 Jun.30 Sep.30 Dec.31 2020 2021 .26 .26 .26 .26 .27 .27 .27 2022 .28 .28 .28 2023 .29 .29 .29 .29 1.16 2024 22222 22222 22222 .30 .30 .30 .30 nonrecurring (A) Diluted earnings. Excludes gains/(losses): '17, $21.76; '18, ($2.03); '20, ($3.39); '21, $2.98; '22, ($7.21); '23, ($6.03). Excludes gains from discontinued operations: 1.12 '19, $1.47; '20, $10.13; '22, $9.51; '23, $0.54.. Next earnings report due mid-February. (B) Includes intangibles. At 12/31/23: $1.54 bil- lion, $73.68/sh. (C) In millions. stance, we are trimming $40 million and $0.60 a share from our headline calls for the current year. Enpro's higher-margined businesses should rebound quickly once the semiconductor capital equipment spending spigot is turned on, and our ex- pectations will need to be altered once this occurs. For that reason, our reductions are front-end weighted in the first and second quarters of the year. Enpro shares have risen 10% in value over the last three months. We think the untimely equity has gotten ahead of it- self, and investors have better options elsewhere for both long-term capital ap- preciation potential and yield. Erik M. Manning (D) Dividends historically paid in March, June, September, and December. ©2024 Value Line, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, resold, stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, service or product. January 3, 2025 Company's Financial Strength Stock's Price Stability Price Growth Persistence Earnings Predictability B+ 50 75 25 To subscribe call 1-800-VALUELINE