XPRO

We rate EXPRO GROUP HOLDINGS N.V. (XPRO) as a Hold with a composite score of 52.4/100 at a current price of $17.73. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling for existing holders. Our factors are split, and the overall profile suggests patience is warranted.

The rating is primarily driven by strength in value (62th percentile) and momentum (51th percentile), which together account for the majority of the composite score. Offsetting weakness in stability (31th percentile) and investment (47th percentile) tempers our overall conviction. We assign a No Moat rating (28/100), High uncertainty, and Standard capital allocation.

Key items to watch: quarterly earnings execution and sector-level competitive dynamics. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

EXPRO GROUP HOLDINGS N.V. holds a top-quartile position (#0 of 50) within the Mining sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 52.4/100 places it at rank #1623 in our full 7,333-stock universe. At $1.4B in market capitalization, EXPRO GROUP HOLDINGS N.V. is a small-cap player in the Mining space, which limits certain scale advantages but may allow for more agile strategic execution.

Revenue contraction of -12% combined with momentum at the 51th percentile paints a cautious picture of the near-term business outlook. The market appears to be pricing in continued challenges, and a catalyst for reversal is not clearly visible from current data.

The margin cascade tells an important story: gross margins of 24% (-18.8pp vs sector) narrow to operating margins of 6% (-6.5pp vs sector) and net margins of 3.8%, yielding a gross-to-net conversion rate of 15%. This conversion rate is typical for the sector, suggesting a standard cost structure without notable efficiency advantages or disadvantages.

At a current price of $17.73, EXPRO GROUP HOLDINGS N.V. is trading near fair value based on current fundamentals. Our value factor score of 62/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.

The stock currently trades at a P/E of 32.5x (a 137% premium to the sector median of 13.7x), EV/EBITDA of 14.8x (at a premium), P/B of 1.3x, P/S of 1.2x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis finds only partially justified by current fundamentals.

We assign a High uncertainty rating to EXPRO GROUP HOLDINGS N.V.. Key risk factors include elevated market sensitivity (beta of 1.73), below-average price stability (31th percentile). The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.

Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 1.73); below-average price stability (31th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 31th percentile and quality factor at the 50th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: conservative leverage (5% D/E) limits balance sheet risk. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.

We rate EXPRO GROUP HOLDINGS N.V.'s capital allocation as Standard. Management has shown adequate — though not exceptional — stewardship of shareholder capital. Returns on equity stand at 4.0%, and the balance sheet is managed within acceptable parameters (D/E: 5%). Exemplary allocators typically sustain ROE above 20% and D/E below 50%; EXPRO GROUP HOLDINGS N.V. falls short on at least one dimension.

There is room for improvement in optimizing the capital structure or enhancing shareholder returns. Absent a dividend, the overall capital allocation framework would benefit from either higher reinvestment returns, improved balance sheet efficiency, or increased shareholder distributions. We will monitor for signs of strategic improvement that could warrant an upgrade.

In summary, EXPRO GROUP HOLDINGS N.V. receives a Hold rating with a composite score of 52.4/100 (rank #1623 of 7,333). Our quantitative framework assigns a No Moat (28/100, trend: stable), High uncertainty, and Standard capital allocation. The average factor score across quality, value, momentum, stability, and investment is 48/100.

Our analysis supports a neutral stance on EXPRO GROUP HOLDINGS N.V.. While the quantitative profile is not weak enough to warrant selling, it lacks the multi-factor strength required for a buy recommendation. Existing holders should maintain positions and monitor for catalysts — either fundamental improvement or valuation compression — that would shift the risk-reward balance.