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Why NYSE:EXP Stands Out as a Quality Stock.

By Mill Chart

Last update: Mar 1, 2024

In this article we will dive into EAGLE MATERIALS INC (NYSE:EXP) as a possible candidate for quality investing. Investors should always do their own research, but we noticed EAGLE MATERIALS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Key Considerations for Quality Investors.

  • EAGLE MATERIALS INC has shown strong performance in revenue growth over the past 5 years, with a 9.15% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • With a notable ROIC excluding cash and goodwill at 23.78%, EAGLE MATERIALS INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • The Debt/Free Cash Flow Ratio of EAGLE MATERIALS INC stands at 2.43, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • With a robust Profit Quality (5-year) ratio of 205.0%, EAGLE MATERIALS INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • EAGLE MATERIALS INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 14.23%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • EAGLE MATERIALS INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

How does the complete fundamental picture look for NYSE:EXP?

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to EXP. EXP was compared to 12 industry peers in the Construction Materials industry. Both the health and profitability get an excellent rating, making EXP a very profitable company, without any liquidiy or solvency issues. EXP is not valued too expensively and it also shows a decent growth rate. These ratings could make EXP a good candidate for quality investing.

Check the latest full fundamental report of EXP for a complete fundamental analysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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