Reasonable Growth, Debt Levels, and a High ROIC Make EAGLE MATERIALS INC (NYSE:EXP) Appealing to Quality Investors.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if EAGLE MATERIALS INC (NYSE:EXP) is suited for quality investing. Investors should of course do their own research, but we spotted EAGLE MATERIALS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NYSE:EXP highlighted

• Over the past 5 years, EAGLE MATERIALS INC has experienced impressive revenue growth, with 9.15% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• 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.
• EAGLE MATERIALS INC maintains a healthy Debt/Free Cash Flow Ratio of 2.43, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• EAGLE MATERIALS INC demonstrates consistent Profit Quality over the past 5 years, with a strong 205.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• EAGLE MATERIALS INC has consistently achieved strong EBIT growth over the past 5 years, with a 14.23% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• EAGLE MATERIALS INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

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

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous 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. EXP has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. EXP is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make EXP a good candidate for value and quality investing.

For an up to date full fundamental analysis you can check the fundamental report of EXP

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.