EAGLE MATERIALS INC (EXP) Stock Fundamental Analysis
NYSE:EXP - New York Stock Exchange, Inc. - US26969P1084 - Common Stock - Currency: USD
EXP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 12 industry peers in the Construction Materials industry. EXP gets an excellent profitability rating and is at the same time showing great financial health properties. EXP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EXP was profitable.
EXP had a positive operating cash flow in the past year.
EXP had positive earnings in each of the past 5 years.
Each year in the past 5 years EXP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.20%, EXP belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
EXP has a Return On Equity of 31.81%. This is amongst the best in the industry. EXP outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 15.56%, EXP belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
EXP had an Average Return On Invested Capital over the past 3 years of 17.09%. This is significantly above the industry average of 10.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.2% | ||
| ROE | 31.81% | ||
| ROIC | 15.56% |
ROA(3y)15.67%
ROA(5y)14.69%
ROE(3y)35.75%
ROE(5y)33.05%
ROIC(3y)17.09%
ROIC(5y)15.48%
1.3 Margins
EXP has a better Profit Margin (20.50%) than 91.67% of its industry peers.
In the last couple of years the Profit Margin of EXP has grown nicely.
With an excellent Operating Margin value of 26.70%, EXP belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
EXP's Operating Margin has improved in the last couple of years.
EXP has a better Gross Margin (29.78%) than 66.67% of its industry peers.
EXP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.7% | ||
| PM (TTM) | 20.5% | ||
| GM | 29.78% |
OM growth 3Y2.36%
OM growth 5Y5.17%
PM growth 3Y0.65%
PM growth 5Y32.34%
GM growth 3Y2.18%
GM growth 5Y3.47%
2. Health
2.1 Basic Checks
EXP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
EXP has less shares outstanding than it did 1 year ago.
EXP has less shares outstanding than it did 5 years ago.
EXP has a worse debt/assets ratio than last year.
2.2 Solvency
EXP has an Altman-Z score of 4.28. This indicates that EXP is financially healthy and has little risk of bankruptcy at the moment.
EXP's Altman-Z score of 4.28 is amongst the best of the industry. EXP outperforms 83.33% of its industry peers.
The Debt to FCF ratio of EXP is 3.51, which is a good value as it means it would take EXP, 3.51 years of fcf income to pay off all of its debts.
EXP has a better Debt to FCF ratio (3.51) than 83.33% of its industry peers.
EXP has a Debt/Equity ratio of 0.84. This is a neutral value indicating EXP is somewhat dependend on debt financing.
EXP has a Debt to Equity ratio of 0.84. This is amonst the worse of the industry: EXP underperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 4.28 |
ROIC/WACC1.61
WACC9.68%
2.3 Liquidity
EXP has a Current Ratio of 2.73. This indicates that EXP is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.73, EXP belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
EXP has a Quick Ratio of 1.03. This is a normal value and indicates that EXP is financially healthy and should not expect problems in meeting its short term obligations.
EXP has a Quick ratio of 1.03. This is comparable to the rest of the industry: EXP outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.73 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.44% over the past year.
The Earnings Per Share has been growing by 19.47% on average over the past years. This is quite good.
EXP shows a small growth in Revenue. In the last year, the Revenue has grown by 0.05%.
EXP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.99% yearly.
EPS 1Y (TTM)0.44%
EPS 3Y13.75%
EPS 5Y19.47%
EPS Q2Q%-7.14%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y6.69%
Revenue growth 5Y9.99%
Sales Q2Q%-1.37%
3.2 Future
EXP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.57% yearly.
EXP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.85% yearly.
EPS Next Y2.17%
EPS Next 2Y6.32%
EPS Next 3Y8.57%
EPS Next 5YN/A
Revenue Next Year1.18%
Revenue Next 2Y3.28%
Revenue Next 3Y4.85%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.10, the valuation of EXP can be described as correct.
Based on the Price/Earnings ratio, EXP is valued cheaper than 83.33% of the companies in the same industry.
EXP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.78, the valuation of EXP can be described as correct.
EXP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EXP is cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.70. EXP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 14.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EXP indicates a rather cheap valuation: EXP is cheaper than 83.33% of the companies listed in the same industry.
100.00% of the companies in the same industry are more expensive than EXP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.36 | ||
| EV/EBITDA | 10.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EXP does not grow enough to justify the current Price/Earnings ratio.
EXP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.97
PEG (5Y)0.78
EPS Next 2Y6.32%
EPS Next 3Y8.57%
5. Dividend
5.1 Amount
EXP has a yearly dividend return of 0.49%, which is pretty low.
Compared to an average industry Dividend Yield of 4.22, EXP has a dividend in line with its industry peers.
With a Dividend Yield of 0.49, EXP pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
5.2 History
The dividend of EXP is nicely growing with an annual growth rate of 20.56%!
EXP has paid a dividend for at least 10 years, which is a reliable track record.
EXP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)20.56%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
EXP pays out 7.28% of its income as dividend. This is a sustainable payout ratio.
EXP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP7.28%
EPS Next 2Y6.32%
EPS Next 3Y8.57%
209.12
+7.01 (+3.47%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners104.96%
Inst Owner Change1.12%
Ins Owners1.11%
Ins Owner Change-1.29%
Market Cap6.84B
Analysts73.75
Price Target254.6 (21.75%)
Short Float %4.26%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend1
Dividend Growth(5Y)20.56%
DP7.28%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.48%
Min EPS beat(2)-16.97%
Max EPS beat(2)-9.99%
EPS beat(4)1
Avg EPS beat(4)-6.62%
Min EPS beat(4)-16.97%
Max EPS beat(4)9.5%
EPS beat(8)2
Avg EPS beat(8)-5.31%
EPS beat(12)4
Avg EPS beat(12)-1.42%
EPS beat(16)7
Avg EPS beat(16)0.08%
Revenue beat(2)0
Avg Revenue beat(2)-3.65%
Min Revenue beat(2)-3.86%
Max Revenue beat(2)-3.44%
Revenue beat(4)0
Avg Revenue beat(4)-4.04%
Min Revenue beat(4)-5.42%
Max Revenue beat(4)-3.44%
Revenue beat(8)1
Avg Revenue beat(8)-2.5%
Revenue beat(12)2
Avg Revenue beat(12)-1.94%
Revenue beat(16)4
Avg Revenue beat(16)-1.3%
PT rev (1m)-5.09%
PT rev (3m)-12.56%
EPS NQ rev (1m)-2.14%
EPS NQ rev (3m)-7.43%
EPS NY rev (1m)-8.81%
EPS NY rev (3m)-10.84%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-3.73%
Revenue NY rev (1m)-3.25%
Revenue NY rev (3m)-4.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 14.78 | ||
| P/S | 3.03 | ||
| P/FCF | 19.36 | ||
| P/OCF | 12.47 | ||
| P/B | 4.69 | ||
| P/tB | 7.94 | ||
| EV/EBITDA | 10.26 |
EPS(TTM)13.85
EY6.62%
EPS(NY)14.15
Fwd EY6.77%
FCF(TTM)10.8
FCFY5.17%
OCF(TTM)16.78
OCFY8.02%
SpS69.13
BVpS44.55
TBVpS26.33
PEG (NY)6.97
PEG (5Y)0.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.2% | ||
| ROE | 31.81% | ||
| ROCE | 19.99% | ||
| ROIC | 15.56% | ||
| ROICexc | 15.66% | ||
| ROICexgc | 19.54% | ||
| OM | 26.7% | ||
| PM (TTM) | 20.5% | ||
| GM | 29.78% | ||
| FCFM | 15.63% |
ROA(3y)15.67%
ROA(5y)14.69%
ROE(3y)35.75%
ROE(5y)33.05%
ROIC(3y)17.09%
ROIC(5y)15.48%
ROICexc(3y)17.24%
ROICexc(5y)15.84%
ROICexgc(3y)21.21%
ROICexgc(5y)19.3%
ROCE(3y)21.96%
ROCE(5y)19.89%
ROICexcg growth 3Y2.11%
ROICexcg growth 5Y14.43%
ROICexc growth 3Y0.71%
ROICexc growth 5Y13.04%
OM growth 3Y2.36%
OM growth 5Y5.17%
PM growth 3Y0.65%
PM growth 5Y32.34%
GM growth 3Y2.18%
GM growth 5Y3.47%
F-Score5
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.51 | ||
| Debt/EBITDA | 1.6 | ||
| Cap/Depr | 122.89% | ||
| Cap/Sales | 8.64% | ||
| Interest Coverage | 14.25 | ||
| Cash Conversion | 71.94% | ||
| Profit Quality | 76.23% | ||
| Current Ratio | 2.73 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 4.28 |
F-Score5
WACC9.68%
ROIC/WACC1.61
Cap/Depr(3y)94.23%
Cap/Depr(5y)76.4%
Cap/Sales(3y)6.36%
Cap/Sales(5y)5.28%
Profit Quality(3y)87.54%
Profit Quality(5y)110.92%
High Growth Momentum
Growth
EPS 1Y (TTM)0.44%
EPS 3Y13.75%
EPS 5Y19.47%
EPS Q2Q%-7.14%
EPS Next Y2.17%
EPS Next 2Y6.32%
EPS Next 3Y8.57%
EPS Next 5YN/A
Revenue 1Y (TTM)0.05%
Revenue growth 3Y6.69%
Revenue growth 5Y9.99%
Sales Q2Q%-1.37%
Revenue Next Year1.18%
Revenue Next 2Y3.28%
Revenue Next 3Y4.85%
Revenue Next 5YN/A
EBIT growth 1Y-3.69%
EBIT growth 3Y9.2%
EBIT growth 5Y15.68%
EBIT Next Year27.99%
EBIT Next 3Y13.39%
EBIT Next 5YN/A
FCF growth 1Y-20.37%
FCF growth 3Y-7.27%
FCF growth 5Y5.74%
OCF growth 1Y-2.73%
OCF growth 3Y1.98%
OCF growth 5Y6.56%