EAGLE MATERIALS INC (EXP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EXP - US26969P1084 - Common Stock
211.97 USD
-5.95 (-2.73%)
211.97 USD
0 (0%)
EXP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 13 industry peers in the Construction Materials industry. While EXP belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. EXP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year EXP was profitable.
- In the past year EXP had a positive cash flow from operations.
- In the past 5 years EXP has always been profitable.
- EXP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- EXP's Return On Assets of 13.11% is amongst the best of the industry. EXP outperforms 84.62% of its industry peers.
- The Return On Equity of EXP (29.07%) is better than 100.00% of its industry peers.
- EXP has a Return On Invested Capital of 14.48%. This is amongst the best in the industry. EXP outperforms 84.62% of its industry peers.
- EXP had an Average Return On Invested Capital over the past 3 years of 17.09%. This is significantly above the industry average of 9.37%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.11% | ||
| ROE | 29.07% | ||
| ROIC | 14.48% |
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's Profit Margin of 19.41% is amongst the best of the industry. EXP outperforms 92.31% of its industry peers.
- In the last couple of years the Profit Margin of EXP has grown nicely.
- The Operating Margin of EXP (25.56%) is better than 92.31% of its industry peers.
- In the last couple of years the Operating Margin of EXP has grown nicely.
- EXP's Gross Margin of 29.01% is in line compared to the rest of the industry. EXP outperforms 53.85% of its industry peers.
- In the last couple of years the Gross Margin of EXP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.56% | ||
| PM (TTM) | 19.41% | ||
| GM | 29.01% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EXP is creating some value.
- Compared to 1 year ago, EXP has less shares outstanding
- EXP has less shares outstanding than it did 5 years ago.
- EXP has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.27 indicates that EXP is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.27, EXP belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
- EXP has a debt to FCF ratio of 5.28. This is a neutral value as EXP would need 5.28 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 5.28, EXP is doing good in the industry, outperforming 69.23% of the companies in the same industry.
- A Debt/Equity ratio of 0.83 indicates that EXP is somewhat dependend on debt financing.
- EXP has a Debt to Equity ratio of 0.83. This is amonst the worse of the industry: EXP underperforms 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.28 | ||
| Altman-Z | 4.27 |
ROIC/WACC1.39
WACC10.44%
2.3 Liquidity
- EXP has a Current Ratio of 2.72. This indicates that EXP is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of EXP (2.72) is better than 69.23% of its industry peers.
- A Quick Ratio of 1.22 indicates that EXP should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.22, EXP perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
- The earnings per share for EXP have decreased by -3.81% in the last year.
- Measured over the past years, EXP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.47% on average per year.
- The Revenue has been growing slightly by 1.50% in the past year.
- Measured over the past years, EXP shows a quite strong growth in Revenue. The Revenue has been growing by 9.99% on average per year.
EPS 1Y (TTM)-3.81%
EPS 3Y13.75%
EPS 5Y19.47%
EPS Q2Q%-0.94%
Revenue 1Y (TTM)1.5%
Revenue growth 3Y6.69%
Revenue growth 5Y9.99%
Sales Q2Q%2.45%
3.2 Future
- The Earnings Per Share is expected to grow by 6.42% on average over the next years.
- Based on estimates for the next years, EXP will show a small growth in Revenue. The Revenue will grow by 3.78% on average per year.
EPS Next Y-1.26%
EPS Next 2Y2.31%
EPS Next 3Y6.42%
EPS Next 5YN/A
Revenue Next Year1.26%
Revenue Next 2Y2.39%
Revenue Next 3Y3.78%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 15.55, EXP is valued correctly.
- Based on the Price/Earnings ratio, EXP is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, EXP is valued a bit cheaper.
- EXP is valuated correctly with a Price/Forward Earnings ratio of 14.62.
- Based on the Price/Forward Earnings ratio, EXP is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
- EXP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.55 | ||
| Fwd PE | 14.62 |
4.2 Price Multiples
- EXP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EXP is cheaper than 76.92% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, EXP is valued cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.9 | ||
| EV/EBITDA | 10.95 |
4.3 Compensation for Growth
- EXP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.8
EPS Next 2Y2.31%
EPS Next 3Y6.42%
5. Dividend
5.1 Amount
- EXP has a yearly dividend return of 0.44%, which is pretty low.
- Compared to an average industry Dividend Yield of 2.03, EXP has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, EXP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
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
- 7.46% of the earnings are spent on dividend by EXP. This is a low number and sustainable payout ratio.
- The dividend of EXP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP7.46%
EPS Next 2Y2.31%
EPS Next 3Y6.42%
EAGLE MATERIALS INC / EXP FAQ
What is the ChartMill fundamental rating of EAGLE MATERIALS INC (EXP) stock?
ChartMill assigns a fundamental rating of 6 / 10 to EXP.
What is the valuation status for EXP stock?
ChartMill assigns a valuation rating of 6 / 10 to EAGLE MATERIALS INC (EXP). This can be considered as Fairly Valued.
How profitable is EAGLE MATERIALS INC (EXP) stock?
EAGLE MATERIALS INC (EXP) has a profitability rating of 9 / 10.
How financially healthy is EAGLE MATERIALS INC?
The financial health rating of EAGLE MATERIALS INC (EXP) is 6 / 10.
Can you provide the expected EPS growth for EXP stock?
The Earnings per Share (EPS) of EAGLE MATERIALS INC (EXP) is expected to decline by -1.26% in the next year.