EAGLE MATERIALS INC (EXP)
US26969P1084 - Common Stock
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 not valued too expensively and it also shows a decent growth rate. These ratings would make EXP suitable for quality investing!
1. Profitability
1.1 Basic Checks
EXP had positive earnings in the past year.
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
EXP's Return On Assets of 15.49% is amongst the best of the industry. EXP outperforms 83.33% of its industry peers.
EXP's Return On Equity of 33.78% is amongst the best of the industry. EXP outperforms 91.67% of its industry peers.
EXP has a better Return On Invested Capital (17.42%) than 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EXP is below the industry average of 19.73%.
The last Return On Invested Capital (17.42%) for EXP is above the 3 year average (16.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.49% | ||
| ROE | 33.78% | ||
| ROIC | 17.42% |
ROA(3y)15.77%
ROA(5y)12.33%
ROE(3y)36.15%
ROE(5y)28.15%
ROIC(3y)16.98%
ROIC(5y)14%
1.3 Margins
The Profit Margin of EXP (21.32%) is better than 75.00% of its industry peers.
In the last couple of years the Profit Margin of EXP has grown nicely.
EXP's Operating Margin of 27.72% is amongst the best of the industry. EXP outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of EXP has grown nicely.
The Gross Margin of EXP (30.47%) is better than 66.67% of its industry peers.
In the last couple of years the Gross Margin of EXP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.72% | ||
| PM (TTM) | 21.32% | ||
| GM | 30.47% |
OM growth 3Y6.25%
OM growth 5Y3.14%
PM growth 3Y0.36%
PM growth 5Y32.09%
GM growth 3Y6.42%
GM growth 5Y2.69%
2. Health
2.1 Basic Checks
EXP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for EXP has been reduced compared to 1 year ago.
The number of shares outstanding for EXP has been reduced compared to 5 years ago.
EXP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.15 indicates that EXP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.15, EXP belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Debt to FCF ratio of EXP is 2.32, which is a good value as it means it would take EXP, 2.32 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EXP (2.32) is better than 83.33% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that EXP is somewhat dependend on debt financing.
The Debt to Equity ratio of EXP (0.74) is worse than 91.67% of its industry peers.
Although EXP does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 5.15 |
ROIC/WACC1.9
WACC9.16%
2.3 Liquidity
A Current Ratio of 2.34 indicates that EXP has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.34, EXP is in line with its industry, outperforming 58.33% of the companies in the same industry.
EXP has a Quick Ratio of 1.14. This is a normal value and indicates that EXP is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.14, EXP perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.53% over the past year.
The Earnings Per Share has been growing by 21.63% on average over the past years. This is a very strong growth
Looking at the last year, EXP shows a small growth in Revenue. The Revenue has grown by 2.83% in the last year.
Measured over the past years, EXP shows a quite strong growth in Revenue. The Revenue has been growing by 11.51% on average per year.
EPS 1Y (TTM)2.53%
EPS 3Y24.83%
EPS 5Y21.63%
EPS Q2Q%-0.23%
Revenue 1Y (TTM)2.83%
Revenue growth 3Y11.67%
Revenue growth 5Y11.51%
Sales Q2Q%0.22%
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 10.38% yearly.
EXP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.60% yearly.
EPS Next Y9.87%
EPS Next 2Y10.68%
EPS Next 3Y10.38%
EPS Next 5YN/A
Revenue Next Year1.83%
Revenue Next 2Y3.98%
Revenue Next 3Y4.6%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
The Price/Earnings ratio is 17.52, which indicates a rather expensive current valuation of EXP.
75.00% of the companies in the same industry are more expensive than EXP, based on the Price/Earnings ratio.
EXP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
EXP is valuated correctly with a Price/Forward Earnings ratio of 14.70.
Based on the Price/Forward Earnings ratio, EXP is valued cheaply inside the industry as 91.67% 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 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.52 | ||
| Fwd PE | 14.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EXP is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
91.67% 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 | 18 | ||
| EV/EBITDA | 11.9 |
4.3 Compensation for Growth
EXP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
EXP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.77
PEG (5Y)0.81
EPS Next 2Y10.68%
EPS Next 3Y10.38%
5. Dividend
5.1 Amount
With a yearly dividend of 0.40%, EXP is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.62, EXP has a dividend in line with its industry peers.
With a Dividend Yield of 0.40, EXP pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
5.2 History
On average, the dividend of EXP grows each year by 20.07%, which is quite nice.
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)20.07%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
EXP pays out 7.11% 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.
DP7.11%
EPS Next 2Y10.68%
EPS Next 3Y10.38%
EAGLE MATERIALS INC
NYSE:EXP (12/20/2024, 8:07:58 PM)
After market: 248.3 0 (0%)248.3
-1.9 (-0.76%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners102.74%
Inst Owner Change0.88%
Ins Owners1.17%
Ins Owner Change0.41%
Market Cap8.33B
Analysts80
Price Target318.04 (28.09%)
Short Float %2.86%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
Dividend Growth(5Y)20.07%
DP7.11%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.24%
Min EPS beat(2)-9.02%
Max EPS beat(2)9.5%
EPS beat(4)2
Avg EPS beat(4)-3.38%
Min EPS beat(4)-17.6%
Max EPS beat(4)9.5%
EPS beat(8)3
Avg EPS beat(8)0.44%
EPS beat(12)6
Avg EPS beat(12)1.71%
EPS beat(16)9
Avg EPS beat(16)3.99%
Revenue beat(2)0
Avg Revenue beat(2)-4.44%
Min Revenue beat(2)-5.42%
Max Revenue beat(2)-3.45%
Revenue beat(4)1
Avg Revenue beat(4)-2.09%
Min Revenue beat(4)-5.42%
Max Revenue beat(4)3.12%
Revenue beat(8)2
Avg Revenue beat(8)-1.97%
Revenue beat(12)3
Avg Revenue beat(12)-1.22%
Revenue beat(16)6
Avg Revenue beat(16)-0.48%
PT rev (1m)4.21%
PT rev (3m)6.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.94%
EPS NY rev (1m)-0.33%
EPS NY rev (3m)-4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.97%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.52 | ||
| Fwd PE | 14.7 | ||
| P/S | 3.67 | ||
| P/FCF | 18 | ||
| P/OCF | 13.5 | ||
| P/B | 5.82 | ||
| P/tB | 8.84 | ||
| EV/EBITDA | 11.9 |
EPS(TTM)14.17
EY5.71%
EPS(NY)16.89
Fwd EY6.8%
FCF(TTM)13.79
FCFY5.55%
OCF(TTM)18.4
OCFY7.41%
SpS67.62
BVpS42.68
TBVpS28.1
PEG (NY)1.77
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.49% | ||
| ROE | 33.78% | ||
| ROCE | 22.38% | ||
| ROIC | 17.42% | ||
| ROICexc | 18.02% | ||
| ROICexgc | 21.99% | ||
| OM | 27.72% | ||
| PM (TTM) | 21.32% | ||
| GM | 30.47% | ||
| FCFM | 20.4% |
ROA(3y)15.77%
ROA(5y)12.33%
ROE(3y)36.15%
ROE(5y)28.15%
ROIC(3y)16.98%
ROIC(5y)14%
ROICexc(3y)17.13%
ROICexc(5y)14.41%
ROICexgc(3y)20.82%
ROICexgc(5y)17.39%
ROCE(3y)21.81%
ROCE(5y)17.98%
ROICexcg growth 3Y15.43%
ROICexcg growth 5Y10.03%
ROICexc growth 3Y14.56%
ROICexc growth 5Y8.33%
OM growth 3Y6.25%
OM growth 5Y3.14%
PM growth 3Y0.36%
PM growth 5Y32.09%
GM growth 3Y6.42%
GM growth 5Y2.69%
F-Score5
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 2.32 | ||
| Debt/EBITDA | 1.36 | ||
| Cap/Depr | 100.7% | ||
| Cap/Sales | 6.81% | ||
| Interest Coverage | 15.55 | ||
| Cash Conversion | 78.89% | ||
| Profit Quality | 95.65% | ||
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 5.15 |
F-Score5
WACC9.16%
ROIC/WACC1.9
Cap/Depr(3y)72.44%
Cap/Depr(5y)75.09%
Cap/Sales(3y)4.81%
Cap/Sales(5y)5.43%
Profit Quality(3y)101.59%
Profit Quality(5y)171.05%
High Growth Momentum
Growth
EPS 1Y (TTM)2.53%
EPS 3Y24.83%
EPS 5Y21.63%
EPS Q2Q%-0.23%
EPS Next Y9.87%
EPS Next 2Y10.68%
EPS Next 3Y10.38%
EPS Next 5YN/A
Revenue 1Y (TTM)2.83%
Revenue growth 3Y11.67%
Revenue growth 5Y11.51%
Sales Q2Q%0.22%
Revenue Next Year1.83%
Revenue Next 2Y3.98%
Revenue Next 3Y4.6%
Revenue Next 5YN/A
EBIT growth 1Y0.98%
EBIT growth 3Y18.65%
EBIT growth 5Y15.01%
EBIT Next Year28.29%
EBIT Next 3Y12.77%
EBIT Next 5YN/A
FCF growth 1Y-0.65%
FCF growth 3Y-9.03%
FCF growth 5Y19.59%
OCF growth 1Y10.94%
OCF growth 3Y-4.28%
OCF growth 5Y9.99%