EAGLE MATERIALS INC (EXP)
US26969P1084 - Common Stock
Taking everything into account, EXP scores 7 out of 10 in our fundamental rating. EXP was compared to 12 industry peers in the Construction Materials industry. EXP scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
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.
In the past 5 years EXP always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 15.49%, EXP belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 33.78%, EXP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
EXP has a better Return On Invested Capital (17.42%) than 91.67% of its industry peers.
EXP had an Average Return On Invested Capital over the past 3 years of 16.98%. This is significantly above the industry average of 10.78%.
The 3 year average ROIC (16.98%) for EXP is below the current ROIC(17.42%), indicating increased profibility in the last year.
| 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
EXP has a Profit Margin of 21.32%. This is amongst the best in the industry. EXP outperforms 83.33% of its industry peers.
EXP's Profit Margin has improved in the last couple of years.
EXP has a Operating Margin of 27.72%. This is amongst the best in the industry. EXP outperforms 91.67% of its industry peers.
In the last couple of years the Operating Margin of EXP has grown nicely.
Looking at the Gross Margin, with a value of 30.47%, EXP is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
EXP's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EXP is creating value.
EXP has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, EXP has less shares outstanding
EXP has a better debt/assets ratio than last year.
2.2 Solvency
EXP has an Altman-Z score of 5.77. This indicates that EXP is financially healthy and has little risk of bankruptcy at the moment.
EXP's Altman-Z score of 5.77 is amongst the best of the industry. EXP outperforms 83.33% of its industry peers.
EXP has a debt to FCF ratio of 2.32. This is a good value and a sign of high solvency as EXP would need 2.32 years to pay back of all of its debts.
EXP has a better Debt to FCF ratio (2.32) than 83.33% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that EXP is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.74, EXP is doing worse than 83.33% of the companies in the same industry.
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 | 5.77 |
ROIC/WACC2.05
WACC8.48%
2.3 Liquidity
EXP has a Current Ratio of 2.34. This indicates that EXP is financially healthy and has no problem in meeting its short term obligations.
EXP's Current ratio of 2.34 is fine compared to the rest of the industry. EXP outperforms 66.67% of its industry peers.
A Quick Ratio of 1.14 indicates that EXP should not have too much problems paying its short term obligations.
EXP has a Quick ratio of 1.14. This is comparable to the rest of the industry: EXP outperforms 41.67% of its industry peers.
| 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
The Revenue has been growing slightly by 2.83% in the past year.
EXP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.51% yearly.
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
Based on estimates for the next years, EXP will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.10% on average per year.
Based on estimates for the next years, EXP will show a small growth in Revenue. The Revenue will grow by 4.80% on average per year.
EPS Next Y10.24%
EPS Next 2Y10.68%
EPS Next 3Y10.1%
EPS Next 5YN/A
Revenue Next Year1.96%
Revenue Next 2Y4.06%
Revenue Next 3Y4.8%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
A Price/Earnings ratio of 21.81 indicates a rather expensive valuation of EXP.
Based on the Price/Earnings ratio, EXP is valued cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. EXP is valued slightly cheaper when compared to this.
EXP is valuated rather expensively with a Price/Forward Earnings ratio of 18.30.
83.33% of the companies in the same industry are more expensive than EXP, based on the Price/Forward Earnings ratio.
EXP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.81 | ||
| Fwd PE | 18.3 |
4.2 Price Multiples
EXP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EXP is cheaper than 66.67% of the companies in the same industry.
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 | 22.41 | ||
| EV/EBITDA | 14.13 |
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)2.13
PEG (5Y)1.01
EPS Next 2Y10.68%
EPS Next 3Y10.1%
5. Dividend
5.1 Amount
With a yearly dividend of 0.33%, EXP is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.65, EXP has a dividend in line with its industry peers.
With a Dividend Yield of 0.33, EXP pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
5.2 History
On average, the dividend of EXP grows each year by 20.07%, which is quite nice.
EXP has been paying a dividend for at least 10 years, so it has 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 Years3
5.3 Sustainability
7.11% of the earnings are spent on dividend by EXP. This is a low number and 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 3Y10.1%
EAGLE MATERIALS INC
NYSE:EXP (11/21/2024, 8:25:39 PM)
After market: 309.11 0 (0%)309.11
+8.84 (+2.94%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.81 | ||
| Fwd PE | 18.3 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.13
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.49% | ||
| ROE | 33.78% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.72% | ||
| PM (TTM) | 21.32% | ||
| GM | 30.47% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)2.53%
EPS 3Y24.83%
EPS 5Y
EPS Q2Q%
EPS Next Y10.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.83%
Revenue growth 3Y11.67%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y