EAGLE MATERIALS INC (EXP) Stock Fundamental Analysis
NYSE:EXP - New York Stock Exchange, Inc. - US26969P1084 - Common Stock - Currency: USD
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 gets an excellent profitability rating and is at the same time showing great financial health properties. 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
Looking at the Return On Assets, with a value of 15.49%, EXP belongs to the top of the industry, outperforming 83.33% 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 91.67% of the companies in the same industry.
The Return On Invested Capital of EXP (17.42%) is better than 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EXP is below the industry average of 19.95%.
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
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.
Looking at the Operating Margin, with a value of 27.72%, EXP belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
EXP's Operating Margin has improved in the last couple of years.
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
EXP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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 better debt/assets ratio than last year.
2.2 Solvency
EXP has an Altman-Z score of 5.22. This indicates that EXP is financially healthy and has little risk of bankruptcy at the moment.
EXP's Altman-Z score of 5.22 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.
Looking at the Debt to FCF ratio, with a value of 2.32, EXP belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 0.74 indicates that EXP is somewhat dependend on debt financing.
EXP's Debt to Equity ratio of 0.74 is on the low side compared to the rest of the industry. EXP is outperformed by 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 | 5.22 |
ROIC/WACC1.81
WACC9.61%
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.
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.
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 (1.14) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
EXP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.09%.
Measured over the past years, EXP shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.63% on average per year.
Looking at the last year, EXP shows a small growth in Revenue. The Revenue has grown by 5.18% in the last year.
The Revenue has been growing by 11.51% on average over the past years. This is quite good.
EPS 1Y (TTM)-2.09%
EPS 3Y24.83%
EPS 5Y21.63%
EPS Q2Q%-3.49%
Revenue 1Y (TTM)5.18%
Revenue growth 3Y11.67%
Revenue growth 5Y11.51%
Sales Q2Q%-0.14%
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 9.33% yearly.
EXP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.97% yearly.
EPS Next Y9.11%
EPS Next 2Y9.79%
EPS Next 3Y9.33%
EPS Next 5YN/A
Revenue Next Year1.66%
Revenue Next 2Y3.73%
Revenue Next 3Y3.97%
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.
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
With a Price/Earnings ratio of 18.48, EXP is valued on the expensive side.
Based on the Price/Earnings ratio, EXP is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.51, EXP is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.61, EXP is valued correctly.
91.67% of the companies in the same industry are more expensive than EXP, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 93.88. EXP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.48 | ||
| Fwd PE | 15.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EXP indicates a somewhat cheap valuation: EXP is cheaper than 75.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, EXP is valued cheaper than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.81 | ||
| EV/EBITDA | 12.14 |
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.
The excellent profitability rating of EXP may justify a higher PE ratio.
PEG (NY)2.03
PEG (5Y)0.85
EPS Next 2Y9.79%
EPS Next 3Y9.33%
5. Dividend
5.1 Amount
EXP has a yearly dividend return of 0.39%, which is pretty low.
EXP's Dividend Yield is comparable with the industry average which is at 3.42.
Compared to an average S&P500 Dividend Yield of 2.27, EXP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
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.
The dividend of EXP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP7.11%
EPS Next 2Y9.79%
EPS Next 3Y9.33%
EAGLE MATERIALS INC
NYSE:EXP (1/30/2025, 5:05:00 PM)
After market: 259.47 0 (0%)259.47
+5.71 (+2.25%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners102.74%
Inst Owner Change0.34%
Ins Owners1.17%
Ins Owner Change0.41%
Market Cap8.70B
Analysts77.33
Price Target306.61 (18.17%)
Short Float %2.16%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
Yearly Dividend1.01
Dividend Growth(5Y)20.07%
DP7.11%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
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)-0.64%
PT rev (3m)3.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.94%
EPS NY rev (1m)0%
EPS NY rev (3m)-4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.97%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.48 | ||
| Fwd PE | 15.61 | ||
| P/S | 3.84 | ||
| P/FCF | 18.81 | ||
| P/OCF | 14.1 | ||
| P/B | 6.08 | ||
| P/tB | 9.23 | ||
| EV/EBITDA | 12.14 |
EPS(TTM)14.04
EY5.41%
EPS(NY)16.62
Fwd EY6.41%
FCF(TTM)13.79
FCFY5.31%
OCF(TTM)18.4
OCFY7.09%
SpS67.62
BVpS42.68
TBVpS28.1
PEG (NY)2.03
PEG (5Y)0.85
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 | 5.22 |
F-Score5
WACC9.61%
ROIC/WACC1.81
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)-2.09%
EPS 3Y24.83%
EPS 5Y21.63%
EPS Q2Q%-3.49%
EPS Next Y9.11%
EPS Next 2Y9.79%
EPS Next 3Y9.33%
EPS Next 5YN/A
Revenue 1Y (TTM)5.18%
Revenue growth 3Y11.67%
Revenue growth 5Y11.51%
Sales Q2Q%-0.14%
Revenue Next Year1.66%
Revenue Next 2Y3.73%
Revenue Next 3Y3.97%
Revenue Next 5YN/A
EBIT growth 1Y0.98%
EBIT growth 3Y18.65%
EBIT growth 5Y15.01%
EBIT Next Year26.76%
EBIT Next 3Y12.44%
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%