EAGLE MATERIALS INC (EXP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EXP - US26969P1084 - Common Stock
223.74 USD
-2.53 (-1.12%)
223.74 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to EXP. EXP was compared to 13 industry peers in the Construction Materials industry. EXP scores excellent on profitability, but 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.
- 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 13.11%, EXP belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
- EXP has a better Return On Equity (29.07%) than 100.00% of its industry peers.
- The Return On Invested Capital of EXP (14.48%) is better than 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.
- EXP's Profit Margin has improved in the last couple of years.
- EXP has a better Operating Margin (25.56%) than 92.31% of its industry peers.
- In the last couple of years the Operating Margin of EXP has grown nicely.
- EXP has a Gross Margin (29.01%) which is in line with its industry peers.
- EXP's Gross Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EXP is still creating some 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.
- The debt/assets ratio for EXP is higher compared to a year ago.
2.2 Solvency
- EXP has an Altman-Z score of 4.32. This indicates that EXP is financially healthy and has little risk of bankruptcy at the moment.
- EXP has a Altman-Z score of 4.32. This is amongst the best in the industry. EXP outperforms 84.62% of its industry peers.
- 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.
- EXP's Debt to FCF ratio of 5.28 is fine compared to the rest of the industry. EXP outperforms 69.23% of its industry peers.
- EXP has a Debt/Equity ratio of 0.83. This is a neutral value indicating EXP is somewhat dependend on debt financing.
- EXP has a worse Debt to Equity ratio (0.83) than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.28 | ||
| Altman-Z | 4.32 |
ROIC/WACC1.39
WACC10.45%
2.3 Liquidity
- A Current Ratio of 2.72 indicates that EXP has no problem at all paying its short term obligations.
- EXP's Current ratio of 2.72 is fine compared to the rest of the industry. EXP outperforms 69.23% of its industry peers.
- EXP has a Quick Ratio of 1.22. This is a normal value and indicates that EXP is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of EXP (1.22) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
- EXP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.81%.
- The Earnings Per Share has been growing by 19.47% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 1.50% in the past year.
- 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)-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
- Based on estimates for the next years, EXP will show a small growth in Earnings Per Share. The EPS will grow by 6.42% on average per year.
- 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.
- 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 16.42, the valuation of EXP can be described as correct.
- Based on the Price/Earnings ratio, EXP is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of EXP to the average of the S&P500 Index (27.21), we can say EXP is valued slightly cheaper.
- The Price/Forward Earnings ratio is 15.43, which indicates a correct valuation of EXP.
- Based on the Price/Forward Earnings ratio, EXP is valued a bit cheaper than 76.92% of the companies in the same industry.
- EXP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.42 | ||
| Fwd PE | 15.43 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EXP is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
- EXP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EXP is cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.45 | ||
| EV/EBITDA | 11.2 |
4.3 Compensation for Growth
- The excellent profitability rating of EXP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.84
EPS Next 2Y2.31%
EPS Next 3Y6.42%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.44%, EXP is not a good candidate for dividend investing.
- EXP's Dividend Yield is comparable with the industry average which is at 2.03.
- Compared to an average S&P500 Dividend Yield of 1.81, EXP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
5.2 History
- On average, the dividend of EXP grows each year by 20.56%, 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)20.56%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- EXP pays out 7.46% 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.
DP7.46%
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.