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 11 industry peers in the Construction Materials industry. Both the health and profitability get an excellent rating, making EXP a very profitable company, without any liquidiy or solvency issues. EXP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
EXP had positive earnings in the past year.
In the past year EXP had a positive cash flow from operations.
In the past 5 years EXP has always been profitable.
Each year in the past 5 years EXP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of EXP (15.57%) is better than 81.82% of its industry peers.
EXP has a better Return On Equity (31.68%) than 90.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.11%, EXP belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EXP is below the industry average of 20.57%.
The 3 year average ROIC (16.98%) for EXP is below the current ROIC(17.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.57% | ||
| ROE | 31.68% | ||
| ROIC | 17.11% |
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's Profit Margin of 20.91% is fine compared to the rest of the industry. EXP outperforms 72.73% 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 27.33%, EXP belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
In the last couple of years the Operating Margin of EXP has grown nicely.
Looking at the Gross Margin, with a value of 30.36%, EXP is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
In the last couple of years the Gross Margin of EXP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.33% | ||
| PM (TTM) | 20.91% | ||
| GM | 30.36% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EXP is creating value.
The number of shares outstanding for EXP has been reduced compared to 1 year ago.
Compared to 5 years ago, EXP has less shares outstanding
The debt/assets ratio for EXP has been reduced compared to a year ago.
2.2 Solvency
EXP has an Altman-Z score of 5.18. This indicates that EXP is financially healthy and has little risk of bankruptcy at the moment.
EXP has a better Altman-Z score (5.18) than 81.82% of its industry peers.
EXP has a debt to FCF ratio of 2.71. This is a good value and a sign of high solvency as EXP would need 2.71 years to pay back of all of its debts.
EXP has a better Debt to FCF ratio (2.71) than 81.82% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that EXP is somewhat dependend on debt financing.
EXP's Debt to Equity ratio of 0.66 is on the low side compared to the rest of the industry. EXP is outperformed by 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | 5.18 |
ROIC/WACC1.98
WACC8.62%
2.3 Liquidity
EXP has a Current Ratio of 2.76. This indicates that EXP is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of EXP (2.76) is better than 81.82% of its industry peers.
EXP has a Quick Ratio of 1.01. 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 1.01, EXP perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.76 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
EXP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.30%.
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 0.64% in the last 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)-2.3%
EPS 3Y24.83%
EPS 5Y21.63%
EPS Q2Q%-4.3%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y11.67%
Revenue growth 5Y11.51%
Sales Q2Q%-0.14%
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 8.81% on average per year.
Based on estimates for the next years, EXP will show a small growth in Revenue. The Revenue will grow by 4.05% on average per year.
EPS Next Y5.52%
EPS Next 2Y7.31%
EPS Next 3Y8.81%
EPS Next 5YN/A
Revenue Next Year0.35%
Revenue Next 2Y2.84%
Revenue Next 3Y4.05%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 15.62 indicates a correct valuation of EXP.
Based on the Price/Earnings ratio, EXP is valued cheaper than 81.82% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.75, EXP is valued a bit cheaper.
EXP is valuated correctly with a Price/Forward Earnings ratio of 13.78.
Based on the Price/Forward Earnings ratio, EXP is valued cheaper than 90.91% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EXP to the average of the S&P500 Index (22.44), we can say EXP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.62 | ||
| Fwd PE | 13.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EXP is valued cheaply inside the industry as 81.82% 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 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.7 | ||
| EV/EBITDA | 10.97 |
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)2.83
PEG (5Y)0.72
EPS Next 2Y7.31%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
EXP has a yearly dividend return of 0.45%, which is pretty low.
In the last 3 months the price of EXP has falen by -26.27%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
EXP's Dividend Yield is comparable with the industry average which is at 5.69.
Compared to an average S&P500 Dividend Yield of 2.30, EXP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
5.2 History
The dividend of EXP is nicely growing with an annual growth rate of 20.07%!
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 Years4
5.3 Sustainability
EXP pays out 7.17% 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.
DP7.17%
EPS Next 2Y7.31%
EPS Next 3Y8.81%
218.77
-7.44 (-3.29%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners102.84%
Inst Owner Change-1.18%
Ins Owners1.17%
Ins Owner Change-0.51%
Market Cap7.28B
Analysts76
Price Target295.6 (35.12%)
Short Float %2.51%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Yearly Dividend1.01
Dividend Growth(5Y)20.07%
DP7.17%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.51%
Min EPS beat(2)-9.99%
Max EPS beat(2)-9.02%
EPS beat(4)1
Avg EPS beat(4)-6.78%
Min EPS beat(4)-17.6%
Max EPS beat(4)9.5%
EPS beat(8)3
Avg EPS beat(8)-0.57%
EPS beat(12)5
Avg EPS beat(12)0.73%
EPS beat(16)8
Avg EPS beat(16)2.71%
Revenue beat(2)0
Avg Revenue beat(2)-4.64%
Min Revenue beat(2)-5.42%
Max Revenue beat(2)-3.86%
Revenue beat(4)0
Avg Revenue beat(4)-3.84%
Min Revenue beat(4)-5.42%
Max Revenue beat(4)-2.62%
Revenue beat(8)2
Avg Revenue beat(8)-1.79%
Revenue beat(12)3
Avg Revenue beat(12)-1.49%
Revenue beat(16)5
Avg Revenue beat(16)-0.97%
PT rev (1m)-3.59%
PT rev (3m)-6.46%
EPS NQ rev (1m)-7.66%
EPS NQ rev (3m)-9.13%
EPS NY rev (1m)-3.29%
EPS NY rev (3m)-4.28%
Revenue NQ rev (1m)-2.16%
Revenue NQ rev (3m)-3.17%
Revenue NY rev (1m)-1.29%
Revenue NY rev (3m)-1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.62 | ||
| Fwd PE | 13.78 | ||
| P/S | 3.21 | ||
| P/FCF | 19.7 | ||
| P/OCF | 13.26 | ||
| P/B | 4.87 | ||
| P/tB | 7.22 | ||
| EV/EBITDA | 10.97 |
EPS(TTM)14.01
EY6.4%
EPS(NY)15.88
Fwd EY7.26%
FCF(TTM)11.11
FCFY5.08%
OCF(TTM)16.5
OCFY7.54%
SpS68.1
BVpS44.94
TBVpS30.3
PEG (NY)2.83
PEG (5Y)0.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.57% | ||
| ROE | 31.68% | ||
| ROCE | 21.98% | ||
| ROIC | 17.11% | ||
| ROICexc | 17.3% | ||
| ROICexgc | 20.96% | ||
| OM | 27.33% | ||
| PM (TTM) | 20.91% | ||
| GM | 30.36% | ||
| FCFM | 16.31% |
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-Score6
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 2.71 | ||
| Debt/EBITDA | 1.28 | ||
| Cap/Depr | 115.65% | ||
| Cap/Sales | 7.91% | ||
| Interest Coverage | 14.72 | ||
| Cash Conversion | 70.88% | ||
| Profit Quality | 78% | ||
| Current Ratio | 2.76 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 5.18 |
F-Score6
WACC8.62%
ROIC/WACC1.98
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)-2.3%
EPS 3Y24.83%
EPS 5Y21.63%
EPS Q2Q%-4.3%
EPS Next Y5.52%
EPS Next 2Y7.31%
EPS Next 3Y8.81%
EPS Next 5YN/A
Revenue 1Y (TTM)0.64%
Revenue growth 3Y11.67%
Revenue growth 5Y11.51%
Sales Q2Q%-0.14%
Revenue Next Year0.35%
Revenue Next 2Y2.84%
Revenue Next 3Y4.05%
Revenue Next 5YN/A
EBIT growth 1Y-3.75%
EBIT growth 3Y18.65%
EBIT growth 5Y15.01%
EBIT Next Year24.43%
EBIT Next 3Y12.25%
EBIT Next 5YN/A
FCF growth 1Y-24.31%
FCF growth 3Y-9.03%
FCF growth 5Y19.59%
OCF growth 1Y-3.38%
OCF growth 3Y-4.28%
OCF growth 5Y9.99%