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Should Quality-Oriented Investors Explore EAGLE MATERIALS INC (NYSE:EXP)?

By Mill Chart

Last update: Nov 27, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if EAGLE MATERIALS INC (NYSE:EXP) is suited for quality investing. Investors should of course do their own research, but we spotted EAGLE MATERIALS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

  • Over the past 5 years, EAGLE MATERIALS INC has experienced impressive revenue growth, with 9.15% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • With a robust ROIC excluding cash and goodwill at 22.71%, EAGLE MATERIALS INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • EAGLE MATERIALS INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 2.58, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • EAGLE MATERIALS INC demonstrates consistent Profit Quality over the past 5 years, with a strong 205.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • EAGLE MATERIALS INC has consistently achieved strong EBIT growth over the past 5 years, with a 14.23% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, EAGLE MATERIALS INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

How does the complete fundamental picture look for NYSE:EXP?

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Overall EXP gets a fundamental rating of 7 out of 10. We evaluated EXP against 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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make EXP suitable for value and quality investing!

Check the latest full fundamental report of EXP for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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