EAGLE MATERIALS INC (EXP)
US26969P1084 - Common Stock
EXP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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 has a decent growth rate and is not valued too expensively. These ratings would make EXP suitable for quality investing!
1. Profitability
1.1 Basic Checks
EXP had positive earnings in the past year.
EXP had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 17.33%, EXP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
EXP has a better Return On Equity (37.57%) than 100.00% of its industry peers.
The Return On Invested Capital of EXP (18.99%) is better than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EXP is above the industry average of 10.24%.
The last Return On Invested Capital (18.99%) for EXP is above the 3 year average (14.76%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.33% | ||
| ROE | 37.57% | ||
| ROIC | 18.99% |
ROA(3y)14.35%
ROA(5y)9.73%
ROE(3y)32.31%
ROE(5y)21.99%
ROIC(3y)14.76%
ROIC(5y)12.95%
1.3 Margins
EXP's Profit Margin of 22.24% is amongst the best of the industry. EXP outperforms 83.33% 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 28.58%, EXP belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Operating Margin of EXP has grown nicely.
The Gross Margin of EXP (31.12%) is better than 66.67% of its industry peers.
In the last couple of years the Gross Margin of EXP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.58% | ||
| PM (TTM) | 22.24% | ||
| GM | 31.12% |
OM growth 3Y9.4%
OM growth 5Y4.66%
PM growth 3Y62.04%
PM growth 5Y3.03%
GM growth 3Y5.83%
GM growth 5Y4.02%
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.
EXP has less shares outstanding than it did 1 year ago.
EXP has less shares outstanding than it did 5 years ago.
EXP has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.86 indicates that EXP is not in any danger for bankruptcy at the moment.
EXP has a better Altman-Z score (5.86) than 83.33% of its industry peers.
EXP has a debt to FCF ratio of 2.43. This is a good value and a sign of high solvency as EXP would need 2.43 years to pay back of all of its debts.
EXP's Debt to FCF ratio of 2.43 is amongst the best of the industry. EXP outperforms 91.67% of its industry peers.
EXP has a Debt/Equity ratio of 0.77. This is a neutral value indicating EXP is somewhat dependend on debt financing.
EXP has a worse Debt to Equity ratio (0.77) than 83.33% of its industry peers.
Even though the debt/equity ratio score it not favorable for EXP, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 5.86 |
ROIC/WACC1.98
WACC9.6%
2.3 Liquidity
EXP has a Current Ratio of 2.61. This indicates that EXP is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of EXP (2.61) is better than 66.67% of its industry peers.
EXP has a Quick Ratio of 1.13. This is a normal value and indicates that EXP is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.13, EXP is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
EXP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.73%, which is quite impressive.
Measured over the past years, EXP shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.78% on average per year.
The Revenue has been growing slightly by 7.73% in the past year.
Measured over the past years, EXP shows a quite strong growth in Revenue. The Revenue has been growing by 9.15% on average per year.
EPS 1Y (TTM)21.73%
EPS 3Y30.58%
EPS 5Y20.78%
EPS growth Q2Q16.25%
Revenue 1Y (TTM)7.73%
Revenue growth 3Y15.23%
Revenue growth 5Y9.15%
Revenue growth Q2Q9.26%
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 12.46% yearly.
Based on estimates for the next years, EXP will show a small growth in Revenue. The Revenue will grow by 6.16% on average per year.
EPS Next Y13.64%
EPS Next 2Y13.18%
EPS Next 3Y12.46%
EPS Next 5YN/A
Revenue Next Year6.21%
Revenue Next 2Y6.68%
Revenue Next 3Y6.16%
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
With a Price/Earnings ratio of 18.64, EXP is valued on the expensive side.
83.33% of the companies in the same industry are more expensive than EXP, based on the Price/Earnings ratio.
EXP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.31.
Based on the Price/Forward Earnings ratio of 16.47, the valuation of EXP can be described as correct.
75.00% of the companies in the same industry are more expensive than EXP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of EXP to the average of the S&P500 Index (20.48), we can say EXP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 16.47 |
4.2 Price Multiples
83.33% of the companies in the same industry are more expensive than EXP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, EXP is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.66 | ||
| EV/EBITDA | 12.9 |
4.3 Compensation for Growth
EXP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of EXP may justify a higher PE ratio.
EXP's earnings are expected to grow with 12.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.37
PEG (5Y)0.9
EPS Next 2Y13.18%
EPS Next 3Y12.46%
5. Dividend
5.1 Amount
With a yearly dividend of 0.39%, EXP is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.79, EXP has a dividend in line with its industry peers.
With a Dividend Yield of 0.39, EXP pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
5.2 History
The dividend of EXP is nicely growing with an annual growth rate of 20.23%!
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)20.23%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
EXP pays out 7.14% 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.
DP7.14%
EPS Next 2Y13.18%
EPS Next 3Y12.46%
EAGLE MATERIALS INC
NYSE:EXP (5/9/2024, 5:40:00 PM)
After market: 270.017 +2.74 (+1.02%)267.28
-0.08 (-0.03%)
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 Cap9.21B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 16.47 | ||
| 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)1.37
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.33% | ||
| ROE | 37.57% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.58% | ||
| PM (TTM) | 22.24% | ||
| GM | 31.12% | ||
| 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 Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.13 | ||
| 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)
Growth
EPS 1Y (TTM)21.73%
EPS 3Y30.58%
EPS 5Y
EPS growth Q2Q
EPS Next Y13.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.73%
Revenue growth 3Y15.23%
Revenue growth 5Y
Revenue growth 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