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 6 out of 10 to EXP. EXP was compared to 12 industry peers in the Construction Materials industry. EXP scores excellent points on both the profitability and health parts. This is a solid base for a good stock. EXP has a valuation in line with the averages, but it does not seem to be growing.
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.
Of the past 5 years EXP 4 years were profitable.
Of the past 5 years EXP 4 years had a positive operating cash flow.
1.2 Ratios
EXP has a Return On Assets of 15.57%. This is amongst the best in the industry. EXP outperforms 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 31.68%, EXP belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.11%, EXP belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
EXP had an Average Return On Invested Capital over the past 3 years of 16.98%. This is below the industry average of 19.75%.
The last Return On Invested Capital (17.11%) for EXP is above the 3 year average (16.98%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 20.91%, EXP is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
EXP's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 27.33%, EXP belongs to the best 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.
The Gross Margin of EXP (30.36%) 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 | 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.
There is no outstanding debt for EXP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 5.11 indicates that EXP is not in any danger for bankruptcy at the moment.
EXP's Altman-Z score of 5.11 is amongst the best of the industry. EXP outperforms 83.33% 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.
With an excellent Debt to FCF ratio value of 2.71, EXP belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
EXP has a Debt/Equity ratio of 0.66. This is a neutral value indicating EXP is somewhat dependend on debt financing.
EXP has a Debt to Equity ratio of 0.66. This is in the lower half of the industry: EXP underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | 5.11 |
ROIC/WACC1.84
WACC9.3%
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.
EXP's Current ratio of 2.76 is fine compared to the rest of the industry. EXP outperforms 75.00% of its industry peers.
A Quick Ratio of 1.01 indicates that EXP should not have too much problems paying its short term obligations.
EXP has a Quick ratio (1.01) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.76 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
EXP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.44%.
EXP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.47% yearly.
EPS 1Y (TTM)0.44%
EPS 3Y13.75%
EPS 5Y19.47%
EPS Q2Q%-7.14%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.37%
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 11.07% on average per year.
EXP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.00% yearly.
EPS Next Y12.03%
EPS Next 2Y11.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.58%
Revenue Next 2Y5%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
EXP is valuated correctly with a Price/Earnings ratio of 15.50.
75.00% of the companies in the same industry are more expensive than EXP, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.03, EXP is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.84, EXP is valued correctly.
83.33% of the companies in the same industry are more expensive than EXP, based on the Price/Forward Earnings ratio.
EXP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.5 | ||
| Fwd PE | 13.84 |
4.2 Price Multiples
66.67% 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 cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.33 | ||
| EV/EBITDA | 10.73 |
4.3 Compensation for Growth
The 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.
PEG (NY)1.29
PEG (5Y)0.8
EPS Next 2Y11.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
EXP has a yearly dividend return of 0.41%, which is pretty low.
Compared to an average industry Dividend Yield of 5.29, EXP has a dividend in line with its industry peers.
With a Dividend Yield of 0.41, EXP pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
On average, the dividend of EXP grows each year by 20.07%, 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)20.07%
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.
The dividend of EXP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP7.17%
EPS Next 2Y11.07%
EPS Next 3YN/A
214.74
-5.95 (-2.7%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners102.84%
Inst Owner Change1.15%
Ins Owners1.17%
Ins Owner Change-0.85%
Market Cap7.15B
Analysts73.75
Price Target268.27 (24.93%)
Short Float %4.22%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
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)-7.06%
PT rev (3m)-12.51%
EPS NQ rev (1m)-1.02%
EPS NQ rev (3m)-3.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-0.79%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.5 | ||
| Fwd PE | 13.84 | ||
| P/S | 3.15 | ||
| P/FCF | 19.33 | ||
| P/OCF | 13.02 | ||
| P/B | 4.78 | ||
| P/tB | 7.09 | ||
| EV/EBITDA | 10.73 |
EPS(TTM)13.85
EY6.45%
EPS(NY)15.52
Fwd EY7.23%
FCF(TTM)11.11
FCFY5.17%
OCF(TTM)16.5
OCFY7.68%
SpS68.1
BVpS44.94
TBVpS30.3
PEG (NY)1.29
PEG (5Y)0.8
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 | 5.11 |
F-Score6
WACC9.3%
ROIC/WACC1.84
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)0.44%
EPS 3Y13.75%
EPS 5Y19.47%
EPS Q2Q%-7.14%
EPS Next Y12.03%
EPS Next 2Y11.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.37%
Revenue Next Year4.58%
Revenue Next 2Y5%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-3.75%
EBIT growth 3Y18.65%
EBIT growth 5Y15.01%
EBIT Next Year23.5%
EBIT Next 3Y12.22%
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%