EAGLE MATERIALS INC (EXP) Stock Fundamental Analysis
NYSE:EXP - New York Stock Exchange, Inc. - US26969P1084 - Common Stock - Currency: USD
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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. EXP may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, EXP could be worth investigating further for value 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.
In the past 5 years EXP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of EXP (14.20%) is better than 91.67% of its industry peers.
EXP has a Return On Equity of 31.81%. This is amongst the best in the industry. EXP outperforms 100.00% of its industry peers.
The Return On Invested Capital of EXP (15.56%) is better than 91.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EXP is significantly above the industry average of 10.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.2% | ||
| ROE | 31.81% | ||
| ROIC | 15.56% |
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
The Profit Margin of EXP (20.50%) is better than 91.67% of its industry peers.
In the last couple of years the Profit Margin of EXP has grown nicely.
The Operating Margin of EXP (26.70%) is better than 91.67% of its industry peers.
In the last couple of years the Operating Margin of EXP has grown nicely.
EXP has a Gross Margin of 29.78%. This is in the better half of the industry: EXP outperforms 66.67% of its industry peers.
EXP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.7% | ||
| PM (TTM) | 20.5% | ||
| GM | 29.78% |
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.
Compared to 1 year ago, EXP has less shares outstanding
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 4.21 indicates that EXP is not in any danger for bankruptcy at the moment.
The Altman-Z score of EXP (4.21) is better than 83.33% of its industry peers.
EXP has a debt to FCF ratio of 3.51. This is a good value and a sign of high solvency as EXP would need 3.51 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.51, EXP belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 0.84 indicates that EXP is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.84, EXP is doing worse than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 4.21 |
ROIC/WACC1.62
WACC9.58%
2.3 Liquidity
EXP has a Current Ratio of 2.73. This indicates that EXP is financially healthy and has no problem in meeting its short term obligations.
EXP has a better Current ratio (2.73) than 83.33% of its industry peers.
EXP has a Quick Ratio of 1.03. 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 1.03, EXP is in line with its industry, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.73 | ||
| Quick Ratio | 1.03 |
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%.
The Earnings Per Share has been growing by 19.47% on average over the past years. This is quite good.
Looking at the last year, EXP shows a small growth in Revenue. The Revenue has grown by 0.05% in the last year.
Measured over the past years, EXP shows a quite strong growth in Revenue. The Revenue has been growing by 9.99% on average per year.
EPS 1Y (TTM)0.44%
EPS 3Y13.75%
EPS 5Y19.47%
EPS Q2Q%-7.14%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y6.69%
Revenue growth 5Y9.99%
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 8.57% on average per year.
EXP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.85% yearly.
EPS Next Y12.03%
EPS Next 2Y11.07%
EPS Next 3Y8.57%
EPS Next 5YN/A
Revenue Next Year1.05%
Revenue Next 2Y3.07%
Revenue Next 3Y4.85%
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
With a Price/Earnings ratio of 14.15, EXP is valued correctly.
Based on the Price/Earnings ratio, EXP is valued cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of EXP to the average of the S&P500 Index (26.31), we can say EXP is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.63 indicates a correct valuation of EXP.
Based on the Price/Forward Earnings ratio, EXP is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.13. EXP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.15 | ||
| Fwd PE | 12.63 |
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.
EXP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EXP is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.14 | ||
| EV/EBITDA | 10 |
4.3 Compensation for Growth
EXP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
EXP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.18
PEG (5Y)0.73
EPS Next 2Y11.07%
EPS Next 3Y8.57%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, EXP is not a good candidate for dividend investing.
EXP's Dividend Yield is comparable with the industry average which is at 5.40.
With a Dividend Yield of 0.49, EXP pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
5.2 History
The dividend of EXP is nicely growing with an annual growth rate of 20.56%!
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
7.28% of the earnings are spent on dividend by EXP. This is a low number and sustainable payout ratio.
The dividend of EXP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP7.28%
EPS Next 2Y11.07%
EPS Next 3Y8.57%
195.95
-6.62 (-3.27%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners104.96%
Inst Owner Change1.12%
Ins Owners1.11%
Ins Owner Change-1.3%
Market Cap6.41B
Analysts73.75
Price Target254.6 (29.93%)
Short Float %4.44%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend1
Dividend Growth(5Y)20.56%
DP7.28%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.48%
Min EPS beat(2)-16.97%
Max EPS beat(2)-9.99%
EPS beat(4)1
Avg EPS beat(4)-6.62%
Min EPS beat(4)-16.97%
Max EPS beat(4)9.5%
EPS beat(8)2
Avg EPS beat(8)-5.31%
EPS beat(12)4
Avg EPS beat(12)-1.42%
EPS beat(16)7
Avg EPS beat(16)0.08%
Revenue beat(2)0
Avg Revenue beat(2)-3.65%
Min Revenue beat(2)-3.86%
Max Revenue beat(2)-3.44%
Revenue beat(4)0
Avg Revenue beat(4)-4.04%
Min Revenue beat(4)-5.42%
Max Revenue beat(4)-3.44%
Revenue beat(8)1
Avg Revenue beat(8)-2.5%
Revenue beat(12)2
Avg Revenue beat(12)-1.94%
Revenue beat(16)4
Avg Revenue beat(16)-1.3%
PT rev (1m)-5.09%
PT rev (3m)-13.87%
EPS NQ rev (1m)-6.96%
EPS NQ rev (3m)-7.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.28%
Revenue NQ rev (1m)-3.5%
Revenue NQ rev (3m)-3.73%
Revenue NY rev (1m)-3.38%
Revenue NY rev (3m)-4.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.15 | ||
| Fwd PE | 12.63 | ||
| P/S | 2.83 | ||
| P/FCF | 18.14 | ||
| P/OCF | 11.68 | ||
| P/B | 4.4 | ||
| P/tB | 7.44 | ||
| EV/EBITDA | 10 |
EPS(TTM)13.85
EY7.07%
EPS(NY)15.52
Fwd EY7.92%
FCF(TTM)10.8
FCFY5.51%
OCF(TTM)16.78
OCFY8.56%
SpS69.13
BVpS44.55
TBVpS26.33
PEG (NY)1.18
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.2% | ||
| ROE | 31.81% | ||
| ROCE | 19.99% | ||
| ROIC | 15.56% | ||
| ROICexc | 15.66% | ||
| ROICexgc | 19.54% | ||
| OM | 26.7% | ||
| PM (TTM) | 20.5% | ||
| GM | 29.78% | ||
| FCFM | 15.63% |
ROA(3y)15.67%
ROA(5y)14.69%
ROE(3y)35.75%
ROE(5y)33.05%
ROIC(3y)17.09%
ROIC(5y)15.48%
ROICexc(3y)17.24%
ROICexc(5y)15.84%
ROICexgc(3y)21.21%
ROICexgc(5y)19.3%
ROCE(3y)21.96%
ROCE(5y)19.89%
ROICexcg growth 3Y2.11%
ROICexcg growth 5Y14.43%
ROICexc growth 3Y0.71%
ROICexc growth 5Y13.04%
OM growth 3Y2.36%
OM growth 5Y5.17%
PM growth 3Y0.65%
PM growth 5Y32.34%
GM growth 3Y2.18%
GM growth 5Y3.47%
F-Score5
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.51 | ||
| Debt/EBITDA | 1.6 | ||
| Cap/Depr | 122.89% | ||
| Cap/Sales | 8.64% | ||
| Interest Coverage | 14.25 | ||
| Cash Conversion | 71.94% | ||
| Profit Quality | 76.23% | ||
| Current Ratio | 2.73 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 4.21 |
F-Score5
WACC9.58%
ROIC/WACC1.62
Cap/Depr(3y)94.23%
Cap/Depr(5y)76.4%
Cap/Sales(3y)6.36%
Cap/Sales(5y)5.28%
Profit Quality(3y)87.54%
Profit Quality(5y)110.92%
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 3Y8.57%
EPS Next 5YN/A
Revenue 1Y (TTM)0.05%
Revenue growth 3Y6.69%
Revenue growth 5Y9.99%
Sales Q2Q%-1.37%
Revenue Next Year1.05%
Revenue Next 2Y3.07%
Revenue Next 3Y4.85%
Revenue Next 5YN/A
EBIT growth 1Y-3.69%
EBIT growth 3Y9.2%
EBIT growth 5Y15.68%
EBIT Next Year27.99%
EBIT Next 3Y13.39%
EBIT Next 5YN/A
FCF growth 1Y-20.37%
FCF growth 3Y-7.27%
FCF growth 5Y5.74%
OCF growth 1Y-2.73%
OCF growth 3Y1.98%
OCF growth 5Y6.56%