NYSE:EXP

Stock Analysis Report

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Executive Summary

Eagle Materials Inc., through its subsidiaries, produces and supplies heavy construction materials, light building materials, and materials used for oil and natural gas extraction in the United States. More Details


Snowflake Analysis

Acceptable track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Eagle Materials's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EXP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.0%

EXP

-2.0%

US Basic Materials

-4.1%

US Market


1 Year Return

-9.4%

EXP

-2.7%

US Basic Materials

12.0%

US Market

Return vs Industry: EXP underperformed the US Basic Materials industry which returned -2.7% over the past year.

Return vs Market: EXP underperformed the US Market which returned 12% over the past year.


Shareholder returns

EXPIndustryMarket
7 Day-6.0%-2.0%-4.1%
30 Day-0.6%7.8%-0.2%
90 Day7.0%20.8%2.8%
1 Year-9.1%-9.4%-1.6%-2.7%14.6%12.0%
3 Year-16.5%-17.4%4.7%1.9%35.8%26.8%
5 Year24.2%21.6%43.7%37.8%75.2%55.6%

Price Volatility Vs. Market

How volatile is Eagle Materials's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Eagle Materials undervalued compared to its fair value and its price relative to the market?

37.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EXP ($85.82) is trading below our estimate of fair value ($138.01)

Significantly Below Fair Value: EXP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EXP is poor value based on its PE Ratio (28.2x) compared to the US Basic Materials industry average (24.6x).

PE vs Market: EXP is poor value based on its PE Ratio (28.2x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: EXP is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: EXP is overvalued based on its PB Ratio (3.4x) compared to the US Basic Materials industry average (1.7x).


Next Steps

Future Growth

How is Eagle Materials forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EXP's forecast earnings growth (9.7% per year) is above the savings rate (2.2%).

Earnings vs Market: EXP's earnings (9.7% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: EXP's earnings are forecast to grow, but not significantly.

Revenue vs Market: EXP's revenue (4.5% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: EXP's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EXP's Return on Equity is forecast to be low in 3 years time (16.4%).


Next Steps

Past Performance

How has Eagle Materials performed over the past 5 years?

-16.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EXP has a large one-off loss of $195.4M impacting its June 30 2020 financial results.

Growing Profit Margin: EXP's current net profit margins (8.3%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: EXP's earnings have declined by 16.1% per year over the past 5 years.

Accelerating Growth: EXP's earnings growth over the past year (187.1%) exceeds its 5-year average (-16.1% per year).

Earnings vs Industry: EXP earnings growth over the past year (187.1%) exceeded the Basic Materials industry 13.9%.


Return on Equity

High ROE: EXP's Return on Equity (11.8%) is considered low.


Next Steps

Financial Health

How is Eagle Materials's financial position?


Financial Position Analysis

Short Term Liabilities: EXP's short term assets ($771.6M) exceed its short term liabilities ($200.0M).

Long Term Liabilities: EXP's short term assets ($771.6M) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: EXP's debt to equity ratio (139.7%) is considered high.

Reducing Debt: EXP's debt to equity ratio has increased from 49.9% to 139.7% over the past 5 years.

Debt Coverage: EXP's debt is well covered by operating cash flow (29.8%).

Interest Coverage: EXP's interest payments on its debt are well covered by EBIT (7.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Eagle Materials's current dividend yield, its reliability and sustainability?

0.15%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EXP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EXP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EXP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EXP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: EXP is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EXP's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.2yrs

Average management tenure


CEO

Michael Haack (47 yo)

1.25yrs

Tenure

US$5,024,075

Compensation

Mr. Michael R. Haack has been President of Eagle Materials Inc. since August 2018 and its Director since June 19, 2019. He has been Chief Executive Officer of Eagle Materials Inc. since July 1, 2019. He se ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD5.02M) is about average for companies of similar size in the US market ($USD5.63M).

Compensation vs Earnings: Michael's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Haack
CEO, President & Director1.25yrsUS$5.02m0.12%
$ 4.4m
D. Kesler
Executive VP of Finance & Administration and CFO11.17yrsUS$2.54m0.17%
$ 6.0m
James Graass
Executive VP19.92yrsUS$2.09m0.17%
$ 6.0m
Robert Stewart
Executive Vice President of Strategy11.17yrsUS$2.17m0.12%
$ 4.3m
William Devlin
Senior VP11.17yrsUS$653.32k0.086%
$ 3.1m
Rahul Desai
Senior Vice President of Cement4.5yrsno datano data

11.2yrs

Average Tenure

54.5yo

Average Age

Experienced Management: EXP's management team is seasoned and experienced (11.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Haack
CEO, President & Director1.25yrsUS$5.02m0.12%
$ 4.4m
Richard Beckwitt
Independent Director6.08yrsUS$263.88k0.036%
$ 1.3m
Ed Bowman
Independent Director9.42yrsUS$292.38k0.037%
$ 1.3m
Margot Carter
Independent Director3yrsUS$195.30k0.013%
$ 459.8k
Mary Ricciardello
Independent Director0.50yrno data0.0091%
$ 324.3k
George Damiris
Independent Director4.08yrsUS$262.12k0.023%
$ 812.0k
Martin Ellen
Independent Director7.33yrsUS$247.21k0.019%
$ 673.0k
Michael Nicolais
Independent Chairman of the Board1.5yrsUS$510.79k0.10%
$ 3.6m
F. Barnett
Independent Director17.33yrsUS$285.83k0.066%
$ 2.4m
Richard Stewart
Independent Director14.08yrsUS$227.88k0.036%
$ 1.3m
David Powers
Director4.58yrsUS$7.71m0.12%
$ 4.1m

4.6yrs

Average Tenure

65yo

Average Age

Experienced Board: EXP's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EXP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Eagle Materials Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eagle Materials Inc.
  • Ticker: EXP
  • Exchange: NYSE
  • Founded: 1963
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: US$3.584b
  • Shares outstanding: 41.76m
  • Website: https://www.eaglematerials.com

Number of Employees


Location

  • Eagle Materials Inc.
  • 5960 Berkshire Lane
  • Suite 900
  • Dallas
  • Texas
  • 75225
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EXPNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1994
E5MDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1994

Biography

Eagle Materials Inc., through its subsidiaries, produces and supplies heavy construction materials, light building materials, and materials used for oil and natural gas extraction in the United States. It ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 03:29
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.