Eagle Materials (NYSE:EXP) - Share price, News & Analysis

Q: What is the Fair Price of EXP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

EXP ($112.29) is trading below our estimate of [[fair value]] ($455.93)

EXP fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	4/6
Financial Health	3/6
Dividends	0/6

EXP Stock Overview

Eagle Materials Inc., through its subsidiaries, produces and supplies heavy construction materials and light building materials in the United States.

Rewards

Trading at 75.4% below our estimate of its fair value

Earnings are forecast to grow 11.31% per year

Earnings grew by 12% over the past year

Risk Analysis

Has a high level of debt

Significant insider selling over the past 3 months

Eagle Materials Competitors

Summit Materials

NYSE:SUM

US$2.8b

Martin Marietta Materials

NYSE:MLM

US$18.5b

Vulcan Materials

NYSE:VMC

US$18.9b

United States Lime & Minerals

NasdaqGS:USLM

US$600.0m

Price History & Performance

Summary of all time highs, changes and price drops for Eagle Materials
Historical stock prices
Current Share Price	US$112.29
52 Week High	US$169.15
52 Week Low	US$105.34
Beta	1.24
1 Month Change	-16.87%
3 Month Change	-10.86%
1 Year Change	-21.10%
3 Year Change	25.62%
5 Year Change	21.64%
Change since IPO	2,284.92%

Recent News & Updates

Jun 28

Is Now The Time To Look At Buying Eagle Materials Inc. (NYSE:EXP)?

Eagle Materials Inc. ( NYSE:EXP ), might not be a large cap stock, but it saw significant share price movement during...

Shareholder Returns

	EXP	US Basic Materials	US Market
7D	4.3%	-2.7%	-2.5%
1Y	-21.1%	-18.0%	-21.2%

Return vs Industry: EXP underperformed the US Basic Materials industry which returned -18% over the past year.

Return vs Market: EXP matched the US Market which returned -21.2% over the past year.

Price Volatility

Is EXP's price volatile compared to industry and market?
EXP volatility
EXP Average Weekly Movement	6.2%
Basic Materials Industry Average Movement	5.9%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.3%

Stable Share Price: EXP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: EXP's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1963	2,200	Michael Haack	https://www.eaglematerials.com

Eagle Materials Inc., through its subsidiaries, produces and supplies heavy construction materials and light building materials in the United States. It operates through Cement, Concrete and Aggregates, Gypsum Wallboard, and Recycled Paperboard segments. The company engages in the mining of limestone for the manufacture, production, distribution, and sale of Portland cement; grinding and sale of slag; and mining of gypsum for the manufacture and sale of gypsum wallboards used to finish the interior walls and ceilings in residential, commercial, and industrial structures.

Eagle Materials Fundamentals Summary

How do Eagle Materials's earnings and revenue compare to its market cap?
EXP fundamental statistics
Market Cap	US$4.28b
Earnings (TTM)	US$374.25m
Revenue (TTM)	US$1.86b

11.4x

P/E Ratio

2.3x

P/S Ratio

Is EXP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EXP income statement (TTM)
Revenue	US$1.86b
Cost of Revenue	US$1.34b
Gross Profit	US$519.61m
Other Expenses	US$145.37m
Earnings	US$374.25m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	9.82
Gross Margin	27.91%
Net Profit Margin	20.10%
Debt/Equity Ratio	82.8%

How did EXP perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

11%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is EXP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EXP?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for EXP. This is calculated by dividing EXP's market cap by their current preferred multiple.
What is EXP's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$4.28b

EXP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.8x
Enterprise Value/EBITDA	8.7x
PEG Ratio	1x

Price to Earnings Ratio vs Peers

How does EXP's PE Ratio compare to its peers?

EXP PE Ratio vs Peers

The above table shows the PE ratio for EXP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	23.5x
SUM Summit Materials	19.4x	22.8%	US$2.8b
MLM Martin Marietta Materials	27.9x	18.0%	US$18.5b
VMC Vulcan Materials	31.2x	20.2%	US$18.9b
USLM United States Lime & Minerals	15.5x	n/a	US$600.0m
EXP Eagle Materials	11.4x	11.3%	US$4.3b

Forward PE

Price-To-Earnings vs Peers: EXP is good value based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (23.5x).

Price to Earnings Ratio vs Industry

How does EXP's PE Ratio compare vs other companies in the Global Basic Materials Industry?

Price-To-Earnings vs Industry: EXP is good value based on its Price-To-Earnings Ratio (11.4x) compared to the US Basic Materials industry average (15.7x)

Price to Earnings Ratio vs Fair Ratio

What is EXP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EXP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.4x
Fair PE Ratio	17.6x

Price-To-Earnings vs Fair Ratio: EXP is good value based on its Price-To-Earnings Ratio (11.4x) compared to the estimated Fair Price-To-Earnings Ratio (17.6x).

Share Price vs Fair Value

What is the Fair Price of EXP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EXP ($112.29) is trading below our estimate of fair value ($455.93)

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

Price to Earnings Growth Ratio

PEG Ratio: EXP is poor value based on its PEG Ratio (1x)

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Future Growth

How is Eagle Materials forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

11.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: EXP's forecast earnings growth (11.3% per year) is above the savings rate (1.9%).

Earnings vs Market: EXP's earnings (11.3% per year) are forecast to grow slower than the US market (13.6% per year).

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

Revenue vs Market: EXP's revenue (7% per year) is forecast to grow slower than the US market (8.2% per year).

High Growth Revenue: EXP's revenue (7% 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 high in 3 years time (28.5%)

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Past Performance

How has Eagle Materials performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

12.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EXP has high quality earnings.

Growing Profit Margin: EXP's current net profit margins (20.1%) are lower than last year (20.6%).

Past Earnings Growth Analysis

Earnings Trend: EXP's earnings have grown by 12.4% per year over the past 5 years.

Accelerating Growth: EXP's earnings growth over the past year (12%) is below its 5-year average (12.4% per year).

Earnings vs Industry: EXP earnings growth over the past year (12%) exceeded the Basic Materials industry -12.2%.

Return on Equity

High ROE: EXP's Return on Equity (33%) is considered high.

Discover strong past performing companies

Financial Health

How is Eagle Materials's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: EXP's short term assets ($442.7M) exceed its short term liabilities ($207.6M).

Long Term Liabilities: EXP's short term assets ($442.7M) do not cover its long term liabilities ($1.2B).

Debt to Equity History and Analysis

Debt Level: EXP's net debt to equity ratio (81.1%) is considered high.

Reducing Debt: EXP's debt to equity ratio has increased from 57% to 82.8% over the past 5 years.

Debt Coverage: EXP's debt is well covered by operating cash flow (55.1%).

Interest Coverage: EXP's interest payments on its debt are well covered by EBIT (17.1x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.89%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EXP's dividend (0.89%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: EXP's dividend (0.89%) is low compared to the top 25% of dividend payers in the US market (4.25%).

Stability and Growth of Payments

Stable Dividend: EXP is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: EXP is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

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

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Management

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

8.4yrs

Average management tenure

CEO

Michael Haack (49 yo)

3.92yrs

Tenure

US$6,635,750

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 ($USD6.64M) is about average for companies of similar size in the US market ($USD6.91M).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: EXP's management team is seasoned and experienced (8.4 years average tenure).

Board Members

Experienced Board: EXP's board of directors are considered experienced (7.1 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.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31