NYSE:EXP

Stock Analysis Report

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.


Snowflake Analysis

Moderate growth potential and slightly overvalued.


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

-9.9%

EXP

-10.3%

US Basic Materials

-10.6%

US Market


1 Year Return

3.8%

EXP

8.8%

US Basic Materials

5.2%

US Market

Return vs Industry: EXP underperformed the US Basic Materials industry which returned 12.9% over the past year.

Return vs Market: EXP matched the US Market which returned 10.2% over the past year.


Shareholder returns

EXPIndustryMarket
7 Day-9.9%-10.3%-10.6%
30 Day-11.3%-13.1%-8.5%
90 Day-11.5%-14.6%-4.6%
1 Year4.3%3.8%9.7%8.8%7.4%5.2%
3 Year-22.0%-23.0%-3.4%-5.7%31.7%23.2%
5 Year0.7%-1.7%46.5%40.4%56.4%39.3%

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?

48.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EXP ($84.59) is trading below our estimate of fair value ($157.42)

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


Price To Earnings Ratio

PE vs Industry: EXP is unprofitable, so we can't compare its PE Ratio to the Basic Materials industry average.

PE vs Market: EXP is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EXP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EXP is overvalued based on its PB Ratio (3.9x) compared to the US Basic Materials industry average (2x).


Next Steps

Future Growth

How is Eagle Materials forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

40.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EXP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: EXP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: EXP's is expected to become profitable in the next 3 years.

Revenue vs Market: EXP's revenue (6.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: EXP's revenue (6.3% 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 (19.5%).


Next Steps

Past Performance

How has Eagle Materials performed over the past 5 years?

-12.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EXP is currently unprofitable.

Growing Profit Margin: EXP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EXP is unprofitable, and losses have increased over the past 5 years at a rate of -12.3% per year.

Accelerating Growth: Unable to compare EXP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EXP is unprofitable, making it difficult to compare its past year earnings growth to the Basic Materials industry (30.2%).


Return on Equity

High ROE: EXP has a negative Return on Equity (-14.41%), as it is currently unprofitable.


Next Steps

Financial Health

How is Eagle Materials's financial position?


Financial Position Analysis

Short Term Liabilities: EXP's short term assets ($507.8M) exceed its short term liabilities ($163.3M).

Long Term Liabilities: EXP's short term assets ($507.8M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: EXP's debt to equity ratio (103.7%) is considered high.

Reducing Debt: EXP's debt to equity ratio has increased from 53.2% to 103.7% over the past 5 years.


Balance Sheet

Inventory Level: EXP has a high level of physical assets or inventory.

Debt Coverage by Assets: EXP's debt is not covered by short term assets (assets are 0.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: EXP has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: EXP has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

0.49%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 28 2020Ex Dividend DateApr 09 2020Dividend Pay DateMay 08 202029 days from Ex DividendBuy in the next 41 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: EXP's dividend (0.47%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: EXP's dividend (0.47%) is low compared to the top 25% of dividend payers in the US market (3.96%).


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.


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?

10.5yrs

Average management tenure


CEO

Michael Haack (46yo)

0.6yrs

Tenure

US$2,564,037

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 ($USD2.56M) is below average for companies of similar size in the US market ($USD4.98M).

Compensation vs Earnings: Michael's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Haack
CEO, President & Director0.6yrsUS$2.56m0.077% $2.7m
D. Kesler
Executive VP of Finance & Administration and CFO10.5yrsUS$2.14m0.15% $5.5m
Robert Stewart
Executive Vice President of Strategy10.5yrsUS$2.08m0.10% $3.5m
David Powers
Director & Advisor3.9yrsUS$5.54m0.12% $4.1m
Keith Metcalf
President of American Gypsum Company LLC3.8yrsUS$1.98m0.096% $3.4m
William Devlin
Senior VP10.5yrsUS$653.32k0.077% $2.7m
James Graass
Executive VP19.3yrsUS$2.02m0.15% $5.3m
Gerald Essl
Executive Vice President of Cement17.1yrsUS$1.97m0.086% $3.0m
Rahul Desai
Senior Vice President of Cement3.8yrsno datano data

10.5yrs

Average Tenure

60yo

Average Age

Experienced Management: EXP's management team is seasoned and experienced (10.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Haack
CEO, President & Director0.6yrsUS$2.56m0.077% $2.7m
David Powers
Director & Advisor3.9yrsUS$5.54m0.12% $4.1m
Richard Beckwitt
Independent Director5.4yrsUS$223.80k0.029% $1.0m
Ed Bowman
Independent Director8.8yrsUS$252.32k0.033% $1.2m
Margot Carter
Independent Director2.3yrsUS$284.38k0.0093% $326.6k
George Damiris
Independent Director3.4yrsUS$253.21k0.015% $535.8k
Martin Ellen
Independent Director6.7yrsUS$214.51k0.015% $536.9k
Michael Nicolais
Chairman of the Board0.8yrsUS$289.25k0.089% $3.1m
F. Barnett
Independent Director16.7yrsUS$367.10k0.045% $1.6m
Richard Stewart
Independent Director13.4yrsUS$320.19k0.033% $1.1m

4.7yrs

Average Tenure

63yo

Average Age

Experienced Board: EXP's board of directors are considered experienced (4.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$3.523b
  • Shares outstanding: 41.64m
  • 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 operates in five segments: Cement, Concrete and Aggregates, Gypsum Wallboard, Recycled Paperboard, and Oil and Gas Proppants. The company engages in mining of limestone for the manufacture, production, distribution, and sale of Portland cement and specialty oil well cement; grinding 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. It is also involved in the manufacture and sale of recycled paperboard for the gypsum wallboard industry and other paperboard converters, as well as provision of containerboard grade, lightweight packaging grade, and recycled industrial paperboard grade products. In addition, the company engages in the sale of ready-mix concrete; mining, extracting, production, and sale of aggregates, including crushed stones, sand, and gravel, as well as lightweight aggregates, such as expanded clays and shales; and mining and sale of sand used in hydraulic fracturing, such as frac sand. Its products are used in commercial and residential construction; public construction projects; projects to build, expand, and repair roads and highways; and oil and natural gas extraction. The company formerly known as Centex Construction Products, Inc. Eagle Materials Inc. was founded in 1963 and is headquartered in Dallas, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:23
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.