Eagle Materials (EXP) AI Stock Analysis

• Market Cap: $7.06B
• Dividend Yield: 0.47%
• Average Volume (3M): 432.77K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 1.45
• Revenue Growth: 0.64%
• EPS Growth: -1.15%
• Country: US
• Employees: 2,500
• Sector: Basic Materials
• Sector Strength: 52
• Industry: Construction Materials
• EPS (TTM): 13.99
• Shares Outstanding: 33,287,643
• 10 Day Avg. Volume: 499,668
• 30 Day Avg. Volume: 432,768
• PEG Ratio: 4.94
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.20
• Price to Cash Flow (P/CF): 15.10
• P/FCF Ratio: 14.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $265.00
• Price Target Upside: 28.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

Eagle Materials shows a strong financial position and strategic growth initiatives, contributing positively to the stock score. However, the bearish technical trend and low dividend yield moderate the overall assessment. The earnings call provided a balanced view, with significant progress in strategic areas but also facing operational challenges.

Positive Factors

Financial Performance

Management remains confident that its low-cost profile and structural changes in wallboard and cement supply should allow it to generate good returns and see less volatility through a cycle.

Tariffs

Tariffs could be a net positive for wallboard and cement.

Negative Factors

Natural Gas Pricing

There are some near-term risks due to a cold winter raising natural gas pricing and potential impacts on volume this quarter.

Weather Impact

Harsh weather has affected cement shipments to start the year.

Eagle Materials Business Overview & Revenue Model

Company Description

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. It also manufactures and sells recycled paperboard to gypsum wallboard industry and other paperboard converters, as well as containerboard and lightweight packaging grades. In addition, the company engages in the sale of ready-mix concrete; and mining, extracting, production, and sale of aggregates, including crushed stones, sand, and gravel. Its products are used in commercial and residential construction; public construction projects; and projects to build, expand, and repair roads and highways. The company was formerly known as Centex Construction Products, Inc. and changed its name to Eagle Materials, Inc. in January 2004. Eagle Materials Inc. was founded in 1963 and is headquartered in Dallas, Texas.

How the Company Makes Money

Eagle Materials Inc. generates revenue primarily through the sale of its building materials products. In the Heavy Materials sector, revenue is derived from the production and sale of cement, concrete, and aggregates to construction and infrastructure projects. The Light Materials sector contributes to the company's earnings through the manufacture and sale of gypsum wallboard and recycled paperboard, which are essential components in residential and commercial construction. The company's revenue streams are bolstered by strategic partnerships with construction firms and infrastructure developers, as well as a strong distribution network that ensures product availability across various regions. Additionally, Eagle Materials benefits from long-term supply agreements and contracts that provide a stable income base.

Eagle Materials Financial Statement Overview

Summary

Eagle Materials exhibits a solid financial position with strong revenue and profit growth, robust cash flow generation, and a stable balance sheet. While profitability and cash flow metrics are commendable, careful management of leverage and operational expenses is advisable to maintain financial health.

Income Statement

Eagle Materials shows strong revenue growth with a significant increase from previous years. The gross profit margin is healthy, indicating efficient production and cost management. Net profit margin and EBIT margin are both robust, reflecting strong profitability and operational efficiency. Revenue growth rate is impressive, suggesting an upward trajectory. However, a slight decline in EBIT margin from the previous annual report suggests monitoring of operational expenses is necessary.

Balance Sheet

The company's balance sheet reveals a solid equity base, with a decent equity ratio that suggests financial stability. However, the debt-to-equity ratio is moderately high, indicating reliance on debt financing. Return on equity is strong, reflecting effective use of shareholders' capital. Overall, the balance sheet is stable but suggests a need to manage leverage cautiously.

Cash Flow

Eagle Materials demonstrates strong operating cash flow relative to net income, indicating good cash generation capability. The free cash flow to net income ratio is also favorable, suggesting efficient capital expenditure management. However, the free cash flow growth rate has slightly decreased, which could imply potential challenges in future cash flow improvements.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.27B	2.26B	2.15B	1.86B	1.62B	1.45B
	Gross Profit
688.21M	685.32M	639.27M	519.61M	408.36M	331.26M
	EBIT
460.91M	625.53M	485.21M	514.41M	287.47M	194.89M
	EBITDA
788.82M	811.07M	724.19M	601.62M	597.68M	407.67M
	Net Income Common Stockholders
474.04M	477.64M	461.54M	374.25M	339.44M	70.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.42M	34.92M	15.24M	19.42M	263.52M	118.65M
	Total Assets
1.01B	2.95B	2.78B	2.58B	2.84B	2.96B
	Total Debt
303.00M	1.12B	1.10B	974.60M	1.01B	1.63B
	Net Debt
301.58M	1.09B	1.08B	955.18M	751.44M	1.51B
	Total Liabilities
568.41M	1.64B	1.60B	1.45B	1.48B	1.99B
	Stockholders Equity
445.36M	1.31B	1.19B	1.13B	1.36B	967.84M
Cash Flow		Free Cash Flow
369.74M	443.63M	431.58M	443.05M	589.14M	267.18M
	Operating Cash Flow
549.17M	563.94M	541.73M	517.17M	643.07M	399.30M
	Investing Cash Flow
-204.31M	-175.36M	-268.59M	-74.12M	37.09M	-831.08M
	Financing Cash Flow
-362.60M	-368.90M	-277.31M	-692.15M	-530.29M	541.83M

Eagle Materials Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 205.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXP, the sentiment is Neutral. The current price of 205.92 is below the 20-day moving average (MA) of 220.58, below the 50-day MA of 230.39, and below the 200-day MA of 256.15, indicating a neutral trend. The MACD of -1.75 indicates Negative momentum. The RSI at 52.99 is Neutral, neither overbought nor oversold. The STOCH value of 56.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EXP.

Eagle Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNF	77 Outperform	$4.80B	23.14	14.71%	―	2.42%	10.21%
EXP	72 Outperform	$7.06B	15.16	33.51%	0.47%	0.64%	-1.15%
VMC	72 Outperform	$30.19B	33.36	11.79%	0.83%	-4.68%	-1.73%
JHX	70 Outperform	$8.90B	20.17	21.77%	―	1.26%	-17.38%
CX	66 Neutral	$8.07B	8.61	8.39%	1.63%	-5.07%	417.07%
MLM	63 Neutral	$28.04B	14.20	22.83%	0.69%	-3.56%	70.93%
Sector *	47 Neutral	$2.43B	-2.83	-21.77%	3.74%	4.16%	-28.83%

Eagle Materials Corporate Events

Eagle Materials Expands with Bullskin Stone Acquisition

Eagle Materials Inc. has announced a definitive agreement to acquire Bullskin Stone & Lime, LLC, a pure-play aggregates business based in Western Pennsylvania, for $152.5 million. This acquisition aligns with Eagle’s growth strategy by expanding its network of aggregates quarries and cement plants, enhancing its presence in the Pittsburgh and Western Pennsylvania markets.