Eagle Materials (EXP) AI Stock Analysis

• Market Cap: $7.20B
• Dividend Yield: 0.44%
• Average Volume (3M): 429.30K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 1.16
• Revenue Growth: 1.50%
• EPS Growth: -4.44%
• Country: US
• Employees: 2,500
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 4.40
• Shares Outstanding: 32,063,877
• 10 Day Avg. Volume: 303,147
• 30 Day Avg. Volume: 429,300
• PEG Ratio: 13.71
• Price to Book (P/B): 5.09
• Price to Sales (P/S): 3.28
• P/FCF Ratio: 20.97
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 3.85
• Enterprise Value/Gross Profit: 13.26
• Enterprise Value/Ebitda: 11.11
• 1Y Price Target: $235.00
• Price Target Upside: 3.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 13.62
• Revenue Forecast (FY): $2.30B

• Rating: 77 Outperform
• Price Target: $252.00 ▲(11.14% Upside)

Eagle Materials' strong financial performance and strategic corporate events are key strengths, contributing to a solid stock score. However, mixed technical indicators and valuation metrics, along with challenges highlighted in the earnings call, moderate the overall score.

Positive Factors

Revenue Growth

Record revenue indicates strong market demand and effective sales strategies, supporting long-term growth and competitive positioning.

Strategic Investments

Modernization efforts are set to reduce production costs significantly, enhancing operational efficiency and long-term profitability.

Liquidity Position

Improved liquidity from the notes offering enhances financial flexibility, supporting strategic initiatives and debt management.

Negative Factors

Decline in Wallboard Sales

Decreased Wallboard sales impact revenue and profitability, posing a challenge to maintaining growth in the Light Materials sector.

Impact of High Interest Rates

High interest rates affect residential construction, reducing demand for Wallboard and potentially impacting future sales.

EPS Decline

A decline in EPS reflects reduced profitability, which could affect investor confidence and the company's ability to reinvest in growth.

Eagle Materials Business Overview & Revenue Model

Company Description

Eagle Materials Inc. (EXP) is a leading provider of building materials and construction products in the United States. The company operates primarily in the sectors of cement, concrete, gypsum wallboard, and aggregates. Eagle Materials is known for its high-quality products that serve the construction and infrastructure markets, catering to residential, commercial, and industrial sectors. With a strong focus on sustainability and innovation, the company aims to meet the growing demand for building materials while minimizing its environmental impact.

How the Company Makes Money

Eagle Materials generates revenue primarily through the sale of cement, concrete, wallboard, and aggregates. The company's cement division is a key revenue driver, as it supplies cement to various construction projects across the U.S. The concrete segment contributes by providing ready-mixed concrete for residential and commercial applications. Additionally, the wallboard division caters to the growing demand in the housing market, while the aggregates segment supplies essential materials for construction. The company benefits from strategic partnerships with contractors and builders, which enhances its market presence and ensures steady demand for its products. Factors such as construction activity, housing market trends, and infrastructure development initiatives also significantly influence the company’s earnings.

Eagle Materials Financial Statement Overview

Summary

Eagle Materials demonstrates strong revenue growth and profitability, supported by a solid balance sheet with moderate leverage. The decline in free cash flow growth is a potential risk, but overall, the company is financially stable.

Income Statement

Eagle Materials shows strong profitability with a consistent gross profit margin around 29% and a net profit margin of approximately 19.4% in the TTM. The company has maintained a stable EBIT margin, and the revenue growth rate is impressive at 66.9% TTM, indicating robust sales growth. However, there is a slight decline in margins compared to previous periods, which could be a point of concern if it continues.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.86, indicating a balanced approach to leverage. The return on equity is strong at 29.88%, showcasing efficient use of equity capital. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing stability.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 22.5% TTM, which is a concern. The operating cash flow to net income ratio is healthy at 2.12, suggesting good cash generation relative to earnings. However, the free cash flow to net income ratio has decreased, indicating potential challenges in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.30B	2.26B	2.26B	2.15B	1.86B	1.62B
Gross Profit	667.74M	673.14M	685.32M	639.27M	519.61M	408.36M
EBITDA	797.43M	792.63M	811.07M	762.74M	634.82M	597.68M
Net Income	446.80M	463.42M	477.64M	461.54M	374.25M	339.44M
Balance Sheet
Total Assets	3.41B	3.26B	2.95B	2.78B	2.58B	2.84B
Cash, Cash Equivalents and Short-Term Investments	35.03M	20.40M	34.92M	15.24M	19.42M	263.52M
Total Debt	1.33B	1.28B	1.12B	1.12B	974.60M	1.05B
Total Liabilities	1.87B	1.81B	1.64B	1.60B	1.45B	1.48B
Stockholders Equity	1.54B	1.46B	1.31B	1.19B	1.13B	1.36B
Cash Flow
Free Cash Flow	243.57M	353.27M	443.63M	431.58M	443.05M	589.14M
Operating Cash Flow	523.88M	548.55M	563.94M	541.73M	517.17M	643.07M
Investing Cash Flow	-430.28M	-370.13M	-175.36M	-268.59M	-74.12M	37.09M
Financing Cash Flow	-152.48M	-192.94M	-368.90M	-277.31M	-692.15M	-530.29M

Eagle Materials Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 226.74
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• 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 Positive. The current price of 226.74 is above the 20-day moving average (MA) of 214.63, above the 50-day MA of 221.48, and above the 200-day MA of 220.77, indicating a bullish trend. The MACD of 1.72 indicates Negative momentum. The RSI at 59.05 is Neutral, neither overbought nor oversold. The STOCH value of 47.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EXP.

Eagle Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPAC	79 Outperform	$603.95M	9.28	16.04%	8.10%	9.24%	24.01%
EXP	77 Outperform	$7.20B	16.58	30.10%	0.44%	1.50%	-4.44%
VMC	77 Outperform	$39.21B	35.27	13.56%	0.65%	6.54%	32.48%
MLM	73 Outperform	$37.60B	32.84	11.63%	0.51%	1.99%	-41.08%
KNF	67 Neutral	$3.75B	25.42	9.71%	―	5.52%	-25.56%
USLM	63 Neutral	$3.64B	27.92	24.29%	0.18%	20.27%	31.94%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Eagle Materials Corporate Events

Eagle Materials Closes $750M Senior Notes Offering

On November 6, 2025, Eagle Materials Inc. entered into an Underwriting Agreement with major financial institutions to offer $750 million in 5.000% Senior Notes due 2036. The offering closed on November 13, 2025, with net proceeds of approximately $734.9 million, which the company plans to use to repay outstanding borrowings and for general corporate purposes. This financial maneuver strengthens Eagle Materials’ liquidity position and aligns with its strategic financial management, potentially impacting its market operations and stakeholder interests.