Eagle Materials (EXP) AI Stock Analysis

• Market Cap: $6.99B
• Dividend Yield: 0.47%
• Average Volume (3M): 422.22K
• Price to Earnings (P/E): 16.5
• 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): 3.39
• Shares Outstanding: 32,063,877
• 10 Day Avg. Volume: 359,938
• 30 Day Avg. Volume: 422,221
• 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: 1.13
• Enterprise Value/Revenue: 3.42
• Enterprise Value/Gross Profit: 11.79
• Enterprise Value/Ebitda: 9.87
• 1Y Price Target: $231.63
• Price Target Upside: 6.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $241.00 ▲(10.59% Upside)

The score is driven primarily by strong financial performance (profitability and growth with moderate leverage) and a constructive earnings call focused on liquidity, capital discipline, and Heavy Materials momentum, partly offset by weakening free cash flow trends. Technicals are relatively weak with the stock below key moving averages, while valuation is reasonable on P/E but offers limited support from a low dividend yield.

Positive Factors

Heavy Materials momentum

Sustained double-digit growth in Heavy Materials and record aggregates volumes indicate durable demand and successful commercial execution. This segment’s scale and diversification (cement, concrete, aggregates) provide stable, high-margin cash flows that can fund capex and shareholder returns over multiple cycles.

Strong margins and ROE

High gross and net margins with nearly 30% ROE reflect pricing power and efficient capital use across operating assets. These durable profitability metrics support reinvestment capacity, capital discipline, and the ability to sustain shareholder distributions even through cyclical revenue swings.

Improved liquidity and capital structure

The $750M senior notes and ample committed liquidity materially extend maturities and reduce near-term refinancing risk. With modest net leverage (~1.8x) and sizeable cash, the company has durable financial flexibility to fund modernization projects, weather cycles, and sustain buybacks/dividends.

Negative Factors

Declining free cash flow conversion

A notable drop in free cash flow growth reduces internal funding available for capex, debt paydown, or returns. Even with healthy operating cash to net income, weaker FCF conversion over time can constrain investment flexibility and increase reliance on external financing during multi-year project ramps.

Wallboard (Light Materials) weakness

Material declines in wallboard volumes, prices, and segment earnings signal structural softness in residential end markets. Given the segment’s size, prolonged weakness could depress consolidated margins and cash flow, forcing deeper cost actions or delaying returns while demand normalizes.

Elevated near-term capex and timing risk

Large modernization projects increase durable capital intensity through 2026–27 and create execution and timing risk. If projects face delays or cost overruns, free cash flow and project IRRs could be pressured, temporarily limiting the company’s ability to redeploy capital or accelerate shareholder distributions.

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 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

Strong profitability and very strong TTM revenue growth support the score, and leverage appears manageable with solid ROE. The main offset is weakening cash conversion, highlighted by a 22.5% decline in free cash flow growth TTM.

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: Negative
• Last Price: 217.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXP, the sentiment is Negative. The current price of 217.92 is below the 20-day moving average (MA) of 223.06, below the 50-day MA of 219.15, and below the 200-day MA of 220.89, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 39.20 is Neutral, neither overbought nor oversold. The STOCH value of 10.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EXP.

Eagle Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMC	77 Outperform	$39.60B	35.62	13.56%	0.67%	6.54%	32.48%
CPAC	74 Outperform	$1.01B	15.54	16.04%	5.46%	9.24%	24.01%
MLM	73 Outperform	$39.21B	34.25	11.63%	0.51%	1.99%	-41.08%
EXP	71 Outperform	$6.99B	16.50	30.10%	0.47%	1.50%	-4.44%
KNF	67 Neutral	$3.91B	26.77	9.71%	―	5.52%	-25.56%
USLM	63 Neutral	$3.51B	26.95	24.29%	0.19%	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.

The most recent analyst rating on (EXP) stock is a Hold with a $230.00 price target. To see the full list of analyst forecasts on Eagle Materials stock, see the EXP Stock Forecast page.