Eagle Materials (EXP) AI Stock Analysis

• Market Cap: $5.89B
• Dividend Yield: 0.47%
• Average Volume (3M): 482.26K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 1.18
• 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: 31,432,138
• 10 Day Avg. Volume: 408,788
• 30 Day Avg. Volume: 482,260
• 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: 1.26
• Enterprise Value/Revenue: 3.23
• Enterprise Value/Gross Profit: 11.41
• Enterprise Value/Ebitda: 9.53
• 1Y Price Target: $224.86
• Price Target Upside: 20.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 13
• Revenue Forecast (FY): $2.28B

• Rating: 70 Outperform
• Price Target: $205.00 ▲(9.49% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

EXP scores well on underlying profitability and operating cash generation, supported by constructive technicals. The score is held back by weakening near-term fundamentals (revenue/margins and free cash flow), increased leverage, and ongoing Wallboard softness highlighted on the earnings call; valuation is fair with minimal dividend support.

Positive Factors

Profitability & Cash Conversion

High trailing operating (~27%) and net (~19%) margins combined with operating cash flow exceeding two times net income indicate durable profitability and efficient cash conversion. This underpins the firm's ability to fund capex, return capital, and absorb cyclical downturns across the next several quarters.

Heavy Materials Momentum

Sustained double-digit growth in Heavy Materials, rising cement volumes and record aggregates sales demonstrate strong regional market share, utilization gains and pricing leverage. These operational strengths generate stable cash flow and partially offset softness elsewhere over a multi-quarter horizon.

Liquidity & Disciplined Capital Allocation

A strengthened maturity profile via a $750M 10-year issuance, substantial cash and committed liquidity, plus ongoing buybacks/dividends reflect disciplined allocation. This mix enhances financial flexibility to complete modernization projects and maintain shareholder returns across the coming quarters.

Negative Factors

Wallboard Segment Weakness

A 16% revenue decline and 25% drop in Light Materials operating earnings reflect persistent weakness in wallboard volumes and pricing. Given wallboard's sensitivity to residential activity, prolonged softness will pressure consolidated margins and earnings power for several quarters unless demand or pricing recovers.

Rising Leverage

Material increase in leverage reduces balance-sheet flexibility. Even with improved debt maturity, higher debt-to-equity and net leverage elevate refinance, interest-rate and covenant risks, constraining the firm's ability to absorb further demand shocks or accelerate buybacks over the medium term.

Elevated Capex and Free Cash Flow Pressure

Significant modernization capex and increased project spending reduce free cash flow conversion (TTM FCF below half of net income). Timing uncertainty on Laramie and Duke projects can delay returns, limiting funds available for debt reduction or shareholder payout over the next several quarters.

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 makes money by manufacturing and selling construction materials, with revenue primarily generated from product sales to contractors, builders, distributors, and other construction-industry customers. In its Heavy Materials segment, the company earns revenue from the sale of cement and related products, as well as aggregates and ready-mix concrete in certain markets; profitability in this segment is driven by shipment volumes, regional pricing, plant utilization, and input costs (e.g., energy, transportation, and raw materials). In its Light Materials segment, the company generates revenue mainly from selling gypsum wallboard and from producing and selling recycled paperboard that is used as a facing material for wallboard; earnings are influenced by wallboard demand (tied to residential construction and renovation activity), product pricing, manufacturing efficiency, and freight costs. Across segments, a significant factor in how Eagle Materials monetizes its operations is vertical integration and proximity-to-market logistics: the company typically produces heavy, bulky products in regional facilities and sells into surrounding markets where delivery economics and local supply-demand conditions affect realized pricing and margins. If available in a given period, the company may also have smaller revenue contributions from ancillary products and services associated with its core manufacturing and distribution operations; otherwise null.

Eagle Materials Financial Statement Overview

Summary

Above-average fundamentals supported by strong profitability (TTM operating margin ~27%, net margin ~19%) and solid operating cash generation (>2x net income). Offsetting this, TTM revenue declined ~9%, margins are down from prior-year highs, free cash flow weakened meaningfully, and leverage increased (debt-to-equity ~1.21 vs ~0.88), raising risk in a softer demand environment.

Income Statement

Profitability remains a key strength, with TTM (Trailing-Twelve-Months) operating and net margins still solid (about 27% and 19%, respectively), reflecting strong pricing and cost control for the industry. However, the near-term trajectory has weakened: TTM revenue declined about 9% versus the prior period and margins stepped down from the last annual report, suggesting a softer demand backdrop and some incremental pressure on earnings power.

Balance Sheet

The balance sheet is generally sound with strong returns on equity (high-20% to low-30% range recently), but leverage has moved up. Total debt increased materially in the latest TTM period, and debt-to-equity rose to ~1.21 versus ~0.88 last year, reducing flexibility if end markets weaken further.

Cash Flow

Cash generation is healthy, with operating cash flow running more than 2x net income in recent periods, indicating good cash conversion at the operating line. The main weakness is free cash flow consistency: TTM free cash flow is notably below net income (under 50%) and has declined sharply versus the prior period, pointing to higher capital spending or working-capital needs that are dampening cash available for buybacks, debt paydown, or dividends.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	2.30B	2.26B	2.26B	2.15B	1.86B	1.62B
Gross Profit	650.83M	673.14M	685.32M	639.27M	519.61M	408.36M
EBITDA	779.18M	792.63M	811.07M	762.74M	634.82M	597.68M
Net Income	430.13M	463.42M	477.64M	461.54M	374.25M	339.44M
Balance Sheet
Total Assets	3.84B	3.26B	2.95B	2.78B	2.58B	2.84B
Cash, Cash Equivalents and Short-Term Investments	419.00M	20.40M	34.92M	15.24M	19.42M	263.52M
Total Debt	1.80B	1.28B	1.12B	1.12B	974.60M	1.05B
Total Liabilities	2.35B	1.81B	1.64B	1.60B	1.45B	1.48B
Stockholders Equity	1.49B	1.46B	1.31B	1.19B	1.13B	1.36B
Cash Flow
Free Cash Flow	231.81M	353.27M	443.63M	431.58M	443.05M	589.14M
Operating Cash Flow	574.80M	548.55M	563.94M	541.73M	517.17M	643.07M
Investing Cash Flow	-492.95M	-370.13M	-175.36M	-268.59M	-74.12M	37.09M
Financing Cash Flow	305.98M	-192.94M	-368.90M	-277.31M	-692.15M	-530.29M

Eagle Materials Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 187.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 187.23 is below the 20-day moving average (MA) of 212.16, below the 50-day MA of 219.09, and below the 200-day MA of 219.51, indicating a bearish trend. The MACD of -10.00 indicates Positive momentum. The RSI at 27.05 is Positive, neither overbought nor oversold. The STOCH value of 6.36 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
USLM	75 Outperform	$3.64B	28.06	23.07%	0.19%	20.27%	31.94%
VMC	75 Outperform	$34.73B	34.81	12.79%	0.67%	6.54%	32.48%
MLM	72 Outperform	$35.30B	33.02	11.90%	0.51%	1.99%	-41.08%
EXP	70 Outperform	$5.89B	16.19	28.78%	0.47%	1.50%	-4.44%
KNF	65 Neutral	$4.57B	25.39	9.71%	―	5.52%	-25.56%
CPAC	64 Neutral	$937.31M	20.64	16.04%	5.46%	9.24%	24.01%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%