Eagle Materials (EXP) AI Stock Analysis

• Market Cap: $7.54B
• Dividend Yield: 0.43%
• Average Volume (3M): 324.45K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 1.28
• Revenue Growth: 0.88%
• EPS Growth: -4.17%
• Country: US
• Employees: 2,500
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 3.91
• Shares Outstanding: 32,449,300
• 10 Day Avg. Volume: 387,941
• 30 Day Avg. Volume: 324,447
• 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: 1.05
• Enterprise Value/Revenue: 3.46
• Enterprise Value/Gross Profit: 11.79
• Enterprise Value/Ebitda: 10.12
• 1Y Price Target: $233.60
• Price Target Upside: 0.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 76 Outperform
• Price Target: $262.00 ▲(12.80% Upside)

Eagle Materials shows strong financial performance and promising growth prospects, particularly in aggregates and cement volumes. The stock is reasonably valued, and technical indicators suggest a positive trend. However, challenges such as declining free cash flow growth, increased leverage, and subdued wallboard demand need to be monitored.

Positive Factors

Revenue Growth

The company's ability to achieve record revenue growth indicates strong market demand and effective sales strategies, enhancing its competitive position in the construction materials industry.

Sustainability Initiatives

Achieving sustainability targets ahead of schedule demonstrates Eagle's commitment to environmental responsibility, potentially improving its brand image and compliance with future regulations.

Strong Aggregates and Cement Volumes

Significant growth in aggregates and cement volumes, driven by acquisitions, suggests robust demand and strategic expansion, positioning Eagle for sustained long-term growth.

Negative Factors

Decline in Earnings Per Share

A decline in earnings per share indicates potential profitability challenges, which could affect investor confidence and the company's ability to reinvest in growth opportunities.

Challenges in Wallboard Market

Subdued demand in the wallboard market, driven by housing affordability constraints, may limit revenue growth in this segment, impacting overall business performance.

Higher Operating Costs

Increased operating costs, particularly in the Heavy Materials sector, could pressure profit margins, reducing financial flexibility and impacting long-term profitability.

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 through the sale of its core products, including gypsum wallboard, cement, and concrete. The company benefits from a robust revenue model that relies on both direct sales to construction companies and partnerships with distributors and retailers. The primary revenue streams include the sale of gypsum wallboard, which is in high demand due to ongoing residential and commercial construction projects, and cement, which is essential for various construction applications. Additionally, Eagle Materials may capitalize on market trends by adjusting pricing strategies based on supply and demand dynamics. The company's earnings are also supported by its strategic acquisitions and investments in new production facilities, which enhance its capacity and market reach.

Eagle Materials Financial Statement Overview

Summary

Eagle Materials shows strong profitability with robust margins and a healthy balance sheet. However, the decline in free cash flow growth and increased leverage are areas of concern.

Income Statement

Eagle Materials demonstrates strong profitability with consistent gross and net profit margins. The TTM gross profit margin is 29.38%, and the net profit margin is 19.81%, indicating efficient cost management. Revenue growth has been steady, with a slight increase in the TTM period. The EBIT and EBITDA margins are robust at 27.18% and 34.24%, respectively, reflecting solid operational performance. However, the slight decline in margins compared to previous years suggests potential cost pressures.

Balance Sheet

The company's balance sheet shows a healthy debt-to-equity ratio of 0.51 in the TTM, indicating moderate leverage. Return on equity is strong at 30.83%, showcasing effective use of equity to generate profits. The equity ratio is stable, reflecting a balanced capital structure. However, the increase in total debt over recent periods could pose a risk if not managed carefully.

Cash Flow

Operating cash flow remains strong, with a coverage ratio of 2.06 in the TTM, indicating sufficient cash generation to cover net income. However, free cash flow growth has declined by 11.03% in the TTM, which could impact future investment capabilities. The free cash flow to net income ratio is 0.57, suggesting room for improvement in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.29B	2.26B	2.26B	2.15B	1.86B	1.62B
Gross Profit	671.87M	673.14M	685.32M	639.27M	519.61M	408.36M
EBITDA	782.85M	792.63M	811.07M	762.74M	634.82M	597.68M
Net Income	452.94M	463.42M	477.64M	461.54M	374.25M	339.44M
Balance Sheet
Total Assets	3.40B	3.26B	2.95B	2.78B	2.58B	2.84B
Cash, Cash Equivalents and Short-Term Investments	59.74M	20.40M	34.92M	15.24M	19.42M	263.52M
Total Debt	1.35B	1.28B	1.12B	1.12B	974.60M	1.05B
Total Liabilities	1.91B	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	314.30M	353.27M	443.63M	431.58M	443.05M	589.14M
Operating Cash Flow	552.55M	548.55M	563.94M	541.73M	517.17M	643.07M
Investing Cash Flow	-413.10M	-370.13M	-175.36M	-268.59M	-74.12M	37.09M
Financing Cash Flow	-126.25M	-192.94M	-368.90M	-277.31M	-692.15M	-530.29M

Eagle Materials Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 232.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 232.26 is above the 20-day moving average (MA) of 231.48, above the 50-day MA of 228.72, and above the 200-day MA of 228.50, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 51.83 is Neutral, neither overbought nor oversold. The STOCH value of 22.85 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	78 Outperform	$625.93M	10.39	16.39%	7.21%	3.95%	27.28%
EXP	76 Outperform	$7.54B	17.11	31.87%	0.43%	0.88%	-4.17%
VMC	76 Outperform	$39.54B	41.84	11.31%	0.64%	0.19%	4.33%
MLM	76 Outperform	$37.01B	34.00	11.76%	0.52%	1.02%	-45.31%
USLM	74 Outperform	$3.72B	29.76	22.24%	0.18%	21.97%	44.87%
KNF	63 Neutral	$4.17B	27.36	10.49%	―	2.64%	-22.49%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Eagle Materials Corporate Events

Eagle Materials Highlights Strategic Operations in September 2025

Eagle Materials Inc. has prepared presentation materials for investor presentations starting in September 2025. The company highlights its strategic operations with limited vertical integration and self-sufficiency in raw materials. The announcement underscores the importance of its main product lines, Portland cement and gypsum wallboard, in U.S. construction, emphasizing their roles in infrastructure and residential projects. The presentation also outlines potential risks affecting future performance, including economic conditions, fluctuations in demand, and changes in energy and raw material costs.

The most recent analyst rating on (EXP) stock is a Buy with a $263.00 price target. To see the full list of analyst forecasts on Eagle Materials stock, see the EXP Stock Forecast page.

Eagle Materials Announces Dual Listing on NYSE Texas

On August 14, 2025, Eagle Materials Inc. announced the dual listing of its common stock on NYSE Texas, a newly launched electronic equities exchange in Dallas, Texas. This strategic move, effective August 15, 2025, positions Eagle Materials as a Founding Member of the NYSE Texas Exchange, reinforcing its commitment to Texas and enhancing its market presence while maintaining its primary listing on the New York Stock Exchange.

The most recent analyst rating on (EXP) stock is a Hold with a $280.00 price target. To see the full list of analyst forecasts on Eagle Materials stock, see the EXP Stock Forecast page.

Eagle Materials Announces Board Changes at Annual Meeting

On August 1, 2025, Eagle Materials Inc. received a resignation letter from director Richard R. Stewart, effective after the certification of the election results at the Annual Meeting of Stockholders on August 4, 2025. His resignation was in accordance with the company’s director retirement policy and not due to any disagreements. During the meeting, George J. Damiris, Martin M. Ellen, and David Rush were elected to the Board of Directors to serve until 2028. Stockholders also approved executive compensation, a proposal to declassify the Board of Directors, and the appointment of Ernst & Young LLP as independent auditors for the fiscal year ending March 31, 2026.

The most recent analyst rating on (EXP) stock is a Hold with a $280.00 price target. To see the full list of analyst forecasts on Eagle Materials stock, see the EXP Stock Forecast page.