Eagle Materials, Inc. (EXP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Smart Sand, Inc.

Northwest Pipe Co.

United States Lime & Minerals, Inc.

Smith-Midland Corp.

Vulcan Materials Co.

Eagle Materials, Inc.

Summit Materials, Inc.

Martin Marietta Materials, Inc.

Knife River Corp.

Atlas Energy Solutions, Inc.

Why is Eagle Materials, Inc. ?

High Management Efficiency with a high ROCE of 22.90%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 13.68

Healthy long term growth as Operating profit has grown by an annual rate 15.57%

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 552.54 MM
ROCE(HY) Lowest at 31.87%
INVENTORY TURNOVER RATIO(HY) Lowest at 4.22 times

With ROCE of 22.37%, it has a fair valuation with a 2.90 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -26.49%, its profits have fallen by -3% ; the PEG ratio of the company is 14.1

Below par performance in long term as well as near term

Along with generating -26.49% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Eagle Materials, Inc. should be less than 10%
Overall Portfolio exposure to Building Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Building Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Eagle Materials, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Eagle Materials, Inc.

-26.49%

-0.05

34.49%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.68%

EBIT Growth (5y)

15.57%

EBIT to Interest (avg)

13.68

Debt to EBITDA (avg)

1.51

Net Debt to Equity (avg)

0.84

Sales to Capital Employed (avg)

0.90

Tax Ratio

21.65%

Dividend Payout Ratio

7.26%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

22.90%

ROE (avg)

33.07%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.50

EV to EBIT

12.97

EV to EBITDA

10.25

EV to Capital Employed

2.90

EV to Sales

3.44

PEG Ratio

14.14

Dividend Yield

54.08%

ROCE (Latest)

22.37%

ROE (Latest)

31.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

NET SALES(Q)

Highest at USD 634.69 MM

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 552.54 MM

ROCE(HY)

Lowest at 31.87%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.22 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.38 times

INTEREST(Q)

Highest at USD 11.87 MM

Here's what is working for Eagle Materials, Inc.

Net Sales

Highest at USD 634.69 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Here's what is not working for Eagle Materials, Inc.

Operating Cash Flow

Lowest at USD 552.54 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Inventory Turnover Ratio

Lowest at 4.22 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at USD 11.87 MM

in the last five periods and Increased by 9.66% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debtors Turnover Ratio

Lowest at 8.38 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio