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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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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 -19.14%, 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 -19.14% 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.

-19.55%

-0.01

34.44%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.58%

EBIT Growth (5y)

10.44%

EBIT to Interest (avg)

13.68

Debt to EBITDA (avg)

1.51

Net Debt to Equity (avg)

0.84

Sales to Capital Employed (avg)

0.87

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

3.94

EV to EBIT

12.80

EV to EBITDA

9.92

EV to Capital Employed

2.55

EV to Sales

3.15

PEG Ratio

Dividend Yield

15.62%

ROCE (Latest)

19.88%

ROE (Latest)

28.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 574.8 MM

CASH AND EQV(HY)

Highest at USD 454.03 MM

-11What is not working for the Company

ROCE(HY)

Lowest at 28.77%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,159.43

RAW MATERIAL COST(Y)

Grown by 9.46% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 92.51 %

INTEREST(Q)

Highest at USD 15.27 MM

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

Operating Cash Flow

Highest at USD 574.8 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 454.03 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

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

Interest

At USD 15.27 MM has Grown at 57%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 1,159.43

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 15.27 MM

in the last five periods and Increased by 57% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 92.51 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 9.46% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales