Eagle Materials Inc (EXP) stock analysis

P/E below its 5-year median

Eagle Materials's P/E of 15.3 is below its own 5-year median of 15.5.

P/E below the industry

Eagle Materials's P/E of 15.3 is below the Materials median of 21.9.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B above the industry

Eagle Materials's price-to-book of 3.68 is above the Materials median of 2.43.

Trading below fair value

The share price of $184.24 is below our fair value estimate of $197.12.

Margin of safety under 20%

The price is 6.5% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 2.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 1.8% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -15.7% over the last twelve months, against a 5-year average of 4.5% a year.

Growing slower than the industry

Revenue grew 1.6% over the last twelve months; the Materials median is 2.3%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin slipping

Gross margin was 25.8% over the last twelve months, against 29.0% a year earlier.

Return on equity over 15%

Return on equity was 24.5% over the last twelve months and averaged 34.1% over five years.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Eagle Materials's return on equity of 24.5% is above the Materials median of 5.1%.

Earnings grew over 5 years

Net income grew 4.5% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 16.1% over the last twelve months, against a 5-year average of 20.3%.

Net margin above the industry

Eagle Materials's net margin of 16.1% is above the Materials median of 2.8%.

High debt

Debt is 114% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 74.2% five years ago to 114%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 36.3% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 3.29 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.71; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Eagle Materials paid dividends worth 0.5% of the share price over the last twelve months.

Yield below Treasuries

The 0.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Eagle Materials yields 0.5%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 8.3% of net income.

Covered by free cash flow

Dividends take 20.2% of free cash flow.