Eagle Materials Inc (EXP) Stock Analysis
Verdict: WATCH (do not buy)
CapEx spikes and 3 quarterly misses depress EXP despite attractive EV/EBITDA of 9.54x versus peer median of 14.19x.
Investment score: 45/100
Analysis as of
Is Eagle Materials Inc stock worth reviewing? The TradeMates thesis
The model places Eagle Materials in HOLD territory. While EXP offers strong underlying margins (22.19% operating) and a discount to heavy building material peers, recent earnings misses and negative analyst revision momentum outweigh near-term upside.
7-factor investment score
- Valuation: 65/100 (weight 20%)
- Financial Health: 55/100 (weight 15%)
- Technical Momentum: 25/100 (weight 15%)
- Earnings Quality: 30/100 (weight 15%)
- Insider Sentiment: 35/100 (weight 10%)
- Analyst Consensus: 50/100 (weight 10%)
- Risk-Adjusted Return: 45/100 (weight 15%)
Eagle Materials Inc opportunities and risks
What speaks for EXP
- Discounted EV/EBITDA multiple relative to heavy materials peers
What speaks against EXP
- Surging capital expenditures compressing free cash flow generation
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| EXP | 14.1x | 2.4x | 9.5x | 27.0% | 17.3% | 3.1% |
| MLM | 12.2x | 4.5x | 17.1x | 28.2% | 36.8% | 2.7% |
| VMC | 28.7x | 3.9x | 14.2x | 27.4% | 13.8% | 3.2% |
| USLM | 24.3x | 8.7x | 15.3x | 48.5% | 35.7% | 2.8% |
| KNF | 22.6x | 1.0x | 10.9x | 17.9% | 4.2% | 1.4% |
| Peer median | 23.5x | 4.2x | 14.7x | 27.8% | 24.7% | 2.8% |
Frequently asked questions about Eagle Materials Inc (EXP)
Is EXP stock a good investment?
The TradeMates model rates Eagle Materials Inc as WATCH (do not buy) with an investment score of 45/100. The model places Eagle Materials in HOLD territory. While EXP offers strong underlying margins (22.19% operating) and a discount to heavy building material peers, recent earnings misses and negative analyst revision momentum outweigh near-term upside. This is algorithmic model output, not personal investment advice.
Is EXP stock a buy?
The TradeMates model verdict for EXP is WATCH (do not buy) with an investment score of 45/100. Treat this as a model signal to review, not a personal buy recommendation.