📊 EXP Key Takeaways
Is Eagle Materials Inc. (EXP) a Good Investment?
Eagle Materials demonstrates solid fundamentals with exceptional operating margins (23.5%), strong profitability (18.4% net margin), outstanding liquidity (3.66x current ratio), and robust ROE (28.7%). However, the company faces margin compression with net income declining 8.5% YoY despite 2.1% revenue growth, signaling cost pressures that require resolution to justify higher valuations.
Eagle Materials shows strong underlying fundamentals, with high operating and net margins, solid returns on equity, and healthy free cash flow generation despite a nearly flat revenue base. The balance sheet is liquid and interest coverage is strong, but elevated leverage and limited top-line growth keep the outlook from being more aggressive.
Eagle Materials Inc. Key Strengths (EXP)
- Exceptional operating margins (23.5%) and net profitability (18.4%) with strong ROE of 28.7%
- Outstanding liquidity and financial stability (Current Ratio 3.66x, Quick Ratio 2.09x) with fortress-level interest coverage of 11.7x
- Solid free cash flow generation of $197.4M with disciplined capital deployment and manageable debt service
- Strong profitability profile with 29.9% gross margin, 32.3% operating margin, and 19.9% net margin
- Healthy financial position supported by 4.27x current ratio, $419.00M cash, and 17.0x interest coverage
- Positive cash generation with $512.03M operating cash flow and $217.35M free cash flow
EXP Stock Risks: Eagle Materials Inc. Investment Risks
- Net income and EPS declining (-8.5% and -4.4% YoY) despite revenue growth, indicating significant margin compression and rising cost pressures
- Anemic revenue growth of 2.1% in a cyclical cement industry with limited organic growth momentum
- Moderate leverage ratio (1.21x Debt/Equity) constrains financial flexibility if industry conditions deteriorate further
- Revenue growth is essentially flat at +0.1% YoY, which raises questions about near-term expansion
- Leverage is meaningful with long-term debt of $1.75B and debt-to-equity of 1.17x
- Capital intensity is high, with $294.68M of capex reducing free cash flow flexibility
Key Metrics to Watch
- Gross margin and operating margin trends - whether cost inflation stabilizes or accelerates
- Revenue growth trajectory - organic growth acceleration critical to demonstrate market demand
- Free cash flow sustainability - ability to maintain positive FCF generation amid cost headwinds
- Revenue and volume growth across cement and related businesses
- Free cash flow after capital expenditures and debt reduction progress
Eagle Materials Inc. (EXP) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.66x current ratio provides a solid financial cushion.
EXP Profit Margin, ROE & Profitability Analysis
EXP vs Materials Sector: How Eagle Materials Inc. Compares
How Eagle Materials Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Eagle Materials Inc. Stock Overvalued? EXP Valuation Analysis 2026
Based on fundamental analysis, Eagle Materials Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Eagle Materials Inc. Balance Sheet: EXP Debt, Cash & Liquidity
EXP Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Eagle Materials Inc.'s revenue has grown significantly by 24% over the 5-year period, indicating strong business expansion. The most recent EPS of $13.61 reflects profitable operations.
EXP Revenue Growth, EPS Growth & YoY Performance
EXP Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $556.0M | $102.9M | $3.22 |
| Q2 2026 | $623.6M | $123.4M | $4.23 |
| Q1 2026 | $608.7M | $123.4M | $3.76 |
| Q3 2024 | $558.0M | $119.6M | $3.56 |
| Q2 2024 | $622.2M | $120.8M | $4.26 |
| Q1 2024 | $601.5M | $120.8M | $3.40 |
| Q3 2023 | $462.9M | $95.3M | $2.53 |
| Q2 2023 | $605.1M | $105.0M | $3.72 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Eagle Materials Inc. Dividends, Buybacks & Capital Allocation
EXP SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Eagle Materials Inc. (CIK: 0000918646)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EXP
What is the AI rating for EXP?
Eagle Materials Inc. (EXP) has a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EXP's key strengths?
Claude: Exceptional operating margins (23.5%) and net profitability (18.4%) with strong ROE of 28.7%. Outstanding liquidity and financial stability (Current Ratio 3.66x, Quick Ratio 2.09x) with fortress-level interest coverage of 11.7x. ChatGPT: Strong profitability profile with 29.9% gross margin, 32.3% operating margin, and 19.9% net margin. Healthy financial position supported by 4.27x current ratio, $419.00M cash, and 17.0x interest coverage.
What are the risks of investing in EXP?
Claude: Net income and EPS declining (-8.5% and -4.4% YoY) despite revenue growth, indicating significant margin compression and rising cost pressures. Anemic revenue growth of 2.1% in a cyclical cement industry with limited organic growth momentum. ChatGPT: Revenue growth is essentially flat at +0.1% YoY, which raises questions about near-term expansion. Leverage is meaningful with long-term debt of $1.75B and debt-to-equity of 1.17x.
What is EXP's revenue and growth?
Eagle Materials Inc. reported revenue of $2.3B.
Does EXP pay dividends?
Eagle Materials Inc. pays dividends, with $32.4M distributed to shareholders in the trailing twelve months.
Where can I find EXP SEC filings?
Official SEC filings for Eagle Materials Inc. (CIK: 0000918646) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EXP's EPS?
Eagle Materials Inc. has a diluted EPS of $13.16.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is EXP's fundamental grade?
Based on our AI fundamental analysis in June 2026, Eagle Materials Inc. has a A grade with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is EXP stock overvalued or undervalued?
Valuation metrics for EXP: ROE of 28.7% (sector avg: 14%), net margin of 18.4% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
What is EXP's AI grade for 2026?
Our dual AI analysis gives Eagle Materials Inc. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is EXP's free cash flow?
Eagle Materials Inc.'s operating cash flow is $614.2M, with capital expenditures of $416.7M. FCF margin is 8.6%.
How does EXP compare to other Materials stocks?
Vs Materials sector averages: Net margin 18.4% (avg: 10%), ROE 28.7% (avg: 14%), current ratio 3.66 (avg: 1.6).
Why is EXP's return on equity (ROE) so high?
Eagle Materials Inc. has a return on equity of 28.7%, significantly above the Materials sector average of 14%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 18.4% net margin.