Cement, Hydraulic
Eagle Materials Inc., through its subsidiaries, manufactures and sells heavy construction materials and light building materials in the United States. It operates in four segments: Cement, Concrete and Aggregates, Gypsum Wallboard, and Recycled Paperboard. The company engages in the mining of limestone for the manufacture, production, distribution, and sale of Portland cement; grinding and sale of slag; and mining of gypsum for the manufacture and sale of gypsum wallboards used to finish the interior walls and ceilings in residential, commercial, and industrial structures. It also manufactures and sells recycled paperboard to gypsum wallboard industry and other paperboard converters, as well as containerboard and lightweight packaging grades. In addition, the company engages in the sale of ready-mix concrete; and mining, extracting, production, and sale of aggregates, including crushed stones, sand, and gravel. Its products are used in commercial and residential construction; public construction projects; and projects to build, expand, and repair roads and highways. The company was formerly known as Centex Construction Products, Inc. and changed its name to Eagle Materials, Inc. in January 2004. Eagle Materials Inc. was founded in 1963 and is headquartered in Dallas, Texas.
Sector
Discounted Cash Flow Valuation of Eagle Materials Inc
Growth
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Discount
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Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $443.6M | $516.3M | $594.2M | $676.5M | $761.6M | $847.8M | $933M | $1.015B | $1.091B | $1.16B | $1.218B | $12.18B |
DCF | $448.9M | $449.3M | $444.8M | $435.4M | $421.5M | $403.4M | $381.6M | $356.8M | $329.7M | $301M | $3.01B | |
Value | $6.982B |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 03-2016 | 03-2017 | 03-2018 | 03-2019 | 03-2020 | 03-2021 | 03-2022 | 03-2023 | 03-2024 | TTM |
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Net Margin | 13% | 16% | 19% | 4.9% | 4.9% | 21% | 20% | 21% | 21% | 21% |
ROA | 14% | 16% | 16% | 17% | 13% | 16% | 21% | 24% | 24% | 24% |
ROE | 15% | 16% | 18% | 5.7% | 7.3% | 25% | 33% | 39% | 37% | 37% |
The average Net Margin over the past 5 years is +15.58%.
The trend of Net Margin over the past 5 years is +3.71%.
The average ROA over the past 5 years is +19.19%.
The trend of ROA over the past 5 years is +2.23%.
The average ROE over the past 5 years is +24.41%.
The trend of ROE over the past 5 years is +7.34%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 03-2016 | 03-2017 | 03-2018 | 03-2019 | 03-2020 | 03-2021 | 03-2022 | 03-2023 | 03-2024 | TTM |
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Debt FCF | 2.93 | 2.82 | 3.05 | 4.04 | 5.89 | 1.72 | 2.50 | 2.57 | 2.51 | 2.51 |
Debt Equity | 0.50 | 0.64 | 0.44 | 0.61 | 1.63 | 0.75 | 0.98 | 0.94 | 0.85 | 0.85 |
MIN | ||||||||||
Graham Stability | - | - | 100% | 34% | 41% | 100% | 100% | 100% | 100% | 34% |
The Debt/FCF trailing twelve month is 2.51.
The trend of Debt/FCF over the past 5 years is -0.48.
Graham’s Stability measure stands at 0.34.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 03-2017 | 03-2019 | 03-2021 | 03-2023 | Trend |
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Revenue | 9.3% | 10% | 12% | 5.2% | 0.53% |
Net Income | 13% | 47% | 12% | 3.5% | 8% |
Stockholders Equity | 1.2% | 1.6% | -1.3% | 10% | -0.29% |
FCF | 7.1% | 20% | -9% | 2.8% | -3.4% |
The Revenue CAGR over the past 5 years is +10.15%.
The trend of Revenue growth rate over the past 5 years is +0.53%.
The Earnings CAGR over the past 5 years is +47.31%.
The trend of Earnings growth rate over the past 5 years is +8.02%.
The Equity CAGR over the past 5 years is +1.59%.
The trend of Equity growth rate over the past 5 years is -0.29%.
The FCF CAGR over the past 5 years is +19.58%.
The trend of FCF growth rate over the past 5 years is -3.44%.