Eagle Materials Inc

EXP

Cement, Hydraulic

Mkt Cap

$8.085B

PE

16.93

Debt

$1.113B

Cash

$34.93M

EV

$9.162B

FCF

$443.6M

Market Cap

$8.085B

P/E Ratio

16.93

Debt

$1.113B

Cash

$34.93M

EV

$9.162B

FCF

$443.6M

Charts data: {"Earnings":[{"time":"2015-03-30","value":186853000},{"time":"2016-03-30","value":152592000},{"time":"2017-03-30","value":198219000},{"time":"2018-03-30","value":256632000},{"time":"2019-03-30","value":68860000},{"time":"2020-03-30","value":70894000},{"time":"2021-03-30","value":339444000},{"time":"2022-03-30","value":374247000},{"time":"2023-03-30","value":461540000},{"time":"2024-03-30","value":477639000}],"Sales":[{"time":"2015-03-30","value":1066368000},{"time":"2016-03-30","value":1143492000},{"time":"2017-03-30","value":1211220000},{"time":"2018-03-30","value":1386520000},{"time":"2019-03-30","value":1393241000},{"time":"2020-03-30","value":1450814000},{"time":"2021-03-30","value":1622642000},{"time":"2022-03-30","value":1861522000},{"time":"2023-03-30","value":2148069000},{"time":"2024-03-30","value":2259297000}],"Net Margins":[{"time":"2015-03-30","value":0.17522375015004202},{"time":"2016-03-30","value":0.13344387192914337},{"time":"2017-03-30","value":0.16365235052261357},{"time":"2018-03-30","value":0.18509073075036783},{"time":"2019-03-30","value":0.04942432788010115},{"time":"2020-03-30","value":0.04886498200320648},{"time":"2021-03-30","value":0.2091921693139953},{"time":"2022-03-30","value":0.20104355468267365},{"time":"2023-03-30","value":0.21486274416697043},{"time":"2024-03-30","value":0.21141045201228523}],"Assets":[{"time":"2015-03-30","value":1882591000},{"time":"2016-03-30","value":1883635000},{"time":"2017-03-30","value":2247124000},{"time":"2018-03-30","value":2368003000},{"time":"2019-03-30","value":2169163000},{"time":"2020-03-30","value":2961020000},{"time":"2021-03-30","value":2838681000},{"time":"2022-03-30","value":2579652000},{"time":"2023-03-30","value":2781002000},{"time":"2024-03-30","value":2947019000}],"Stockholders Equity":[{"time":"2015-03-30","value":1010593000},{"time":"2016-03-30","value":1040531000},{"time":"2017-03-30","value":1203450000},{"time":"2018-03-30","value":1417690000},{"time":"2019-03-30","value":1209487000},{"time":"2020-03-30","value":967843000},{"time":"2021-03-30","value":1358990000},{"time":"2022-03-30","value":1133556000},{"time":"2023-03-30","value":1185694000},{"time":"2024-03-30","value":1308535000}],"ROE":[{"time":"2015-03-30","value":0.18489441347802726},{"time":"2016-03-30","value":0.14664820173546006},{"time":"2017-03-30","value":0.16470896173501184},{"time":"2018-03-30","value":0.18102123877575493},{"time":"2019-03-30","value":0.05693322871597628},{"time":"2020-03-30","value":0.07324948364559128},{"time":"2021-03-30","value":0.24977667238169524},{"time":"2022-03-30","value":0.330153075807459},{"time":"2023-03-30","value":0.3892572619917112},{"time":"2024-03-30","value":0.3650181309632528}],"ROA":[{"time":"2015-03-30","value":0.16057709826510377},{"time":"2016-03-30","value":0.14494740223026223},{"time":"2017-03-30","value":0.15867838178934496},{"time":"2018-03-30","value":0.16139126512930937},{"time":"2019-03-30","value":0.16832898219267062},{"time":"2020-03-30","value":0.12625615497362394},{"time":"2021-03-30","value":0.1570433592221176},{"time":"2022-03-30","value":0.21402189132487637},{"time":"2023-03-30","value":0.24262478056470294},{"time":"2024-03-30","value":0.24326344689328436}]}

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

10-Q
9/30/23
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10-K
3/31/18
10-Q
12/31/17

DCF

Discounted Cash Flow Valuation of Eagle Materials Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

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

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 14%

Earnings Stability 28%

Competitiveness and MOAT

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.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	03-2016	03-2017	03-2018	03-2019	03-2020	03-2021	03-2022	03-2023	03-2024	TTM
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%

What is the average Net Margin?

The average Net Margin over the past 5 years is +15.58%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +3.71%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +19.19%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +2.23%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +24.41%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +7.34%.

Safety & Stabiliy

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.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	03-2016	03-2017	03-2018	03-2019	03-2020	03-2021	03-2022	03-2023	03-2024	TTM
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%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 2.51.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.48.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.34.

Growth

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.

Earnings growth has been increasing in past years.

Years	03-2017	03-2019	03-2021	03-2023	Trend
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%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +10.15%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.53%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +47.31%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +8.02%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +1.59%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -0.29%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +19.58%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -3.44%.