Eagle Materials Inc Common Stock (EXP)

FairStock Score: 50/100 — MIXED

Key Financials

Strengths

• Generates $156 million in annual free cash flow (2.4% yield on market cap)
• High return on equity of 28.8% demonstrating efficient capital deployment

Concerns

• Trades significantly above Graham Number ($119) with negative 77% margin of safety—limited downside protection
• Revenue declining at 0.4% year-over-year signals potential demand weakness or market share loss

AI Analysis

Eagle Materials Inc Common Stock is a small-cap basic materials company valued at $6.6 billion. The business generates $2.3 billion in annual revenue with a 4.5% net margin and $156 million in free cash flow. From a quality standpoint, Eagle shows Altman Z-Score of 2.7 in the grey zone and strong 29% ROE. On valuation, the stock is reasonably priced at 15.8x earnings, with trades above its Graham Number with a negative 77% margin. Growth dynamics show revenue growing at -0.4% and profit growth of -13.9%. Our composite FairStock Score of 50/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $156 million in annual free cash flow (2.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the basic materials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer