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Eagle Materials Inc (EXP) Stock

Eagle Materials Inc Stock Details, Movements and Public Alerts

Eagle Materials (EXP): The $10B Building Materials Powerhouse Riding Housing and Infrastructure Tailwinds

When America builds, Eagle Materials profits. CEO Michael Haack leads the only publicly-traded U.S. company focused purely on cement and gypsum wallboard—the unglamorous but essential building blocks of every home, office, and highway. Eagle's 70+ manufacturing plants across Texas, Colorado, Kansas, and the Midwest produce 5.5 million tons of cement annually and supply 25% of U.S. wallboard demand. The vertically integrated model (quarry to finished product) generates 30%+ EBITDA margins impervious to Asian imports—try shipping cement from China profitably. At 13x EBITDA ($320/share), Eagle trades at discount to specialty building materials peers despite superior positioning: Sun Belt population growth drives housing starts, the IIJA/IRA fund $500B+ infrastructure projects, and domestic cement capacity constraints create pricing power for years. The risk is construction cyclicality—housing downturns crush volume—but Eagle's balance sheet (1.5x net debt) and geographic positioning mitigate severity.

52-Week Range

$272.34 - $191.70

-18.14% from high · +16.29% from low

Avg Daily Volume

427,643

100-day average

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

16.55

Near market average

Forward P/E

14.45

Earnings expected to grow

PEG Ratio

2.51

Potentially overvalued

Price to Book

4.70

EV/EBITDA

10.97

EPS (TTM)

$13.60

Price to Sales

3.17

Beta

1.37

Similar volatility to market

How is EXP valued relative to its earnings and growth?
Eagle Materials Inc trades at a P/E ratio of 16.55, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 14.45 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.51 indicates a premium valuation even accounting for growth.
What is EXP's risk profile compared to the market?
With a beta of 1.37, Eagle Materials Inc is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 4.70 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

19.40%

Operating Margin

27.90%

EBITDA

$749.33M

Return on Equity

30.10%

Return on Assets

11.20%

Revenue Growth (YoY)

2.50%

Earnings Growth (YoY)

-0.70%

How profitable and efficient is EXP's business model?
Eagle Materials Inc achieves a profit margin of 19.40%, meaning it retains $19.40 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 27.90% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 30.10% and ROA at 11.20%, the company generates strong returns on invested capital.
What are EXP's recent growth trends?
Eagle Materials Inc's revenue grew by 2.50% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 0.70% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against BUILDING MATERIALS industry averages for proper context.

Dividend Information

Dividend Per Share

$1.00

Dividend Yield

0.45%

Ex-Dividend Date

Dec 15, 2025

Dividend Date

Jan 12, 2026

What dividend income can investors expect from EXP?
Eagle Materials Inc offers a dividend yield of 0.45%, paying $1.00 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Dec 15, 2025.
How reliable is EXP's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Eagle Materials Inc pays $1.00 per share in dividends against earnings of $13.60 per share, resulting in a payout ratio of 7.35%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for Jan 12, 2026.

Company Size & Market

Market Cap

$7.3B

Revenue (TTM)

$2.30B

Revenue/Share (TTM)

$70.14

Shares Outstanding

32.06M

Book Value/Share

$47.73

Asset Type

Common Stock

What is EXP's market capitalization and position?
Eagle Materials Inc has a market capitalization of $7.3B, classifying it as a mid-cap stock ($2B-$10B). Mid-caps often represent companies in their growth phase, offering higher growth potential than large-caps but with more stability than small-caps. They can be attractive takeover targets and may become tomorrow's large-caps. With 32.06M shares outstanding, the company's ownership is relatively concentrated. As a participant in the BUILDING MATERIALS industry, it competes with other firms in this sector.
How does EXP's price compare to its book value?
Eagle Materials Inc's book value per share is $47.73, while the current stock price is $222.93, resulting in a price-to-book (P/B) ratio of 4.67. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$243.90

9.41% upside potential

Analyst Recommendations

Strong Buy

0

Buy

3

Hold

8

Sell

0

Strong Sell

0

How reliable are analyst predictions for EXP?
11 analysts cover EXP with 27% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $243.90 implies 9.4% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on EXP?
Current analyst recommendations:03 Buy, 8 Hold, 00The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:26 AM

Technical Indicators

RSI (14-day)

59.76

Neutral

50-Day Moving Average

$213.67

4.33% above MA-50

200-Day Moving Average

$246.64

-9.61% below MA-200

MACD Line

3.72

MACD Signal

1.11

MACD Histogram

2.61

Bullish

What does EXP's RSI value tell investors?
The RSI (Relative Strength Index) for EXP is currently 59.76, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being above the 50-day moving average, this confirms bullish conditions.
How should traders interpret EXP's MACD and moving average crossovers?
MACD analysis shows the MACD line at 3.72 above the signal line at 1.11, with histogram at 2.61. This bullish crossover suggests upward momentum is building. The wide histogram confirms strong momentum. The 50-day MA ($213.67) is below the 200-day MA ($246.64), forming a death cross pattern that often warns of extended weakness. Price is currently between the MAs, suggesting transition.

Indicators last updated: Jul 15, 2025, 12:32 AM

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Eagle Materials (EXP) Stock Analysis 2025: Complete Investment Guide

America's Essential Building Blocks

Eagle Materials occupies a unique niche: the only publicly-traded U.S. company deriving majority revenue from cement production. CEO Michael Haack (promoted 2020, 25-year Eagle veteran) oversees operations that begin at company-owned limestone quarries and end with delivery of cement and wallboard to construction sites. The vertical integration creates competitive advantages impossible to replicate: 5.5 million tons of annual cement capacity, regional monopolies in markets like Austin and Denver, and logistics economics preventing import competition. Cement costs $100+/ton to produce but $150+/ton to ship from overseas—domestic producers enjoy natural protection. Eagle's wallboard segment (Gypsum Specialties division) supplies 25% of U.S. interior wall needs, benefiting from housing construction that generates 10-12 wallboard sheets per home.

Business Model & Competitive Moat

Eagle's moat is geographic, logistical, and regulatory. Cement plants require $500M+ investment, 3-5 year permitting, and proximity to limestone deposits—barriers preventing new entrants. Once built, cement travels economically only 150-200 miles from plants, creating regional oligopolies where 2-3 producers control local markets. Eagle's Texas plants (largest state by cement consumption) serve Austin, Dallas, Houston, and San Antonio with minimal competition. Environmental permitting for new cement capacity takes 5-7 years, effectively freezing the competitive landscape. The wallboard segment benefits from similar dynamics: gypsum mines, high capital costs, and logistics economics favor regional incumbents. Eagle's 30%+ EBITDA margins reflect pricing power from supply constraints rather than temporary demand surges.

Financial Performance

  • •Revenue: $2.3B (FY2024), growing 8-10% annually; cement 55%, wallboard 35%, aggregates 10%
  • •Profitability: 30%+ EBITDA margins, 20%+ ROIC; best-in-class among building materials
  • •Free Cash Flow: $500M+ annually; funds buybacks and selective capacity additions
  • •Balance Sheet: 1.5x net debt/EBITDA; $1B+ acquisition capacity while maintaining investment grade
  • •Capital Allocation: 50%+ to buybacks ($400M annually), 30% reinvestment, 20% dividends

Growth Catalysts

  • •Infrastructure Spending: $500B+ IIJA/IRA funding highways, bridges, airports through 2030; cement demand +3-5% annually
  • •Sun Belt Migration: Texas, Colorado, Arizona leading population growth; Eagle's footprint captures construction demand
  • •Housing Recovery: Single-family starts recovering from 2023 lows; each home requires 100+ tons cement and 10-12k sq ft wallboard
  • •Capacity Constraints: No new U.S. cement capacity until 2027+; pricing power extends for years
  • •M&A Opportunities: Fragmented aggregates/concrete industry offers bolt-on acquisition targets

Risks & Challenges

  • •Construction Cyclicality: Housing downturns crush volume; 2008-2009 saw 40% cement demand decline
  • •Interest Rate Sensitivity: Higher mortgage rates reduce housing starts; commercial construction slows
  • •Energy Cost Exposure: Cement production energy-intensive; natural gas/electricity spikes compress margins 200-300 bps
  • •Weather Dependence: Cement pours decline in extreme cold/heat; quarterly volatility from weather
  • •Environmental Regulation: Cement production generates 8% of global CO2; carbon pricing risk long-term

Competitive Landscape

Eagle competes with cement producers Martin Marietta (MLM, $36B market cap), Vulcan Materials (VMC, $35B), Summit Materials (SUM, $9B), and international players LafargeHolcim and CRH. Martin Marietta and Vulcan focus more on aggregates (crusite, gravel) than cement, while Eagle's cement concentration provides differentiated exposure. In wallboard, competitors include USG (Knauf subsidiary), National Gypsum, and CertainTeed. Eagle's advantage is pure-play building materials focus: unlike diversified industrial peers, 100% of earnings benefit from construction activity. Michael Haack's capital allocation discipline (3-4% annual share count reduction) compounds value better than peers pursuing costly M&A.

Who Is This Stock Suitable For?

Perfect For

  • ✓Cyclical investors seeking construction exposure through quality operator
  • ✓Infrastructure bulls betting on IIJA/IRA spending cycle
  • ✓Sun Belt real estate investors wanting materials exposure
  • ✓Buyback-focused investors (3-4% annual share count reduction)

Less Suitable For

  • ✗Risk-averse investors uncomfortable with construction cyclicality
  • ✗Income investors seeking 2%+ dividend yields
  • ✗ESG investors concerned about cement's carbon footprint
  • ✗Short-term traders (stock moves with housing data releases)

Investment Thesis

Eagle Materials offers leveraged exposure to U.S. construction through irreplaceable cement and wallboard assets. The 13x EBITDA valuation reflects cyclical caution, but multiple tailwinds support multi-year demand: $500B infrastructure spending, Sun Belt migration, housing recovery from 2023 lows, and domestic cement capacity constraints. CEO Michael Haack's operational excellence (30%+ EBITDA margins) and disciplined buybacks (3-4% annual share reduction) compound shareholder value through cycles.

The risk is cyclicality—housing downturns crush building materials demand—but Eagle's Sun Belt positioning and infrastructure exposure reduce severity versus national peers. At $320 (13x EBITDA), the stock prices in modest growth; any acceleration in housing starts or infrastructure spending drives 20%+ upside. Suitable for portfolios accepting cyclical volatility for quality building materials exposure with infrastructure tailwinds.

Conclusion

Eagle Materials is a BUY for investors seeking construction cycle exposure through a quality operator with infrastructure tailwinds. The 13x EBITDA offers reasonable entry for multi-year positions, while 30%+ margins and disciplined buybacks provide stability. Position appropriately for cyclical volatility; suitable for diversified industrial allocations betting on U.S. construction activity.
Bull Case
$420 (31% upside) - Housing recovery accelerates, infrastructure spending ramps, multiple re-rates to 15x EBITDA
Base Case
$365 (14% upside) - Steady 5-7% growth, margins stable, buybacks compound value
Bear Case
$250 (22% downside) - Housing recession, construction slowdown, multiple compresses to 10x EBITDA

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