Eagle Materials Inc. [NYSE:EXP]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For Eagle Materials Inc. [EXP], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in March. On average, stock market experts give EXP an Outperform rating. The average 12-month price forecast for this stock is $86.50, with the high estimate being $104.00, the low estimate being $75.00 and the median estimate amounting to $85.00. This is compared to its latest closing price of $67.95.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Eagle Materials Inc. [EXP] is sitting at 1.62. This is compared to 1 month ago, when its average rating was 1.62.
For the quarter ending in Sep-18 Eagle Materials Inc. [EXP] generated $0.38 billion in sales. That’s 5.81% lower than the average estimate of $0.41 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Wed 30 Jan (In 19 Days).
Fundamental Analysis of Eagle Materials Inc. [EXP]
Now let’s turn to look at profitability: with a current Operating Margin for Eagle Materials Inc. [EXP] sitting at +21.46 and its Gross Margin at +24.43, this company’s Net Margin is now 19.50%. These measurements indicate that Eagle Materials Inc. [EXP] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 15.15, and its Return on Invested Capital has reached 9.60%. Its Return on Equity is 19.58, and its Return on Assets is 11.12. These metrics all suggest that Eagle Materials Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Eagle Materials Inc. [EXP] has generated a Total Debt to Total Equity ratio of 43.80. Similarly, its Total Debt to Total Capital is 30.46, while its Total Debt to Total Assets stands at 26.22. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 43.80, and its Long-Term Debt to Total Capital is 30.46. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 8.69 and its Total Debt to EBITDA Value is 1.51. The Enterprise Value to Sales for this firm is now 2.52, and its Total Debt to Enterprise Value stands at 0.11. Eagle Materials Inc. [EXP] has a Price to Book Ratio of 3.51, a Price to Cash Flow Ratio of 14.85 and P/E Ratio of 11.72. These metrics all suggest that Eagle Materials Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Eagle Materials Inc. [EXP] earns $630,236 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 9.77 and its Total Asset Turnover is 0.60. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.12 and its Current Ratio is 2.56. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Eagle Materials Inc. [EXP] has 47.22M shares outstanding, amounting to a total market cap of $3.18B. Its stock price has been found in the range of 57.00 to 122.49. At its current price, it has moved by -45.00% from its 52-week high, and it has moved 18.19% from its 52-week low.
This stock’s Beta value is currently 1.24, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 57.54. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Eagle Materials Inc. [EXP] a Reliable Buy?
Shares of Eagle Materials Inc. [EXP], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.