Eagle Materials Intrinsic Value – Eagle Materials Plunges Further Than Market: What Investors Should Know
January 4, 2024
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Eagle Materials ($NYSE:EXP) Inc. is a leading domestic manufacturer of building products and materials for residential and commercial construction. The US-based company has operations spanning from cement, concrete, wallboard and aggregates to gypsum, insulation and other construction materials. Recently, the company’s stock has seen a sharp decline, which has been more pronounced than the broader market. This raises questions among investors in the company as to why the stock has been falling faster than the rest of the market. Investors should be aware that Eagle Materials is exposed to the changing dynamics of the construction market which can act as a major catalyst for stock prices. With the US economy continuing to face headwinds due to the coronavirus pandemic, many companies in the construction industry have been adversely affected as demand for construction products and materials has weakened. Furthermore, the company’s reliance on cement and concrete products is especially vulnerable to changing market conditions.
Eagle Materials also faces significant competition in the US from both domestic and international players, which can put pressure on pricing power and profitability. These factors can be particularly damaging for a stock price over short periods of time as investors take a more cautious view of the stock. In conclusion, investors should be aware of the very real risks that Eagle Materials faces in the current market environment. The company’s exposure to the construction industry and price competition can both play a role in weighing on its stock price. As such, it is important for investors to understand these risks in order to make an informed decision about investing in Eagle Materials.
Stock Price
On Wednesday, Eagle Materials experienced a plunge in its stock price. The stock opened at $198.2 and closed at $196.5, leading to a 2.0% decrease from the previous closing price of $200.5. This marks a larger decline than the market as a whole, indicating that investors should take the time to research what is causing this dip. It is important to note that this dip could be indicative of a larger trend, or could be an isolated incident in the stock’s performance. Investors should look into factors such as the company’s financial statements, growth projections, competitive landscape, and other metrics in order to make an informed decision about whether to buy or sell Eagle Materials’ stock.
Finally, investors should also consider any news stories or reports that could be impacting the performance of Eagle Materials’ stock. It could be the case that the company has been experiencing negative press or a change in the industry is influencing its performance. Being aware of any outside factors can help investors make more strategic decisions about their investments in the company. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Eagle Materials. More…
| Total Revenues | Net Income | Net Margin |
| 2.21k | 488.94 | 22.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Eagle Materials. More…
| Operations | Investing | Financing |
| 554.12 | -187.4 | -403.54 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Eagle Materials. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.92k | 1.61k | 37.45 |
Key Ratios Snapshot
Some of the financial key ratios for Eagle Materials are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.0% | 26.2% | 30.2% |
| FCF Margin | ROE | ROA |
| 19.1% | 32.7% | 14.3% |
Analysis – Eagle Materials Intrinsic Value
At GoodWhale, we conducted an analysis of EAGLE MATERIALS in order to understand its wellbeing. After analyzing various components of the company, we have come to the conclusion that the fair value of EAGLE MATERIALS share is around $180.4. This was calculated through our proprietary Valuation Line, which is one of the industry’s leading valuation tools. Currently, EAGLE MATERIALS stock is traded at $196.5, a fair price that is overvalued by 8.9%. Our analysis provides valuable insights that investors can use to determine whether or not EAGLE MATERIALS stock is a good investment at this time. More…
Peers
The company has three plants in the United States and one in Canada. It is the only North American company that is vertically integrated, meaning that it manufactures all of the materials needed to produce cement. This gives the company an advantage over its competitors, who must purchase these materials from third-party suppliers.
– Wagners Holding Co Ltd ($ASX:WGN)
Wagner’s Holding Company Limited is a Hong Kong-based investment holding company principally engaged in the provision of management, financial and administrative services to its subsidiaries. The Company operates its businesses through four segments. Its Food segment is engaged in the production and sale of frozen foods, as well as the provision of food catering services. Its Property segment is engaged in the development and sale of properties, as well as the provision of property management services. Its Investment segment is engaged in the provision of loan financing and securities investment services. Finally, its Others segment is engaged in the provision of management and administrative services.
– Holcim Ltd ($LTS:0QKY)
Holcim Ltd is one of the world’s leading suppliers of cement and aggregates (crushed stone, gravel and sand) as well as further activities such as ready-mix concrete and asphalt including services. The company has around 60,000 employees in more than 70 countries.
– BBMG Corp ($SEHK:02009)
BBMG Corp is a leading cement and building materials producer in China. The company has a market cap of 24.71B as of 2022 and a Return on Equity of 7.81%. BBMG Corp is a leading cement and building materials producer in China. The company is engaged in the manufacture and sale of cement, concrete, and other building materials in China.
Summary
Eagle Materials Inc is a building materials manufacturing company that has recently seen its stock prices fall more steeply than the broader market. Investors need to understand the risk factors associated with this stock and analyze the current and potential performance of the company. These factors include the economic environment, competitive landscape, industry trends, customer demand, pricing dynamics, and the company’s financials. Investors should also consider the potential for future growth, dividend payments, and other corporate actions.
