Stock in Focus: Eagle Materials Inc. (EXP)

Company Profile:

Eagle Materials Inc., through its subsidiaries, produces and supplies heavy construction materials, light building materials, and materials used for oil and natural gas extraction in the United States. The company engages in mining of limestone for the manufacture, production, distribution, and sale of Portland cement and specialty oil well cement; grinding 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. Its products are used in commercial and residential construction; public construction projects; projects to build, expand, and repair roads and highways; and oil and natural gas extraction. The company formerly known as Centex Construction Products, Inc. Eagle Materials Inc. was founded in 1963 and is headquartered in Dallas, Texas.

Recent News:

The Board of Directors of Eagle Materials Inc. (EXP) has declared a quarterly cash dividend of $0.10 per share, payable on November 8, 2019, to stockholders of record of its Common Stock at the close of business on October 4, 2019.

For the first quarter of fiscal 2020 ended June 30, 2019, the company reported cement revenue, including Joint Venture and intersegment revenue, was up 5% to $195.3 million, reflecting higher sales prices and improved sales volume.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

EXP’s strengths can be seen in its better growth and strong profitability compared with its peers. Its revenue has increased over recent several years. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, the MACD is trying to cross back up and the RSI(14) stands at 45.05 with positive bias. We rate Eagle Materials Inc. (EXP) a STRONG BUY.