CluenexEagle Materials EXP
Eagle Materials scores average on business quality (5.5 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Eagle Materials does
Eagle Materials manufactures heavy construction materials, focusing on Portland cement and concrete products sold to regional contractors and builders. Revenue depends heavily on local infrastructure and residential demand. The company is actively managing capacity and capital return programs while navigating softening price targets from analysts like Citigroup and DA Davidson.
- What it does best
Eagle turns capital into returns exceptionally well, posting a return on equity of 26.9% that outpaces peer Martin Marietta at 23.1%. This advantage stems from strategically located cement plants near high-growth domestic markets, giving them localized pricing power that distant rivals cannot easily undercut.
- The main risk
Citigroup and DA Davidson recently trimmed price targets, signaling downside risk if regional construction volumes stall further. With net debt climbing to $1.5 billion against free cash flow dropping to $171 million, prolonged demand weakness would constrain buyback capacity.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at a strong 23.3% supported by disciplined cost control, while free cash flow margin sits at 7.4%. Profitability remains resilient despite heavy capital investments, showing efficient margin retention at current scale.
Geography anchors its moat, locking in regional builders who face prohibitive freight costs when sourcing cement elsewhere. An operating margin in the top decile of its sector protects this pricing power against regional competitors.
Revenue growth crawled to 2.1% reaching $2.3 billion, showing a clear deceleration compared to historical annual climbs. This top-line stagnation reflects cooling momentum across its core heavy construction segments.
Debt-to-equity sits near 1.2 with interest coverage at 10x, leaving manageable debt service costs. Free cash flow slipped to $171 million from prior highs due to elevated capital expenditures of $461 million, turning financial footing slightly softer.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
2 sold $1.7M outside pre-planned sales.
Our sealed record on EXP
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Eagle Materials scores average on the Cluenex quality check (5.5 of 10), measured against its own industry. Profitability is fair, moat fair, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: 2 sold $1.7M outside pre-planned sales.
Oct 22, 2026.
See EXP today
- Today's verdict on EXP, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Eagle Materials (EXP)”, https://cluenex.com/stocks/exp/, data as of Oct 10, 2026.