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Eagle Materials

EXP
35
Construction Materials · Basic Materials
Winston Score
35
Winston is serious
Below-average fundamentals — multiple weak pillars.

Eagle Materials makes basic building products used in construction across the United States. Its two main product lines are wallboard (the drywall panels used inside homes and offices) and cement (the key ingredient in concrete for roads, bridges, and buildings). The company sells mostly to homebuilders, contractors, and infrastructure projects, making it closely tied to the health of the U.S. construction industry.

Eagle Materials earns money by selling these products directly to customers, with pricing and volume driven by construction activity. The company operates entirely in the United States, with plants spread across multiple regions, and generates roughly $2 billion in annual revenue. Its competitive edge comes from owning low-cost quarries and plants near key markets, which keeps transportation costs down and makes it hard for distant rivals to undercut on price. The biggest risk the company faces is a slowdown in housing starts or infrastructure spending, which would directly reduce demand for both cement and wallboard.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-1.4% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-11.1% YoY

YoY Growth Rate

Earnings declining

Insider Activity

1.1%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$20M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Eagle Materials's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
22.2%
Thin — 22.2% gross margin
Operating Margin
18.1%
Healthy — 18.1% operating margin
ROCE
3.2%
Weak — 3.2% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+1.4%
Nearly flat sales (1.4% YoY)
EPS YoY
-6.0%
Earnings shrinking (-6.0% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
134%
Turns 134% of profit into real cash
FCF Margin
10.1%
Modest free cash flow (10.1%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
0.85
Moderate — manageable debt (0.85)
Interest Cover
8.15x
Comfortably covers interest (8.1x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
15.5x
no trend
Fair value — P/E 15.5

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
-1.3
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield
0.45%
no trend
Small dividend — 0.45% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
+0.0%
no trend
Dividend flat

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