Downside: Eagle Materials Inc. (EXP) Overvalued by -2.28%

Publicly-traded company Eagle Materials Inc. (NYSE:EXP) had a closing price of $94.71 yesterday. Meanwhile, the average 12-month price target from Wall Street analysts is currently $92.60, this means that the stock is overpriced by -2.28%. In the past 52 weeks the company’s stock price has moved within the range of $57.00 to $97.10.

This particular stock’s 5-day moving average is 92.80, its 20-day moving average is 92.23 and its 100-day moving average is 87.51. Eagle Materials Inc. (EXP) currently has 41.57M shares outstanding, which means that its market capitalization is $3.94B.

The Details: Eagle Materials Inc. (EXP) Financial Health

There are several indicators we can take into consideration when thinking about a stock’s financial health. For example, we can look at a company’s profit margin, which tells us how much of the company’s total sales revenue was kept in earnings. We calculate this figure by dividing net income by net sales revenue. EXP currently has a profit margin of 3.10%.

Looking at a company’s operating margin is also helpful. This number tells us how much profit is kept after considering depreciation and operating expenses. Eagle Materials Inc. (EXP) has an operating margin of 3.80%.

Return on Assets, which is expressed as a percentage, tells us how well a public company is using its assets to turn a profit. The larger the percentage, the better it is At the moment, Eagle Materials Inc. Return on Assets is 1.90%.

What Does Wall Street Say about Company?

When selecting potential stocks to buy, many investors want to find out what Wall Street professionals are thinking about the company beforehand – like what the average analyst rating is. At the moment, the average analyst rating for EXP is Overweight. Out of 13 total analysts who were surveyed, 0 rated it a sell, 0 rated it a underweight, 0 rated it an overweight, 7 rated it hold, and 6 rated it a Buy.

Three months ago, on the other hand, the average analyst rating for Eagle Materials Inc. (EXP) was a Overweight – from a survey of 14 analysts. Of the analysts who provided ratings, 6 rated the company a Hold, 1 rated it a Sell, 0 rated it an overweight, 0 rated it an underweight, and 7 rated it a Buy.

Understanding Profitability at Eagle Materials Inc. (EXP)

A good way of assessing a public company’s profitability is by looking at its Earnings per Share (EPS). In the most recent financial results released by Eagle Materials Inc., for the quarter ending on 12/2019, the company posted EPS of 1.51. The average estimate of Wall Street analysts had projected 1.62.

Wall Street analysts, on average, are forecasting the company’s EPS to be 1.51, compared to 1.24 reported in the same quarter last year. When it comes to net revenue, the average estimate from a total of 9 analysts is 348.91M.