Eagle Materials Inc. (Exp): A bull case theory

We came across one bullish thesis on Eagle Materials Inc. (Exp) on substance by reason. In this article we will summarize the thesis of the bulls via Exp. The Eagle Materials Inc. (Exp) share was traded at 239.93 USD from May 16^TH. According to Yahoo Finance, 17.16 and 15.04 after the tracking of Exp and striker 17.16 and 15.04.

A long, winding concrete pump car that navigates in a busy city road.

Eagle Materials (Exp) represents a high -ranking position based on the unique structural advantages of the concrete industry. The decisive characteristic of concrete-like weight power is uneconomical to send it over long distances and to create a highly localized, competitive company. This leads to natural regional monopolies in which producers such as Eagle dominate their markets. In the past two decades, Eagle Materials has integrated strategically acquired assets in rapidly growing US geographies and not only in curves of key markets, but also vertically integrating operations to the lowest cost-effective manufacturer in every area that it serves. In addition to concrete, the company produces the plaster wallboard (sheetrock) and continues to diversify its product base and benefits from overlapping demand drivers under construction.

Financially, Eagle is exceptional: despite a return on capital of ~ 30% and robust net rods with a return of ~ 30%. The balance sheet is healthy, with enough cash and profit power, to pay his debts in less than three years. The discipline of management shows a encouraging sign for value investors through consistent share purchases, especially for stocks. In times of industry stress, it enables Eagle’s financial strength to acquire needy competitors, which further consolidates its market management. The strong competitive position of the company, the operational discipline and the attractive assessment make it a convincing investment. If eagle materials aroused their interest, you can also appreciate our view of the view Vulcan materials– An important player in the building materials room.

Eagle Materials Inc. (Exp) is not on our list of 30 most popular stocks under hedge funds. According to our database, 36 hedge fund portfolios at the end of the fourth quarter, which was 31 years old in the previous quarter, held Exp. While we recognize the risk and potential of EXP as an investment, our conviction is convinced that some AI shares have a higher promise to provide higher returns and do so within a shorter time frame. If you are looking for a AI share that is more promising than Exp, but less than five times the profit, read our report on the Cheapest AI share.