TacticScaleWhat Eagle Materials Does & How It Makes Money (EXP)
Updated October 2026 · reflects Eagle Materials's latest reported financials
US maker of cement, concrete, aggregates, wallboard and paperboard. It makes money by mining its own raw materials, such as limestone and gypsum, turning them into cement, concrete, aggregates, wallboard and paperboard, and selling these products to builders of homes, commercial buildings and public infrastructure like roads and highways.
How Eagle Materials makes money
It makes money by mining its own raw materials, such as limestone and gypsum, turning them into cement, concrete, aggregates, wallboard and paperboard, and selling these products to builders of homes, commercial buildings and public infrastructure like roads and highways.
What Eagle Materials does
Eagle Materials Inc. is a Dallas-based US producer of heavy construction products and light building materials. It reports four segments: Cement, Concrete and Aggregates, Gypsum Wallboard, and Recycled Paperboard. The company mines limestone to make portland cement, including Portland limestone cement, and also grinds and sells slag. It sells ready-mix concrete and aggregates such as crushed stone, sand and gravel. It mines gypsum to make wallboard for interior walls and ceilings, and makes recycled paperboard for wallboard makers and other paperboard converters, along with containerboard and lightweight packaging grades. Its products go into residential and commercial construction, public projects that build, expand and repair roads and highways, and repair and remodel work. That makes demand closely tied to US housing, commercial building and infrastructure spending. Founded in 1963, the company was known as Centex Construction Products, Inc. until it took the Eagle Materials name in January 2004.
Products & services
- Portland cement (including Portland limestone cement)
- Ready-mix concrete
- Aggregates (crushed stone, sand, gravel)
- Gypsum wallboard
- Recycled paperboard
- Slag cement
What is Eagle Materials worth?
On an owner-earnings DCF, Eagle Materials's most-likely value is about $97 versus a recent price near $165 (41% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$62) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
⚠ High leverage — net debt is 8.1× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
⚠ Capital-intensive — this business reinvests heavily, so free cash flow runs well below its earnings. Fair value here is built on free cash flow, which understates owner earnings for reinvestment-heavy companies — read it as conservative.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
Related companies
United States Lime & Minerals (USLM) · Martin Marietta Materials (MLM) · Vulcan Materials (VMC) · CRH (CRH)