Eagle Materials' Financial Prospects: A ROE Perspective

Eagle Materials Inc.'s (NYSE:EXP) stock has risen by 5.8% over the past three months. The company's ROE (Return on Equity) is 30%, significantly higher than the industry average of 14%. However, its net income growth has been lower than the industry average of 17% over the past five years, which is a concern. ROE is a useful tool to assess a company's ability to generate returns on shareholder investments and its success in turning those investments into profits.

Eagle Materials Inc. (NYSE: EXP) has seen its stock rise by 5.8% over the past three months, driven by strong earnings and increased institutional interest. The company reported a quarterly earnings per share of $3.76, exceeding estimates, and had a revenue of $634.69 million for the same period [1]. The company's Return on Equity (ROE) stood at 30%, significantly higher than the industry average of 14%, indicating its ability to generate returns on shareholder investments [1].

Despite the impressive ROE, Eagle Materials' net income growth has been lower than the industry average of 17% over the past five years, which is a concern for investors. However, the company's ROE is a useful tool to assess its profitability and success in turning shareholder investments into profits.

Citigroup Inc. grew its position in Eagle Materials by 31.8% in the first quarter, owning approximately 0.09% of the company worth $6,699,000 as of its most recent SEC filing [1]. Other institutional investors and hedge funds have also increased their stakes in the company, reflecting strong institutional interest. For example, Parallel Advisors LLC lifted its stake by 26.8%, and Private Trust Co. NA increased its stake by 39.0% during the first quarter [1].

Eagle Materials also announced a quarterly dividend of $0.25 per share, scheduled for payment on October 16th, with a dividend yield of 0.4% [1]. The company's dividend payout ratio (DPR) is currently 7.36%, indicating a conservative dividend policy.

Analysts have set new price targets for Eagle Materials. DA Davidson reduced their price target to $245.00, while Stephens set a target of $255.00, and Stifel Nicolaus set a target of $241.00 [1]. Wall Street Zen raised shares of Eagle Materials from a "sell" rating to a "hold" rating, while Citigroup cut their target price to $230.00 [1]. Seven investment analysts have rated the stock with a hold rating, and three have assigned a buy rating to the company's stock [1].

Brandywine Global Investment Management LLC reduced its stake in Eagle Materials by 46.5% in the first quarter, now holding approximately 0.06% of the company worth $4.4 million [2]. However, other large investors have increased their stakes, with Dimensional Fund Advisors LP raising its stake by 10.4% and Nuveen LLC buying a new position worth $17,617,000 [2]. Institutional investors and hedge funds own 96.07% of Eagle Materials, reflecting strong institutional interest [2].

References:
[1] https://www.marketbeat.com/instant-alerts/filing-eagle-materials-inc-exp-holdings-lifted-by-citigroup-inc-2025-08-18/
[2] https://www.marketbeat.com/instant-alerts/filing-eagle-materials-inc-exp-shares-sold-by-brandywine-global-investment-management-llc-2025-08-18/