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Eagle MaterialsFRA:E5M +2.13%95 Gross Margin % is 24.77% as of Jun. 2026, which is 9% below its 10-year median of 27.24. GuruFocus rates FRA:E5M with a GF Score™ of 95/100 and a GF Value™ of €220.36 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 397 Building Materials companies, Eagle Materials ranks better than 55.42% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Eagle Materials had a gross margin of 24.77% for the quarter that ended in Jun. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Eagle Materials Gross Margin % Related Terms
Eagle Materials Gross Margin % Historical Data
* Premium members only.
The historical data trend for Eagle Materials's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:E5M vs KNF, USLM, TTAM: Gross Margin % Comparison
For the Building Materials subindustry, Eagle Materials's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Eagle Materials Gross Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Eagle Materials's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Eagle Materials's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Eagle Materials (FRA:E5M) has a Gross Margin % of 24.77% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Eagle Materials and its competitors. This is near median its historical median of 27.24. Over the past decade, Eagle Materials' Gross Margin % has ranged from 24.41 to 30.33. According to the industry distribution chart, Eagle Materials ranks #177 out of 397 companies in the Building Materials industry, placing it in the top 44.6%.
Is Eagle Materials' Gross Margin % too high?
Eagle Materials' current Gross Margin % of 24.77% is near median its 10-year median of 27.24. Over the past 10 years, this metric has ranged from a low of 24.41 to a high of 30.33. The Building Materials industry median Gross Margin % is 26.18. Eagle Materials' value of 24.77% is 5.4% below this industry median. Based on the distribution chart, Eagle Materials ranks #177 out of 397 companies in the Building Materials industry, which is above the industry midpoint. Overall, Eagle Materials has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Eagle Materials' Gross Margin % compare to KNF and USLM?
According to the Building Materials industry distribution chart, Eagle Materials ranks #177 out of 397 companies for Gross Margin %. This puts Eagle Materials in the upper half of its industry. The industry median Gross Margin % is 26.18. Eagle Materials' value of 24.77% is 5.4% below this benchmark. Historically, Eagle Materials' own Gross Margin % has ranged from 24.41 to 30.33 over the past decade. While the company's 10-year median is 27.24 vs. the industry median of 26.18, Eagle Materials has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Building Materials company?
The median Gross Margin % among Building Materials companies is 26.18, based on 397 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Eagle Materials's current Gross Margin % of 24.77% is 5.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Eagle Materials and its competitors. For the Building Materials industry, the median Gross Margin % is 26.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eagle Materials's current Gross Margin % is 24.77%, which is near median its own 10-year median of 27.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eagle Materials stock overvalued right now?
Based on GuruFocus' analysis, Eagle Materials (FRA:E5M) is currently considered Modestly Undervalued. The stock's GF Value™ is €220.36, compared to a current price of €192.00 — trading 12.9% below its estimated fair value. The current Gross Margin % is 24.77%, which is near median its 10-year median of 27.24 and 5.4% below the Building Materials industry median of 26.18. Eagle Materials' overall GF Score™ is 95/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Eagle Materials (FRA:E5M), the current Gross Margin % is 24.77% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Eagle Materials (FRA:E5M) Overvalued in 2026?
Based on GuruFocus' analysis, Eagle Materials stock appears to be undervalued.
The current stock price of €192.00 is trading 12.9% below its estimated GF Value™ of €220.36.
GuruFocus considers Eagle Materials to be Modestly Undervalued.
Key valuation signals for FRA:E5M:
Gross Margin %: 24.77% (near median its 10-year median of 27.24)
GF Value™: €220.36 vs. price of €192.00 (12.9% below fair value)
Industry Position: 5.4% below the Building Materials median (#177 of 397)
No single metric tells the full story. See the FRA:E5M stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eagle Materials Inc is engaged in the manufacture of heavy construction products and light building materials. Its primary products, Cement and Gypsum Wallboard, are essential for building, expanding, and repairing roads, highways, and residential, commercial, and industrial structures across America. The business is organized into two sectors: Heavy Materials, which includes the Cement and Concrete and Aggregates segments, and Light Materials, which includes the Gypsum Wallboard and Recycled Paperboard segments. The primary end market for the Cement and Concrete and Aggregates segments is infrastructure, while the primary end market for the Gypsum Wallboard and Recycled Paperboard segments is residential construction.
95GF Score
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