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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Eagle Materials's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2026 was 13.06%.
As of today (2026-07-30), Eagle Materials's WACC % is 10.39%. Eagle Materials's ROIC % is 13.98% (calculated using TTM income statement data).
Eagle Materials generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Eagle Materials (STU:E5M) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Eagle Materials's WACC % is 10.39%. Eagle Materials's ROIC % is 13.98% (calculated using TTM income statement data).
Eagle Materials generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Eagle Materials ROIC % Related Terms
Eagle Materials ROIC % Historical Data
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The historical data trend for Eagle Materials's ROIC % 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.
For the Building Materials subindustry, Eagle Materials's ROIC %, along with its competitors' market caps and ROIC % 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 ROIC % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Eagle Materials's ROIC % distribution charts can be found below:
* The bar in red indicates where Eagle Materials's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Jun. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
Eagle Materials (STU:E5M) has a ROIC % of 13.06% as of Jun. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Eagle Materials and its competitors.
Is Eagle Materials' ROIC % too high?
Eagle Materials' current ROIC % is 13.06%. The Building Materials industry median ROIC % is 3.34. Eagle Materials' value of 13.06% is 291.6% above this industry median. Overall, Eagle Materials has a GF Score™ of 94/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Eagle Materials' ROIC % compare to KNF and USLM?
Eagle Materials' ROIC % of 13.06% can be compared against companies in the Building Materials industry. The industry median ROIC % is 3.34. Eagle Materials' value of 13.06% is 291.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Building Materials company?
The median ROIC % among Building Materials companies is 3.34, based on 398 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Eagle Materials's current ROIC % of 13.06% is 291.6% above 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Eagle Materials and its competitors. For the Building Materials industry, the median ROIC % is 3.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eagle Materials's current ROIC % is 13.06%. 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 (STU:E5M) is currently considered Modestly Undervalued. The stock's GF Value™ is €207.74, compared to a current price of €181.00 — trading 12.9% below its estimated fair value. The current ROIC % is 13.06% and 291.6% above the Building Materials industry median of 3.34. Eagle Materials' overall GF Score™ is 94/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Eagle Materials (STU:E5M), the current ROIC % is 13.06% 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 (STU:E5M) Overvalued in 2026?
Based on GuruFocus' analysis, Eagle Materials stock appears to be undervalued.
The current stock price of €181.00 is trading 12.9% below its estimated GF Value™ of €207.74.
GuruFocus considers Eagle Materials to be Modestly Undervalued.
Key valuation signals for STU:E5M:
ROIC %: 13.06%
GF Value™: €207.74 vs. price of €181.00 (12.9% below fair value)
Industry Position: 291.6% above the Building Materials median
No single metric tells the full story. See the STU: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.
94GF Score
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