Should You Consider Adding Eagle Materials (EXP) to Your Portfolio?

2 days ago 5

Soumya Eswaran

Fri, November 21, 2025 astatine 7:54 AM CST 3 min read

Madison Investments, an concern advisor, released its “Madison Small Cap Fund” third-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. The 3rd 4th was hard for the Small Cap Fund. The small-cap index’s show was broad-based. The Madison Small Cap Fund (class Y) was down 1.3% successful the quarter, importantly underperforming the benchmarks. The underperformance was driven by banal enactment and exacerbated by a precise speculative market. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, Madison Small Cap Fund highlighted stocks specified arsenic Eagle Materials Inc. (NYSE:EXP). Eagle Materials Inc. (NYSE:EXP) is simply a dense operation worldly and airy gathering materials supplier. The one-month instrumentality of Eagle Materials Inc. (NYSE:EXP) was -13.13%, and its shares mislaid 35.57% of their worth implicit the past 52 weeks. On November 20, 2025, Eagle Materials Inc. (NYSE:EXP) banal closed astatine $202.52 per share, with a marketplace capitalization of $6.572 billion.

Madison Small Cap Fund stated the pursuing regarding Eagle Materials Inc. (NYSE:EXP) successful its 3rd 4th 2025 capitalist letter:

"Small headdress initiated connected Eagle Materials Inc. (NYSE:EXP), a starring U.S. shaper of dense operation materials specified arsenic Portland cement, concrete, and aggregates, and airy gathering materials specified arsenic wallboard and recycled paperboard. We presumption Eagle arsenic an fantabulous institution with precise charismatic fiscal traits. EXP aligns good with our penchant for high-quality holdings, fixed its beardown margins, precocious instrumentality connected invested superior (ROIC), and instrumentality connected equity (ROE). With the residential operation rhythm successful a prolonged downturn, we spot this arsenic a timely accidental to put successful Eagle. Demand for wallboard has been declining for respective years, and operating rates for the manufacture are successful the 70s, which means they person a batch of excess capacity. Investors, portion somewhat mollified by the resiliency of the business, person mislaid patience with galore construction-exposed names. During the downturn, Eagle has gained marketplace stock owed to its geographical footprint and outgo competitory wallboard assets. Further, we judge we are adjacent to a bottommost successful residential operation demand, and astatine this price, we are consenting to beryllium diligent for the rhythm to turn. Management is fantabulous and allocates superior precise judiciously with copious stock buybacks. Our existent intrinsic worth estimation does not presume meaningful borderline enlargement and has comparatively blimpish buyback assumptions. We cipher intrinsic worth astatine $269/share."