MARTIN MARIETTA MATERIALS (MLM)
US5732841060 - Common Stock
MLM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 12 industry peers in the Construction Materials industry. MLM scores excellent on profitability, but there are some minor concerns on its financial health. MLM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MLM was profitable.
In the past year MLM had a positive cash flow from operations.
MLM had positive earnings in each of the past 5 years.
Each year in the past 5 years MLM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.05%, MLM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Return On Equity of MLM (21.64%) is better than 66.67% of its industry peers.
MLM has a worse Return On Invested Capital (7.44%) than 66.67% of its industry peers.
MLM had an Average Return On Invested Capital over the past 3 years of 7.09%. This is significantly below the industry average of 19.73%.
The last Return On Invested Capital (7.44%) for MLM is above the 3 year average (7.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.05% | ||
| ROE | 21.64% | ||
| ROIC | 7.44% |
ROA(3y)6.13%
ROA(5y)6.25%
ROE(3y)12.46%
ROE(5y)12.21%
ROIC(3y)7.09%
ROIC(5y)7.36%
1.3 Margins
MLM's Profit Margin of 30.47% is amongst the best of the industry. MLM outperforms 83.33% of its industry peers.
MLM's Profit Margin has improved in the last couple of years.
The Operating Margin of MLM (22.25%) is better than 66.67% of its industry peers.
MLM's Operating Margin has improved in the last couple of years.
MLM has a Gross Margin (28.74%) which is comparable to the rest of the industry.
MLM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.25% | ||
| PM (TTM) | 30.47% | ||
| GM | 28.74% |
OM growth 3Y3.69%
OM growth 5Y7.42%
PM growth 3Y4.23%
PM growth 5Y9.3%
GM growth 3Y4.06%
GM growth 5Y5.56%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MLM is destroying value.
The number of shares outstanding for MLM has been reduced compared to 1 year ago.
The number of shares outstanding for MLM has been reduced compared to 5 years ago.
MLM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.95 indicates that MLM is not in any danger for bankruptcy at the moment.
MLM has a Altman-Z score (3.95) which is comparable to the rest of the industry.
The Debt to FCF ratio of MLM is 7.76, which is on the high side as it means it would take MLM, 7.76 years of fcf income to pay off all of its debts.
MLM has a Debt to FCF ratio of 7.76. This is comparable to the rest of the industry: MLM outperforms 41.67% of its industry peers.
MLM has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
MLM has a better Debt to Equity ratio (0.43) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 7.76 | ||
| Altman-Z | 3.95 |
ROIC/WACC0.82
WACC9.06%
2.3 Liquidity
MLM has a Current Ratio of 2.34. This indicates that MLM is financially healthy and has no problem in meeting its short term obligations.
MLM has a Current ratio (2.34) which is comparable to the rest of the industry.
MLM has a Quick Ratio of 1.24. This is a normal value and indicates that MLM is financially healthy and should not expect problems in meeting its short term obligations.
MLM has a Quick ratio of 1.24. This is comparable to the rest of the industry: MLM outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The earnings per share for MLM have decreased by -2.87% in the last year.
The Earnings Per Share has been growing by 20.03% on average over the past years. This is a very strong growth
The Revenue has decreased by -2.01% in the past year.
The Revenue has been growing by 9.81% on average over the past years. This is quite good.
EPS 1Y (TTM)-2.87%
EPS 3Y21.87%
EPS 5Y20.03%
EPS Q2Q%-14.84%
Revenue 1Y (TTM)-2.01%
Revenue growth 3Y12.74%
Revenue growth 5Y9.81%
Sales Q2Q%-5.27%
3.2 Future
The Earnings Per Share is expected to grow by 6.66% on average over the next years.
The Revenue is expected to grow by 5.33% on average over the next years.
EPS Next Y-10.59%
EPS Next 2Y4.7%
EPS Next 3Y7.65%
EPS Next 5Y6.66%
Revenue Next Year-3.63%
Revenue Next 2Y3.15%
Revenue Next 3Y4.71%
Revenue Next 5Y5.33%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 30.97 indicates a quite expensive valuation of MLM.
The rest of the industry has a similar Price/Earnings ratio as MLM.
The average S&P500 Price/Earnings ratio is at 27.73. MLM is around the same levels.
MLM is valuated quite expensively with a Price/Forward Earnings ratio of 25.19.
MLM's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, MLM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.97 | ||
| Fwd PE | 25.19 |
4.2 Price Multiples
MLM's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, MLM is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.64 | ||
| EV/EBITDA | 18.29 |
4.3 Compensation for Growth
The decent profitability rating of MLM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.55
EPS Next 2Y4.7%
EPS Next 3Y7.65%
5. Dividend
5.1 Amount
With a yearly dividend of 0.60%, MLM is not a good candidate for dividend investing.
MLM's Dividend Yield is a higher than the industry average which is at 3.62.
Compared to an average S&P500 Dividend Yield of 2.34, MLM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
5.2 History
The dividend of MLM is nicely growing with an annual growth rate of 8.75%!
MLM has paid a dividend for at least 10 years, which is a reliable track record.
MLM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.75%
Div Incr Years9
Div Non Decr Years30
5.3 Sustainability
9.41% of the earnings are spent on dividend by MLM. This is a low number and sustainable payout ratio.
The dividend of MLM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP9.41%
EPS Next 2Y4.7%
EPS Next 3Y7.65%
MARTIN MARIETTA MATERIALS
NYSE:MLM (12/20/2024, 8:24:47 PM)
After market: 533.69 0 (0%)533.69
+7.92 (+1.51%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners99.89%
Inst Owner Change1.16%
Ins Owners0.66%
Ins Owner Change-0.37%
Market Cap32.62B
Analysts78.52
Price Target660.57 (23.77%)
Short Float %2.56%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Dividend Growth(5Y)8.75%
DP9.41%
Div Incr Years9
Div Non Decr Years30
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.4%
Min EPS beat(2)-12.02%
Max EPS beat(2)-6.78%
EPS beat(4)2
Avg EPS beat(4)0.07%
Min EPS beat(4)-12.02%
Max EPS beat(4)14.81%
EPS beat(8)5
Avg EPS beat(8)18.08%
EPS beat(12)8
Avg EPS beat(12)9.76%
EPS beat(16)10
Avg EPS beat(16)15.31%
Revenue beat(2)0
Avg Revenue beat(2)-3.99%
Min Revenue beat(2)-4.7%
Max Revenue beat(2)-3.28%
Revenue beat(4)0
Avg Revenue beat(4)-4.12%
Min Revenue beat(4)-6.08%
Max Revenue beat(4)-2.42%
Revenue beat(8)2
Avg Revenue beat(8)-1.05%
Revenue beat(12)6
Avg Revenue beat(12)2.86%
Revenue beat(16)10
Avg Revenue beat(16)4.35%
PT rev (1m)5.04%
PT rev (3m)2.48%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-13.17%
EPS NY rev (1m)-0.65%
EPS NY rev (3m)-9.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.59%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-2.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.97 | ||
| Fwd PE | 25.19 | ||
| P/S | 5.01 | ||
| P/FCF | 62.64 | ||
| P/OCF | 24.55 | ||
| P/B | 3.56 | ||
| P/tB | 6.95 | ||
| EV/EBITDA | 18.29 |
EPS(TTM)17.23
EY3.23%
EPS(NY)21.19
Fwd EY3.97%
FCF(TTM)8.52
FCFY1.6%
OCF(TTM)21.74
OCFY4.07%
SpS106.55
BVpS150.02
TBVpS76.83
PEG (NY)N/A
PEG (5Y)1.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.05% | ||
| ROE | 21.64% | ||
| ROCE | 9.36% | ||
| ROIC | 7.44% | ||
| ROICexc | 7.46% | ||
| ROICexgc | 10.51% | ||
| OM | 22.25% | ||
| PM (TTM) | 30.47% | ||
| GM | 28.74% | ||
| FCFM | 8% |
ROA(3y)6.13%
ROA(5y)6.25%
ROE(3y)12.46%
ROE(5y)12.21%
ROIC(3y)7.09%
ROIC(5y)7.36%
ROICexc(3y)7.49%
ROICexc(5y)7.63%
ROICexgc(3y)11.23%
ROICexgc(5y)11.24%
ROCE(3y)8.93%
ROCE(5y)9.26%
ROICexcg growth 3Y8.92%
ROICexcg growth 5Y9.1%
ROICexc growth 3Y7.54%
ROICexc growth 5Y9.44%
OM growth 3Y3.69%
OM growth 5Y7.42%
PM growth 3Y4.23%
PM growth 5Y9.3%
GM growth 3Y4.06%
GM growth 5Y5.56%
F-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 7.76 | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 146.25% | ||
| Cap/Sales | 12.41% | ||
| Interest Coverage | 9.3 | ||
| Cash Conversion | 66.4% | ||
| Profit Quality | 26.24% | ||
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 3.95 |
F-Score6
WACC9.06%
ROIC/WACC0.82
Cap/Depr(3y)105.2%
Cap/Depr(5y)102.59%
Cap/Sales(3y)8.41%
Cap/Sales(5y)8.23%
Profit Quality(3y)78.55%
Profit Quality(5y)85.04%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.87%
EPS 3Y21.87%
EPS 5Y20.03%
EPS Q2Q%-14.84%
EPS Next Y-10.59%
EPS Next 2Y4.7%
EPS Next 3Y7.65%
EPS Next 5Y6.66%
Revenue 1Y (TTM)-2.01%
Revenue growth 3Y12.74%
Revenue growth 5Y9.81%
Sales Q2Q%-5.27%
Revenue Next Year-3.63%
Revenue Next 2Y3.15%
Revenue Next 3Y4.71%
Revenue Next 5Y5.33%
EBIT growth 1Y-3.14%
EBIT growth 3Y16.9%
EBIT growth 5Y17.96%
EBIT Next Year29.8%
EBIT Next 3Y17.45%
EBIT Next 5Y11.28%
FCF growth 1Y2.66%
FCF growth 3Y8.35%
FCF growth 5Y21.69%
OCF growth 1Y44.74%
OCF growth 3Y13.33%
OCF growth 5Y16.73%