MARTIN MARIETTA MATERIALS (MLM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MLM - US5732841060 - Common Stock
628.25 USD
-3.83 (-0.61%)
628.25 USD
0 (0%)
MLM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 13 industry peers in the Construction Materials industry. MLM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MLM is valied quite expensively at the moment, while it does show a decent growth rate. This makes MLM very considerable for quality investing!
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.
In the past 5 years MLM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MLM (6.18%) is better than 61.54% of its industry peers.
The Return On Equity of MLM (11.83%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 7.06%, MLM perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MLM is below the industry average of 9.37%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.18% | ||
| ROE | 11.83% | ||
| ROIC | 7.06% |
ROA(3y)8.16%
ROA(5y)7.24%
ROE(3y)15.91%
ROE(5y)14.14%
ROIC(3y)7.34%
ROIC(5y)7.14%
1.3 Margins
With an excellent Profit Margin value of 17.35%, MLM belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
MLM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 23.66%, MLM belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Operating Margin of MLM has grown nicely.
Looking at the Gross Margin, with a value of 29.81%, MLM is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
MLM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.66% | ||
| PM (TTM) | 17.35% | ||
| GM | 29.81% |
OM growth 3Y6.57%
OM growth 5Y3.86%
PM growth 3Y33.01%
PM growth 5Y18.81%
GM growth 3Y4.88%
GM growth 5Y2.92%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MLM is destroying value.
Compared to 1 year ago, MLM has less shares outstanding
Compared to 5 years ago, MLM has less shares outstanding
Compared to 1 year ago, MLM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.79 indicates that MLM is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.79, MLM is doing good in the industry, outperforming 69.23% of the companies in the same industry.
The Debt to FCF ratio of MLM is 5.48, which is a neutral value as it means it would take MLM, 5.48 years of fcf income to pay off all of its debts.
MLM has a Debt to FCF ratio of 5.48. This is in the better half of the industry: MLM outperforms 61.54% of its industry peers.
MLM has a Debt/Equity ratio of 0.54. This is a neutral value indicating MLM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.54, MLM is doing worse than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 5.48 | ||
| Altman-Z | 3.79 |
ROIC/WACC0.7
WACC10.09%
2.3 Liquidity
A Current Ratio of 2.97 indicates that MLM has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.97, MLM belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
MLM has a Quick Ratio of 2.07. This indicates that MLM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.07, MLM belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.97 | ||
| Quick Ratio | 2.07 |
3. Growth
3.1 Past
MLM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.10%, which is quite good.
The Earnings Per Share has been growing by 12.34% on average over the past years. This is quite good.
MLM shows a small growth in Revenue. In the last year, the Revenue has grown by 1.98%.
The Revenue has been growing slightly by 6.64% on average over the past years.
EPS 1Y (TTM)10.1%
EPS 3Y12.39%
EPS 5Y12.34%
EPS Q2Q%15.91%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y6.48%
Revenue growth 5Y6.64%
Sales Q2Q%-2.28%
3.2 Future
The Earnings Per Share is expected to grow by 11.31% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.32% on average over the next years.
EPS Next Y8.8%
EPS Next 2Y12.7%
EPS Next 3Y13.2%
EPS Next 5Y11.31%
Revenue Next Year0.05%
Revenue Next 2Y4.18%
Revenue Next 3Y4.96%
Revenue Next 5Y7.32%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 33.12, which means the current valuation is very expensive for MLM.
Based on the Price/Earnings ratio, MLM is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of MLM to the average of the S&P500 Index (26.56), we can say MLM is valued slightly more expensively.
The Price/Forward Earnings ratio is 28.44, which means the current valuation is very expensive for MLM.
Based on the Price/Forward Earnings ratio, MLM is valued a bit more expensive than 61.54% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MLM to the average of the S&P500 Index (23.79), we can say MLM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.12 | ||
| Fwd PE | 28.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MLM indicates a slightly more expensive valuation: MLM is more expensive than 76.92% of the companies listed in the same industry.
61.54% of the companies in the same industry are cheaper than MLM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.63 | ||
| EV/EBITDA | 19.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MLM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MLM's earnings are expected to grow with 13.20% in the coming years.
PEG (NY)3.76
PEG (5Y)2.68
EPS Next 2Y12.7%
EPS Next 3Y13.2%
5. Dividend
5.1 Amount
With a yearly dividend of 0.53%, MLM is not a good candidate for dividend investing.
MLM's Dividend Yield is a higher than the industry average which is at 1.77.
With a Dividend Yield of 0.53, MLM pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
5.2 History
On average, the dividend of MLM grows each year by 8.16%, which is quite nice.
MLM has been paying a dividend for at least 10 years, so it has a reliable track record.
MLM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.16%
Div Incr Years9
Div Non Decr Years30
5.3 Sustainability
16.93% of the earnings are spent on dividend by MLM. This is a low number and sustainable payout ratio.
MLM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16.93%
EPS Next 2Y12.7%
EPS Next 3Y13.2%
628.25
-3.83 (-0.61%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners99.7%
Inst Owner Change-1.57%
Ins Owners0.67%
Ins Owner Change0.02%
Market Cap37.89B
Revenue(TTM)6.64B
Net Income(TTM)1.15B
Analysts76.55
Price Target683.31 (8.76%)
Short Float %2.67%
Short Ratio4.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
Yearly Dividend3.07
Dividend Growth(5Y)8.16%
DP16.93%
Div Incr Years9
Div Non Decr Years30
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.31%
Min EPS beat(2)1.06%
Max EPS beat(2)1.56%
EPS beat(4)4
Avg EPS beat(4)2.19%
Min EPS beat(4)1.06%
Max EPS beat(4)4.81%
EPS beat(8)6
Avg EPS beat(8)1.13%
EPS beat(12)9
Avg EPS beat(12)12.78%
EPS beat(16)12
Avg EPS beat(16)7.87%
Revenue beat(2)0
Avg Revenue beat(2)-7.71%
Min Revenue beat(2)-11.29%
Max Revenue beat(2)-4.13%
Revenue beat(4)0
Avg Revenue beat(4)-4.54%
Min Revenue beat(4)-11.29%
Max Revenue beat(4)-0.88%
Revenue beat(8)0
Avg Revenue beat(8)-4.33%
Revenue beat(12)2
Avg Revenue beat(12)-2.21%
Revenue beat(16)6
Avg Revenue beat(16)1.01%
PT rev (1m)1.08%
PT rev (3m)4%
EPS NQ rev (1m)-0.87%
EPS NQ rev (3m)-0.22%
EPS NY rev (1m)-1.2%
EPS NY rev (3m)-1.16%
Revenue NQ rev (1m)-3.27%
Revenue NQ rev (3m)-6.96%
Revenue NY rev (1m)-5.96%
Revenue NY rev (3m)-6.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.12 | ||
| Fwd PE | 28.44 | ||
| P/S | 5.71 | ||
| P/FCF | 37.63 | ||
| P/OCF | 20.57 | ||
| P/B | 3.89 | ||
| P/tB | 6.69 | ||
| EV/EBITDA | 19.71 |
EPS(TTM)18.97
EY3.02%
EPS(NY)22.09
Fwd EY3.52%
FCF(TTM)16.7
FCFY2.66%
OCF(TTM)30.54
OCFY4.86%
SpS110.11
BVpS161.42
TBVpS93.95
PEG (NY)3.76
PEG (5Y)2.68
Graham Number262.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.18% | ||
| ROE | 11.83% | ||
| ROCE | 8.98% | ||
| ROIC | 7.06% | ||
| ROICexc | 7.08% | ||
| ROICexgc | 9.24% | ||
| OM | 23.66% | ||
| PM (TTM) | 17.35% | ||
| GM | 29.81% | ||
| FCFM | 15.16% |
ROA(3y)8.16%
ROA(5y)7.24%
ROE(3y)15.91%
ROE(5y)14.14%
ROIC(3y)7.34%
ROIC(5y)7.14%
ROICexc(3y)7.79%
ROICexc(5y)7.46%
ROICexgc(3y)11.34%
ROICexgc(5y)10.88%
ROCE(3y)9.33%
ROCE(5y)9.07%
ROICexgc growth 3Y2.46%
ROICexgc growth 5Y-2.34%
ROICexc growth 3Y5.86%
ROICexc growth 5Y-1.28%
OM growth 3Y6.57%
OM growth 5Y3.86%
PM growth 3Y33.01%
PM growth 5Y18.81%
GM growth 3Y4.88%
GM growth 5Y2.92%
F-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 5.48 | ||
| Debt/EBITDA | 2.41 | ||
| Cap/Depr | 132.75% | ||
| Cap/Sales | 12.57% | ||
| Interest Coverage | 8.31 | ||
| Cash Conversion | 83.73% | ||
| Profit Quality | 87.41% | ||
| Current Ratio | 2.97 | ||
| Quick Ratio | 2.07 | ||
| Altman-Z | 3.79 |
F-Score6
WACC10.09%
ROIC/WACC0.7
Cap/Depr(3y)123.72%
Cap/Depr(5y)111.25%
Cap/Sales(3y)10.17%
Cap/Sales(5y)9.18%
Profit Quality(3y)54.72%
Profit Quality(5y)72.35%
High Growth Momentum
Growth
EPS 1Y (TTM)10.1%
EPS 3Y12.39%
EPS 5Y12.34%
EPS Q2Q%15.91%
EPS Next Y8.8%
EPS Next 2Y12.7%
EPS Next 3Y13.2%
EPS Next 5Y11.31%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y6.48%
Revenue growth 5Y6.64%
Sales Q2Q%-2.28%
Revenue Next Year0.05%
Revenue Next 2Y4.18%
Revenue Next 3Y4.96%
Revenue Next 5Y7.32%
EBIT growth 1Y8.43%
EBIT growth 3Y13.48%
EBIT growth 5Y10.76%
EBIT Next Year39.06%
EBIT Next 3Y19.34%
EBIT Next 5Y14.79%
FCF growth 1Y31.43%
FCF growth 3Y-5.45%
FCF growth 5Y1.07%
OCF growth 1Y31.29%
OCF growth 3Y8.64%
OCF growth 5Y8.59%
MARTIN MARIETTA MATERIALS / MLM FAQ
What is the ChartMill fundamental rating of MARTIN MARIETTA MATERIALS (MLM) stock?
ChartMill assigns a fundamental rating of 6 / 10 to MLM.
What is the valuation status for MLM stock?
ChartMill assigns a valuation rating of 1 / 10 to MARTIN MARIETTA MATERIALS (MLM). This can be considered as Overvalued.
Can you provide the profitability details for MARTIN MARIETTA MATERIALS?
MARTIN MARIETTA MATERIALS (MLM) has a profitability rating of 7 / 10.
What are the PE and PB ratios of MARTIN MARIETTA MATERIALS (MLM) stock?
The Price/Earnings (PE) ratio for MARTIN MARIETTA MATERIALS (MLM) is 33.12 and the Price/Book (PB) ratio is 3.89.
What is the financial health of MARTIN MARIETTA MATERIALS (MLM) stock?
The financial health rating of MARTIN MARIETTA MATERIALS (MLM) is 7 / 10.