MARTIN MARIETTA MATERIALS (MLM)
US5732841060 - Common Stock
Taking everything into account, MLM scores 5 out of 10 in our fundamental rating. MLM was compared to 12 industry peers in the Construction Materials industry. While MLM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, MLM is valued expensive at the moment.
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.
In the past 5 years MLM has always been profitable.
MLM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MLM's Return On Assets of 12.05% is amongst the best of the industry. MLM outperforms 83.33% of its industry peers.
MLM's Return On Equity of 21.64% is amongst the best of the industry. MLM outperforms 83.33% of its industry peers.
MLM has a Return On Invested Capital of 7.44%. This is comparable to the rest of the industry: MLM outperforms 41.67% of its industry peers.
MLM had an Average Return On Invested Capital over the past 3 years of 7.09%. This is below the industry average of 10.10%.
The 3 year average ROIC (7.09%) for MLM is below the current ROIC(7.44%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 30.47%, MLM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of MLM has grown nicely.
MLM has a Operating Margin of 22.25%. This is in the better half of the industry: MLM outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of MLM has grown nicely.
MLM has a Gross Margin of 28.74%. This is comparable to the rest of the industry: MLM outperforms 50.00% of its industry peers.
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
MLM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MLM has been reduced compared to 1 year ago.
MLM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MLM has been reduced compared to a year ago.
2.2 Solvency
MLM has an Altman-Z score of 4.18. This indicates that MLM is financially healthy and has little risk of bankruptcy at the moment.
MLM has a Altman-Z score of 4.18. This is comparable to the rest of the industry: MLM outperforms 50.00% of its industry peers.
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 worse Debt to FCF ratio (7.76) than 66.67% 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.
Looking at the Debt to Equity ratio, with a value of 0.43, MLM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 7.76 | ||
| Altman-Z | 4.18 |
ROIC/WACC0.9
WACC8.23%
2.3 Liquidity
A Current Ratio of 2.34 indicates that MLM has no problem at all paying its short term obligations.
MLM has a Current ratio of 2.34. This is comparable to the rest of the industry: MLM outperforms 58.33% of its industry peers.
A Quick Ratio of 1.24 indicates that MLM should not have too much problems paying its short term obligations.
The Quick ratio of MLM (1.24) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
MLM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.87%.
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.
Measured over the past years, MLM shows a quite strong growth in Revenue. The Revenue has been growing by 9.81% on average per year.
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 7.50% on average over the next years.
The Revenue is expected to grow by 6.11% on average over the next years.
EPS Next Y-7.97%
EPS Next 2Y5.16%
EPS Next 3Y7.66%
EPS Next 5Y7.5%
Revenue Next Year-3.14%
Revenue Next 2Y3.5%
Revenue Next 3Y4.89%
Revenue Next 5Y6.11%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 33.78, which means the current valuation is very expensive for MLM.
Compared to the rest of the industry, the Price/Earnings ratio of MLM is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 30.20. MLM is around the same levels.
A Price/Forward Earnings ratio of 27.23 indicates a quite expensive valuation of MLM.
MLM's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of MLM to the average of the S&P500 Index (23.28), we can say MLM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.78 | ||
| Fwd PE | 27.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MLM is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, MLM is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.31 | ||
| EV/EBITDA | 19.71 |
4.3 Compensation for Growth
MLM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.69
EPS Next 2Y5.16%
EPS Next 3Y7.66%
5. Dividend
5.1 Amount
MLM has a yearly dividend return of 0.54%, which is pretty low.
MLM's Dividend Yield is a higher than the industry average which is at 3.84.
Compared to an average S&P500 Dividend Yield of 2.26, MLM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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 Years8
Div Non Decr Years29
5.3 Sustainability
MLM pays out 9.41% of its income as dividend. This is a sustainable payout ratio.
MLM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP9.41%
EPS Next 2Y5.16%
EPS Next 3Y7.66%
MARTIN MARIETTA MATERIALS
NYSE:MLM (11/4/2024, 8:23:42 PM)
After market: 581.98 0 (0%)581.98
+1.84 (+0.32%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap35.57B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.78 | ||
| Fwd PE | 27.23 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.05% | ||
| ROE | 21.64% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.25% | ||
| PM (TTM) | 30.47% | ||
| GM | 28.74% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-2.87%
EPS 3Y21.87%
EPS 5Y
EPS Q2Q%
EPS Next Y-7.97%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.01%
Revenue growth 3Y12.74%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y