MARTIN MARIETTA MATERIALS (MLM) Stock Fundamental Analysis
NYSE:MLM - New York Stock Exchange, Inc. - US5732841060 - Common Stock - Currency: USD
Overall MLM gets a fundamental rating of 5 out of 10. We evaluated MLM against 12 industry peers in the Construction Materials industry. MLM has an excellent profitability rating, but there are some minor concerns on its financial health. MLM is quite expensive at the moment. 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.
Each year in the past 5 years MLM has been profitable.
MLM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 12.05%, MLM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
MLM has a Return On Equity of 21.64%. This is comparable to the rest of the industry: MLM outperforms 58.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.44%, MLM is doing worse than 83.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MLM is significantly below the industry average of 19.95%.
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
With an excellent Profit Margin value of 30.47%, MLM belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Profit Margin of MLM has grown nicely.
Looking at the Operating Margin, with a value of 22.25%, MLM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
MLM's Operating Margin has improved in the last couple of years.
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
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.
The debt/assets ratio for MLM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.98 indicates that MLM is not in any danger for bankruptcy at the moment.
The Altman-Z score of MLM (3.98) 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.
The Debt to FCF ratio of MLM (7.76) is comparable to the rest of the industry.
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 | 3.98 |
ROIC/WACC0.78
WACC9.51%
2.3 Liquidity
A Current Ratio of 2.34 indicates that MLM has no problem at all paying its short term obligations.
The Current ratio of MLM (2.34) 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.
Looking at the Quick ratio, with a value of 1.24, MLM is in line with its industry, outperforming 50.00% of the companies in the same 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
MLM shows a decrease in Revenue. In the last year, the revenue decreased by -2.01%.
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
Based on estimates for the next years, MLM will show a small growth in Earnings Per Share. The EPS will grow by 6.66% on average per year.
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-3.69%
Revenue Next 2Y3.05%
Revenue Next 3Y4.59%
Revenue Next 5Y5.33%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 31.71, MLM can be considered very expensive at the moment.
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 28.51. MLM is around the same levels.
A Price/Forward Earnings ratio of 25.78 indicates a quite expensive valuation of MLM.
MLM's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 93.88, MLM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.71 | ||
| Fwd PE | 25.78 |
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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.13 | ||
| EV/EBITDA | 18.48 |
4.3 Compensation for Growth
The decent profitability rating of MLM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.58
EPS Next 2Y4.7%
EPS Next 3Y7.65%
5. Dividend
5.1 Amount
With a yearly dividend of 0.58%, MLM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.42, MLM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, MLM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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
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 2Y4.7%
EPS Next 3Y7.65%
MARTIN MARIETTA MATERIALS
NYSE:MLM (1/30/2025, 5:14:58 PM)
After market: 546.33 0 (0%)546.33
+6.49 (+1.2%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners99.89%
Inst Owner Change-0.2%
Ins Owners0.66%
Ins Owner Change-0.46%
Market Cap33.39B
Analysts78.52
Price Target667.86 (22.24%)
Short Float %2.37%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend2.81
Dividend Growth(5Y)8.75%
DP9.41%
Div Incr Years9
Div Non Decr Years30
Ex-DateN/A
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)1.1%
PT rev (3m)6.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.17%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.59%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-2.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.71 | ||
| Fwd PE | 25.78 | ||
| P/S | 5.13 | ||
| P/FCF | 64.13 | ||
| P/OCF | 25.13 | ||
| P/B | 3.64 | ||
| P/tB | 7.11 | ||
| EV/EBITDA | 18.48 |
EPS(TTM)17.23
EY3.15%
EPS(NY)21.19
Fwd EY3.88%
FCF(TTM)8.52
FCFY1.56%
OCF(TTM)21.74
OCFY3.98%
SpS106.55
BVpS150.02
TBVpS76.83
PEG (NY)N/A
PEG (5Y)1.58
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 | 3.98 |
F-Score6
WACC9.51%
ROIC/WACC0.78
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-3.69%
Revenue Next 2Y3.05%
Revenue Next 3Y4.59%
Revenue Next 5Y5.33%
EBIT growth 1Y-3.14%
EBIT growth 3Y16.9%
EBIT growth 5Y17.96%
EBIT Next Year29.3%
EBIT Next 3Y17.62%
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%