MARTIN MARIETTA MATERIALS (MLM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MLM - US5732841060 - Common Stock
624.37 USD
+5.59 (+0.9%)
624.37 USD
0 (0%)
Taking everything into account, MLM scores 6 out of 10 in our fundamental rating. MLM was compared to 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 quite expensive at the moment. It does show a decent growth rate. This makes MLM very considerable for quality investing!
1. Profitability
1.1 Basic Checks
MLM had positive earnings in the past year.
MLM had a positive operating cash flow in the past year.
Each year in the past 5 years MLM has been profitable.
In the past 5 years MLM always reported a positive cash flow from operatings.
1.2 Ratios
MLM's Return On Assets of 6.18% is fine compared to the rest of the industry. MLM outperforms 61.54% of its industry peers.
MLM's Return On Equity of 11.83% is in line compared to the rest of the industry. MLM outperforms 53.85% of its industry peers.
MLM has a Return On Invested Capital of 7.06%. This is comparable to the rest of the industry: MLM outperforms 46.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MLM is below the industry average of 9.36%.
| 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.
In the last couple of years the Profit Margin of MLM has grown nicely.
MLM has a better Operating Margin (23.66%) than 84.62% of its industry peers.
MLM's Operating Margin has improved in the last couple of years.
MLM's Gross Margin of 29.81% is fine compared to the rest of the industry. MLM outperforms 61.54% of its industry peers.
In the last couple of years the Gross Margin of MLM has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MLM is destroying value.
Compared to 1 year ago, MLM has less shares outstanding
MLM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MLM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.78 indicates that MLM is not in any danger for bankruptcy at the moment.
MLM's Altman-Z score of 3.78 is fine compared to the rest of the industry. MLM outperforms 69.23% of its industry peers.
MLM has a debt to FCF ratio of 5.48. This is a neutral value as MLM would need 5.48 years to pay back of all of its debts.
MLM has a better Debt to FCF ratio (5.48) than 61.54% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that MLM is somewhat dependend on debt financing.
MLM's Debt to Equity ratio of 0.54 is on the low side compared to the rest of the industry. MLM is outperformed by 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 5.48 | ||
| Altman-Z | 3.78 |
ROIC/WACC0.7
WACC10.06%
2.3 Liquidity
A Current Ratio of 2.97 indicates that MLM has no problem at all paying its short term obligations.
MLM has a Current ratio of 2.97. This is amongst the best in the industry. MLM outperforms 92.31% of its industry peers.
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.
MLM has a Quick ratio of 2.07. This is amongst the best in the industry. MLM outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.97 | ||
| Quick Ratio | 2.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.10% over the past year.
MLM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.34% yearly.
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
MLM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.31% yearly.
Based on estimates for the next years, MLM will show a small growth in Revenue. The Revenue will grow by 7.32% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 32.91 indicates a quite expensive valuation of MLM.
MLM's Price/Earnings ratio is a bit more expensive when compared to the industry. MLM is more expensive than 69.23% of the companies in the same industry.
MLM is valuated rather expensively when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 28.27, MLM can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, MLM is valued a bit more expensive than 61.54% of the companies in the same industry.
MLM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.91 | ||
| Fwd PE | 28.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MLM is valued a bit more expensive than the industry average as 76.92% of the companies are valued more cheaply.
MLM's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. MLM is more expensive than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.39 | ||
| EV/EBITDA | 19.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MLM does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of MLM may justify a higher PE ratio.
MLM's earnings are expected to grow with 13.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.74
PEG (5Y)2.67
EPS Next 2Y12.7%
EPS Next 3Y13.2%
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 3.75.
Compared to an average S&P500 Dividend Yield of 2.31, 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 8.16%!
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)8.16%
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.
The dividend of MLM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP16.93%
EPS Next 2Y12.7%
EPS Next 3Y13.2%
624.37
+5.59 (+0.9%)
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 Cap37.66B
Revenue(TTM)6.64B
Net Income(TTM)1.15B
Analysts76.55
Price Target683.31 (9.44%)
Short Float %2.67%
Short Ratio4.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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)4.41%
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 | 32.91 | ||
| Fwd PE | 28.27 | ||
| P/S | 5.67 | ||
| P/FCF | 37.39 | ||
| P/OCF | 20.44 | ||
| P/B | 3.87 | ||
| P/tB | 6.65 | ||
| EV/EBITDA | 19.6 |
EPS(TTM)18.97
EY3.04%
EPS(NY)22.09
Fwd EY3.54%
FCF(TTM)16.7
FCFY2.67%
OCF(TTM)30.54
OCFY4.89%
SpS110.11
BVpS161.42
TBVpS93.95
PEG (NY)3.74
PEG (5Y)2.67
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 | 3.78 |
F-Score6
WACC10.06%
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 32.91 and the Price/Book (PB) ratio is 3.87.
What is the financial health of MARTIN MARIETTA MATERIALS (MLM) stock?
The financial health rating of MARTIN MARIETTA MATERIALS (MLM) is 7 / 10.