MARTIN MARIETTA MATERIALS (MLM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MLM - US5732841060 - Common Stock
642 USD
+7.56 (+1.19%)
642 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to MLM. MLM was compared to 13 industry peers in the Construction Materials industry. Both the health and profitability get an excellent rating, making MLM a very profitable company, without any liquidiy or solvency issues. MLM is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make MLM suitable 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.
In the past 5 years MLM has always 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.
The Return On Equity of MLM (11.83%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 7.06%, MLM is in line with its industry, 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
Looking at the Profit Margin, with a value of 17.35%, 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 Profit Margin of MLM has grown nicely.
With an excellent Operating Margin value of 23.66%, MLM belongs to the best of the industry, outperforming 84.62% 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 29.81%. This is in the better half of the industry: MLM outperforms 61.54% of its industry peers.
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.
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 is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.85 indicates that MLM is not in any danger for bankruptcy at the moment.
MLM has a better Altman-Z score (3.85) than 69.23% of its industry peers.
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.
The Debt to FCF ratio of MLM (5.48) is better than 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 | 3.85 |
ROIC/WACC0.68
WACC10.45%
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.
A Quick Ratio of 2.07 indicates that MLM has no problem at all paying its short term obligations.
MLM has a better Quick ratio (2.07) than 84.62% of its industry peers.
| 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.
MLM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.34% yearly.
The Revenue has been growing slightly by 1.98% in the past year.
Measured over the past years, MLM shows a small growth in Revenue. The Revenue has been growing by 6.64% on average per year.
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 2Y12.78%
EPS Next 3Y13.52%
EPS Next 5Y11.31%
Revenue Next Year0.05%
Revenue Next 2Y4.16%
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
With a Price/Earnings ratio of 33.84, MLM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of MLM indicates a slightly more expensive valuation: MLM is more expensive than 69.23% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.87, MLM is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 29.02, the valuation of MLM can be described as expensive.
MLM's Price/Forward Earnings 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, MLM is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.84 | ||
| Fwd PE | 29.02 |
4.2 Price Multiples
76.92% of the companies in the same industry are cheaper than MLM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MLM is valued a bit more expensive than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.45 | ||
| EV/EBITDA | 20.08 |
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 13.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.85
PEG (5Y)2.74
EPS Next 2Y12.78%
EPS Next 3Y13.52%
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 2.22.
With a Dividend Yield of 0.53, MLM pays less dividend than the S&P500 average, which is at 1.94.
| 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 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
MLM pays out 16.93% of its income as dividend. This is a sustainable payout ratio.
The dividend of MLM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP16.93%
EPS Next 2Y12.78%
EPS Next 3Y13.52%
642
+7.56 (+1.19%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners99.7%
Inst Owner Change0%
Ins Owners0.67%
Ins Owner Change-0.05%
Market Cap38.72B
Revenue(TTM)6.64B
Net Income(TTM)1.15B
Analysts76.55
Price Target686.9 (6.99%)
Short Float %2.91%
Short Ratio4.33
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-DateN/A
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)0.83%
PT rev (3m)4.54%
EPS NQ rev (1m)0.49%
EPS NQ rev (3m)0.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.84 | ||
| Fwd PE | 29.02 | ||
| P/S | 5.83 | ||
| P/FCF | 38.45 | ||
| P/OCF | 21.02 | ||
| P/B | 3.98 | ||
| P/tB | 6.83 | ||
| EV/EBITDA | 20.08 |
EPS(TTM)18.97
EY2.95%
EPS(NY)22.12
Fwd EY3.45%
FCF(TTM)16.7
FCFY2.6%
OCF(TTM)30.54
OCFY4.76%
SpS110.11
BVpS161.42
TBVpS93.95
PEG (NY)3.85
PEG (5Y)2.74
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 | 3.85 |
F-Score6
WACC10.45%
ROIC/WACC0.68
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 2Y12.78%
EPS Next 3Y13.52%
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 2Y4.16%
Revenue Next 3Y4.96%
Revenue Next 5Y7.32%
EBIT growth 1Y8.43%
EBIT growth 3Y13.48%
EBIT growth 5Y10.76%
EBIT Next Year39.12%
EBIT Next 3Y19.62%
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 of MARTIN MARIETTA MATERIALS (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.
How financially healthy is MARTIN MARIETTA MATERIALS?
The financial health rating of MARTIN MARIETTA MATERIALS (MLM) is 7 / 10.
Can you provide the dividend sustainability for MLM stock?
The dividend rating of MARTIN MARIETTA MATERIALS (MLM) is 6 / 10 and the dividend payout ratio is 16.93%.