MARTIN MARIETTA MATERIALS (MLM)
US5732841060 - Common Stock
Taking everything into account, MLM scores 6 out of 10 in our fundamental rating. MLM was compared to 12 industry peers in the Construction Materials industry. MLM gets an excellent profitability rating and is at the same time showing great financial health properties. 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
In the past year MLM was profitable.
MLM had a positive operating cash flow in the past year.
MLM had positive earnings in each of the past 5 years.
MLM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MLM's Return On Assets of 12.88% is amongst the best of the industry. MLM outperforms 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 23.58%, MLM belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
MLM has a Return On Invested Capital (8.16%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for MLM is below the industry average of 9.95%.
The last Return On Invested Capital (8.16%) for MLM is above the 3 year average (7.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.88% | ||
| ROE | 23.58% | ||
| ROIC | 8.16% |
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 31.35%, 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.
Looking at the Operating Margin, with a value of 22.80%, MLM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of MLM has grown nicely.
MLM has a Gross Margin of 29.84%. This is comparable to the rest of the industry: MLM outperforms 58.33% of its industry peers.
MLM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.8% | ||
| PM (TTM) | 31.35% | ||
| GM | 29.84% |
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
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.
Compared to 5 years ago, MLM has less shares outstanding
Compared to 1 year ago, MLM has an improved debt to assets ratio.
2.2 Solvency
MLM has an Altman-Z score of 4.34. This indicates that MLM is financially healthy and has little risk of bankruptcy at the moment.
MLM has a Altman-Z score (4.34) which is comparable to the rest of the industry.
The Debt to FCF ratio of MLM is 5.03, which is a neutral value as it means it would take MLM, 5.03 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 5.03, MLM perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
MLM has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.44, MLM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 5.03 | ||
| Altman-Z | 4.34 |
ROIC/WACC0.86
WACC9.49%
2.3 Liquidity
MLM has a Current Ratio of 3.16. This indicates that MLM is financially healthy and has no problem in meeting its short term obligations.
MLM's Current ratio of 3.16 is amongst the best of the industry. MLM outperforms 91.67% of its industry peers.
A Quick Ratio of 2.41 indicates that MLM has no problem at all paying its short term obligations.
MLM has a Quick ratio of 2.41. This is amongst the best in the industry. MLM outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.16 | ||
| Quick Ratio | 2.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.91% over the past year.
MLM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.03% yearly.
MLM shows a small growth in Revenue. In the last year, the Revenue has grown by 6.21%.
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)37.91%
EPS 3Y21.87%
EPS 5Y20.03%
EPS growth Q2Q-10.65%
Revenue 1Y (TTM)6.21%
Revenue growth 3Y12.74%
Revenue growth 5Y9.81%
Revenue growth Q2Q-7.61%
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 Y11.62%
EPS Next 2Y11.52%
EPS Next 3Y11.11%
EPS Next 5Y7.5%
Revenue Next Year2.79%
Revenue Next 2Y5.39%
Revenue Next 3Y5.5%
Revenue Next 5Y6.11%
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
The Price/Earnings ratio is 30.45, which means the current valuation is very expensive for MLM.
MLM's Price/Earnings is on the same level as the industry average.
MLM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.83, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 24.20, MLM is valued on the expensive side.
MLM's Price/Forward Earnings ratio is in line with the industry average.
MLM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.45 | ||
| Fwd PE | 24.2 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MLM.
MLM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.58 | ||
| EV/EBITDA | 18.42 |
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.
MLM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.62
PEG (5Y)1.52
EPS Next 2Y11.52%
EPS Next 3Y11.11%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, MLM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.77, MLM has a dividend in line with its industry peers.
With a Dividend Yield of 0.49, MLM pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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 Years19
5.3 Sustainability
MLM pays out 8.53% of its income as dividend. This is a sustainable payout ratio.
The dividend of MLM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP8.53%
EPS Next 2Y11.52%
EPS Next 3Y11.11%
MARTIN MARIETTA MATERIALS
NYSE:MLM (5/16/2024, 7:04:33 PM)
After market: 581.69 0 (0%)581.69
-30.99 (-5.06%)
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 Cap35.90B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 30.45 | ||
| Fwd PE | 24.2 | ||
| 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)2.62
PEG (5Y)1.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.88% | ||
| ROE | 23.58% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.8% | ||
| PM (TTM) | 31.35% | ||
| GM | 29.84% | ||
| 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 Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.16 | ||
| Quick Ratio | 2.41 | ||
| 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)
Growth
EPS 1Y (TTM)37.91%
EPS 3Y21.87%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.21%
Revenue growth 3Y12.74%
Revenue growth 5Y
Revenue growth 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