MARTIN MARIETTA MATERIALS (MLM) Stock Fundamental Analysis
USA - NYSE:MLM - US5732841060 - Common Stock
618.57 USD
-1.83 (-0.29%)
618.57 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to MLM. MLM was compared to 13 industry peers in the Construction Materials industry. MLM has an average financial health and profitability rating. 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.
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
The Return On Assets of MLM (6.09%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 11.76%, MLM is in line with its industry, outperforming 46.15% of the companies in the same industry.
With a Return On Invested Capital value of 7.17%, MLM perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MLM is below the industry average of 10.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 11.76% | ||
| ROIC | 7.17% |
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 16.47%, MLM is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
MLM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 23.25%, 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.
Looking at the Gross Margin, with a value of 29.44%, MLM is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
MLM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.25% | ||
| PM (TTM) | 16.47% | ||
| GM | 29.44% |
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.
MLM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MLM has less shares outstanding
The debt/assets ratio for MLM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.77 indicates that MLM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.77, MLM is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
The Debt to FCF ratio of MLM is 5.62, which is a neutral value as it means it would take MLM, 5.62 years of fcf income to pay off all of its debts.
MLM's Debt to FCF ratio of 5.62 is fine compared to the rest of the industry. MLM outperforms 69.23% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that MLM is somewhat dependend on debt financing.
The Debt to Equity ratio of MLM (0.57) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 5.62 | ||
| Altman-Z | 3.77 |
ROIC/WACC0.75
WACC9.58%
2.3 Liquidity
MLM has a Current Ratio of 2.35. This indicates that MLM is financially healthy and has no problem in meeting its short term obligations.
MLM has a Current ratio (2.35) which is comparable to the rest of the industry.
MLM has a Quick Ratio of 1.21. This is a normal value and indicates that MLM is financially healthy and should not expect problems in meeting its short term obligations.
MLM has a Quick ratio (1.21) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The earnings per share for MLM have decreased by -1.26% in the last 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.
The Revenue has been growing slightly by 1.01% 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)-1.26%
EPS 3Y12.39%
EPS 5Y12.34%
EPS Q2Q%14.08%
Revenue 1Y (TTM)1.01%
Revenue growth 3Y6.48%
Revenue growth 5Y6.64%
Sales Q2Q%2.66%
3.2 Future
The Earnings Per Share is expected to grow by 10.42% on average over the next years. This is quite good.
MLM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.32% yearly.
EPS Next Y10.08%
EPS Next 2Y13.24%
EPS Next 3Y13.93%
EPS Next 5Y10.42%
Revenue Next Year6.57%
Revenue Next 2Y7.53%
Revenue Next 3Y7.36%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 34.31, MLM can be considered very expensive at the moment.
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's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.38.
The Price/Forward Earnings ratio is 27.74, which means the current valuation is very expensive for MLM.
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 22.86, MLM is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.31 | ||
| Fwd PE | 27.74 |
4.2 Price Multiples
MLM's Enterprise Value to EBITDA 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 the rest of the industry, the Price/Free Cash Flow ratio of MLM indicates a somewhat cheap valuation: MLM is cheaper than 61.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.74 | ||
| EV/EBITDA | 19.58 |
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.
A more expensive valuation may be justified as MLM's earnings are expected to grow with 13.93% in the coming years.
PEG (NY)3.4
PEG (5Y)2.78
EPS Next 2Y13.24%
EPS Next 3Y13.93%
5. Dividend
5.1 Amount
With a yearly dividend of 0.54%, MLM is not a good candidate for dividend investing.
MLM's Dividend Yield is a higher than the industry average which is at 3.29.
Compared to an average S&P500 Dividend Yield of 2.38, 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.16%
Div Incr Years9
Div Non Decr Years30
5.3 Sustainability
MLM pays out 17.62% 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.
DP17.62%
EPS Next 2Y13.24%
EPS Next 3Y13.93%
618.57
-1.83 (-0.29%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners101.06%
Inst Owner Change-0.6%
Ins Owners0.69%
Ins Owner Change1.04%
Market Cap37.31B
Analysts77.14
Price Target657.06 (6.22%)
Short Float %2.82%
Short Ratio4.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend3.07
Dividend Growth(5Y)8.16%
DP17.62%
Div Incr Years9
Div Non Decr Years30
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.45%
Min EPS beat(2)1.34%
Max EPS beat(2)1.56%
EPS beat(4)3
Avg EPS beat(4)0.23%
Min EPS beat(4)-6.78%
Max EPS beat(4)4.81%
EPS beat(8)6
Avg EPS beat(8)2.67%
EPS beat(12)9
Avg EPS beat(12)12.73%
EPS beat(16)11
Avg EPS beat(16)7.75%
Revenue beat(2)0
Avg Revenue beat(2)-2.5%
Min Revenue beat(2)-4.13%
Max Revenue beat(2)-0.88%
Revenue beat(4)0
Avg Revenue beat(4)-2.54%
Min Revenue beat(4)-4.13%
Max Revenue beat(4)-0.88%
Revenue beat(8)0
Avg Revenue beat(8)-3.07%
Revenue beat(12)3
Avg Revenue beat(12)-0.54%
Revenue beat(16)7
Avg Revenue beat(16)2.31%
PT rev (1m)5.12%
PT rev (3m)6.97%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)0.35%
EPS NY rev (1m)1%
EPS NY rev (3m)1.55%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)-0.65%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.31 | ||
| Fwd PE | 27.74 | ||
| P/S | 5.58 | ||
| P/FCF | 38.74 | ||
| P/OCF | 19.73 | ||
| P/B | 3.98 | ||
| P/tB | 7.66 | ||
| EV/EBITDA | 19.58 |
EPS(TTM)18.03
EY2.91%
EPS(NY)22.3
Fwd EY3.61%
FCF(TTM)15.97
FCFY2.58%
OCF(TTM)31.35
OCFY5.07%
SpS110.83
BVpS155.25
TBVpS80.8
PEG (NY)3.4
PEG (5Y)2.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 11.76% | ||
| ROCE | 9.11% | ||
| ROIC | 7.17% | ||
| ROICexc | 7.26% | ||
| ROICexgc | 9.91% | ||
| OM | 23.25% | ||
| PM (TTM) | 16.47% | ||
| GM | 29.44% | ||
| FCFM | 14.41% |
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%
ROICexcg growth 3Y2.46%
ROICexcg 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-Score5
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 5.62 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 149.2% | ||
| Cap/Sales | 13.88% | ||
| Interest Coverage | -15.39 | ||
| Cash Conversion | 86.9% | ||
| Profit Quality | 87.47% | ||
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 3.77 |
F-Score5
WACC9.58%
ROIC/WACC0.75
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)-1.26%
EPS 3Y12.39%
EPS 5Y12.34%
EPS Q2Q%14.08%
EPS Next Y10.08%
EPS Next 2Y13.24%
EPS Next 3Y13.93%
EPS Next 5Y10.42%
Revenue 1Y (TTM)1.01%
Revenue growth 3Y6.48%
Revenue growth 5Y6.64%
Sales Q2Q%2.66%
Revenue Next Year6.57%
Revenue Next 2Y7.53%
Revenue Next 3Y7.36%
Revenue Next 5Y7.32%
EBIT growth 1Y1.85%
EBIT growth 3Y13.48%
EBIT growth 5Y10.76%
EBIT Next Year41.32%
EBIT Next 3Y19.07%
EBIT Next 5Y14.15%
FCF growth 1Y43.95%
FCF growth 3Y-5.45%
FCF growth 5Y1.07%
OCF growth 1Y54.56%
OCF growth 3Y8.64%
OCF growth 5Y8.59%