MARTIN MARIETTA MATERIALS (MLM) Stock Fundamental Analysis
NYSE:MLM - US5732841060 - Common Stock
607.89 USD
+7.15 (+1.19%)
607.89 USD
0 (0%)
Overall MLM gets a fundamental rating of 5 out of 10. We evaluated MLM against 13 industry peers in the Construction Materials industry. MLM has only an average score on both its financial health and profitability. While showing a medium growth rate, MLM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
MLM had positive earnings in the past year.
In the past year MLM had a positive cash flow from operations.
MLM had positive earnings in each of the past 5 years.
Each year in the past 5 years MLM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MLM (6.09%) is comparable to the rest of the industry.
MLM has a Return On Equity (11.76%) which is comparable to the rest of the industry.
The Return On Invested Capital of MLM (7.17%) 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 10.70%.
| 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
MLM's Profit Margin of 16.47% is fine compared to the rest of the industry. MLM outperforms 76.92% of its industry peers.
In the last couple of years the Profit Margin of MLM has grown nicely.
MLM has a Operating Margin of 23.25%. This is amongst the best in the industry. MLM outperforms 84.62% of its industry peers.
MLM's Operating Margin has improved in the last couple of years.
The Gross Margin of MLM (29.44%) is better than 69.23% of its industry peers.
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
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
Compared to 5 years ago, MLM has less shares outstanding
Compared to 1 year ago, MLM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.72 indicates that MLM is not in any danger for bankruptcy at the moment.
The Altman-Z score of MLM (3.72) is better than 69.23% of its industry peers.
MLM has a debt to FCF ratio of 5.62. This is a neutral value as MLM would need 5.62 years to pay back of all of its debts.
MLM has a Debt to FCF ratio of 5.62. This is in the better half of the industry: MLM outperforms 61.54% of its industry peers.
MLM has a Debt/Equity ratio of 0.57. This is a neutral value indicating MLM is somewhat dependend on debt financing.
MLM's Debt to Equity ratio of 0.57 is in line compared to the rest of the industry. MLM outperforms 46.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 5.62 | ||
| Altman-Z | 3.72 |
ROIC/WACC0.74
WACC9.7%
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 of 2.35. This is comparable to the rest of the industry: MLM outperforms 53.85% of its industry peers.
A Quick Ratio of 1.21 indicates that MLM should not have too much problems paying its short term obligations.
MLM has a Quick ratio (1.21) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
MLM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.26%.
The Earnings Per Share has been growing by 12.34% on average over the past years. This is quite good.
Looking at the last year, MLM shows a small growth in Revenue. The Revenue has grown by 1.01% in the last year.
MLM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.64% yearly.
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.
The Revenue is expected to grow by 7.32% on average over the next years.
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 3Y7.48%
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 33.72, MLM can be considered very expensive at the moment.
61.54% of the companies in the same industry are cheaper than MLM, based on the Price/Earnings ratio.
MLM is valuated rather expensively when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 27.26, 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's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.72 | ||
| Fwd PE | 27.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MLM is valued a bit more expensive than 69.23% of the companies in the same industry.
MLM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MLM is cheaper than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.07 | ||
| EV/EBITDA | 19.23 |
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 13.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.34
PEG (5Y)2.73
EPS Next 2Y13.24%
EPS Next 3Y13.93%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, MLM is not a good candidate for dividend investing.
MLM's Dividend Yield is a higher than the industry average which is at 4.31.
With a Dividend Yield of 0.55, MLM pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
The dividend of MLM is nicely growing with an annual growth rate of 8.16%!
MLM has been paying a dividend for at least 10 years, so it has 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
17.62% 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.
DP17.62%
EPS Next 2Y13.24%
EPS Next 3Y13.93%
607.89
+7.15 (+1.19%)
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 Change1.15%
Market Cap36.66B
Analysts77.14
Price Target654.45 (7.66%)
Short Float %3.63%
Short Ratio5.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
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)6.62%
PT rev (3m)7.61%
EPS NQ rev (1m)0.86%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)1%
EPS NY rev (3m)1.55%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)-0.88%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.72 | ||
| Fwd PE | 27.26 | ||
| P/S | 5.49 | ||
| P/FCF | 38.07 | ||
| P/OCF | 19.39 | ||
| P/B | 3.92 | ||
| P/tB | 7.52 | ||
| EV/EBITDA | 19.23 |
EPS(TTM)18.03
EY2.97%
EPS(NY)22.3
Fwd EY3.67%
FCF(TTM)15.97
FCFY2.63%
OCF(TTM)31.35
OCFY5.16%
SpS110.83
BVpS155.25
TBVpS80.8
PEG (NY)3.34
PEG (5Y)2.73
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 | 3.72 |
F-Score5
WACC9.7%
ROIC/WACC0.74
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 3Y7.48%
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%