MARTIN MARIETTA MATERIALS (MLM) Stock Fundamental Analysis
NYSE:MLM - New York Stock Exchange, Inc. - US5732841060 - Common Stock - Currency: USD
Taking everything into account, MLM scores 4 out of 10 in our fundamental rating. MLM was compared to 13 industry peers in the Construction Materials industry. MLM has only an average score on both its financial health and profitability. MLM is valied quite expensively at the moment, while it does show a decent growth rate.
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
Looking at the Return On Assets, with a value of 6.02%, MLM is in line with its industry, outperforming 46.15% of the companies in the same industry.
MLM has a Return On Equity of 11.75%. This is in the lower half of the industry: MLM underperforms 69.23% of its industry peers.
With a Return On Invested Capital value of 7.09%, MLM is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for MLM is below the industry average of 10.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.02% | ||
| ROE | 11.75% | ||
| ROIC | 7.09% |
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
The Profit Margin of MLM (16.08%) is better than 76.92% of its industry peers.
In the last couple of years the Profit Margin of MLM has grown nicely.
With an excellent Operating Margin value of 22.80%, 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.
The Gross Margin of MLM (29.25%) is better than 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 | 22.8% | ||
| PM (TTM) | 16.08% | ||
| GM | 29.25% |
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.
MLM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MLM has less shares outstanding
MLM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.52 indicates that MLM is not in any danger for bankruptcy at the moment.
The Altman-Z score of MLM (3.52) is better than 61.54% of its industry peers.
MLM has a debt to FCF ratio of 8.77. This is a slightly negative value and a sign of low solvency as MLM would need 8.77 years to pay back of all of its debts.
MLM has a Debt to FCF ratio (8.77) which is in line with its industry peers.
A Debt/Equity ratio of 0.58 indicates that MLM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.58, MLM is in line with its industry, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 8.77 | ||
| Altman-Z | 3.52 |
ROIC/WACC0.71
WACC9.99%
2.3 Liquidity
A Current Ratio of 2.25 indicates that MLM has no problem at all paying its short term obligations.
MLM has a Current ratio (2.25) which is comparable to the rest of the industry.
MLM has a Quick Ratio of 2.25. This is a bad value and indicates that MLM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.99, MLM is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The earnings per share for MLM have decreased by -9.11% in the last year.
Measured over the past years, MLM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.34% on average per year.
Looking at the last year, MLM shows a decrease in Revenue. The Revenue has decreased by -0.56% 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)-9.11%
EPS 3Y12.39%
EPS 5Y12.34%
EPS Q2Q%-1.55%
Revenue 1Y (TTM)-0.56%
Revenue growth 3Y6.48%
Revenue growth 5Y6.64%
Sales Q2Q%8.15%
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 10.32% yearly.
The Revenue is expected to grow by 7.90% on average over the next years.
EPS Next Y9%
EPS Next 2Y12.88%
EPS Next 3Y13.62%
EPS Next 5Y10.32%
Revenue Next Year7.52%
Revenue Next 2Y7.53%
Revenue Next 3Y7.27%
Revenue Next 5Y7.9%
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 32.37 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 61.54% of the companies in the same industry.
MLM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.41.
With a Price/Forward Earnings ratio of 25.36, MLM can be considered very expensive at the moment.
MLM's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, MLM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.37 | ||
| Fwd PE | 25.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MLM indicates a slightly more expensive valuation: MLM is more expensive than 61.54% of the companies listed in the same industry.
MLM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.92 | ||
| EV/EBITDA | 18.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MLM has a very decent profitability rating, which may justify a higher PE ratio.
MLM's earnings are expected to grow with 13.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.6
PEG (5Y)2.62
EPS Next 2Y12.88%
EPS Next 3Y13.62%
5. Dividend
5.1 Amount
MLM has a yearly dividend return of 0.56%, which is pretty low.
MLM's Dividend Yield is a higher than the industry average which is at 5.05.
With a Dividend Yield of 0.56, MLM pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
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
MLM pays out 17.99% of its income as dividend. This is a sustainable payout ratio.
MLM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP17.99%
EPS Next 2Y12.88%
EPS Next 3Y13.62%
562
-2.38 (-0.42%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners100.93%
Inst Owner Change0%
Ins Owners0.69%
Ins Owner Change7.01%
Market Cap33.88B
Analysts77.93
Price Target610.54 (8.64%)
Short Float %3.71%
Short Ratio5.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Yearly Dividend3.07
Dividend Growth(5Y)8.16%
DP17.99%
Div Incr Years9
Div Non Decr Years30
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.07%
Min EPS beat(2)1.34%
Max EPS beat(2)4.81%
EPS beat(4)2
Avg EPS beat(4)-3.16%
Min EPS beat(4)-12.02%
Max EPS beat(4)4.81%
EPS beat(8)6
Avg EPS beat(8)4.24%
EPS beat(12)9
Avg EPS beat(12)13%
EPS beat(16)10
Avg EPS beat(16)7.55%
Revenue beat(2)0
Avg Revenue beat(2)-1.37%
Min Revenue beat(2)-1.86%
Max Revenue beat(2)-0.88%
Revenue beat(4)0
Avg Revenue beat(4)-2.68%
Min Revenue beat(4)-4.7%
Max Revenue beat(4)-0.88%
Revenue beat(8)0
Avg Revenue beat(8)-2.8%
Revenue beat(12)4
Avg Revenue beat(12)0.63%
Revenue beat(16)8
Avg Revenue beat(16)2.89%
PT rev (1m)-0.6%
PT rev (3m)-2.97%
EPS NQ rev (1m)-1.18%
EPS NQ rev (3m)1.7%
EPS NY rev (1m)0.55%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.37 | ||
| Fwd PE | 25.36 | ||
| P/S | 5.11 | ||
| P/FCF | 54.92 | ||
| P/OCF | 22.51 | ||
| P/B | 3.73 | ||
| P/tB | 7.39 | ||
| EV/EBITDA | 18.58 |
EPS(TTM)17.36
EY3.09%
EPS(NY)22.16
Fwd EY3.94%
FCF(TTM)10.23
FCFY1.82%
OCF(TTM)24.96
OCFY4.44%
SpS110.08
BVpS150.62
TBVpS76.08
PEG (NY)3.6
PEG (5Y)2.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.02% | ||
| ROE | 11.75% | ||
| ROCE | 9.01% | ||
| ROIC | 7.09% | ||
| ROICexc | 7.13% | ||
| ROICexgc | 9.76% | ||
| OM | 22.8% | ||
| PM (TTM) | 16.08% | ||
| GM | 29.25% | ||
| FCFM | 9.3% |
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-Score4
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 8.77 | ||
| Debt/EBITDA | 2.51 | ||
| Cap/Depr | 148.74% | ||
| Cap/Sales | 13.38% | ||
| Interest Coverage | 9.7 | ||
| Cash Conversion | 71.33% | ||
| Profit Quality | 57.83% | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 3.52 |
F-Score4
WACC9.99%
ROIC/WACC0.71
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)-9.11%
EPS 3Y12.39%
EPS 5Y12.34%
EPS Q2Q%-1.55%
EPS Next Y9%
EPS Next 2Y12.88%
EPS Next 3Y13.62%
EPS Next 5Y10.32%
Revenue 1Y (TTM)-0.56%
Revenue growth 3Y6.48%
Revenue growth 5Y6.64%
Sales Q2Q%8.15%
Revenue Next Year7.52%
Revenue Next 2Y7.53%
Revenue Next 3Y7.27%
Revenue Next 5Y7.9%
EBIT growth 1Y-3.66%
EBIT growth 3Y13.48%
EBIT growth 5Y10.76%
EBIT Next Year41.57%
EBIT Next 3Y19.37%
EBIT Next 5Y13.36%
FCF growth 1Y32.43%
FCF growth 3Y-5.45%
FCF growth 5Y1.07%
OCF growth 1Y53.29%
OCF growth 3Y8.64%
OCF growth 5Y8.59%