MARTIN MARIETTA MATERIALS (MLM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MLM - US5732841060 - Common Stock
628.25 USD
-3.83 (-0.61%)
628.25 USD
0 (0%)
Overall MLM gets a fundamental rating of 6 out of 10. We evaluated MLM against 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.
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
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.
With a Return On Equity value of 11.83%, MLM perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
MLM has a Return On Invested Capital (7.06%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years 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
MLM's Profit Margin of 17.35% is amongst the best of the industry. MLM outperforms 84.62% of its industry peers.
MLM's Profit Margin has improved in the last couple of years.
MLM's Operating Margin of 23.66% is amongst the best of the industry. MLM outperforms 84.62% of its industry peers.
MLM's Operating Margin has improved in the last couple of years.
MLM has a better Gross Margin (29.81%) 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 | 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
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
MLM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.79 indicates that MLM is not in any danger for bankruptcy at the moment.
MLM's Altman-Z score of 3.79 is fine compared to the rest of the industry. MLM outperforms 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.
Looking at the Debt to FCF ratio, with a value of 5.48, MLM is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that 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 | 3.79 |
ROIC/WACC0.7
WACC10.09%
2.3 Liquidity
A Current Ratio of 2.97 indicates that MLM has no problem at all paying its short term obligations.
The Current ratio of MLM (2.97) is better than 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.
Looking at the Quick ratio, with a value of 2.07, MLM belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.97 | ||
| Quick Ratio | 2.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.10% over the past 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.
MLM shows a small growth in Revenue. In the last year, the Revenue has grown by 1.98%.
MLM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.64% yearly.
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
Based on estimates for the next years, MLM will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.31% on average per year.
Based on estimates for the next years, MLM will show a small growth in Revenue. The Revenue will grow by 7.32% on average per year.
EPS Next Y8.8%
EPS Next 2Y12.7%
EPS Next 3Y13.2%
EPS Next 5Y11.31%
Revenue Next Year0.05%
Revenue Next 2Y4.18%
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.
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
The Price/Earnings ratio is 33.12, which means the current valuation is very expensive for MLM.
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.
The average S&P500 Price/Earnings ratio is at 26.56. MLM is valued slightly more expensive when compared to this.
MLM is valuated quite expensively with a Price/Forward Earnings ratio of 28.44.
Based on the Price/Forward Earnings ratio, MLM is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of MLM to the average of the S&P500 Index (23.79), we can say MLM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.12 | ||
| Fwd PE | 28.44 |
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 76.92% of the companies in the same industry.
MLM's Price/Free Cash Flow 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.63 | ||
| EV/EBITDA | 19.71 |
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 a very decent profitability rating, which may justify a higher PE ratio.
MLM's earnings are expected to grow with 13.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.76
PEG (5Y)2.68
EPS Next 2Y12.7%
EPS Next 3Y13.2%
5. Dividend
5.1 Amount
With a yearly dividend of 0.53%, MLM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.77, MLM pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.53, MLM pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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 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 2Y12.7%
EPS Next 3Y13.2%
628.25
-3.83 (-0.61%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners99.7%
Inst Owner Change-1.57%
Ins Owners0.67%
Ins Owner Change0.02%
Market Cap37.89B
Revenue(TTM)6.64B
Net Income(TTM)1.15B
Analysts76.55
Price Target683.31 (8.76%)
Short Float %2.67%
Short Ratio4.28
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-Date
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)1.08%
PT rev (3m)4%
EPS NQ rev (1m)-0.87%
EPS NQ rev (3m)-0.22%
EPS NY rev (1m)-1.2%
EPS NY rev (3m)-1.16%
Revenue NQ rev (1m)-3.27%
Revenue NQ rev (3m)-6.96%
Revenue NY rev (1m)-5.96%
Revenue NY rev (3m)-6.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.12 | ||
| Fwd PE | 28.44 | ||
| P/S | 5.71 | ||
| P/FCF | 37.63 | ||
| P/OCF | 20.57 | ||
| P/B | 3.89 | ||
| P/tB | 6.69 | ||
| EV/EBITDA | 19.71 |
EPS(TTM)18.97
EY3.02%
EPS(NY)22.09
Fwd EY3.52%
FCF(TTM)16.7
FCFY2.66%
OCF(TTM)30.54
OCFY4.86%
SpS110.11
BVpS161.42
TBVpS93.95
PEG (NY)3.76
PEG (5Y)2.68
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 | 3.79 |
F-Score6
WACC10.09%
ROIC/WACC0.7
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 2Y12.7%
EPS Next 3Y13.2%
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 2Y4.18%
Revenue Next 3Y4.96%
Revenue Next 5Y7.32%
EBIT growth 1Y8.43%
EBIT growth 3Y13.48%
EBIT growth 5Y10.76%
EBIT Next Year39.06%
EBIT Next 3Y19.34%
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 for 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.
What are the PE and PB ratios of MARTIN MARIETTA MATERIALS (MLM) stock?
The Price/Earnings (PE) ratio for MARTIN MARIETTA MATERIALS (MLM) is 33.12 and the Price/Book (PB) ratio is 3.89.
What is the financial health of MARTIN MARIETTA MATERIALS (MLM) stock?
The financial health rating of MARTIN MARIETTA MATERIALS (MLM) is 7 / 10.