MARTIN MARIETTA MATERIALS (MLM) Stock Fundamental Analysis
USA - NYSE:MLM - US5732841060 - Common Stock
610.64 USD
+2.31 (+0.38%)
610.64 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. Both the profitability and the financial health of MLM get a neutral evaluation. Nothing too spectacular is happening here. 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.
MLM had a positive operating cash flow in the past year.
Each year in the past 5 years MLM has been profitable.
In the past 5 years MLM always reported a positive cash flow from operatings.
1.2 Ratios
MLM's Return On Assets of 6.09% is in line compared to the rest of the industry. MLM outperforms 53.85% of its industry peers.
MLM's Return On Equity of 11.76% is in line compared to the rest of the industry. MLM outperforms 46.15% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.17%, MLM is doing worse than 61.54% of the companies in the same industry.
MLM had an Average Return On Invested Capital over the past 3 years of 7.34%. This is below the industry average of 10.40%.
| 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 has a better Profit Margin (16.47%) than 84.62% 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 23.25%, MLM belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Operating Margin of MLM has grown nicely.
MLM has a better Gross Margin (29.44%) than 69.23% of its industry peers.
In the last couple of years the Gross Margin of MLM has grown nicely.
| 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
MLM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MLM has less shares outstanding than it did 1 year ago.
MLM has less shares outstanding than it did 5 years ago.
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.
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.
Looking at the Debt to FCF ratio, with a value of 5.62, MLM is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
A Debt/Equity ratio of 0.57 indicates that MLM is somewhat dependend on debt financing.
MLM has a worse Debt to Equity ratio (0.57) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 5.62 | ||
| Altman-Z | 3.72 |
ROIC/WACC0.74
WACC9.72%
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.
With a Current ratio value of 2.35, MLM perfoms like the industry average, outperforming 53.85% of the companies in the same 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.
With a Quick ratio value of 1.21, MLM perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
MLM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.99%.
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 decrease in Revenue. The Revenue has decreased by -3.56% in the last year.
The Revenue has been growing slightly by 6.64% on average over the past years.
EPS 1Y (TTM)4.99%
EPS 3Y12.39%
EPS 5Y12.34%
EPS Q2Q%1.02%
Revenue 1Y (TTM)-3.56%
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.
The Revenue is expected to grow by 7.32% on average over the next years.
EPS Next Y10.13%
EPS Next 2Y12.96%
EPS Next 3Y13.99%
EPS Next 5Y11.31%
Revenue Next Year6.38%
Revenue Next 2Y7%
Revenue Next 3Y7.13%
Revenue Next 5Y7.32%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 33.76, the valuation of MLM can be described as expensive.
Based on the Price/Earnings ratio, MLM is valued a bit more expensive than 69.23% of the companies in the same industry.
MLM is valuated rather expensively when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
MLM is valuated quite expensively with a Price/Forward Earnings ratio of 27.52.
Based on the Price/Forward Earnings ratio, MLM is valued a bit more expensive than 61.54% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.68. MLM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.76 | ||
| Fwd PE | 27.52 |
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 76.92% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as MLM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.24 | ||
| EV/EBITDA | 19.25 |
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 13.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.33
PEG (5Y)2.74
EPS Next 2Y12.96%
EPS Next 3Y13.99%
5. Dividend
5.1 Amount
MLM has a yearly dividend return of 0.55%, which is pretty low.
Compared to an average industry Dividend Yield of 3.90, MLM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, MLM's dividend is way lower than the S&P500 average.
| 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 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
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 2Y12.96%
EPS Next 3Y13.99%
610.64
+2.31 (+0.38%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners101.22%
Inst Owner Change-1.02%
Ins Owners0.7%
Ins Owner Change1.04%
Market Cap36.83B
Revenue(TTM)6.54B
Net Income(TTM)1.10B
Analysts76.55
Price Target676 (10.7%)
Short Float %2.97%
Short Ratio5.15
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)2.88%
PT rev (3m)10.13%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)1.7%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)0.91%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.76 | ||
| Fwd PE | 27.52 | ||
| P/S | 5.51 | ||
| P/FCF | 38.24 | ||
| P/OCF | 19.48 | ||
| P/B | 3.93 | ||
| P/tB | 7.56 | ||
| EV/EBITDA | 19.25 |
EPS(TTM)18.09
EY2.96%
EPS(NY)22.19
Fwd EY3.63%
FCF(TTM)15.97
FCFY2.61%
OCF(TTM)31.35
OCFY5.13%
SpS110.83
BVpS155.25
TBVpS80.8
PEG (NY)3.33
PEG (5Y)2.74
Graham Number251.38
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%
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-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
WACC9.72%
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)4.99%
EPS 3Y12.39%
EPS 5Y12.34%
EPS Q2Q%1.02%
EPS Next Y10.13%
EPS Next 2Y12.96%
EPS Next 3Y13.99%
EPS Next 5Y11.31%
Revenue 1Y (TTM)-3.56%
Revenue growth 3Y6.48%
Revenue growth 5Y6.64%
Sales Q2Q%-2.28%
Revenue Next Year6.38%
Revenue Next 2Y7%
Revenue Next 3Y7.13%
Revenue Next 5Y7.32%
EBIT growth 1Y1.85%
EBIT growth 3Y13.48%
EBIT growth 5Y10.76%
EBIT Next Year42.67%
EBIT Next 3Y20.14%
EBIT Next 5Y14.79%
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%
MARTIN MARIETTA MATERIALS / MLM FAQ
What is the ChartMill fundamental rating of MARTIN MARIETTA MATERIALS (MLM) stock?
ChartMill assigns a fundamental rating of 5 / 10 to MLM.
What is the valuation status for MLM stock?
ChartMill assigns a valuation rating of 2 / 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 6 / 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 33.76 and the Price/Book (PB) ratio is 3.93.
What is the financial health of MARTIN MARIETTA MATERIALS (MLM) stock?
The financial health rating of MARTIN MARIETTA MATERIALS (MLM) is 5 / 10.