MARTIN MARIETTA MATERIALS (MLM) Stock Fundamental Analysis
NYSE:MLM - New York Stock Exchange, Inc. - US5732841060 - Common Stock - Currency: USD
Overall MLM gets a fundamental rating of 4 out of 10. We evaluated MLM against 12 industry peers in the Construction Materials industry. MLM has an average financial health and profitability rating. MLM is valued expensive and it does not seem to be growing.
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.
In the past 5 years MLM has always been profitable.
MLM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MLM's Return On Assets of 6.02% is on the low side compared to the rest of the industry. MLM is outperformed by 66.67% of its industry peers.
MLM's Return On Equity of 11.75% is on the low side compared to the rest of the industry. MLM is outperformed by 83.33% of its industry peers.
MLM's Return On Invested Capital of 7.09% is on the low side compared to the rest of the industry. MLM is outperformed by 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MLM is significantly below the industry average of 19.75%.
| 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
With a decent Profit Margin value of 16.08%, MLM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of MLM has grown nicely.
MLM's Operating Margin of 22.80% is fine compared to the rest of the industry. MLM outperforms 75.00% of its industry peers.
MLM's Operating Margin has improved in the last couple of years.
MLM's Gross Margin of 29.25% is in line compared to the rest of the industry. MLM outperforms 58.33% 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
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
MLM has an Altman-Z score of 3.54. This indicates that MLM is financially healthy and has little risk of bankruptcy at the moment.
MLM has a Altman-Z score (3.54) which is in line with its industry peers.
The Debt to FCF ratio of MLM is 8.77, which is on the high side as it means it would take MLM, 8.77 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 8.77, MLM is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.58 indicates that MLM is somewhat dependend on debt financing.
MLM has a Debt to Equity ratio (0.58) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 8.77 | ||
| Altman-Z | 3.54 |
ROIC/WACC0.77
WACC9.21%
2.3 Liquidity
MLM has a Current Ratio of 2.25. This indicates that MLM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.25, MLM is in line with its industry, outperforming 58.33% of the companies in the same industry.
A Quick Ratio of 0.99 indicates that MLM may have some problems paying its short term obligations.
MLM has a Quick ratio of 0.99. This is in the lower half of the industry: MLM underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
MLM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.11%.
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.
The Revenue has been growing slightly by 6.64% on average over the past years.
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 9.62% yearly.
MLM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.27% yearly.
EPS Next Y8.4%
EPS Next 2Y12.54%
EPS Next 3Y13.26%
EPS Next 5Y9.62%
Revenue Next Year7.52%
Revenue Next 2Y7.53%
Revenue Next 3Y7.17%
Revenue Next 5Y7.27%
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 decreasing.
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
MLM is valuated quite expensively with a Price/Earnings ratio of 32.47.
Compared to the rest of the industry, the Price/Earnings ratio of MLM indicates a slightly more expensive valuation: MLM is more expensive than 75.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MLM to the average of the S&P500 Index (26.60), we can say MLM is valued slightly more expensively.
MLM is valuated quite expensively with a Price/Forward Earnings ratio of 25.59.
MLM's Price/Forward Earnings ratio is in line with the industry average.
MLM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.47 | ||
| Fwd PE | 25.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MLM is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
MLM's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. MLM is more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.36 | ||
| EV/EBITDA | 18.71 |
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.
A more expensive valuation may be justified as MLM's earnings are expected to grow with 13.26% in the coming years.
PEG (NY)3.87
PEG (5Y)2.63
EPS Next 2Y12.54%
EPS Next 3Y13.26%
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, MLM is not a good candidate for dividend investing.
MLM's Dividend Yield is a higher than the industry average which is at 5.29.
Compared to an average S&P500 Dividend Yield of 2.36, MLM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
On average, the dividend of MLM grows each year by 8.16%, which is quite nice.
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
17.99% of the earnings are spent on dividend by MLM. This is a low number and sustainable payout ratio.
The dividend of MLM is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP17.99%
EPS Next 2Y12.54%
EPS Next 3Y13.26%
563.62
-4.57 (-0.8%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners98.73%
Inst Owner Change-0.48%
Ins Owners0.66%
Ins Owner Change5.77%
Market Cap34.16B
Analysts77.86
Price Target608.16 (7.9%)
Short Float %3.41%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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)-3.35%
PT rev (3m)-7.1%
EPS NQ rev (1m)2.39%
EPS NQ rev (3m)-1.31%
EPS NY rev (1m)0.29%
EPS NY rev (3m)-4.34%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-2.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.47 | ||
| Fwd PE | 25.59 | ||
| P/S | 5.15 | ||
| P/FCF | 55.36 | ||
| P/OCF | 22.69 | ||
| P/B | 3.76 | ||
| P/tB | 7.45 | ||
| EV/EBITDA | 18.71 |
EPS(TTM)17.36
EY3.08%
EPS(NY)22.03
Fwd EY3.91%
FCF(TTM)10.18
FCFY1.81%
OCF(TTM)24.84
OCFY4.41%
SpS109.52
BVpS149.85
TBVpS75.69
PEG (NY)3.87
PEG (5Y)2.63
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 | 3.54 |
F-Score4
WACC9.21%
ROIC/WACC0.77
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 Y8.4%
EPS Next 2Y12.54%
EPS Next 3Y13.26%
EPS Next 5Y9.62%
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 3Y7.17%
Revenue Next 5Y7.27%
EBIT growth 1Y-3.66%
EBIT growth 3Y13.48%
EBIT growth 5Y10.76%
EBIT Next Year40.96%
EBIT Next 3Y18.34%
EBIT Next 5Y12.56%
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%