MARTIN MARIETTA MATERIALS (MLM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MLM - US5732841060 - Common Stock
615.87 USD
+7.88 (+1.3%)
615.87 USD
0 (0%)
MLM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 could make MLM a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year MLM was profitable.
In the past year MLM had a positive cash flow from operations.
MLM had positive earnings in each of the past 5 years.
MLM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MLM has a Return On Assets of 6.18%. This is in the better half of the industry: MLM outperforms 61.54% of its industry peers.
Looking at the Return On Equity, with a value of 11.83%, MLM is in line with its industry, 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 9.42%.
| 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
The Profit Margin of MLM (17.35%) is better 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 23.66%, 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's Gross Margin of 29.81% is fine compared to the rest of the industry. MLM outperforms 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
MLM has an Altman-Z score of 3.71. This indicates that MLM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.71, MLM is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
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.
MLM's Debt to FCF ratio of 5.48 is fine compared to the rest of the industry. MLM outperforms 69.23% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that MLM is somewhat dependend on debt financing.
MLM's Debt to Equity ratio of 0.54 is on the low side compared to the rest of the industry. MLM is outperformed by 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 5.48 | ||
| Altman-Z | 3.71 |
ROIC/WACC0.73
WACC9.72%
2.3 Liquidity
A Current Ratio of 2.97 indicates that MLM has no problem at all paying its short term obligations.
MLM has a better Current ratio (2.97) 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.
With an excellent Quick ratio value of 2.07, MLM belongs to the best 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.
The Earnings Per Share has been growing by 12.34% on average over the past years. This is quite good.
MLM shows a small growth in Revenue. In the last year, the Revenue has grown by 1.98%.
Measured over the past years, MLM shows a small growth in Revenue. The Revenue has been growing by 6.64% on average per year.
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
The Earnings Per Share is expected to grow by 11.31% on average over the next years. This is quite good.
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 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
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 69.23% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.37. MLM is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 27.76, which means the current valuation is very expensive for MLM.
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.
The average S&P500 Price/Forward Earnings ratio is at 36.20. MLM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.47 | ||
| Fwd PE | 27.76 |
4.2 Price Multiples
76.92% of the companies in the same industry are cheaper than MLM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MLM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.88 | ||
| EV/EBITDA | 19.15 |
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.
A more expensive valuation may be justified as MLM's earnings are expected to grow with 13.99% in the coming years.
PEG (NY)3.21
PEG (5Y)2.63
EPS Next 2Y12.96%
EPS Next 3Y13.99%
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 3.76, MLM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, MLM's dividend is way lower than the S&P500 average.
| 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 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
16.93% of the earnings are spent on dividend by MLM. This is a low number and sustainable payout ratio.
MLM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16.93%
EPS Next 2Y12.96%
EPS Next 3Y13.99%
615.87
+7.88 (+1.3%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners101.22%
Inst Owner Change-1.58%
Ins Owners0.7%
Ins Owner Change0.16%
Market Cap37.14B
Revenue(TTM)6.64B
Net Income(TTM)1.15B
Analysts76.55
Price Target681.27 (10.62%)
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)3.69%
PT rev (3m)4.1%
EPS NQ rev (1m)-0.65%
EPS NQ rev (3m)-0.11%
EPS NY rev (1m)0.13%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)-7.17%
Revenue NQ rev (3m)-6.96%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.47 | ||
| Fwd PE | 27.76 | ||
| P/S | 5.59 | ||
| P/FCF | 36.88 | ||
| P/OCF | 20.16 | ||
| P/B | 3.82 | ||
| P/tB | 6.56 | ||
| EV/EBITDA | 19.15 |
EPS(TTM)18.97
EY3.08%
EPS(NY)22.19
Fwd EY3.6%
FCF(TTM)16.7
FCFY2.71%
OCF(TTM)30.54
OCFY4.96%
SpS110.11
BVpS161.42
TBVpS93.95
PEG (NY)3.21
PEG (5Y)2.63
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 | 3.71 |
F-Score6
WACC9.72%
ROIC/WACC0.73
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 Y10.13%
EPS Next 2Y12.96%
EPS Next 3Y13.99%
EPS Next 5Y11.31%
Revenue 1Y (TTM)1.98%
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 1Y8.43%
EBIT growth 3Y13.48%
EBIT growth 5Y10.76%
EBIT Next Year42.67%
EBIT Next 3Y20.14%
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 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 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 32.47 and the Price/Book (PB) ratio is 3.82.
What is the financial health of MARTIN MARIETTA MATERIALS (MLM) stock?
The financial health rating of MARTIN MARIETTA MATERIALS (MLM) is 7 / 10.