Martin Marietta Materials Inc
Exchange: NYSESector: Basic MaterialsIndustry: Building Materials
Martin Marietta, a member of the S&P 500 Index, is an American-based company and a leading supplier of building materials, including aggregates, cement, ready mixed concrete and asphalt. Through a network of operations spanning 28 states, Canada and The Bahamas, dedicated Martin Marietta teams supply the resources necessary for building the solid foundations on which our communities thrive. Martin Marietta’s Magnesia Specialties business provides a full range of magnesium oxide, magnesium hydroxide and dolomitic lime products.
Did you know?
Price sits at 47% of its 52-week range.
Current Price
$614.49
-0.74%GoodMoat Value
$388.85
36.7% overvaluedProfile
Valuation (TTM)
Market Cap$37.06B
P/E14.63
EV$40.47B
P/B3.69
Shares Out60.31M
P/Sales5.66
Revenue$6.55B
EV/EBITDA11.57
Martin Marietta Materials Inc (MLM) Stock Analysis
GoodMoat Analysis
Martin Marietta Materials is a leading aggregates and building materials producer with a strong regional moat based on scale and regulatory barriers. However, its current valuation appears unfavourable, trading at a significant premium to the GoodMoat target price and with a high P/E ratio.
Read full analysis
Martin Marietta Materials (MLM) is a major producer of construction aggregates (crushed stone, sand, gravel) and other building materials, serving infrastructure, non-residential, and residential markets. Its primary competitive advantages, or moat, stem from Section 1 criteria like Scale Privilege and Regulatory Barriers. The business benefits from high barriers to entry due to the scarcity of permitted quarry locations and the immense cost of establishing new ones, coupled with the high cost of transporting heavy materials, which creates strong local and regional monopolies. This likely contributes to a Moat Score of 5 or higher, passing the initial gate in the Decision Framework. The company shows solid quality with an operating margin of 23.4% and manageable debt (Debt/Equity of 0.57). The critical issue is valuation. At a price of $589.42, the stock trades at a P/E of 31.3, which is high for a company with 8.6% YoY revenue growth. More importantly, it trades 57% above the GoodMoat target price of $374.83. According to the framework's Valuation & Risk Gate, this represents a negative Margin of Safety, placing it in the 'Unfavourable' band (<10%). While the business possesses a durable moat, the current price does not offer a margin of safety for a value investor, making further investigation primarily an exercise in understanding what would justify such a premium. Analysis based on data as of 2024-05-15.
Market Cap$37.06B
Current Price$614.49
P/E Ratio14.63
Forward P/E—
PEG Ratio0.01
EPS$18.81
Book Value$166.33
P/B Ratio3.69
MLM Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 9.3% FCF growth (CAGR)
Cash vs Debt
Net Debt: 5.6B
Revenue
4.7B
FY19
4.7B
FY20
5.4B
FY21
6.2B
FY22
5.9B
FY23
5.7B
FY24
6.2B
FY25
Net Income
612M
FY19
721M
FY20
703M
FY21
867M
FY22
1.2B
FY23
2.0B
FY24
1.1B
FY25
MLM 52-Week Range
$531.58
$707.23
50-Day MA: $615.29200-Day MA: $620.23
Did you know?
Trading 37% above its estimated fair value of $388.85.
Martin Marietta Materials Inc (MLM) Financial Summary
Martin Marietta Materials Inc (MLM) is a Basic Materials company in the Building Materials industry, listed on NYSE. The stock currently trades at $614.49 with a market capitalization of $37.06B.
Key valuation metrics include a P/E ratio of 14.63, price-to-book ratio of 3.69, and EPS of $18.81. The company reports a profit margin of 38.7% and return on equity of 25.3%.
MLM Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $37.06B |
| P/E Ratio | 14.63 |
| EPS | $18.81 |
| P/B Ratio | 3.69 |
| P/S Ratio | 5.66 |
| EV/EBITDA | 11.57 |
| Dividend Yield | 0.53% |
| Profit Margin | 38.7% |
| Return on Equity | 25.3% |
| Debt/Equity | 0.57 |
MLM Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $4.74B | $611.90M |
| FY20 | $4.73B | $721.00M |
| FY21 | $5.41B | $702.50M |
| FY22 | $6.16B | $867.00M |
| FY23 | $5.85B | $1.17B |
| FY24 | $5.66B | $2.00B |
| FY25 | $6.15B | $1.14B |
Martin Marietta Materials Inc (MLM) Valuation
Based on GoodMoat's DCF model, Martin Marietta Materials Inc has a fair value estimate of $388.85. At the current price of $614.49, the stock appears 58.0% overvalued relative to our intrinsic value estimate.
MLM Quality Indicators
Martin Marietta Materials Inc maintains a profit margin of 38.7% and an operating margin of 23.4%. Return on equity stands at 25.3%. The current ratio is 3.57. Debt-to-equity ratio is 0.57.
About Martin Marietta Materials Inc
Martin Marietta, a member of the S&P 500 Index, is an American-based company and a leading supplier of building materials, including aggregates, cement, ready mixed concrete and asphalt. Through a network of operations spanning 28 states, Canada and The Bahamas, dedicated Martin Marietta teams supply the resources necessary for building the solid foundations on which our communities thrive. Martin Marietta’s Magnesia Specialties business provides a full range of magnesium oxide, magnesium hydroxide and dolomitic lime products.
MLM Free Cash Flow
Martin Marietta Materials Inc generated $978.00M in trailing twelve-month free cash flow, representing an FCF yield of 2.64%. This moderate FCF yield indicates reasonable cash generation.
MLM Shares Outstanding
Martin Marietta Materials Inc has 0.06 billion shares outstanding at a share price of $614.49, giving it a market capitalization of $37.06B.