Martin Marietta Materials, Inc. Fundamental Analysis (NYSE: MLM)
Martin Marietta Materials, Inc. Fundamental Analysis (NYSE: MLM)
Martin Marietta Materials, Inc. (NYSE: MLM) shows strong financial fundamentals with a PE ratio of 13.28, profit margin of 36.81%, and ROE of 23.11%. The company generates $6.7B in annual revenue with weak year-over-year growth of 0.12%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 72.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze MLM's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMLM demonstrates superior asset utilization.
Valuation Score
ExcellentMLM trades at attractive valuation levels.
Growth Score
WeakMLM faces weak or negative growth trends.
Financial Health Score
ExcellentMLM maintains a strong and stable balance sheet.
Profitability Score
ExcellentMLM achieves industry-leading margins.
Key Financial Metrics
Is MLM Expensive or Cheap?
P/E Ratio
MLM trades at 13.28 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MLM's PEG of 0.11 indicates potential undervaluation.
Price to Book
The market values Martin Marietta Materials, Inc. at 2.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.81 times EBITDA. This signals the market has high growth expectations.
How Well Does MLM Make Money?
Net Profit Margin
For every $100 in sales, Martin Marietta Materials, Inc. keeps $36.81 as profit after all expenses.
Operating Margin
Core operations generate 21.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.11 in profit for every $100 of shareholder equity.
ROA
Martin Marietta Materials, Inc. generates $11.56 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Martin Marietta Materials, Inc. produces operating cash flow of $1.52B, showing steady but balanced cash generation.
Free Cash Flow
Martin Marietta Materials, Inc. generates strong free cash flow of $809.54M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $13.48 in free cash annually.
FCF Yield
MLM converts 2.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.86
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How MLM Stacks Against Its Sector Peers
| Metric | MLM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.28 | 27.26 | Better (Cheaper) |
| ROE | 23.11% | 1203.00% | Weak |
| Net Margin | 36.81% | 200.00% | Weak |
| Debt/Equity | 0.52 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 1.40 | 3.29 | Neutral |
| ROA | 11.56% | 3162.00% | Weak |
MLM outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Martin Marietta Materials, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
42.94%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
62.93%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
75.62%
Industry Style: Cyclical, Commodity, Value
High Growth