NYSE:MLM

Stock Analysis Report

Martin Marietta Materials

Executive Summary

Martin Marietta Materials, Inc., a natural resource-based building materials company, supplies aggregates and heavy building materials to the construction industry in the United States and internationally.


Snowflake Analysis

Proven track record average dividend payer.


Similar Companies

Share Price & News

How has Martin Marietta Materials's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MLM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.6%

MLM

-5.4%

US Basic Materials

-1.1%

US Market


1 Year Return

32.3%

MLM

21.4%

US Basic Materials

17.9%

US Market

Return vs Industry: MLM exceeded the US Basic Materials industry which returned 21.4% over the past year.

Return vs Market: MLM exceeded the US Market which returned 17.9% over the past year.


Shareholder returns

MLMIndustryMarket
7 Day-4.6%-5.4%-1.1%
30 Day-4.7%-4.0%1.4%
90 Day-3.9%-3.4%6.9%
1 Year33.5%32.3%22.4%21.4%20.3%17.9%
3 Year22.8%19.7%11.6%9.0%47.8%38.3%
5 Year84.3%76.6%64.7%58.1%71.9%53.0%

Price Volatility Vs. Market

How volatile is Martin Marietta Materials's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Martin Marietta Materials undervalued compared to its fair value and its price relative to the market?

35.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MLM ($251.42) is trading below our estimate of fair value ($390.09)

Significantly Below Fair Value: MLM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MLM is good value based on its PE Ratio (25.7x) compared to the Basic Materials industry average (25.7x).

PE vs Market: MLM is poor value based on its PE Ratio (25.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: MLM is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: MLM is overvalued based on its PB Ratio (2.9x) compared to the US Basic Materials industry average (2.1x).


Next Steps

Future Growth

How is Martin Marietta Materials forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MLM's forecast earnings growth (12.9% per year) is above the savings rate (1.7%).

Earnings vs Market: MLM's earnings (12.9% per year) are forecast to grow slower than the US market (14.1% per year).

High Growth Earnings: MLM's earnings are forecast to grow, but not significantly.

Revenue vs Market: MLM's revenue (7.6% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: MLM's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MLM's Return on Equity is forecast to be low in 3 years time (12.7%).


Next Steps

Past Performance

How has Martin Marietta Materials performed over the past 5 years?

21.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MLM has high quality earnings.

Growing Profit Margin: MLM's current net profit margins (13.8%) are higher than last year (11.8%).


Past Earnings Growth Analysis

Earnings Trend: MLM's earnings have grown significantly by 21% per year over the past 5 years.

Accelerating Growth: MLM's earnings growth over the past year (30.4%) exceeds its 5-year average (21% per year).

Earnings vs Industry: MLM earnings growth over the past year (30.4%) underperformed the Basic Materials industry 30.4%.


Return on Equity

High ROE: MLM's Return on Equity (11.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Martin Marietta Materials's financial position?


Financial Position Analysis

Short Term Liabilities: MLM's short term assets ($1.4B) exceed its short term liabilities ($838.5M).

Long Term Liabilities: MLM's short term assets ($1.4B) do not cover its long term liabilities ($3.9B).


Debt to Equity History and Analysis

Debt Level: MLM's debt to equity ratio (42.5%) is considered high.

Reducing Debt: MLM's debt to equity ratio has increased from 36.4% to 42.5% over the past 5 years.

Debt Coverage: MLM's debt is well covered by operating cash flow (42.5%).

Interest Coverage: MLM's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet

Inventory Level: MLM has a high level of physical assets or inventory.

Debt Coverage by Assets: MLM's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Martin Marietta Materials's current dividend yield, its reliability and sustainability?

0.88%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.4%markettop25%3.7%industryaverage1.0%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: MLM's dividend (0.88%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: MLM's dividend (0.88%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: MLM's dividends per share have been stable in the past 10 years.

Growing Dividend: MLM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21%), MLM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MLM's dividends in 3 years are forecast to be well covered by earnings (17.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Ward Nye (56yo)

10.1yrs

Tenure

US$8,533,458

Compensation

Mr. C. Howard Nye, also known as Ward, has been the Chief Executive Officer and President of Martin Marietta Materials, Inc. since January 1, 2010 and August 10, 2006 respectively. Mr. Nye serves as Presid ...


CEO Compensation Analysis

Compensation vs Market: Ward's total compensation ($USD8.53M) is about average for companies of similar size in the US market ($USD10.81M).

Compensation vs Earnings: Ward's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
C. Nye
Chairman10.1yrsUS$8.53m0.23% $35.7m
James A. Nickolas
Chief Financial Officer2.5yrsUS$2.01m0.0046% $718.5k
Roselyn Bar
Executive VP19.1yrsUS$3.10m0.081% $12.7m
Daniel Grant
Senior Vice President of Strategy & Development7.1yrsUS$1.42m0.024% $3.7m
Jay Moreau
Vice President of Operations8.2yrsno datano data
Robert Cardin
Senior VP0.8yrsno datano data
John Mohr
Senior VP & Chief Information Officer2.2yrsno data0.016% $2.6m
Suzanne Osberg
Vice President of Investor Relations0yrsno datano data
Dana Guzzo
Senior Vice President of Sustainability0.9yrsUS$631.28k0.035% $5.5m
Craig LaTorre
Senior VP & Chief Human Resource Officer0.7yrsno datano data

2.5yrs

Average Tenure

55yo

Average Age

Experienced Management: MLM's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
C. Nye
Chairman10.1yrsUS$8.53m0.23% $35.7m
Donald Slager
Independent Director3.8yrsUS$247.82k0.0035% $549.1k
Stephen Zelnak
Independent Director27.1yrsUS$294.60k0.037% $5.8m
John Koraleski
Independent Director3.5yrsUS$260.05k0.012% $1.8m
Sue Cole
Independent Director18.1yrsUS$328.87k0.042% $6.6m
Laree Perez
Independent Director15.3yrsUS$301.70k0.023% $3.6m
Dorothy Ables
Independent Director1.3yrsUS$161.68k0.0022% $337.3k
Michael Quillen
Lead Independent Director6.1yrsUS$335.60k0.032% $5.0m
Thomas Pike
Independent Director0.6yrsno data0.00093% $145.9k
Smith Davis
Independent Director1.8yrsUS$225.07k0.0036% $561.7k

4.8yrs

Average Tenure

66.5yo

Average Age

Experienced Board: MLM's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Martin Marietta Materials, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Martin Marietta Materials, Inc.
  • Ticker: MLM
  • Exchange: NYSE
  • Founded: 1993
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: US$15.689b
  • Shares outstanding: 62.40m
  • Website: https://www.martinmarietta.com

Number of Employees


Location

  • Martin Marietta Materials, Inc.
  • 2710 Wycliff Road
  • Raleigh
  • North Carolina
  • 27607
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MLMNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 1994
MMXDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1994
MLM *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNFeb 1994
0JZ0LSE (London Stock Exchange)YesCommon StockGBUSDFeb 1994
M1LM34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 5 REPR 1 COMBRBRLJan 2020

Biography

Martin Marietta Materials, Inc., a natural resource-based building materials company, supplies aggregates and heavy building materials to the construction industry in the United States and internationally. The company offers crushed stone, sand, and gravel products; ready mixed concrete and asphalt; paving products and services; Portland and specialty cement for use in the infrastructure projects, and nonresidential and residential construction markets, as well as in the railroad, agricultural, utility, and environmental industries. It also manufactures and markets magnesia-based chemical products for the industrial, agricultural, and environmental applications; and dolomitic lime primarily for customers in the steel and mining industries, as well as provides road paving construction services. The company’s chemical products are used in flame retardants, wastewater treatment, pulp and paper production, and other environmental applications. Martin Marietta Materials, Inc. was founded in 1993 and is headquartered in Raleigh, North Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:52
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.