About Martin Marietta Materials, Inc.
Martin Marietta Materials, Inc., a natural resource-based building materials company, supplies aggregates and heavy-side building materials to the construction industry in the United States and internationally. It operates through East Group and West Group segments. The company offers crushed stone, sand, and gravel products; ready mixed concrete and asphalt; and paving products and services for use in the infrastructure projects, and nonresidential and residential construction projects, as well as in the railroad, agricultural, utility, and environmental industries. It also produces magnesia-based chemicals products, and dolomitic lime primarily to customers for steel production and soil stabilization. Its chemical products are used in flame retardants, wastewater treatment, pulp and paper production, and other applications. The company was founded in 1939 and is based in Raleigh, North Carolina.
Martin Marietta Materials, Inc. (MLM) is a Basic Materials company in the Building Materials industry with a market capitalisation of $30.5B. The stock trades at 12.46x trailing earnings and yields 0.66%.
- Sector
- Basic Materials
- Industry
- Building Materials
- Market cap
- $30.5B
- P/E ratio
- 12.46
- EPS (TTM)
- $18.77
- Revenue (TTM)
- $6.2B
- Free cash flow
- $978M
- Profit margin
- 18.5%
- Dividend yield
- 0.66%
- Shares outstanding
- 60.1M
Financial health: Fair6/10
4 strengths, 2 concerns. Weakest points: net debt vs cash flow, earnings growth.
- Debt to equity: 0.53 (Watch, benchmark < 0.5) — Debt of 0.53x equity is moderate against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 5.4y (Concern, benchmark < 4 years) — Net debt of $5.3B is 5.4x annual free cash flow — about 5 years of cash flow to repay.
- Current ratio: 3.57 (Strong, benchmark > 1.5) — Short-term assets cover 3.57x short-term liabilities, against Graham's 1.5x floor. It has improved over the last 4 years.
- Return on equity: 11.3% (Watch, benchmark > 15%) — Earns 11.3% on shareholder equity, short of the > 15% mark.
- Gross margin: 30.7% (Watch, benchmark > 40%) — Keeps 30.7% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 18.5% (Strong, benchmark > 10%) — Turns 18.5% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $978.0M (Strong, benchmark positive) — Generated $978.0M of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 8.6% (Watch, benchmark > 10%) — Revenue changed 8.6% year on year, short of the > 10% mark.
- Earnings growth: -43.0% (Concern, benchmark > 10%) — Earnings changed -43.0% year on year, well short of the > 10% mark.
- Payout ratio: 17.3% (Strong, benchmark < 60%) — Pays out 17.3% of earnings as dividends, leaving room to keep paying.