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Martin Marietta Materials Inc MLM

Morningstar Rating
$580.75 −0.94 (0.16%)
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Company Report

Martin Marietta Earnings: Demand Headwinds Begin to Mount, but Pricing Gains Stifle the Blow

Narrow-moat-rated Martin Marietta reported mixed first-quarter results. Net sales fell 7.5% year over year as much of the company’s portfolio experienced declines. Volumes continued to contract across much of the business, primarily driven by higher interest rates that have weighed on construction activity. Despite these headwinds, Martin Marietta continues to drive price growth in every area of its business, demonstrating its durable pricing power in a challenging operating environment. While we expect near-term headwinds to weigh on volumes through the year, we forecast selling price growth for all four segments in 2024.

Price vs Fair Value

MLM is trading within a range we consider fairly valued.
Price
$580.75
Fair Value
$484.00
Uncertainty
Medium
1-Star Price
$428.00
5-Star Price
$285.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Not-in-my-backyard tendencies make the permitting process very difficult for new quarries, forming high barriers to entry and protecting Martin Marietta’s aggregates business from incoming entrants.

Bears

Political partisanship and the desire to reduce government spending threaten the stability for publicly funding infrastructure projects.

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News

Trading Information

Previous Close Price
$581.69
Day Range
$578.54586.40
52-Week Range
$389.90626.67
Bid/Ask
$551.00 / $580.72
Market Cap
$35.80 Bil
Volume/Avg
407,059 / 455,561

Key Statistics

Price/Earnings (Normalized)
28.91
Price/Sales
5.40
Dividend Yield (Trailing)
0.50%
Dividend Yield (Forward)
0.51%
Total Yield
1.21%

Company Profile

Martin Marietta Materials is one of the United States' largest producer of construction aggregates (crushed stone, sand, and gravel). In 2023, Martin Marietta sold 199 million tons of aggregates. Martin Marietta's most important markets include Texas, Colorado, North Carolina, Georgia, and Florida, accounting for most of its sales. The company also produces cement in Texas and uses its aggregates in its asphalt and ready-mixed concrete businesses. Martin’s magnesia specialties business produces magnesia-based chemical products and dolomitic lime.
Sector
Basic Materials
Industry
Building Materials
Stock Style Box
Mid Core
Total Number of Employees
9,400

Competitors

Valuation

Metric
MLM
VMC
HOLN
Price/Earnings (Normalized)
28.9139.2013.45
Price/Book Value
4.034.571.70
Price/Sales
5.404.511.65
Price/Cash Flow
29.4021.868.44
Price/Earnings
MLM
VMC
HOLN

Financial Strength

Metric
MLM
VMC
HOLN
Quick Ratio
2.342.281.08
Current Ratio
3.163.171.44
Interest Coverage
17.777.278.05
Quick Ratio
MLM
VMC
HOLN

Profitability

Metric
MLM
VMC
HOLN
Return on Assets (Normalized)
7.50%6.58%5.64%
Return on Equity (Normalized)
14.58%12.84%11.43%
Return on Invested Capital (Normalized)
9.88%9.17%8.99%
Return on Assets
MLM
VMC
HOLN
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Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
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HDELY
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AHCHF
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AHCHY
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JHX
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