Martin Marietta Materials Inc

MLM

Mining & Quarrying of Nonmetallic Minerals (No Fuels)

Mkt Cap

$27.68B

PE

25.87

Debt

$4.744B

Cash

$647.6M

EV

$31.78B

FCF

$766.2M

Market Cap

$27.68B

P/E Ratio

25.87

Debt

$4.744B

Cash

$647.6M

EV

$31.78B

FCF

$766.2M

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 offers crushed stone, sand, and gravel products; ready mixed concrete and asphalt; paving products and services; and 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. The company also produces magnesia-based chemicals products; dolomitic lime primarily to customers for steel production and soil stabilization; and cement treated materials. Its chemical products are used in flame retardants, wastewater treatment, pulp and paper production, and other environmental applications. Martin Marietta Materials, Inc. was founded in 1939 and is headquartered in Raleigh, North Carolina.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
10-Q
6/30/21
10-Q
3/31/21
10-K
12/31/20
10-Q
9/30/20
10-Q
6/30/20
10-Q
3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Martin Marietta Materials Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$766.2M	$909M	$1.065B	$1.231B	$1.404B	$1.581B	$1.755B	$1.923B	$2.077B	$2.213B	$2.323B	$23.23B
DCF		$790.4M	$805M	$809.2M	$802.8M	$785.9M	$758.9M	$722.9M	$679.1M	$629M	$574.3M	$5.743B
Value	$13.1B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 17%

Earnings Stability 79%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2014	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	TTM
Net Margin	5.2%	8.2%	11%	18%	11%	13%	15%	13%	14%	16%
ROA	4.2%	6.9%	9.1%	7.8%	7.2%	8.7%	9.5%	6.8%	8%	10%
ROE	3.5%	7.1%	10%	15%	9.5%	11%	12%	11%	12%	14%

What is the average Net Margin?

The average Net Margin over the past 5 years is +14.04%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.33%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +8.01%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.02%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +11.87%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -0.32%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2014	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	TTM
Debt FCF	10.70	6.25	6.40	13.44	10.66	5.44	3.80	7.14	11.27	6.19
Debt Equity	0.37	0.39	0.45	0.71	0.71	0.58	0.45	0.78	0.80	0.61
MIN
Graham Stability	-	-	100%	100%	99%	100%	100%	100%	100%	99%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 6.19.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.66.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.99.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2015	12-2017	12-2019	12-2021	Trend
Revenue	8.2%	9.2%	9.1%	14%	-2%
Net Income	17%	4%	12%	23%	-6.5%
Stockholders Equity	8.5%	8.9%	10%	9.7%	-10%
FCF	10%	16%	-3.8%	-29%	-3.4%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +9.21%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -1.96%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +3.97%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -6.48%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +8.9%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -10.04%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +15.53%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -3.39%.