Mining & Quarrying of Nonmetallic Minerals (No Fuels)
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.
Discounted Cash Flow Valuation of Martin Marietta Materials Inc
In the chart Earnings are multiplied by this value.
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 average Net Margin over the past 5 years is +14.04%.
The trend of Net Margin over the past 5 years is -0.33%.
The average ROA over the past 5 years is +8.01%.
The trend of ROA over the past 5 years is +0.02%.
The average ROE over the past 5 years is +11.87%.
The trend of ROE over the past 5 years is -0.32%.
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 Debt/FCF trailing twelve month is 6.19.
The trend of Debt/FCF over the past 5 years is -0.66.
Graham’s Stability measure stands at 0.99.
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.
The Revenue CAGR over the past 5 years is +9.21%.
The trend of Revenue growth rate over the past 5 years is -1.96%.
The Earnings CAGR over the past 5 years is +3.97%.
The trend of Earnings growth rate over the past 5 years is -6.48%.
The Equity CAGR over the past 5 years is +8.9%.
The trend of Equity growth rate over the past 5 years is -10.04%.
The FCF CAGR over the past 5 years is +15.53%.
The trend of FCF growth rate over the past 5 years is -3.39%.