Martin Marietta Materials (MLM) AI Stock Analysis

• Market Cap: $28.07B
• Dividend Yield: 0.66%
• Average Volume (3M): 601.10K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 1.25
• Revenue Growth: -3.56%
• EPS Growth: 70.93%
• Country: US
• Employees: 9,400
• Sector: Basic Materials
• Sector Strength: 56
• Industry: Construction Materials
• EPS (TTM): 32.34
• Shares Outstanding: 60,974,148
• 10 Day Avg. Volume: 798,348
• 30 Day Avg. Volume: 601,098
• PEG Ratio: 0.20
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.29
• Price to Cash Flow (P/CF): 10.20
• P/FCF Ratio: 14.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $617.19
• Price Target Upside: 34.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

Martin Marietta Materials has a stable financial foundation with strong balance sheet and cash flow management, though recent profitability challenges and inconsistent free cash flow are concerns. Technical indicators show downward momentum, cautioning potential investors. Valuation appears reasonable, with a positive outlook from recent earnings, driven by strategic acquisitions and infrastructure demand.

Positive Factors

Growth Opportunities

MLM sees targeted opportunities, notably in markets where there has been recent M&A activity, which could be a source of upside.

Investment Opportunity

End market strength, pricing potential, and other key takeaways from NDR bolster our conviction that Aggregates and Martin Marietta remain an attractive and differentiated investment opportunity.

Market Sentiment

Reiterated 2025 Aggregates price outlook of +5.5% to +7.5% growth yoy is expected to support if not bolster sentiment around the stock.

Negative Factors

Earnings Expectations

The 2025 guidance is slightly below expectations, indicating some challenges in meeting market expectations.

Earnings Guidance

MLM's 2025 EBITDA guidance fell short of expectations due to a softer outlook for private, timing of aggs price increase, and margin compression in its downstream business.

Interest Rates

Higher for longer interest rates are putting pressure on construction activities, impacting the organic outlook for private construction.

Martin Marietta Materials Business Overview & Revenue Model

Company Description

Martin Marietta Materials (MLM) is a leading supplier of building materials, primarily serving the construction industry. The company specializes in producing aggregates, such as crushed stone, sand, and gravel, which are essential components for infrastructure and commercial construction projects. Additionally, Martin Marietta provides cement, ready-mixed concrete, and asphalt, offering a comprehensive suite of materials for various construction needs. Operating across the United States, the company plays a vital role in supporting large-scale infrastructure projects and urban development.

How the Company Makes Money

Martin Marietta Materials generates revenue primarily through the sale of construction aggregates, which include crushed stone, sand, and gravel. These materials are essential for building roads, bridges, and other infrastructure projects. The company also earns income from producing and selling cement, ready-mixed concrete, and asphalt, which are critical for both residential and commercial construction. Key revenue streams include contracts with government entities for public infrastructure projects, as well as sales to private construction firms. Strategic acquisitions and partnerships have enabled Martin Marietta to expand its market presence and access new geographic regions, further bolstering its revenue potential. Additionally, the company's vertically integrated business model, encompassing production, distribution, and sales, helps optimize operational efficiencies and cost management, contributing to its profitability.

Martin Marietta Materials Financial Statement Overview

Summary

Martin Marietta Materials shows stable revenue growth with recent profitability challenges. The balance sheet is robust with moderate leverage, and cash flow management is solid, though free cash flow consistency needs improvement.

Income Statement

The company's revenue growth has been generally positive, with an overall increasing trend over the years. However, the latest year shows a decline in total revenue. Gross profit margins have been relatively stable, but the net profit margin exhibits volatility, particularly with a notable rise in the recent year. This volatility is also reflected in the EBIT and EBITDA margins, which saw a significant decline recently. Overall, the company shows a stable revenue base with profitability challenges in the most recent year.

Balance Sheet

Martin Marietta Materials maintains a healthy balance sheet with a strong equity base, indicated by a high equity ratio. The debt-to-equity ratio is moderate, suggesting a balanced approach to leveraging. The return on equity is strong, reflecting effective utilization of shareholders' investments, although there is room for improvement. The company's financial position is stable, with a solid asset base and prudent financial management.

Cash Flow

The company has shown a positive trend in operating cash flow, though there is a slight decline in recent free cash flow. Free cash flow growth has been inconsistent, and the operating cash flow to net income ratio is strong, indicating effective cash conversion. However, the capital expenditures have increased, impacting free cash flow. Overall, the company's cash flow management is solid but could benefit from improved free cash flow consistency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.54B	6.78B	6.16B	5.41B	4.73B
	Gross Profit
1.88B	2.02B	1.42B	1.35B	1.25B
	EBIT
2.71B	1.60B	1.21B	973.80M	1.01B
	EBITDA
3.34B	2.17B	1.59B	1.46B	1.42B
	Net Income Common Stockholders
2.00B	1.17B	866.80M	702.50M	721.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
670.00M	1.27B	358.00M	258.40M	207.30M
	Total Assets
18.17B	15.12B	14.99B	14.39B	10.58B
	Total Debt
5.80B	4.92B	5.04B	5.10B	2.63B
	Net Debt
5.13B	3.65B	4.68B	4.84B	2.42B
	Total Liabilities
8.71B	7.09B	7.82B	7.86B	4.69B
	Stockholders Equity
9.45B	8.03B	7.17B	6.54B	5.89B
Cash Flow		Free Cash Flow
604.00M	878.10M	509.40M	714.60M	690.40M
	Operating Cash Flow
1.46B	1.53B	991.20M	1.14B	1.05B
	Investing Cash Flow
-2.44B	458.70M	-483.80M	-3.47B	-409.70M
	Financing Cash Flow
373.00M	-1.06B	-407.50M	2.29B	-357.00M

Martin Marietta Materials Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 460.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MLM, the sentiment is Negative. The current price of 460.39 is below the 20-day moving average (MA) of 499.81, below the 50-day MA of 518.49, and below the 200-day MA of 545.05, indicating a bearish trend. The MACD of -17.51 indicates Positive momentum. The RSI at 28.98 is Positive, neither overbought nor oversold. The STOCH value of 40.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MLM.

Martin Marietta Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRH	82 Outperform	£66.82B	19.70	16.07%	1.81%	1.78%	15.53%
VMC	72 Outperform	$31.07B	34.33	11.79%	0.78%	-4.68%	-1.73%
EXP	66 Neutral	$7.35B	15.78	33.51%	0.47%	0.64%	-1.15%
MLM	63 Neutral	$28.07B	14.22	22.83%	0.66%	-3.56%	70.93%
CX	59 Neutral	$9.65B	10.27	8.39%	0.97%	-0.45%	-1.48%
Sector *	47 Neutral	$2.64B	-4.00	-31.55%	3.33%	2.93%	-29.90%

Martin Marietta Materials Corporate Events

Martin Marietta Reports Record Q4 2024 Profits

Martin Marietta announced its financial results for the fourth quarter and full year of 2024, highlighting a return to earnings growth and margin expansion despite challenges like inclement weather and softening construction demand. The company achieved record fourth-quarter profits and nearly double-digit growth in unit margins, supported by approximately $6 billion in acquisitions and divestitures that optimized its portfolio and improved its margin profile. The strategic actions taken in 2024 are expected to offset softness in residential construction and support continued earnings growth into 2025.