Martin Marietta Materials (MLM) AI Stock Analysis

• Market Cap: $32.30B
• Dividend Yield: 0.58%
• Average Volume (3M): 509.07K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.93
• Revenue Growth: -0.54%
• EPS Growth: -48.61%
• Country: US
• Employees: 9,400
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Construction Materials
• EPS (TTM): 17.39
• Shares Outstanding: 60,285,410
• 10 Day Avg. Volume: 478,382
• 30 Day Avg. Volume: 509,073
• PEG Ratio: 0.23
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 18.57
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $596.31
• Price Target Upside: 11.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

Martin Marietta Materials presents a strong overall performance, driven by solid financials, positive technical momentum, and a fair valuation. The company's robust infrastructure demand and strategic market positioning support a positive outlook, despite challenges in certain segments.

Positive Factors

Financial Performance

MLM announced preliminary 1Q25 results: sales of $1.353bn (+8% YoY) and EBITDA of $351mn (+21% YoY), suggesting profitability tracked a bit better than expected.

Infrastructure Growth

Backlogs are growing and strength in infrastructure projects is noted, which supports positive growth expectations.

Pricing Strategy

The 'value over volume' approach by MLM is viewed positively, contributing to better-than-expected pricing and profit performance.

Negative Factors

Pricing Timing Issues

The Jan 1 vs. April 1 price increase timing issue is expected to remain an area of heightened focus for investors until industry discipline is proven to be restored.

Private Construction Trends

Private construction trends are weakening to start the year, raising concerns that volumes could take a leg down into 2026 and placing pressure on price increases.

Share Price Decline

MLM shares off -23% from November highs, reflecting investor concerns about the future.

Martin Marietta Materials Business Overview & Revenue Model

Company Description

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 that are used in industrial, agricultural, and environmental applications; 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 environmental applications. The company was founded in 1939 and is headquartered in Raleigh, North Carolina.

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 demonstrates solid financial performance with consistent revenue growth and strong operational efficiency. However, profitability metrics have experienced some decline, and there is room for improvement in return on equity.

Income Statement

Martin Marietta Materials exhibits solid financial performance with a consistent revenue growth trajectory. The TTM gross profit margin stands at 29.24%, indicating efficient cost management. However, the net profit margin has declined from the previous year to 16.07% in the TTM, mainly due to reduced net income. The revenue growth rate from 2024 to TTM is modest at 1.55%, reflecting stable but slow growth in sales. The company maintains a strong EBITDA margin of 29.94%, highlighting operational efficiency.

Balance Sheet

The company has a moderate debt-to-equity ratio of 0.58, indicating a balanced approach to leverage. The equity ratio is solid at 51.26%, suggesting a strong capital structure. However, the return on equity has decreased to 11.75% in the TTM, reflecting a need for better capital utilization. Overall, the balance sheet portrays a stable financial position with a focus on equity.

Cash Flow

Martin Marietta Materials demonstrates a healthy operating cash flow to net income ratio of 1.41, indicating robust cash generation relative to profit. Free cash flow has grown by 2.15% from 2024 to TTM, showcasing effective cash management. However, the free cash flow to net income ratio is lower at 0.58, indicating that a significant portion of earnings is reinvested or impacted by capital expenditures.

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
3.33B	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: Positive
• Last Price: 535.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MLM, the sentiment is Positive. The current price of 535.8 is above the 20-day moving average (MA) of 494.87, above the 50-day MA of 485.95, and above the 200-day MA of 532.56, indicating a bullish trend. The MACD of 10.01 indicates Negative momentum. The RSI at 67.91 is Neutral, neither overbought nor oversold. The STOCH value of 88.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MLM.

Martin Marietta Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMC	78 Outperform	$35.28B	38.98	12.10%	0.70%	-2.24%	3.00%
EXP	76 Outperform	$7.79B	16.72	33.51%	0.43%	0.64%	-1.15%
MLM	75 Outperform	$32.30B	16.54	11.88%	0.58%	-0.54%	-48.61%
KNF	73 Outperform	$5.27B	26.25	14.71%	―	2.42%	10.21%
CX	73 Outperform	$7.83B	8.36	6.58%	1.34%	-8.41%	570.14%
JHX	68 Neutral	$10.45B	24.05	21.77%	―	1.26%	-17.38%
Sector *	49 Neutral	$1.95B	-1.37	-21.20%	3.73%	0.84%	-29.84%

Martin Marietta Materials Corporate Events

Martin Marietta Reports Strong Q1 2025 Financial Results

On April 30, 2025, Martin Marietta Materials announced its financial results for the first quarter ending March 31, 2025, highlighting significant growth in key areas. The company reported an 8% increase in revenues to $1.3 billion and a 23% rise in gross profit to $335 million, driven by pricing momentum, cost discipline, and acquisition contributions. The aggregates segment saw a record gross profit per ton growth of 16%, while the Magnesia Specialties business achieved quarterly records in revenues and profitability. Despite challenges such as winter weather and reduced residential demand, the company maintained strong performance, supported by infrastructure demand and strategic positioning in growth markets. Cash generation improved, with $218 million provided by operating activities, and the company returned $499 million to shareholders through dividends and share repurchases.

Spark’s Take on MLM Stock

According to Spark, TipRanks’ AI Analyst, MLM is a Outperform.

Martin Marietta Materials exhibits a solid overall performance with a strong balance sheet and effective cash flow management. Despite some profitability challenges, the company’s strategic acquisitions and strong infrastructure demand support a positive outlook. Valuation metrics suggest a fair price, and technical indicators point to a positive trend, making the stock a reasonable investment within the construction materials sector.

To see Spark’s full report on MLM stock, click here.

Martin Marietta Materials CFO Resignation Announced

On April 9, 2025, Martin Marietta Materials announced the resignation of James A.J. Nickolas as Executive Vice President and Chief Financial Officer, effective April 11, 2025. His departure is due to personal reasons, allowing him to relocate to Chicago and join another company. The company has appointed Robert J. Cardin as the Interim Chief Financial Officer, who will continue his role as Senior Vice President, Controller, and Chief Accounting Officer. Martin Marietta has begun a search for a new CFO with the help of an executive search firm.

Spark’s Take on MLM Stock

According to Spark, TipRanks’ AI Analyst, MLM is a Neutral.

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.

To see Spark’s full report on MLM stock, click here.

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.