Martin Marietta Materials (MLM) AI Stock Analysis

• Market Cap: $38.06B
• Dividend Yield: 0.51%
• Average Volume (3M): 423.71K
• Price to Earnings (P/E): 34.2
• Beta (1Y): 0.90
• Revenue Growth: 1.02%
• EPS Growth: -45.31%
• Country: US
• Employees: 9,400
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Construction Materials
• EPS (TTM): 5.43
• Shares Outstanding: 60,306,004
• 10 Day Avg. Volume: 337,888
• 30 Day Avg. Volume: 423,709
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 5.79
• Enterprise Value/Gross Profit: 19.68
• Enterprise Value/Ebitda: 17.66
• 1Y Price Target: $645.92
• Price Target Upside: 2.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 76 Outperform
• Price Target: $695.00 ▲(10.12% Upside)

Martin Marietta Materials exhibits strong financial performance and technical indicators, supported by positive earnings call sentiment. The stock's valuation is a concern due to a high P/E ratio, but strategic initiatives and infrastructure demand provide a promising outlook.

Positive Factors

Strategic Asset Exchange

The asset exchange with Quikrete enhances focus on higher-margin aggregates, aligning with the SOAR 2025 plan for resilient earnings.

Revenue Growth

Robust revenue growth indicates strong demand and effective pricing strategies, supporting long-term business expansion.

Cash Flow Generation

Strong cash generation enhances financial flexibility, enabling strategic investments and debt servicing, supporting growth.

Negative Factors

Profitability Margin Decline

Declining margins suggest increased operational costs or pricing pressures, potentially impacting long-term profitability.

Cement and Concrete Revenue Decline

Revenue decline in cement and concrete segments indicates challenges in these markets, affecting overall revenue mix.

High Debt Levels

Elevated debt levels can strain financial resources, limiting flexibility and increasing vulnerability to economic downturns.

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 generates revenue primarily through the sale of construction materials. The Aggregates segment is the largest revenue contributor, as aggregates are essential components in construction and infrastructure projects, including roads, bridges, and commercial buildings. The company benefits from a robust pricing strategy and a high demand for aggregates driven by ongoing construction activity. Additionally, the Cement segment adds to revenue through the sale of cement used in various construction applications. Martin Marietta also engages in strategic partnerships and acquisitions to expand its market presence and enhance operational efficiency. The company's earnings are further supported by favorable economic conditions and infrastructure spending initiatives at both the federal and state levels.

Martin Marietta Materials Financial Statement Overview

Summary

Martin Marietta Materials shows stable financial performance with consistent revenue growth and strong operational efficiency. However, profitability metrics have declined, 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.68B	6.54B	6.78B	6.16B	5.41B	4.73B
Gross Profit	1.97B	1.88B	2.02B	1.42B	1.35B	1.25B
EBITDA	2.19B	3.34B	2.17B	1.77B	1.45B	1.40B
Net Income	1.10B	2.00B	1.17B	867.00M	702.50M	721.00M
Balance Sheet
Total Assets	18.07B	18.17B	15.13B	14.99B	14.39B	10.58B
Cash, Cash Equivalents and Short-Term Investments	225.00M	670.00M	1.27B	358.00M	258.40M	207.30M
Total Debt	5.81B	5.80B	4.73B	5.43B	5.53B	3.08B
Total Liabilities	8.70B	8.71B	7.09B	7.82B	7.86B	4.69B
Stockholders Equity	9.36B	9.45B	8.03B	7.17B	6.54B	5.89B
Cash Flow
Free Cash Flow	963.00M	604.00M	878.00M	509.00M	714.60M	690.40M
Operating Cash Flow	1.89B	1.46B	1.53B	991.00M	1.14B	1.05B
Investing Cash Flow	-2.13B	-2.44B	459.00M	-484.00M	-3.47B	-409.70M
Financing Cash Flow	366.00M	373.00M	-1.06B	-407.00M	2.29B	-357.00M

Martin Marietta Materials Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 631.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 631.12 is above the 20-day moving average (MA) of 613.07, above the 50-day MA of 592.19, and above the 200-day MA of 541.40, indicating a bullish trend. The MACD of 8.03 indicates Positive momentum. The RSI at 53.86 is Neutral, neither overbought nor oversold. The STOCH value of 61.38 is Neutral, 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
TGLS	77 Outperform	$3.46B	18.37	27.89%	0.76%	16.89%	24.91%
VMC	76 Outperform	$38.90B	41.16	11.89%	0.64%	0.19%	4.33%
MLM	76 Outperform	$38.06B	34.17	12.10%	0.51%	1.02%	-45.31%
EXP	76 Outperform	$7.49B	17.01	31.87%	0.42%	0.88%	-4.17%
CX	73 Outperform	$14.29B	8.94	7.12%	0.89%	-9.62%	795.20%
KNF	63 Neutral	$4.57B	30.00	11.11%	―	2.64%	-22.49%
Sector *	61 Neutral	$10.48B	7.30	-0.05%	2.85%	2.87%	-36.73%

Martin Marietta Materials Corporate Events

Martin Marietta Unveils SOAR 2030 Strategic Plan

On September 3, 2025, Martin Marietta Materials presented its SOAR 2030 plan during its Capital Markets Day, highlighting its strategic focus on disciplined pricing, operational excellence, and market expansion. The company emphasized its strong financial performance and shareholder returns, while acknowledging potential risks and uncertainties that could impact future results.

Martin Marietta Enters Equity and Asset Exchange

On August 3, 2025, Martin Marietta Materials entered into an Equity and Asset Exchange Agreement with Quikrete Holdings. This agreement involves Martin Marietta exchanging its cement and ready-mix concrete operations in North Texas for Quikrete’s aggregates operations in several regions and $450 million in cash. The transaction is subject to regulatory approvals and customary closing conditions. This strategic move is expected to impact Martin Marietta’s operations by shifting its focus more towards aggregates, potentially affecting its market positioning and stakeholder interests.

Martin Marietta Reports Record Q2 2025 Profitability

On August 7, 2025, Martin Marietta Materials reported its second-quarter 2025 financial results, highlighting record profitability in its aggregates unit and Magnesia Specialties business. The company achieved a 3% increase in revenues to $1.811 billion and a 15% rise in earnings from operations compared to the previous year. The company also announced a strategic asset exchange agreement with Quikrete Holdings, Inc. and completed the acquisition of Premier Magnesia, LLC, enhancing its position in the magnesia-based products market. These moves are expected to strengthen Martin Marietta’s long-term earnings growth potential and provide a more resilient earnings profile through economic cycles.

Martin Marietta Announces Asset Exchange with Quikrete

On August 4, 2025, Martin Marietta Materials announced an asset exchange agreement with Quikrete Holdings, where Martin Marietta will transfer its cement and ready-mix concrete operations in Texas to Quikrete in exchange for Quikrete’s aggregates operations in Virginia, Missouri, Kansas, and Western Canada, along with $450 million in cash. Additionally, Martin Marietta completed the acquisition of Premier Magnesia, LLC, enhancing its position in the magnesia-based products market. These strategic moves are expected to optimize Martin Marietta’s portfolio, focusing on higher-margin aggregates and supporting long-term earnings growth.

Martin Marietta Appoints New CFO Michael J. Petro

On July 7, 2025, Martin Marietta Materials announced the appointment of Michael J. Petro as Senior Vice President and Chief Financial Officer, effective July 8, 2025. Petro, who has been with the company since 2015, has played a significant role in the company’s strategic growth initiatives and will continue to oversee the Strategy and Development team. This appointment is expected to further strengthen Martin Marietta’s financial leadership and support its ongoing strategy to deliver long-term value for shareholders.