Martin Marietta Materials (MLM) AI Stock Analysis

• Market Cap: $33.86B
• Dividend Yield: 0.55%
• Average Volume (3M): 427.12K
• Price to Earnings (P/E): 32.3
• Beta (1Y): 0.93
• Revenue Growth: -0.54%
• EPS Growth: -48.61%
• Country: US
• Employees: 9,400
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Construction Materials
• EPS (TTM): 1.90
• Shares Outstanding: 60,285,410
• 10 Day Avg. Volume: 415,601
• 30 Day Avg. Volume: 427,118
• PEG Ratio: -0.67
• Price to Book (P/B): 3.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 52.94
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 1.46
• Enterprise Value/Gross Profit: 19.77
• Enterprise Value/Ebitda: 4.83
• 1Y Price Target: $610.55
• Price Target Upside: 8.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 75 Outperform
• Price Target: ―

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

Federal funding for surface transportation is stable and the new administration plans to allocate more funds to hard infrastructure.

Pricing Strategy

Aggregates pricing is tracking at the top end of its guidance and costs are moderating, setting MLM up for a strong performance.

Negative Factors

Investor Sentiment

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

Pricing Timing

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.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.64B	6.54B	6.78B	6.16B	5.41B	4.73B
	Gross Profit
1.94B	1.88B	2.02B	1.42B	1.35B	1.25B
	EBIT
1.48B	2.71B	1.60B	1.21B	973.80M	1.01B
	EBITDA
1.99B	3.33B	2.17B	1.59B	1.46B	1.42B
	Net Income Common Stockholders
1.07B	2.00B	1.17B	866.80M	702.50M	721.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
101.00M	670.00M	1.27B	358.00M	258.40M	207.30M
	Total Assets
17.72B	18.17B	15.12B	14.99B	14.39B	10.58B
	Total Debt
5.81B	5.80B	4.92B	5.04B	5.10B	2.63B
	Net Debt
5.71B	5.13B	3.65B	4.68B	4.84B	2.42B
	Total Liabilities
8.64B	8.71B	7.09B	7.82B	7.86B	4.69B
	Stockholders Equity
9.08B	9.45B	8.03B	7.17B	6.54B	5.89B
Cash Flow		Free Cash Flow
617.00M	604.00M	878.10M	509.40M	714.60M	690.40M
	Operating Cash Flow
1.50B	1.46B	1.53B	991.20M	1.14B	1.05B
	Investing Cash Flow
-4.13B	-2.44B	458.70M	-483.80M	-3.47B	-409.70M
	Financing Cash Flow
76.00M	373.00M	-1.06B	-407.50M	2.29B	-357.00M

Martin Marietta Materials Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 561.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 561.72 is above the 20-day moving average (MA) of 542.93, above the 50-day MA of 508.71, and above the 200-day MA of 531.71, indicating a bullish trend. The MACD of 16.58 indicates Negative momentum. The RSI at 65.35 is Neutral, neither overbought nor oversold. The STOCH value of 78.34 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
VMC	78 Outperform	$35.43B	38.02	12.10%	0.70%	-2.24%	3.00%
KNF	77 Outperform	$5.44B	30.30	13.76%	―	2.48%	2.22%
EXP	76 Outperform	$7.01B	15.56	33.52%	0.47%	0.64%	-1.15%
MLM	75 Outperform	$33.86B	32.30	11.88%	0.55%	-0.54%	-48.61%
CX	73 Outperform	$10.88B	7.39	6.58%	1.16%	-8.41%	570.14%
JHX	68 Neutral	$10.18B	24.00	21.05%	―	1.26%	-17.38%
Sector *	50 Neutral	$2.00B	-1.13	-21.16%	3.71%	2.15%	-30.95%

Martin Marietta Materials Corporate Events

Martin Marietta Holds Annual Shareholder Meeting 2025

Martin Marietta Materials, Inc. held its Annual Meeting of Shareholders on May 15, 2025, with a 92% quorum of shares represented. During the meeting, ten directors were elected to the Board, PricewaterhouseCoopers LLP was ratified as the independent auditor for 2025, executive compensation was approved, and the 2025 Employee Stock Purchase Plan was sanctioned. These decisions reflect the company’s strategic direction and governance, potentially impacting its operational efficiency and stakeholder confidence.

The most recent analyst rating on (MLM) stock is a Buy with a $696.00 price target. To see the full list of analyst forecasts on Martin Marietta Materials stock, see the MLM Stock Forecast page.

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.

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.