Martin Marietta Materials (MLM) AI Stock Analysis

• Market Cap: $37.65B
• Dividend Yield: 0.52%
• Average Volume (3M): 405.28K
• Price to Earnings (P/E): 32.9
• Beta (1Y): 0.75
• Revenue Growth: 1.99%
• EPS Growth: -41.08%
• Country: US
• Employees: 9,400
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 5.97
• Shares Outstanding: 60,307,144
• 10 Day Avg. Volume: 359,413
• 30 Day Avg. Volume: 405,278
• PEG Ratio: 0.22
• Price to Book (P/B): 3.35
• Price to Sales (P/S): 4.85
• P/FCF Ratio: 52.51
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 6.61
• Enterprise Value/Gross Profit: 22.13
• Enterprise Value/Ebitda: 19.84
• 1Y Price Target: $673.73
• Price Target Upside: 8.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 18.3
• Revenue Forecast (FY): $6.64B

• Rating: 73 Outperform
• Price Target: $694.00 ▲(11.54% Upside)

Martin Marietta Materials demonstrates a strong financial position with robust earnings call highlights, including record performance and raised guidance. Technical indicators support a positive trend, although valuation metrics suggest the stock may be overvalued. Challenges in maintaining profitability and potential impacts from government shutdowns are risks to consider.

Positive Factors

Revenue Growth

The significant increase in aggregates revenue indicates strong demand in construction and infrastructure, supporting long-term growth.

Strategic Asset Exchange

The asset exchange with QUIKRETE positions Martin Marietta for growth, enhancing its portfolio and operational capabilities under SOAR 2030.

Cash Flow Generation

Improved cash flow generation enhances financial health, providing flexibility for investments and debt management.

Negative Factors

Declining Profit Margins

The decline in profit margins highlights challenges in maintaining profitability, which could impact long-term financial performance.

Weakness in Downstream Products

Decreased revenues in downstream products like asphalt and paving suggest potential challenges in diversifying revenue streams.

Impact of Government Shutdowns

Government shutdowns could delay projects and impact revenue from government contracts, affecting long-term stability.

Martin Marietta Materials Business Overview & Revenue Model

Company Description

Martin Marietta Materials, Inc. is a leading supplier of aggregates and heavy building materials in the United States. The company operates through two primary segments: the Aggregates segment, which includes the production and sale of crushed stone, sand, and gravel, and the Specialty Products segment, which offers cement and asphalt products. With a strong commitment to sustainability and innovation, Martin Marietta serves a diverse customer base in the construction, infrastructure, and environmental sectors.

How the Company Makes Money

Martin Marietta generates revenue primarily through the sale of aggregates and heavy building materials. The Aggregates segment is the largest contributor to the company's earnings, driven by demand in the construction and infrastructure markets. Revenue is derived from the direct sale of raw materials to contractors, builders, and governmental entities, which are used in various construction projects such as roads, bridges, and commercial buildings. Additionally, the Specialty Products segment contributes to the revenue through the sale of cement, ready-mixed concrete, and asphalt products. Strategic partnerships with key construction firms and government contracts enhance the company's revenue stability. Factors such as infrastructure spending, economic growth, and housing demand are significant contributors to the company's earnings, as they directly influence the volume of materials required in the market.

Martin Marietta Materials Financial Statement Overview

Summary

Martin Marietta Materials shows a stable financial position with strong gross margins and a solid balance sheet. However, challenges in maintaining revenue growth and profitability are evident, as seen in declining net profit margins and return on equity. Cash flow generation remains a positive aspect, supporting the company's financial health despite some operational inefficiencies.

Income Statement

The income statement shows a mixed performance. The TTM gross profit margin is healthy at 30.6%, indicating efficient cost management. However, the net profit margin has decreased to 16.8% from 30.5% in the previous year, reflecting a significant drop in profitability. Revenue growth is negative in the TTM, suggesting challenges in maintaining sales momentum. The EBIT and EBITDA margins have also declined, indicating reduced operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.54 in the TTM, showing a decrease from previous years, which is a positive sign of reduced leverage. The return on equity has decreased to 11.2% in the TTM from 21.1% in the previous year, indicating lower profitability relative to shareholder equity. The equity ratio remains strong, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals a positive trend with a 4.6% growth in free cash flow in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.35, lower than previous years, suggesting a potential area for improvement. The free cash flow to net income ratio is stable at 0.55, reflecting consistent cash flow relative to net income.

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	1.98B	1.88B	2.02B	1.42B	1.35B	1.25B
EBITDA	2.21B	3.34B	2.17B	1.77B	1.45B	1.40B
Net Income	1.15B	2.00B	1.17B	867.00M	702.50M	721.00M
Balance Sheet
Total Assets	18.65B	18.17B	15.13B	14.99B	14.39B	10.58B
Cash, Cash Equivalents and Short-Term Investments	57.00M	670.00M	1.27B	358.00M	258.40M	207.30M
Total Debt	5.90B	5.80B	4.73B	5.43B	5.53B	3.08B
Total Liabilities	8.91B	8.71B	7.09B	7.82B	7.86B	4.69B
Stockholders Equity	9.73B	9.45B	8.03B	7.17B	6.54B	5.89B
Cash Flow
Free Cash Flow	1.01B	604.00M	878.00M	509.00M	714.60M	690.40M
Operating Cash Flow	1.84B	1.46B	1.53B	991.00M	1.14B	1.05B
Investing Cash Flow	-2.59B	-2.44B	459.00M	-484.00M	-3.47B	-409.70M
Financing Cash Flow	769.00M	373.00M	-1.06B	-407.00M	2.29B	-357.00M

Martin Marietta Materials Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 622.20
• 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 622.2 is above the 20-day moving average (MA) of 609.60, above the 50-day MA of 618.53, and above the 200-day MA of 563.92, indicating a bullish trend. The MACD of 1.68 indicates Negative momentum. The RSI at 56.30 is Neutral, neither overbought nor oversold. The STOCH value of 74.07 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
CX	78 Outperform	$16.29B	11.69	7.10%	0.80%	-6.34%	210.97%
EXP	77 Outperform	$7.12B	16.39	30.10%	0.45%	1.50%	-4.44%
VMC	77 Outperform	$38.96B	35.05	13.56%	0.66%	6.54%	32.48%
MLM	73 Outperform	$37.65B	32.89	11.63%	0.52%	1.99%	-41.08%
TGLS	70 Outperform	$2.39B	13.35	26.21%	1.17%	15.70%	19.92%
KNF	67 Neutral	$3.75B	25.42	9.71%	―	5.52%	-25.56%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Martin Marietta Materials Corporate Events

Martin Marietta Reports Record Q3 2025 Financial Results

On November 4, 2025, Martin Marietta reported record financial results for the third quarter of 2025, with significant increases in revenues, gross profit, and earnings from operations compared to the previous year. The company achieved all-time quarterly records in its aggregates business and raised its full-year guidance for Consolidated Adjusted EBITDA. The acquisition of Premier Magnesia and a strategic asset exchange with Quikrete Holdings are expected to enhance Martin Marietta’s portfolio and operational capabilities.

Martin Marietta Extends Securitization Facility Maturity Date

On September 16, 2025, Martin Marietta Materials, Inc. and its subsidiary entered into the Seventeenth Amendment to extend the maturity date of their $400 million trade receivables securitization facility to September 16, 2026. This amendment allows for potential increase of the facility to $600 million, impacting the company’s financial operations by providing more flexibility in managing its trade receivables and potentially enhancing its liquidity position.