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Martin Marietta Materials Inc (MLM)
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Upturn Advisory Summary
01/14/2025: MLM (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit 18.97% | Avg. Invested days 46 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance 3.0 | Stock Returns Performance 2.0 |
Profits based on simulation | Last Close 01/14/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 31.64B USD | Price to earnings Ratio 16.06 | 1Y Target Price 632.03 |
Price to earnings Ratio 16.06 | 1Y Target Price 632.03 | ||
Volume (30-day avg) 396338 | Beta 0.9 | 52 Weeks Range 489.40 - 632.40 | Updated Date 01/14/2025 |
52 Weeks Range 489.40 - 632.40 | Updated Date 01/14/2025 | ||
Dividends yield (FY) 0.62% | Basic EPS (TTM) 32.23 |
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 30.46% | Operating Margin (TTM) 26.31% |
Management Effectiveness
Return on Assets (TTM) 5.55% | Return on Equity (TTM) 23.44% |
Valuation
Trailing PE 16.06 | Forward PE 24.45 | Enterprise Value 35747786852 | Price to Sales(TTM) 4.86 |
Enterprise Value 35747786852 | Price to Sales(TTM) 4.86 | ||
Enterprise Value to Revenue 5.49 | Enterprise Value to EBITDA 10.84 | Shares Outstanding 61118100 | Shares Floating 60645003 |
Shares Outstanding 61118100 | Shares Floating 60645003 | ||
Percent Insiders 0.7 | Percent Institutions 101.1 |
AI Summary
Martin Marietta Materials Inc. (MLM): A Comprehensive Overview
Company Profile
History and Background
Martin Marietta Materials Inc. (MLM) is a leading supplier of aggregates and heavy building materials in the United States. Founded in 1908 as The Martin-Marietta Corporation, the company initially focused on aerospace and defense technologies. In 1968, it split into two separate entities: Martin Marietta Aerospace (now Lockheed Martin) and Martin Marietta Aggregates. The latter subsequently changed its name to Martin Marietta Materials in 1996.
Today, MLM is a Fortune 500 company with over 500 facilities across 26 states, Canada, and the Bahamas.
Core Business Areas
MLM operates through two primary segments:
- Aggregates: This segment involves the mining, processing, and distribution of aggregates such as crushed stone, sand, and gravel. These materials are used in construction, infrastructure projects, and other industrial applications.
- Magnesia Specialties: This segment focuses on the production of high-purity magnesia products used in various industries, including agriculture, environmental protection, and animal feed.
Leadership and Corporate Structure
MLM is led by:
- CEO: Ward Nye: An industry veteran with over 30 years of experience in the aggregates and building materials industry.
- President and COO: CJ Bruno: Responsible for overseeing the company's day-to-day operations.
The company's Board of Directors comprises individuals with diverse expertise in finance, construction, and business management.
Top Products and Market Share
Top Products and Offerings
MLM's top products include:
- Crushed stone: Used for road construction, building foundations, and other infrastructure projects.
- Sand and gravel: Essential components for concrete, asphalt, and other construction materials.
- Magnesia products: High-purity magnesia used in animal feed, agricultural applications, and environmental protection.
Market Share
MLM holds a leading market share in the aggregates industry in the US. According to the National Stone, Sand & Gravel Association, MLM is the second largest aggregates producer in the country, with a market share of approximately 10%.
In the magnesia specialties market, MLM is a global leader, with a market share estimated to be around 25%.
Product Performance and Market Reception
MLM's products are known for their high quality and consistent performance. The company has a strong reputation for customer service and reliability. Its aggregates are widely used in major infrastructure projects across the US, while its magnesia products are trusted by leading agricultural and environmental companies globally.
Total Addressable Market
The total addressable market for aggregates in the US is estimated to be around $40 billion. This market is expected to grow moderately in the coming years, driven by increasing infrastructure spending and construction activity.
The global magnesia specialties market is estimated to be worth around $2 billion. This market is expected to witness significant growth in the coming years due to rising demand from agriculture, environmental protection, and animal feed industries.
Financial Performance
Recent Financial Statements Analysis
Revenue: MLM's revenue has grown steadily over the past few years, reaching $5.1 billion in 2022. This growth is primarily attributed to increased demand for aggregates and higher prices.
Net Income: MLM's net income has also increased in recent years, reaching $446 million in 2022. This is due to improved margins and cost control measures.
Profit Margins: MLM's profit margins have been relatively stable in recent years, with an operating margin of around 15% and a net margin of around 8%.
Earnings Per Share (EPS): MLM's EPS has grown steadily over the past few years, reaching $3.68 in 2022.
Year-over-Year Comparison
MLM's financial performance has shown consistent improvement year over year. Revenue, net income, and EPS have all grown at a healthy pace, indicating a strong financial position and positive growth trajectory.
Cash Flow and Balance Sheet Health
MLM has a healthy cash flow and strong balance sheet. The company generates significant free cash flow, which it uses for capital expenditures, acquisitions, and shareholder returns. MLM also maintains a conservative debt level, ensuring financial flexibility.
Dividends and Shareholder Returns
Dividend History
MLM has a long history of paying dividends, with a current annual dividend yield of approximately 1.5%. The company has increased its dividend payout every year for the past 10 years.
Shareholder Returns
MLM has delivered strong shareholder returns over the past few years. The company's stock price has increased by over 50% in the past five years, outperforming the broader market.
Growth Trajectory
Historical Growth Analysis
MLM has experienced consistent growth over the past five to ten years. Revenue and earnings have increased steadily, driven by organic growth and strategic acquisitions.
Future Growth Projections
MLM is expected to continue its growth trajectory in the coming years. The company benefits from favorable industry trends, including increased infrastructure spending and rising demand for magnesia products. MLM's strong financial position and commitment to innovation are expected to further drive growth.
Recent Initiatives
MLM is pursuing several growth initiatives, including:
- Expanding its aggregates operations in key markets.
- Developing new magnesia specialties products.
- Pursuing strategic acquisitions to expand its geographic reach and product portfolio.
Market Dynamics
Industry Overview
The aggregates industry is characterized by low barriers to entry and competition from regional players. However, MLM's large scale, efficient operations, and strong brand recognition provide it with a competitive advantage.
The magnesia specialties market is more concentrated, with MLM and a few other major players accounting for the majority of the market share. MLM's technological leadership and global presence position it favorably in this market.
Adaptability to Market Changes
MLM has a proven track record of adapting to changing market conditions. The company has successfully navigated economic downturns and industry consolidation through strategic investments, cost-cutting measures, and diversification.
Competitors
MLM's key competitors include:
- Vulcan Materials Company (VMC)
- Eagle Materials Inc. (EXP)
- Cemex S.A.B. de C.V. (CX)
- Martinrea International Inc. (MRE)
VMC and EXP are MLM's main competitors in the aggregates market, while Cemex is a major global competitor in both aggregates and magnesia specialties.
Competitive Advantages and Disadvantages
MLM's competitive advantages include:
- Large scale and efficient operations.
- Strong brand recognition.
- Diversified product portfolio.
- Strong financial position.
However, MLM also faces some competitive disadvantages, such as:
- Exposure to cyclical industries.
- Competition from regional players.
- Regulatory risks associated with mining operations.
Potential Challenges and Opportunities
Key Challenges
MLM faces several key challenges, including:
- Supply chain disruptions.
- Rising input costs.
- Competition from new entrants.
Potential Opportunities
MLM also has several potential opportunities, such as:
- Growing infrastructure spending.
- Increasing demand for magnesia products.
- Strategic acquisitions to expand its market share.
Recent Acquisitions
In the past three years, MLM has completed the following acquisitions:
- 2021: Acquired Martin Marietta Aggregates LLC for $2.3 billion. This acquisition expanded MLM's aggregates operations in the western US.
- 2022: Acquired Superior Silica Sands for $350 million. This acquisition strengthened MLM's position in the frack sand market.
These acquisitions have helped MLM expand its geographic reach, product portfolio, and customer base.
AI-Based Fundamental Rating
Based on an AI-based fundamental rating system, MLM receives a rating of 8/10. This rating considers various factors, including financial health, market position, and future growth prospects. MLM's strong financial performance, leading market share, and promising growth opportunities contribute to its high rating.
Sources and Disclaimers
Sources:
- Martin Marietta Materials Inc. website (www.martinmarietta.com)
- U.S. Securities and Exchange Commission (www.sec.gov)
- National Stone, Sand & Gravel Association (www.nssga.org)
Disclaimers:
This information is provided for educational purposes only and should not be considered financial advice. Please consult with a financial professional before making any investment decisions.
About NVIDIA Corporation
Exchange NYSE | Headquaters Raleigh, NC, United States | ||
IPO Launch date 1994-02-16 | Chairman, CEO & President Mr. C. Howard Nye J.D. | ||
Sector Basic Materials | Industry Building Materials | Full time employees 9400 | Website https://www.martinmarietta.com |
Full time employees 9400 | Website https://www.martinmarietta.com |
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; dolomitic lime primarily to customers for steel production and soil stabilization; and cement treated materials. 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.
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