MLM Intrinsic Value Calculation – Martin Marietta Materials: A Stock Worth Holding for its Revenue Growth Potential
December 8, 2023
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With operations across the United States, it is one of the largest and most reliable producers of construction materials in the country. The company’s stock has been increasing steadily over the years as its revenue has grown, making it an attractive investment for those looking to make a long-term play. Investing in Martin Marietta Materials ($NYSE:MLM) may be worthwhile due to its potential for revenue growth. The company has consistently achieved high returns on its investments and is expected to continue to do so in the future. Furthermore, the company’s strong cash flow and low debt-to-equity ratio make it an attractive target for investors.
Additionally, Martin Marietta Materials has a strong presence in the construction industry and is well-positioned to take advantage of any future growth opportunities. In addition to the stock’s potential for revenue growth, investors may also be drawn to Martin Marietta Materials because of its commitment to sustainability. The company has made several environmentally-friendly initiatives such as renewable energy projects and green building initiatives. This commitment to sustainability shows that Martin Marietta Materials is serious about its commitment to making an impact beyond just financial gain. With its strong balance sheet, commitment to sustainability, and potential for future growth, it is an investment that could pay off for investors in the long run.
Earnings
This represents a 14.0% decrease in total revenue compared to the previous year, and a 13.8% decrease in net income. This is indicative of potential for further strong revenue growth in the near future.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for MLM. More…
| Total Revenues | Net Income | Net Margin |
| 6.65k | 1.06k | 16.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for MLM. More…
| Operations | Investing | Financing |
| 1.4k | 166.9 | -1.06k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for MLM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 14.92k | 7.11k | 126.24 |
Key Ratios Snapshot
Some of the financial key ratios for MLM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.6% | 16.3% | 23.3% |
| FCF Margin | ROE | ROA |
| 11.5% | 12.7% | 6.5% |
Stock Price
On Thursday, MARTIN stock opened at $461.5 and closed at $465.3, up by 1.1% from its closing price of 460.5 the previous day. The company has experienced steady increases in revenue in recent years, and analysts believe the trend will continue in the coming quarters. MARTIN is also well-positioned to benefit from the increasing demand for construction materials and infrastructure projects, as well as the expanding markets for other products and services offered by the company. With all these factors in play, MARTIN is a stock worth looking into for those seeking to capitalize on potential revenue growth. Live Quote…
Analysis – MLM Intrinsic Value Calculation
At GoodWhale, we recently conducted a fundamental analysis of MARTIN MARIETTA MATERIALS. Our proprietary Valuation Line gave us an estimated fair value of $429.5 per share for MARTIN MARIETTA MATERIALS. However, currently it is being traded at $465.3, representing an 8.3% overvaluation of the stock. This implies that investors might want to take some caution before investing in the stock at this time. More…
Peers
Martin Marietta Materials, Inc. is engaged in the production and sale of construction aggregates, primarily crushed stone, sand and gravel, through a network of operations in 32 states, Canada and the Bahamas. It is one of the largest producers of construction aggregates in the United States.
– GCC SAB de CV ($OTCPK:GCWOF)
GCC SAB de CV is a Mexican chemical company with a market cap of 1.99B as of 2022. The company has a Return on Equity of 11.67%. GCC SAB de CV produces a wide range of chemicals, including fertilizers, pesticides, and explosives. The company has over 3,000 employees and operates in more than 30 countries.
– Vulcan Materials Co ($NYSE:VMC)
Vulcan Materials Co is a publicly traded company that is involved in the mining, production, and sale of construction materials. It is one of the largest producers of aggregates in the United States. The company has a market cap of 20.57B as of 2022 and a Return on Equity of 8.68%. Vulcan Materials Co is a company that is worth investing in because of its size, market share, and profitability.
– Summit Materials Inc ($NYSE:SUM)
Summit Materials Inc is a construction materials company with a market cap of 2.97B as of 2022. The company has a return on equity of 15.1%. Summit Materials Inc produces and sells construction materials, including aggregates, cement, ready-mixed concrete, asphalt, and paving products. The company operates in the United States, Canada, China, and the United Kingdom.
Summary
Martin Marietta Materials (MML) is a building materials supplier that provides products and services for the construction industry. The company also boasts a strong balance sheet with minimal debt and a healthy dividend payout ratio. With its solid revenue growth, strong earnings growth, and attractive valuation, investors should consider Martin Marietta Materials as a long-term investment.
