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Martin Marietta Materials

NYSE:MLM
Snowflake Description

Average dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MLM
NYSE
$12B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

Martin Marietta Materials, Inc., a natural resource-based building materials company, supplies aggregates and heavy building materials to the construction industry in the United States and internationally. The last earnings update was 47 days ago. More info.


Add to Portfolio Compare Print
  • Martin Marietta Materials has significant price volatility in the past 3 months.
MLM Share Price and Events
7 Day Returns
-0.4%
NYSE:MLM
-3.3%
US Basic Materials
2.4%
US Market
1 Year Returns
-9.5%
NYSE:MLM
-16.7%
US Basic Materials
-10%
US Market
MLM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Martin Marietta Materials (MLM) -0.4% -13% -33.2% -9.5% -12.9% 30.4%
US Basic Materials -3.3% -19.9% -32.7% -16.7% -22.8% 11.9%
US Market 2.4% -11% -19.4% -10% 9.6% 21.1%
1 Year Return vs Industry and Market
  • MLM outperformed the Basic Materials industry which returned -16.7% over the past year.
  • MLM matched the United States of America Market (-10%) over the past year.
Price Volatility
MLM
Industry
5yr Volatility vs Market

Value

 Is Martin Marietta Materials undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Martin Marietta Materials to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Martin Marietta Materials.

NYSE:MLM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:MLM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Basic Materials Unlevered Beta Simply Wall St/ S&P Global 0.82
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.817 (1 + (1- 21%) (28.34%))
1
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1 * 5.44%)
7.18%

Discounted Cash Flow Calculation for NYSE:MLM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Martin Marietta Materials is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:MLM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.18%)
2020 619.04 Analyst x5 577.56
2021 712.87 Analyst x6 620.53
2022 736.50 Analyst x2 598.15
2023 755.82 Est @ 2.62% 572.71
2024 773.65 Est @ 2.36% 546.94
2025 790.46 Est @ 2.17% 521.37
2026 806.61 Est @ 2.04% 496.38
2027 822.35 Est @ 1.95% 472.16
2028 837.88 Est @ 1.89% 448.84
2029 853.33 Est @ 1.84% 426.49
Present value of next 10 years cash flows $5,281.00
NYSE:MLM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $853.33 × (1 + 1.74%) ÷ (7.18% – 1.74%)
$15,953.64
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $15,953.64 ÷ (1 + 7.18%)10
$7,973.43
NYSE:MLM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,281.00 + $7,973.43
$13,254.43
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $13,254.43 / 62.20
$213.1
NYSE:MLM Discount to Share Price
Calculation Result
Value per share (USD) From above. $213.10
Current discount Discount to share price of $185.42
= -1 x ($185.42 - $213.10) / $213.10
13%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Martin Marietta Materials is available for.
Intrinsic value
13%
Share price is $185.42 vs Future cash flow value of $213.1
Current Discount Checks
For Martin Marietta Materials to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Martin Marietta Materials's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Martin Marietta Materials's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Martin Marietta Materials's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Martin Marietta Materials's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MLM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $9.78
NYSE:MLM Share Price ** NYSE (2020-04-07) in USD $185.42
United States of America Basic Materials Industry PE Ratio Median Figure of 9 Publicly-Listed Basic Materials Companies 16.42x
United States of America Market PE Ratio Median Figure of 2,948 Publicly-Listed Companies 12.95x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Martin Marietta Materials.

NYSE:MLM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MLM Share Price ÷ EPS (both in USD)

= 185.42 ÷ 9.78

18.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Martin Marietta Materials is overvalued based on earnings compared to the US Basic Materials industry average.
  • Martin Marietta Materials is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Martin Marietta Materials's expected growth come at a high price?
Raw Data
NYSE:MLM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.97x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
4.2%per year
United States of America Basic Materials Industry PEG Ratio Median Figure of 6 Publicly-Listed Basic Materials Companies 0.83x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.92x

*Line of best fit is calculated by linear regression .

NYSE:MLM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.97x ÷ 4.2%

4.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Martin Marietta Materials is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Martin Marietta Materials's assets?
Raw Data
NYSE:MLM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $85.75
NYSE:MLM Share Price * NYSE (2020-04-07) in USD $185.42
United States of America Basic Materials Industry PB Ratio Median Figure of 12 Publicly-Listed Basic Materials Companies 1.15x
United States of America Market PB Ratio Median Figure of 5,162 Publicly-Listed Companies 1.26x
NYSE:MLM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MLM Share Price ÷ Book Value per Share (both in USD)

= 185.42 ÷ 85.75

2.16x

* Primary Listing of Martin Marietta Materials.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Martin Marietta Materials is overvalued based on assets compared to the US Basic Materials industry average.
X
Value checks
We assess Martin Marietta Materials's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Basic Materials industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Basic Materials industry average (and greater than 0)? (1 check)
  5. Martin Marietta Materials has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Martin Marietta Materials expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Martin Marietta Materials expected to grow at an attractive rate?
  • Martin Marietta Materials's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Martin Marietta Materials's earnings growth is positive but not above the United States of America market average.
  • Martin Marietta Materials's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MLM Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MLM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 4.2%
NYSE:MLM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 5%
United States of America Basic Materials Industry Earnings Growth Rate Market Cap Weighted Average 10.4%
United States of America Basic Materials Industry Revenue Growth Rate Market Cap Weighted Average 3.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:MLM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MLM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31
2023-12-31 5,983 695 1
2022-12-31 4,848 920 599 4
2021-12-31 5,034 1,144 725 13
2020-12-31 4,789 925 636 13
2020-04-08
NYSE:MLM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 4,422 966 611
2019-09-30 4,354 913 574
2019-06-30 4,173 801 506
2019-03-31 4,105 718 502
2018-12-31 3,980 705 469
2018-09-30 3,936 681 751
2018-06-30 3,816 666 722
2018-03-31 3,684 689 679
2017-12-31 3,724 658 711
2017-09-30 3,701 686 434
2017-06-30 3,717 709 441
2017-03-31 3,635 695 421

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Martin Marietta Materials's earnings are expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).
  • Martin Marietta Materials's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:MLM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from Martin Marietta Materials Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MLM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 10.54 12.00 7.54 5.00
2021-12-31 11.66 14.95 8.49 17.00
2020-12-31 10.13 11.79 7.75 17.00
2020-04-08
NYSE:MLM Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 9.78
2019-09-30 9.18
2019-06-30 8.07
2019-03-31 7.99
2018-12-31 7.46
2018-09-30 11.93
2018-06-30 11.47
2018-03-31 10.79
2017-12-31 11.31
2017-09-30 6.88
2017-06-30 6.99
2017-03-31 6.65

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Martin Marietta Materials is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Martin Marietta Materials's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Martin Marietta Materials has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Martin Marietta Materials performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Martin Marietta Materials's growth in the last year to its industry (Basic Materials).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Martin Marietta Materials has delivered over 20% year on year earnings growth in the past 5 years.
  • Martin Marietta Materials's 1-year earnings growth exceeds its 5-year average (30.2% vs 21%)
  • Martin Marietta Materials's earnings growth has not exceeded the US Basic Materials industry average in the past year (30.2% vs 32.4%).
Earnings and Revenue History
Martin Marietta Materials's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Martin Marietta Materials Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MLM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 4,422.30 611.00 307.70
2019-09-30 4,353.65 574.26 305.26
2019-06-30 4,172.71 506.01 296.42
2019-03-31 4,105.35 502.00 292.47
2018-12-31 3,980.40 469.20 281.80
2018-09-30 3,936.13 751.10 281.78
2018-06-30 3,816.40 722.28 271.41
2018-03-31 3,684.47 679.09 274.04
2017-12-31 3,723.50 711.30 271.40
2017-09-30 3,700.67 433.63 270.93
2017-06-30 3,716.53 441.35 265.36
2017-03-31 3,635.12 421.10 252.79
2016-12-31 3,578.65 423.61 253.10
2016-09-30 3,468.51 407.97 230.02
2016-06-30 3,435.39 366.20 230.13
2016-03-31 3,370.20 327.48 227.13
2015-12-31 3,268.12 287.54 210.75
2015-09-30 3,266.88 268.29 270.72
2015-06-30 3,179.60 204.83 264.26
2015-03-31 2,931.29 181.42 244.04
2014-12-31 2,679.10 154.99 169.25
2014-09-30 2,390.93 127.60 201.79
2014-06-30 2,073.44 145.92 189.92
2014-03-31 1,978.84 127.55 199.38
2013-12-31 1,943.22 121.57 195.18
2013-09-30 1,907.86 107.01 226.06
2013-06-30 1,844.91 98.00 221.60

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Martin Marietta Materials has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Martin Marietta Materials used its assets more efficiently than the US Basic Materials industry average last year based on Return on Assets.
  • Martin Marietta Materials's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Martin Marietta Materials's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Basic Materials industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Martin Marietta Materials has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Martin Marietta Materials's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Martin Marietta Materials's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Martin Marietta Materials is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Martin Marietta Materials's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Martin Marietta Materials's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Martin Marietta Materials Company Filings, last reported 3 months ago.

NYSE:MLM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 5,353.30 2,773.60 21.00
2019-09-30 5,304.44 2,922.86 49.09
2019-06-30 5,097.27 3,117.06 53.60
2019-03-31 4,975.50 3,161.28 37.36
2018-12-31 4,949.40 3,120.40 44.90
2018-09-30 4,942.33 3,209.70 53.96
2018-06-30 4,855.47 3,218.92 33.78
2018-03-31 4,679.83 3,028.11 1,422.37
2017-12-31 4,682.48 3,027.20 1,446.36
2017-09-30 4,333.98 1,723.59 35.22
2017-06-30 4,200.53 1,785.78 36.72
2017-03-31 4,075.95 1,846.29 55.42
2016-12-31 4,142.59 1,686.19 50.04
2016-09-30 4,158.40 1,764.84 60.68
2016-06-30 4,016.50 1,786.36 28.60
2016-03-31 3,945.64 1,752.76 27.24
2015-12-31 4,060.18 1,579.01 168.41
2015-09-30 4,252.58 1,705.15 436.43
2015-06-30 4,310.43 1,658.00 44.17
2015-03-31 4,342.18 1,581.02 56.37
2014-12-31 4,352.75 1,585.58 108.65
2014-09-30 4,375.61 1,618.28 73.60
2014-06-30 1,567.00 1,084.80 34.33
2014-03-31 1,544.29 1,067.94 35.80
2013-12-31 1,574.92 1,033.48 42.44
2013-09-30 1,498.88 1,123.80 57.24
2013-06-30 1,440.67 1,093.32 43.71
  • Martin Marietta Materials's level of debt (51.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (36.4% vs 51.8% today).
  • Debt is well covered by operating cash flow (34.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.8x coverage).
X
Financial health checks
We assess Martin Marietta Materials's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Martin Marietta Materials has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Martin Marietta Materials's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.19%
Current annual income from Martin Marietta Materials dividends. Estimated to be 1.16% next year.
If you bought $2,000 of Martin Marietta Materials shares you are expected to receive $24 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Martin Marietta Materials's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.93%).
  • Martin Marietta Materials's dividend is below the markets top 25% of dividend payers in United States of America (5.46%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:MLM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
United States of America Basic Materials Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 1.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1935 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:MLM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31 2.50 1.00
2022-12-31 2.17 4.00
2021-12-31 2.18 11.00
2020-12-31 2.09 10.00
2020-04-08
NYSE:MLM Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-20 2.200 1.120
2019-11-07 2.200 0.821
2019-08-14 2.200 0.841
2019-05-09 1.920 0.848
2019-02-21 1.920 0.946
2018-11-15 1.920 1.063
2018-08-23 1.920 1.049
2018-05-17 1.760 0.808
2018-02-22 1.760 0.860
2017-11-16 1.760 0.814
2017-08-24 1.760 0.849
2017-05-19 1.680 0.759
2017-02-24 1.680 0.767
2016-11-11 1.680 0.747
2016-08-22 1.680 0.916
2016-05-19 1.600 0.832
2016-02-19 1.600 0.992
2015-11-13 1.600 1.173
2015-08-21 1.600 1.009
2015-05-22 1.600 1.038
2015-01-22 1.600 1.165
2014-11-14 1.600 1.400
2014-08-22 1.600 1.294
2014-05-23 1.600 1.247
2014-01-24 1.600 1.331
2013-11-15 1.600 1.597
2013-08-23 1.600 1.632
2013-05-24 1.600 1.558
2013-01-25 1.600 1.580
2012-11-15 1.600 1.719
2012-08-24 1.600 1.921
2012-05-25 1.600 2.150
2012-01-27 1.600 1.936
2011-11-09 1.600 2.114
2011-08-18 1.600 2.351
2011-05-13 1.600 2.061
2011-01-28 1.600 1.823
2010-11-11 1.600 1.829
2010-08-19 1.600 2.042
2010-05-28 1.600 1.861
2010-01-29 1.600 1.857
2009-11-11 1.600 1.837
2009-08-20 1.600 1.772
2009-05-28 1.600 1.951

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Martin Marietta Materials's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5x coverage).
X
Income/ dividend checks
We assess Martin Marietta Materials's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Martin Marietta Materials afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Martin Marietta Materials has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Martin Marietta Materials's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ward Nye
COMPENSATION $8,533,458
AGE 56
TENURE AS CEO 10.3 years
CEO Bio

Mr. C. Howard Nye, also known as Ward, has been the Chief Executive Officer and President of Martin Marietta Materials, Inc. since January 1, 2010 and August 10, 2006 respectively. Mr. Nye serves as President of Aggregates Business at Martin Marietta Materials, Inc. since 2010. He serves as Chairman of Magnesia Specialties Business at Martin Marietta Materials, Inc. since 2007. He served as the President and Chief Operating Officer of Martin Marietta Materials, Inc. from August 10, 2006 to 2009. He has 13 years of experience in the aggregates industry. He served as an Executive Vice President of Hanson Aggregates North America from 2003 to 2006. He served as President of Hanson Aggregates East from 2000 to 2003 with operating responsibility for over 150 facilities in 12 states with annual revenue of more than $500 million. He served as Vice President Business Development for Hanson Building Materials America from 1997 to 2000. He began his career in the aggregates industry as General Counsel for Hanson Aggregates East with additional responsibility for environmental and safety and health. Mr. Nye has been the Chairman of the Board at Martin Marietta Materials, Inc. since May 22, 2014. He has been the Chairman of the Board of National Stone, Sand and Gravel Association since March 19, 2013 and has been its Director since January 2010. He served as a Director at Cree, Inc. since October 2015 until October 2018. He has been a Director at General Dynamics Corp., since May 2, 2018. He has been a Director of Martin Marietta Materials, Inc. since January 1, 2010. He serves as a Director Romeo Guest Associates, Inc. He serves as a Director of the American Road & Transportation Builders Association (ARTBA). He is a member of the Board of Directors of the United States Chamber of Commerce. He serves as a Member of the Duke University Alumni Board. He was a Gubernatorial appointee to the North Carolina Mining Commission. He holds a Bachelor of Arts degree with honors from Duke University in 1984. Mr. Nye also holds a Juris Doctorate degree from Wake Forest University in 1987.

CEO Compensation
  • Ward's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ward's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Martin Marietta Materials management team in years:

5.3
Average Tenure
54
Average Age
  • The average tenure for the Martin Marietta Materials management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Ward Nye

TITLE
Chairman
COMPENSATION
$9M
AGE
56
TENURE
10.3 yrs

Jim Nickolas

TITLE
Senior VP & CFO
COMPENSATION
$2M
AGE
48
TENURE
2.7 yrs

Roselyn Bar

TITLE
Executive VP
COMPENSATION
$3M
AGE
60
TENURE
19.3 yrs

Daniel Grant

TITLE
Senior Vice President of Strategy & Development
COMPENSATION
$1M
AGE
64
TENURE
7.3 yrs

Jay Moreau

TITLE
Vice President of Operations
AGE
53
TENURE
8.3 yrs

Bob Cardin

TITLE
Senior VP
AGE
56
TENURE
0.9 yrs

John Mohr

TITLE
Senior VP & Chief Information Officer
AGE
54
TENURE
5.3 yrs

Suzanne Osberg

TITLE
Vice President of Investor Relations

Dana Guzzo

TITLE
Senior Vice President of Sustainability
COMPENSATION
$631K
AGE
53
TENURE
1.1 yrs

Craig LaTorre

TITLE
Senior VP & Chief Human Resource Officer
AGE
51
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Martin Marietta Materials board of directors in years:

4.9
Average Tenure
66.5
Average Age
  • The tenure for the Martin Marietta Materials board of directors is about average.
Board of Directors

Ward Nye

TITLE
Chairman
COMPENSATION
$9M
AGE
56
TENURE
5.9 yrs

Steve Zelnak

TITLE
Independent Director
COMPENSATION
$295K
AGE
74
TENURE
27.3 yrs

Laree Perez

TITLE
Independent Director
COMPENSATION
$302K
AGE
65
TENURE
15.5 yrs

Don Slager

TITLE
Independent Director
COMPENSATION
$248K
AGE
57
TENURE
3.9 yrs

John Koraleski

TITLE
Independent Director
COMPENSATION
$260K
AGE
68
TENURE
3.7 yrs

Mike Quillen

TITLE
Lead Independent Director
COMPENSATION
$336K
AGE
70
TENURE
6.3 yrs

Sue Cole

TITLE
Independent Director
COMPENSATION
$329K
AGE
68
TENURE
18.3 yrs

Smith Davis

TITLE
Independent Director
COMPENSATION
$225K
AGE
71
TENURE
1.9 yrs

Dorothy Ables

TITLE
Independent Director
COMPENSATION
$162K
AGE
61
TENURE
1.4 yrs

Tom Pike

TITLE
Independent Director
AGE
60
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
25. Nov 19 Buy Sjk Holdings & Investments, LLC Company 25. Nov 19 25. Nov 19 1,000 $260.23 $260,227
10. Jun 19 Sell Laree Perez Individual 10. Jun 19 10. Jun 19 -824 $231.80 $-191,005
07. May 19 Sell Donald McCunniff Individual 06. May 19 06. May 19 -695 $220.19 $-153,034
X
Management checks
We assess Martin Marietta Materials's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Martin Marietta Materials has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why Martin Marietta Materials, Inc. (NYSE:MLM) Could Be Worth Watching

It’s trading around 7.7% below my intrinsic value, which means if you buy Martin Marietta Materials today, you’d be paying a fair price for it. … Given that Martin Marietta Materials’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. … What does the future of Martin Marietta Materials look like?

Simply Wall St -

Martin Marietta Materials, Inc. (NYSE:MLM) Looks Interesting, And It's About To Pay A Dividend

As a result, readers should always check whether Martin Marietta Materials has been able to grow its dividends, or if the dividend might be cut. … It's positive to see that Martin Marietta Materials's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. … We love that Martin Marietta Materials is growing earnings per share while simultaneously paying out a low percentage of both its earnings and cash flow.

Simply Wall St -

Is Martin Marietta Materials, Inc. (NYSE:MLM) A Smart Choice For Dividend Investors?

(NYSE:MLM) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. A slim 0.9% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, Martin Marietta Materials could have potential. The company also bought back stock equivalent to around 1.0% of market capitalisation this year. Some simple research can reduce the risk of buying Martin Marietta Materials for its dividend - read on to learn more. Click the interactive chart for our full dividend analysis NYSE:MLM Historical Dividend Yield, August 17th 2019 Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. In the last year, Martin Marietta Materials paid out 24% of its profit as dividends. With a low payout ratio, it looks like the dividend is comprehensively covered by earnings. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Martin Marietta Materials's cash payout ratio in the last year was 34%, which suggests dividends were well covered by cash generated by the business. It's positive to see that Martin Marietta Materials's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Is Martin Marietta Materials's Balance Sheet Risky? As Martin Marietta Materials has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments. Essentially we check that a) the company does not have too much debt, and b) that it can afford to pay the interest. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Martin Marietta Materials has grown its earnings per share at 25% per annum over the past five years. … Conclusion To summarise, shareholders should always check that Martin Marietta Materials's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

The Martin Marietta Materials (NYSE:MLM) Share Price Is Up 97% And Shareholders Are Holding On

See our latest analysis for Martin Marietta Materials In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. … During five years of share price growth, Martin Marietta Materials achieved compound earnings per share (EPS) growth of 21% per year. … We note that for Martin Marietta Materials the TSR over the last 5 years was 106%, which is better than the share price return mentioned above.

Simply Wall St -

These 4 Measures Indicate That Martin Marietta Materials (NYSE:MLM) Is Using Debt Reasonably Well

See our latest analysis for Martin Marietta Materials What Is Martin Marietta Materials's Debt? … Martin Marietta Materials has a debt to EBITDA ratio of 2.9 and its EBIT covered its interest expense 5.7 times. … Looking at the most recent three years, Martin Marietta Materials recorded free cash flow of 33% of its EBIT, which is weaker than we'd expect.

Simply Wall St -

Here’s why Martin Marietta Materials, Inc.’s (NYSE:MLM) Returns On Capital Matters So Much

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Martin Marietta Materials: 0.079 = US$730m ÷ (US$10b - US$758m) (Based on the trailing twelve months to March 2019.) So, Martin Marietta Materials has an ROCE of 7.9%. … How Martin Marietta Materials's Current Liabilities Impact Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. … With low levels of current liabilities, at least Martin Marietta Materials's mediocre ROCE is not unduly boosted.

Simply Wall St -

Is Martin Marietta Materials, Inc.'s (NYSE:MLM) Future Growth Already Accounted For In Today's Price?

Martin Marietta Materials is available at price-to-earnings ratio of 28.04x, showing us it is overvalued based on current earnings compared to the Basic Materials industry average of 27.42x , and overvalued compared to the US market average ratio of 17.76x. … But, since Martin Marietta Materials is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio. … A PE ratio of 28.04x and expected year-on-year earnings growth of 12% give Martin Marietta Materials a quite high PEG ratio of 2.33x.

Simply Wall St -

How Should Investors Feel About Martin Marietta Materials, Inc.'s (NYSE:MLM) CEO Pay?

View our latest analysis for Martin Marietta Materials How Does Ward Nye's Compensation Compare With Similar Sized Companies? … We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m. … You can see, below, how CEO compensation at Martin Marietta Materials has changed over time.

Simply Wall St -

Does Martin Marietta Materials, Inc. (NYSE:MLM) Create Value For Shareholders?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Martin Marietta Materials: 10% = US$502m ÷ US$5.0b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Martin Marietta Materials Have A Good Return On Equity? … Combining Martin Marietta Materials's Debt And Its 10% Return On Equity Although Martin Marietta Materials does use debt, its debt to equity ratio of 0.74 is still low.

Simply Wall St -

Estimating The Fair Value Of Martin Marietta Materials, Inc. (NYSE:MLM)

Using the most recent financial data, we'll take a look at whether the stock is fairly priced by estimating the company's future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $480.54 $644.62 $840.30 $1.01k $1.11k $1.19k $1.26k $1.33k $1.38k $1.44k Growth Rate Estimate Source Analyst x5 Analyst x6 Analyst x2 Analyst x1 Analyst x1 Est @ 7.52% Est @ 6.08% Est @ 5.08% Est @ 4.37% Est @ 3.88% Present Value ($, Millions) Discounted @ 9.06% $440.64 $542.00 $647.86 $710.50 $716.97 $706.89 $687.62 $662.54 $634.09 $604.00 Present Value of 10-year Cash Flow (PVCF)= $6.35b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$1.4b × (1 + 2.7%) ÷ (9.1% – 2.7%) = US$23b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$23b ÷ ( 1 + 9.1%)10 = $9.81b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $16.16b.

Simply Wall St -

Company Info

Description

Martin Marietta Materials, Inc., a natural resource-based building materials company, supplies aggregates and heavy 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; Portland and specialty cement used in the infrastructure projects, and nonresidential and residential construction markets, as well as in the railroad, agricultural, utility, and environmental industries. The company also manufactures and markets magnesia-based chemical products for the industrial, agricultural, and environmental applications; and dolomitic lime primarily for customers in the steel and mining industries, as well as provides road paving construction services. Its chemical products are used in flame retardants, wastewater treatment, pulp and paper production, and other environmental applications. The company was founded in 1993 and is headquartered in Raleigh, North Carolina.

Details
Name: Martin Marietta Materials, Inc.
MLM
Exchange: NYSE
Founded: 1993
$11,532,913,919
62,198,867
Website: http://www.martinmarietta.com
Address: Martin Marietta Materials, Inc.
2710 Wycliff Road,
Raleigh,
North Carolina, 27607-3033,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MLM Common Stock New York Stock Exchange US USD 17. Feb 1994
DB MMX Common Stock Deutsche Boerse AG DE EUR 17. Feb 1994
LSE 0JZ0 Common Stock London Stock Exchange GB USD 17. Feb 1994
BMV MLM * Common Stock Bolsa Mexicana de Valores MX MXN 17. Feb 1994
BOVESPA M1LM34 BDR EACH 5 REPR 1 COM Bolsa de Valores de Sao Paulo BR BRL 27. Jan 2020
Number of employees
Current staff
Staff numbers
8,846
Martin Marietta Materials employees.
Industry
Construction Materials
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/08 08:06
End of day share price update: 2020/04/07 00:00
Last estimates confirmation: 2020/04/04
Last earnings filing: 2020/02/21
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.