Martin Marietta Materials, Inc.
Find Ratings ReportsMARTIN MARIETTA MATERIALS's gross profit margin for the second quarter of its fiscal year 2021 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. MARTIN MARIETTA MATERIALS has average liquidity. Currently, the Quick Ratio is 1.05 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 11.60% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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| Income Statement | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Net Sales ($mil) | 1377.9 | 1270.7 |
| EBITDA ($mil) | 418.2 | 411.1 |
| EBIT ($mil) | 310.3 | 312.7 |
| Net Income ($mil) | 225.8 | 217.6 |
| Balance Sheet | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Cash & Equiv. ($mil) | 70.3 | 70.1 |
| Total Assets ($mil) | 11223.1 | 10226.6 |
| Total Debt ($mil) | 2867.3 | 3226.6 |
| Equity ($mil) | 6128.2 | 5491.1 |
| Profitability | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Gross Profit Margin | 36.33 | 37.69 |
| EBITDA Margin | 30.35 | 32.35 |
| Operating Margin | 22.52 | 24.61 |
| Sales Turnover | 0.43 | 0.46 |
| Return on Assets | 6.84 | 6.09 |
| Return on Equity | 12.54 | 11.35 |
| Debt | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Current Ratio | 2.13 | 2.67 |
| Debt/Capital | 0.32 | 0.37 |
| Interest Expense | 28.2 | 31.2 |
| Interest Coverage | 11.0 | 10.02 |
| Share Data | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Shares outstanding (mil) | 62.4 | 62.3 |
| Div / share | 0.57 | 0.55 |
| EPS | 3.61 | 3.49 |
| Book value / share | 98.21 | 88.14 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 376479.0 | 457635.0 |
BUY. This stock's P/E ratio indicates a premium compared to an average of 24.63 for the Mining (except Oil and Gas) subsector and a discount compared to the S&P 500 average of 34.47. For additional comparison, its price-to-book ratio of 3.74 indicates a discount versus the S&P 500 average of 4.59 and a discount versus the subsector average of 3.74. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. The valuation analysis reveals that, MARTIN MARIETTA MATERIALS seems to be trading at a premium to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MLM 29.89 | Peers 35.48 | MLM 20.48 | Peers 14.20 | |||||||||||||||||||||
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Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. MLM is trading at a discount to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. MLM is trading at a significant premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
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| MLM 25.92 | Peers 18.26 | MLM 4.46 | Peers 1.18 | |||||||||||||||||||||
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Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. MLM is trading at a significant premium to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. MLM trades at a significant premium to its peers. |
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| Price/Book |
|
Earnings Growth |
|
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| MLM 3.74 | Peers 3.74 | MLM 23.51 | Peers -74.05 | |||||||||||||||||||||
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Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. MLM is trading at a valuation on par with its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. MLM is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
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| MLM 4.72 | Peers 2.78 | MLM 2.35 | Peers 0.86 | |||||||||||||||||||||
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Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. MLM is trading at a significant premium to its subsector. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. MLM has a sales growth rate that significantly exceeds its peers. |
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