Martin Marietta Materials Inc (MLM, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $443.52, Martin Marietta Materials Inc has witnessed a daily gain of 0.99%, marked against a three-month change of -1.43%. A thorough analysis, underlined by the GF Score, suggests that Martin Marietta Materials Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 5/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 9/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With a high profitability rank and a strong growth rank, GuruFocus assigned Martin Marietta Materials Inc the GF Score of 93 out of 100, which signals the highest outperformance potential.
Understanding Martin Marietta Materials Inc Business
Martin Marietta Materials Inc, with a market cap of $27.4 billion and sales of $6.46 billion, is one of the United States' largest producers of construction aggregates (crushed stone, sand, and gravel). In 2022, Martin Marietta sold 207 million tons of aggregates. The company's most important markets include Texas, Colorado, North Carolina, Georgia, and Florida, accounting for most of its sales. The company also produces cement in Texas and uses its aggregates in its asphalt and ready-mixed concrete businesses. Martin's magnesia specialties business produces magnesia-based chemical products and dolomitic lime. The company's operating margin stands at 20.63%.
Profitability Rank Breakdown
The Profitability Rank shows Martin Marietta Materials Inc's impressive standing among its peers in generating profit. Martin Marietta Materials Inc's Operating Margin has increased (18.94%) over the past five years, as shown by the following data: 2018: 16.59; 2019: 18.68; 2020: 21.28; 2021: 19.06; 2022: 19.74. Furthermore, the company's Gross Margin has seen a consistent rise over the past five years, as evidenced by the data: 2018: 22.77; 2019: 24.88; 2020: 26.49; 2021: 24.91; 2022: 23.10. This trend underscores the company's growing proficiency in transforming revenue into profit.
Martin Marietta Materials Inc's strong Predictability Rank of 5.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ranked highly in Growth, Martin Marietta Materials Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 9.3%, which outperforms better than 64.33% of 356 companies in the Building Materials industry. Moreover, Martin Marietta Materials Inc has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 12.4, and the rate over the past five years is 12. This trend accentuates the company's continued capability to drive growth.
Next Steps
Given the company's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Martin Marietta Materials Inc's high GF Score is a testament to its robust financial health and promising growth prospects, making it a compelling investment choice for value investors. GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
