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 $578.54, Martin Marietta Materials Inc has witnessed a daily gain of 0.27%, marked against a three-month change of 24.35%. 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: 6/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 9/10
Considering these components, GuruFocus assigned Martin Marietta Materials Inc a 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 $35.77 billion and sales of $6.78 billion, is one of the United States' largest producers of construction aggregates. In 2023, the company sold 199 million tons of aggregates. Its key markets include Texas, Colorado, North Carolina, Georgia, and Florida, which account for most of its sales. Martin Marietta Materials Inc also produces cement in Texas and uses its aggregates in its asphalt and ready-mixed concrete businesses. The company's magnesia specialties business produces magnesia-based chemical products and dolomitic lime, further diversifying its operations.
Financial Strength Breakdown
According to the Financial Strength rating, Martin Marietta Materials Inc's robust balance sheet exhibits resilience against financial volatility, reflecting prudent management of capital structure. The Interest Coverage ratio for Martin Marietta Materials Inc stands impressively at 9.72, underscoring its strong capability to cover its interest obligations. With a favorable Debt-to-Revenue ratio of 0.7, Martin Marietta Materials Inc's strategic handling of debt solidifies its financial health.
Profitability Rank Breakdown
The Profitability Rank shows Martin Marietta Materials Inc's impressive standing among its peers in generating profit. The company's Operating Margin has increased to 23.73% in 2023, reflecting a consistent rise over the past five years. Additionally, Martin Marietta Materials Inc's Gross Margin has also seen a consistent rise, reaching 29.84% in 2023. The Piotroski F-Score confirms the company's solid financial situation, and its strong Predictability Rank of 5.0 stars out of five underscores its consistent operational performance.
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 12.9%, which outperforms 73.82% of companies in the Building Materials industry. Moreover, Martin Marietta Materials Inc has seen a robust increase in its EBITDA over the past few years, with a three-year growth rate of 15.9% and a five-year rate of 14.6%.
Next Steps
Considering Martin Marietta Materials Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors seeking to capitalize on such robust financial health and promising growth trajectory may find Martin Marietta Materials Inc an attractive option. For those looking to explore further, 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.
