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 $602.37, Martin Marietta Materials Inc has witnessed a daily gain of 2.11%, marked against a three-month change of 26.39%. 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
With a high GF Score of 93 out of 100, Martin Marietta Materials Inc demonstrates a strong potential for outperformance. The company's profitability and growth ranks are particularly impressive, indicating a robust business model and expansion strategy. While the GF Value rank is lower, suggesting the stock might be overvalued, the overall high GF Score is indicative of a company that has consistently performed well and may continue to do so.
Understanding Martin Marietta Materials Inc Business
Martin Marietta Materials Inc, with a market cap of $37.24 billion and sales of $6.777 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. 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
Martin Marietta Materials Inc's Financial Strength rating reflects a resilient balance sheet and prudent capital management. The company's Interest Coverage ratio of 9.72 is a testament to its ability to comfortably meet interest obligations. Additionally, a Debt-to-Revenue ratio of 0.7 indicates a strategic approach to debt management, further solidifying its financial health.
Profitability Rank Breakdown
The Profitability Rank of Martin Marietta Materials Inc is exemplary, with an Operating Margin that has increased to 23.73% in 2023. The company's Gross Margin also reflects a consistent upward trend, reaching 29.84% in 2023. These margins highlight the company's efficiency in converting revenue into profit. The Piotroski F-Score and a Predictability Rank of 5 stars further confirm the company's strong financial standing and consistent operational performance.
Growth Rank Breakdown
Martin Marietta Materials Inc's high Growth Rank underscores its commitment to business expansion. The company's 3-Year Revenue Growth Rate of 12.9% outperforms 73.89% of its industry peers. Additionally, the company's EBITDA has seen significant growth, with a three-year growth rate of 15.9 and a five-year rate of 14.6, highlighting its ability to drive growth and profitability.
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 similar opportunities can explore more companies with strong GF Scores using the GF Score Screen. With its solid financial foundation and strategic growth initiatives, Martin Marietta Materials Inc stands as a compelling investment case for those looking to capitalize on market leadership and financial growth.
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.
