Martin Marietta Materials (MLM)
Materials · $37.8B market cap · SEC CIK 0000916076
ahead of 44% of the S&P 500 · #14 of 26 in Materials
Next reports on Feb 9, 2027, after the close, with analysts expecting $3.33 in earnings per share.
52-week range $464.92 to $710.97. 26% below its 52-week high and 14% above its low.
The case for MLM
- Generated $978M of free cash flow in FY2025, 16% of revenue.
- 32% of revenue drops through to net profit.
- Revenue growing 8.6% year over year.
- Return on equity of 18%.
The case against
- The price trend is weak (32/100): −13.0% over a year, −3.4% over three months, 26% below its 52-week high.
- Long-term debt of $5.3B against $67.0M of cash.
- Trailed the S&P 500 by 25 points over the past year.
- Price/sales of 5.2× is higher than 92% of Materials companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Materials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 52 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 49 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 77 |
| Momentumhow the price has behaved lately | 32 |
| Stabilityhow violently it moves, what it owes and what it pays you | 55 |
- Its profits follow commodity prices, so its earnings and margin are read as half the latest year and half the average of the years on file (5), and last year's change in earnings per share is not counted as growth.
- Each factor except momentum is half fixed thresholds, half rank among the 26 Materials companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +8.6% |
|---|---|
| Over 5 years | +5.4% a year |
| FY2025 revenue | $6.2B (+9%) |
Free cash flow
Is it generating real cash? Yes, plenty
| FY2025 free cash flow | $978M |
|---|---|
| Of revenue | 16% |
| Of profit | 86% |
Profit margins
Is profitability improving? No, slipping
| Gross margin | 28% |
|---|---|
| Operating margin | 18% |
| Net margin, FY24 → FY25 → now | 35.2% → 18.5% → 31.9% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $67.0M |
|---|---|
| Long-term debt | $5.3B |
| Net debt | $5.2B |
| Years to repay | 3.0 yrs |
Valuation
Is the stock price reasonable? Yes, about fair
| P/E | 16.4× |
|---|---|
| P/E on mid-cycle earnings | 16.2× |
| Fair P/E for its growth | 21× |
| P/FCF | 38.6× |
| Forward P/E | 26.5× |
| EV / EBITDA | 24.2× |
Its profits follow commodity prices, so they are taken as half the latest year and half the average of recent years. At 16.2× those mid-cycle earnings (16.4× the latest year's) it trades below the 21× that 8%+ a year of growth plus a 0.6% dividend would justify. At 38.6× free cash flow it trades well above that same mark.
The financials, five years deep
Pulled from Martin Marietta Materials's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $6.2B | $5.7B | $5.9B | $6.2B | $5.4B |
| Change on the year | +9% | −3% | −5% | +14% | — |
| Free cash flow | |||||
| Free cash flow | $978M | $604M | $878M | $509M | $715M |
| Of revenue | 16% | 11% | 15% | 8% | 13% |
| Profit margins | |||||
| Gross margin | 30.7% | 28.9% | 29.8% | 23.1% | 24.9% |
| Operating margin | 23.4% | 43.8% | 22.8% | 19.6% | 18.0% |
| Net margin | 18.5% | 35.2% | 20.0% | 14.1% | 13.0% |
| Debt vs. cash | |||||
| Cash | $67.0M | $670M | $1.3B | $358M | $258M |
| Long-term debt | $5.3B | $5.3B | $3.9B | $4.3B | $5.1B |
| Net cash (debt) | −$5.2B | −$4.6B | −$2.7B | −$4.0B | −$4.8B |
Filings
The text of this 10-K could not be read automatically. The original is linked below.