Martin Marietta (MLM)
Materials · NYSE · US
Fundamentals
Valuation and ratings
Martin Marietta trades at $576.93, close to the $614.08 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 66 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 36.2 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Martin Marietta
Martin Marietta Materials, Inc., a natural resource-based building materials company, supplies aggregates and heavy-side building materials to the construction industry in the United States and internationally. It operates through East Group and West Group segments. The company offers crushed stone, sand, and gravel products; ready mixed concrete and asphalt; and paving products and services for use in the infrastructure projects, and nonresidential and residential construction projects, as well as in the railroad, agricultural, utility, and environmental industries. It also produces magnesia-based chemicals products, and dolomitic lime primarily to customers for steel production and soil stabilization. Its chemical products are used in flame retardants, wastewater treatment, pulp and paper production, and other applications. The company was founded in 1939 and is based in Raleigh, North Carolina.
MLM passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
15 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Baillie Gifford, BAILLIE GIFFORD & CO$640.12M · 0.7% of book
- Select Equity Group, Select Equity Group, L.P.$608.35M · 3.1% of book
- Thomas Russo, GARDNER RUSSO & QUINN LLC$421.15M · 5.0% of book
- Findlay Park Partners, Findlay Park Partners LLP$114.38M · 1.6% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$55.46M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Martin Marietta (MLM) undervalued?
Against our discounted cash flow estimate of $614.08, MLM at $576.93 is 6% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own MLM?
15 of the institutions we track reported a position in MLM in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is MLM's P/E ratio?
MLM trades at 36.2 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.