Quality Investor

Martin Marietta Materials, Inc.

Rank #451Capital Return

MLM · NYSE · Basic Materials

Martin Marietta Materials, Inc. (MLM) — Rank #451 by gross profitability (GP/assets 0.09) · ROE 9.8% · Piotroski F-Score 8 / 9.

As-of 2026-09-15 · CIK 0000916076 · all metrics point-in-time as of the filing date.

About

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.

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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.

Industry
Building Materials
Sector
Basic Materials
State
NC
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

MLM+40.4% · +7.0% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$35.38B

P/E (annual)

26.5

P/S (annual)

5.8

P/B

3.1

P/OCF (annual)

19.8

Shareholder Yield

2.2%

Employees

9,600

Industry

Building Materials

Exchange

NYSE

Signal Flags

2 green1 red
Revenue growth acceleratingGrowth rate increasing year over year
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Operating margin decliningOperating margin lower than prior year

Quality Profile

Profitability

1/1 pass
GP / assets
0.09
Return on equity
9.8%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.84
Current ratio
1.41×
Net cash
-$5.84B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.7%

Growth

2/2 pass
Revenue growth
8.6%
Piotroski F-Score
8 / 9
Share dilution
-1.6%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

6.6%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -1.6% — per-share value needs a total required return of 5.0% once share-count change is priced in.

vs. own 6-year median revenue growth: 9.3%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

2.4%

r = 10% (base)

6.6%

r = 12%

10.3%

Net debt / market cap: 19.3%

Note: current FCF margin is 2.1σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $1.6B3Y mean FCF: $1.5B

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

36.0xExpensive
15.1xmed 27.3x36.0x

P / S

Price / revenue per share

6.7xExpensive
2.8xmed 4.0x6.7x

P / B

Price / book value per share

4.1xExpensive
2.4xmed 3.2x4.2x

P / GP

Price / gross profit per share

21.7xExpensive
12.3xmed 16.0x21.7x

P / FCF

Price / free cash flow per share

25.0xExpensive
18.3xmed 22.2x25.1x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.09

Primary signal (Novy-Marx).

5th of 6 SIC 1400 peers

Return on equity

9.8%

Gross margin

30.7%

4th of 6 SIC 1400 peers

Revenue growth (YoY)

8.6%

RPO growth (YoY)

-36.5%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-0.1%

Revenue CAGR (5Y)

5.4%

Earnings CAGR (3Y)

9.5%

FCF CAGR (3Y)

21.9%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.84

5th of 6 SIC 1400 peers (best = lowest)

Current ratio

1.41×

6th of 6 SIC 1400 peers

Quick ratio

0.65×

Net cash

-$5.84B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$1.64B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.44

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.7%

Stock-based comp intensity.

Dividend safety

Composite score

4.5 / 5

Strong
Payout ratio
17.3%5/5 Strong
FCF coverage
8.30×5/5 Strong
Dividend growth streak
9 yr4/5 Strong
Balance-sheet health
D/E 0.84 · IC 6.25×4/5 Strong

Piotroski F-Score

F-Score

8 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Value
Capital Return