One-glance verdict
Overvalued
$234.72 our estimate vs market $540.41
Wall Street consensus: $630.96 (168.8% higher than our fair-value estimate)
130% above our estimate, beyond the bull case
Fundamentals snapshot
Martin Marietta Materials, Inc.
MLM · NYQ · Basic Materials · Building Materials
Current price
$540.41
52-week range
$464.92 - $710.97
Market cap
$38.38B
Balance sheet
Watch
6.33x Adequate
Net debt $6.23B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 8.8% last year.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 40.6% above its 5-year average P/E.
- Risk Net debt grew 11.2% over 3 years.
What this company does
Martin Marietta Materials, Inc.
Martin Marietta Materials sells essential building blocks like crushed stone, sand, and gravel, along with concrete and asphalt, primarily to the construction industry in the US. Their main money comes from selling these materials for projects like roads and buildings, and they also make special chemicals for industries like steel production. This matters because they provide the fundamental stuff needed to build our infrastructure and many everyday products.
How the company got here
Martin Marietta Materials started in 1939, originally focused on cement and concrete. Over the decades, it strategically shifted its focus to become a leading supplier of aggregates – the essential crushed stone, sand, and gravel that form the backbone of construction projects. This pivot allowed the company to capitalize on the growing demand for infrastructure and building materials across the United States. Today, it's a major player in the basic materials sector, providing foundational components for everything from roads and bridges to homes and commercial buildings.
What it actually does
At its core, Martin Marietta Materials provides the fundamental ingredients for construction. Think of the crushed rock you see on road construction sites, the sand used in concrete, and the gravel that forms the base for buildings. The company mines these natural resources and processes them into various sizes and types of aggregates. Beyond aggregates, they also produce ready-mixed concrete, asphalt for paving, and even specialized magnesia-based chemicals used in industries like steel production and environmental applications.
Aggregates
This is the largest part of Martin Marietta's business, making up the bulk of its revenue. Aggregates are essentially crushed stone, sand, and gravel, which are the primary components used in building roads, bridges, buildings, and other infrastructure. Customers, like construction companies and government entities, buy these materials in large quantities for projects ranging from highway construction to residential developments. The demand for aggregates is closely tied to the overall health of the construction industry and government spending on infrastructure.
Cement
While aggregates are the main focus, Martin Marietta also produces cement, a key ingredient in making concrete. Cement acts as a binder, holding together the aggregates (like sand and gravel) and water to form concrete. This segment serves similar customers as the aggregates business, providing a crucial material for various construction needs. The cement business is important for providing a more complete offering to customers who need both the binder and the filler for their concrete mixes.
Magnesia Specialties
This is a smaller but distinct part of Martin Marietta's operations. The company produces magnesia-based chemical products and dolomitic lime. These specialized materials have diverse applications, including use in steel production, as a component in flame retardants, for wastewater treatment, and in the pulp and paper industry. While not directly related to typical construction, this segment leverages the company's expertise in mineral processing for industrial and environmental solutions.
What management is betting on now
Martin Marietta's management is focused on leveraging its strong position in aggregates to benefit from anticipated growth in infrastructure spending and residential construction. They aim to increase profitability by efficiently managing their extensive network of quarries and production facilities. A key strategy involves disciplined pricing and cost control to improve margins (the profit left over after paying business expenses). The company also looks for strategic acquisitions to expand its geographic reach and product offerings, further solidifying its role as a foundational supplier to the U.S. economy.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$317.00M
FY2024 Q4
$453.00M
FY2025 Q1
$-15.00M
FY2025 Q2
$208.00M
FY2025 Q3
$361.00M
FY2025 Q4
$424.00M
FY2026 Q1
$41.00M
FY2026 Q2
$-16.00M
Revenue
$1.95B
Net income
$251.00M
Diluted EPS
4.17
Operating cash flow
$112.00M
Free cash flow
$-16.00M
Fetching…
Sources
Revenue
$1.36B
Net income
$1.51B
Diluted EPS
25.06
Operating cash flow
$227.00M
Free cash flow
$41.00M
Fetching…
Sources
Revenue
$1.53B
Net income
$279.00M
Diluted EPS
4.59
Operating cash flow
$629.00M
Free cash flow
$424.00M
Fetching…
Sources
Revenue
$1.85B
Net income
$414.00M
Diluted EPS
6.85
Operating cash flow
$551.00M
Free cash flow
$361.00M
Fetching…
Sources
Revenue
$1.81B
Net income
$328.00M
Diluted EPS
5.43
Operating cash flow
$387.00M
Free cash flow
$208.00M
Fetching…
Sources
Revenue
$1.35B
Net income
$116.00M
Diluted EPS
1.90
Operating cash flow
$218.00M
Free cash flow
$-15.00M
Fetching…
Sources
Revenue
$1.41B
Net income
$294.00M
Diluted EPS
4.87
Operating cash flow
$686.00M
Free cash flow
$453.00M
Fetching…
Sources
Revenue
$1.89B
Net income
$363.00M
Diluted EPS
5.91
Operating cash flow
$600.00M
Free cash flow
$317.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $234.72 vs current price $540.41
Wall Street consensus is the average analyst price target: $630.96 (168.8% higher than our fair-value estimate).
Our most-likely fair value is $234.72 a share — about 56.6% below today's price of $540.41, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $6.2B. Interest coverage 6.3x.
Net debt
$6.23B
Interest coverage
6.33x
Martin Marietta Materials, Inc.'s profit covers its interest bill about 6.3 times over.
Watch
Worse cushion
Baseline
Better cushion
MLM
BASELINE
Martin Marietta Materials, Inc.
Total debt $6.34B Interest coverage 6.33x This is the baseline the peer rows are being compared against.
Total debt $5.32B Interest coverage 6.54x +3% vs MLM Has roughly the same debt cushion as MLM.
Total debt $21.58B Interest coverage 6.57x +4% vs MLM Has roughly the same debt cushion as MLM.
Total debt $1.80B Interest coverage 10.70x +69% vs MLM Carries about 1.7x more debt cushion than MLM.
Total debt $1.67B Interest coverage 3.49x -45% vs MLM Carries about 1.8x less debt cushion than MLM.
What you should know
The case for and against MLM
3 Rewards
2 Risks
Rewards
-
Revenue grew 8.8% last year.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 0.6% with 33-year payout history.
Risks
-
Stock trades 40.6% above its 5-year average P/E.
-
Net debt grew 11.2% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
35.14x
Forward P/E
25.50x
P/B
2.81x
P/S
5.74x
EV/EBITDA
18.20x
PEG ratio
2.02x
Profitability
How much profit each dollar creates
Gross margin
28.2%
Operating margin
20.2%
Net margin
36.7%
ROE
8.9%
ROA
4.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.55x
Current ratio
1.41x
Quick ratio
0.65x
Total debt
$6.34B
Total cash
$112.00M
Growth
How the business has been compounding
Revenue TTM
$6.69B
Revenue 5Y CAGR
3.2%
EPS TTM
15.38
EPS 5Y CAGR
10.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.52B
Free CF TTM
$978.00M
FCF margin
14.6%
Dividend
Shareholder payout
Yield
0.6%
Payout ratio
21.6%
Last ex-div date
2026-09-01