One-glance verdict
Overvalued
$180.80 our estimate vs market $496.76
Wall Street consensus: $659.17 (264.6% higher than our fair-value estimate)
175% above our estimate, beyond the bull case
Fundamentals snapshot
Martin Marietta Materials, Inc.
MLM · NYQ · Basic Materials · Building Materials
Current price
$496.76
52-week range
$491.62 - $710.97
Market cap
$35.28B
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 29.4% 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 the basic building blocks for construction, like crushed stone, sand, and gravel. The company makes most of its money from these materials, which are essential for building roads, commercial properties, and homes. Because these heavy materials are expensive to transport, the company's local quarries create a durable business advantage, protecting its profit margins (the percentage of sales that turn into profit).
How the company got here
Martin Marietta Materials was formed in 1993 when it was spun off from the larger Martin Marietta Corporation, which later merged with Lockheed to become Lockheed Martin. This move allowed the new company to focus entirely on construction materials. Its roots trace back to a stone company founded in 1939. Through a series of strategic acquisitions (purchasing other companies to expand) over the years, it has grown from a regional business into one of the largest U.S. suppliers of heavy building materials.
What it actually does
Think of the fundamental materials needed for nearly any construction project, and you have an idea of what Martin Marietta provides. The company digs up and sells crushed stone, sand, and gravel, which are known as aggregates. These are the key ingredients for things like roads, sidewalks, and the foundations of buildings. It also sells products that use these aggregates, such as ready-mixed concrete (the liquid concrete delivered in rotating trucks) and asphalt for paving.
Building Materials
This is the company's main business, making up the vast majority of its sales. It operates quarries and mines to extract stone, sand, and gravel, which are essential for all types of construction, from highways and bridges to new homes and shopping centers. In some areas, the company is also vertically integrated (meaning it controls multiple steps of the production process), selling asphalt and ready-mixed concrete directly to contractors. This segment is so large that the company manages it in two geographic parts: the East Group and the West Group.
Magnesia Specialties
This is a smaller, more specialized part of the company. It produces chemicals based on a mineral called magnesia, as well as dolomitic lime. Instead of being used for construction, these products are sold to other industries for a wide variety of uses. For example, they are used in making steel, treating wastewater, and in agricultural and environmental applications.
What management is betting on now
The company's core strategy, which it calls SOAR (Strategic Operating Analysis and Review), is to be the leader in its main business of aggregates. Management focuses on growing by acquiring (buying) other aggregates companies in attractive, high-growth regions of the country. This 'aggregates-led' strategy means they prioritize owning the sources of stone and gravel, which are hard to get permits for and expensive to transport. By controlling these essential local resources, the company aims to maintain strong pricing power and profitability.
Price history
How the share price has moved
—
Loading price history…
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 $180.80 vs current price $496.76
Wall Street consensus is the average analyst price target: $659.17 (264.6% higher than our fair-value estimate).
Our most-likely fair value is $180.80 a share — about 63.6% below today's price of $496.76, 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 $4.94B Interest coverage 6.54x +3% vs MLM Has roughly the same debt cushion as MLM.
Total debt $19.81B 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 0.7% with 33-year payout history.
Risks
-
Stock trades 29.4% 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)
32.34x
Forward P/E
22.91x
P/B
2.58x
P/S
5.28x
EV/EBITDA
16.97x
PEG ratio
1.96x
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
15.36
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
0.7%
Payout ratio
21.6%
Last ex-div date
2026-09-01