Home Sectors Basic Materials Stock Analysis: Martin Marietta Materials (NYSE: MLM)

Stock Analysis: Martin Marietta Materials (NYSE: MLM)

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Martin Marietta Materials is part of the basic materials sector and trades as part of the building materials industry. The company CEO is C. Howard Nye. Martin Marietta Materials Inc is a natural-resource-based building materials company. It supplies aggregates products used for the construction of infrastructure, nonresidential, and residential projects.

Previous Intraday Trading Performance:

The MLM stock showed a previous change of 0.90% with an open at 184.83 and a close of 185.99. It reached an intraday high of 187.08 and a low of 183.86.

SeekingAlpha:  Notable earnings before Tuesday’s open

Liquidity:

The stock has a market cap of $11.7b with 62.7m shares outstanding, of which the float is 62.0m shares. Trading volume reached 1,239,500 shares compared to its average volume of 724,168 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Martin Marietta Materials shares returned -1.02% and in the past 30 trading days it returned 10.60%. Over three months, it changed 2.74%. In one year it has changed -11.80% and within that year its 52-week high was 232.89 and its 52-week low was 150.75. MLM stock is 23.38% above its 52 Week Low.

Our calculations show a 200 day moving average of 195.65 and a 50 day moving average of 179.26. Currently MLM stock is trading -4.94% below its 200 day moving average and may be a good opportunity to buy, but should check other indicators to confirm a buy signal.

SeekingAlpha:  Martin Marietta Materials Q4 2018 Earnings Preview

Earnings:

The last annual fiscal EPS for the company was reported at 11.26 that ended on 31st of December 2017, which according to the previous close, that is a PE of 16.52. Based on 6 analyst estimates, the consensus EPS for the next quarter is 1.71. The TTM EPS is 8.14, which comes to a TTM PE of 22.85. Historically, the PE high was 68.70 and the PE low was 16.52. If the stock reached its PE low, that would represent a price of 134.45, which is a decrease of -27.71%.

The following are the last four quarter reported earnings per share:
09-30-2018:  2.85
06-30-2018:  3.25
03-31-2018:  0.16
12-31-2017:  1.88

The dividend per share is currently 1.92, which is a dividend yield of 1.03%. Also, the payout ratio is 23.59%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 138.22, which means it may be overvalued by -34.57%

Indicators to Watch:

Based on the latest filings, there is 1.20% of insider ownership and 153.60% of institutional ownership. Short-interest is 3,759,162, which is 5.99% of shares outstanding. The short-interest ratio or days-to-cover ratio is 5.16. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 1.09

SeekingAlpha:  Martin Marietta Materials Q4 2018 Earnings Preview

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 16.20%, return on assets is 8.76%, profit margin is 11.66%, price-to-sales is 3.59 and price-to-book is 2.34.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 5  :Past Performance Score
 4  :Financial Strength Score
 2  :Future Growth Score
 4  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.