# Martin Marietta Materials (MLM.US)

Canonical: https://gigainvestors.com/s/MLM

Analysis as of: 2026-10-16T07:30:16.685Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $491.23 per share; close as of 2026-10-15.

Estimated value: low $214.43 per share, central $289.98 per share, high $339.76 per share. Buy at or below the central value $289.98 per share. Valuation as of 2026-10-16T07:30:16.685Z; scenarios are not confidence intervals.

Expected annual return: 7.2% at the stated quote. About 7.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.31×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.18×

- FY2018: 0.16×

- FY2019: 0.19×

- FY2020: 0.21×

- FY2021: 0.18×

- FY2022: 0.20×

- FY2023: 0.24×

- FY2024: 0.41×

- FY2025: 0.23×

- LTM to Jun 2026: 0.21×

### moat: fail

- ROIC median below threshold

- ROIC, median of available years: 11.4%

- ROIC, second-lowest year: 10.0%

- Typical minus recent gross margin: -2.5 pp

- Typical gross margin (annual median): 25.7%

- Recent gross margin (lower of latest and 3-year median): 28.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 9.2%

- ROIC including acquisitions, ten-year median: 7.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 17.1%

- FY2018: 10.0%

- FY2019: 11.7%

- FY2020: 13.7%

- FY2021: 10.1%

- FY2022: 11.0%

- FY2023: 15.8%

- FY2024: 18.6%

- FY2025: 10.5%

- LTM to Jun 2026: 8.4%

### economics: pass

- Owner earnings / net income, 5-yr: 0.94×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $7.2B

- Net income, five-year total: $7.6B

- Return on incremental invested capital: 38.0%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: 1.1 pp

- Working capital / revenue, final three-year average: 23.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.02×

- FY2023: 1.00×

- FY2024: 0.86×

- FY2025: 0.86×

- LTM to Jun 2026: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 13.1% vs 15.8%

- Per-share earnings: 6.66 to 18.82 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.0%

- Ordinary dilution, 5-year annual growth: -0.6%

- Market cap gain: $24B

- Cumulative retained earnings: $5.5B

- Diluted shares, 10-year annual growth: -1.0%

- Diluted shares, 5-year annual growth: -0.6%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 13.9%

- Per-share value change: $12.16

- Per-share value, starting three-year median: $6.66

- Per-share value, ending three-year median: $18.82

- Buybacks concentrated in cheaper years (correlation): 0.25

- Average buyback yield: 0.9%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $2.2B

- Cumulative net income, 10 years: $8.8B

- ROIC, first three-year median: 13.1%

- ROIC, last three-year median: 15.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: $6.66

- FY2017: $11.29

- FY2018: $7.45

- FY2019: $9.76

- FY2020: $11.55

- FY2021: $11.22

- FY2022: $13.87

- FY2023: $18.82

- FY2024: $32.39

- FY2025: $18.76

### accounting: pass

- Sloan accruals: -3.5%

- Receivables to sales index (DSRI): 1.07×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 2.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.57×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.36×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.6%

- FY2017: 0.6%

- FY2018: -2.5%

- FY2019: -3.5%

- FY2020: -3.1%

- FY2021: -3.0%

- FY2022: -0.8%

- FY2023: -2.4%

- FY2024: 2.9%

- FY2025: -3.5%

## Holders

- [Thomas Russo](https://gigainvestors.com/GR): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Wallace Weitz](https://gigainvestors.com/WIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Chris Hohn](https://gigainvestors.com/tci): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 27% since Feb 2026 · "Martin Marietta Pricing Gains Drive Margin Strength, Sales Outlook Trimmed" (finance.yahoo.com, Aug 2025) · sales +2.2%

Story as of 2026-10-16T09:59:10.592Z; price observation 2026-10-15.

Price needs cash profits to grow 11.8% a year for ten years

- 2025-04-30: Martin Marietta posts higher profit on strong demand for building materials ([finance.yahoo.com](https://finance.yahoo.com/news/martin-marietta-posts-higher-profit-135514024.html))

- 2025-08-24: Martin Marietta And Quikrete Swap Assets; Martin Marietta Buys Premier Magnesia, Raises 2025 Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/martin-marietta-quikrete-swap-assets-053144318.html))

- 2026-02-12: Martin Marietta outlines $2.49B adjusted EBITDA target for 2026 while advancing SOAR 2030 strategy ([seekingalpha.com](https://seekingalpha.com/news/4550813-martin-marietta-outlines-2_49b-adjusted-ebitda-target-for-2026-while-advancing-soar-2030?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2025–2026

sales +2.2%; source https://www.sec.gov/Archives/edgar/data/916076/000119312526059193/mlm-20251231.htm; observed 2026-02-19.

- FY2017: $4.0B 

- FY2018: $4.2B 

- FY2019: $4.7B 

- FY2020: $4.7B 

- FY2021: $5.4B 

- FY2022: $6.2B 

- FY2023: $6.8B 

- FY2024: $6.5B 

- FY2025: $6.5B 

- FY2026: $6.7B 

### Gross margin · FY2026

gross margin 28.2%; source https://www.sec.gov/Archives/edgar/data/916076/000119312526059193/mlm-20251231.htm; observed 2026-02-19.

- FY2017: 24.5% 

- FY2018: 22.8% 

- FY2019: 24.9% 

- FY2020: 26.5% 

- FY2021: 24.9% 

- FY2022: 23.1% 

- FY2023: 29.9% 

- FY2024: 28.7% 

- FY2025: 30.0% 

- FY2026: 28.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in building materials; annual sales are USD 6.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/916076/000119312526059193/mlm-20251231.htm (filed 2026-02-19); FY2025: revenue 6544000000; grossProfit 1962000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MLM.US: 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.

### Why customers stay

Margins ranged from 28.7% to 30% during 2023–25; it earns 11.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2023: grossProfit / revenue = 29.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: grossProfit / revenue = 28.7%.

- Source: https://www.sec.gov/Archives/edgar/data/916076/000119312526059193/mlm-20251231.htm (filed 2026-02-19); FY2025: grossProfit / revenue = 30%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); 10-year return on capital observations [[2017,0.17082347696017136],[2018,0.10030122973545219],[2019,0.11685700919500723],[2020,0.13715823773945413],[2021,0.10071753799176252],[2022,0.1102268228893979],[2023,0.15838823758930323],[2024,0.18593399556718285],[2025,0.10506944880431857],[2026,0.08372069881883225]]; median 0.11354191604220257. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

"Aggregates pricing continued to improve, increasing 6.9% year over year." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/916076/000119312526059193/mlm-20251231.htm (filed 2026-02-19); Aggregates pricing continued to improve, increasing 6.9% year over year.

### Where the cash goes

Spends 1.1% of cash earnings on expansion; earns 38% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2016: growth capex 93191000; upkeep 294076000; owner earnings 425386000. Growth capex / owner earnings = 0.21907397046447227.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2017: growth capex 104456000; upkeep 305844000; owner earnings 713300000. Growth capex / owner earnings = 0.1464404878732651.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2018: growth capex 23952000; upkeep 352048000; owner earnings 470000000. Growth capex / owner earnings = 0.050961702127659575.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2019: growth capex 12901000; upkeep 380600000; owner earnings 611900000. Growth capex / owner earnings = 0.021083510377512667.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2020: growth capex 0; upkeep 359700000; owner earnings 769300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2021: growth capex 0; upkeep 423100000; owner earnings 725800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2022: growth capex 0; upkeep 481800000; owner earnings 884600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2023: growth capex 142700000; upkeep 507300000; owner earnings 1169000000. Growth capex / owner earnings = 0.12207014542343883.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: growth capex 0; upkeep 855000000; owner earnings 1713000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/916076/000119312526059193/mlm-20251231.htm (filed 2026-02-19); FY2025: growth capex 10459828.376023889; upkeep 796540171.6239761; owner earnings 977459828.3760239. Growth capex / owner earnings = 0.010701031461724733.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Incremental return on capital 0.38031531996844725, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Dividend observations: [[2016,105036000],[2017,108900000],[2018,116400000],[2019,129796000],[2020,140300000],[2021,147800000],[2022,159100000],[2023,174000000],[2024,189000000],[2025,197000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/916076/000119312526059193/mlm-20251231.htm (filed 2026-02-19); FY2025: cash repurchases 450000000 USD.

### Are managers owners

Insiders own 16.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MLM.US SharesStats.PercentInsiders = 16.148 percentage points; cache date 2026-10-16.

### What could break it

"Our business depends on construction activity" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/916076/000119312526059193/mlm-20251231.htm (filed 2026-02-19); Our business depends on construction activity

### What the price says

The price assumes cash profits grow 11.8% yearly over ten years; actual growth was 14.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Ten-year compound average after fade. Initial solved rate 0.15703048677358156. Price 491.23; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 4.309042076991942 → FY2025 16.129700138218215. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $185.38 per share

- 2016-11: $219.45 per share

- 2016-12: $221.53 per share

- 2017-01: $229.60 per share

- 2017-02: $215.95 per share

- 2017-03: $218.25 per share

- 2017-04: $220.19 per share

- 2017-05: $224.10 per share

- 2017-06: $222.58 per share

- 2017-07: $226.43 per share

- 2017-08: $211.99 per share

- 2017-09: $206.23 per share

- 2017-10: $216.85 per share

- 2017-11: $208.39 per share

- 2017-12: $221.04 per share

- 2018-01: $228.17 per share

- 2018-02: $203.93 per share

- 2018-03: $207.30 per share

- 2018-04: $194.77 per share

- 2018-05: $222.87 per share

- 2018-06: $223.33 per share

- 2018-07: $199.42 per share

- 2018-08: $198.72 per share

- 2018-09: $181.95 per share

- 2018-10: $171.28 per share

- 2018-11: $190.69 per share

- 2018-12: $171.87 per share

- 2019-01: $176.68 per share

- 2019-02: $187.80 per share

- 2019-03: $201.18 per share

- 2019-04: $221.90 per share

- 2019-05: $210.50 per share

- 2019-06: $230.11 per share

- 2019-07: $247.75 per share

- 2019-08: $253.77 per share

- 2019-09: $274.10 per share

- 2019-10: $261.91 per share

- 2019-11: $268.40 per share

- 2019-12: $279.64 per share

- 2020-01: $263.80 per share

- 2020-02: $227.53 per share

- 2020-03: $189.23 per share

- 2020-04: $190.23 per share

- 2020-05: $192.09 per share

- 2020-06: $206.57 per share

- 2020-07: $207.18 per share

- 2020-08: $202.87 per share

- 2020-09: $235.36 per share

- 2020-10: $266.35 per share

- 2020-11: $265.63 per share

- 2020-12: $283.97 per share

- 2021-01: $287.41 per share

- 2021-02: $336.87 per share

- 2021-03: $335.82 per share

- 2021-04: $353.12 per share

- 2021-05: $363.65 per share

- 2021-06: $351.81 per share

- 2021-07: $363.30 per share

- 2021-08: $381.25 per share

- 2021-09: $341.68 per share

- 2021-10: $392.84 per share

- 2021-11: $403.51 per share

- 2021-12: $440.52 per share

- 2022-01: $389.12 per share

- 2022-02: $379.40 per share

- 2022-03: $384.89 per share

- 2022-04: $354.22 per share

- 2022-05: $339.38 per share

- 2022-06: $299.24 per share

- 2022-07: $352.08 per share

- 2022-08: $347.71 per share

- 2022-09: $322.09 per share

- 2022-10: $335.98 per share

- 2022-11: $366.48 per share

- 2022-12: $337.97 per share

- 2023-01: $359.64 per share

- 2023-02: $359.87 per share

- 2023-03: $355.06 per share

- 2023-04: $363.20 per share

- 2023-05: $398.04 per share

- 2023-06: $461.69 per share

- 2023-07: $446.46 per share

- 2023-08: $446.41 per share

- 2023-09: $410.48 per share

- 2023-10: $408.94 per share

- 2023-11: $464.59 per share

- 2023-12: $498.91 per share

- 2024-01: $508.42 per share

- 2024-02: $577.71 per share

- 2024-03: $613.94 per share

- 2024-04: $587.07 per share

- 2024-05: $572.08 per share

- 2024-06: $541.80 per share

- 2024-07: $593.35 per share

- 2024-08: $534.16 per share

- 2024-09: $538.25 per share

- 2024-10: $592.34 per share

- 2024-11: $600.00 per share

- 2024-12: $516.50 per share

- 2025-01: $544.12 per share

- 2025-02: $483.14 per share

- 2025-03: $478.13 per share

- 2025-04: $523.98 per share

- 2025-05: $547.55 per share

- 2025-06: $548.96 per share

- 2025-07: $574.88 per share

- 2025-08: $616.40 per share

- 2025-09: $630.28 per share

- 2025-10: $613.10 per share

- 2025-11: $623.24 per share

- 2025-12: $622.66 per share

- 2026-01: $651.95 per share

- 2026-02: $676.57 per share

- 2026-03: $588.68 per share

- 2026-04: $619.07 per share

- 2026-05: $581.64 per share

- 2026-06: $576.70 per share

- 2026-07: $525.14 per share

- 2026-08: $518.70 per share

- 2026-09: $479.81 per share

- 2026-10: $472.40 per share

## Annual estimated value (USD per share)

- FY2016: low $44.95 per share, central $52.87 per share, high $61.51 per share

- FY2017: low $79.35 per share, central $89.50 per share, high $100.59 per share

- FY2018: low $85.69 per share, central $102.90 per share, high $119.85 per share

- FY2019: low $104.70 per share, central $136.39 per share, high $159.51 per share

- FY2020: low $125.47 per share, central $165.60 per share, high $193.53 per share

- FY2021: low $150.46 per share, central $200.68 per share, high $234.61 per share

- FY2022: low $172.01 per share, central $228.37 per share, high $266.76 per share

- FY2023: low $219.80 per share, central $290.10 per share, high $336.73 per share

- FY2024: low $231.58 per share, central $310.57 per share, high $362.41 per share

- FY2025: low $207.93 per share, central $281.19 per share, high $329.46 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:36:00.959Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/916076/000119312526059193/mlm-20251231.htm); period 2025-12-31, filed 2026-02-19.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.