Martin Marietta Materials (MLM)

[winston]

not vested

A candidate for outperformance in the coming days of infrastructure investment is Martin Marietta Materials (MLM).

On Friday (again in a down market), MLM gained $3.85, or 2.04%. MLM’s P/E is a considerably more expensive 30.25.

However, given the near certainty of massive Federal spending on infrastructure, MLM could well see margin expansion, not to mention price appreciation in coming quarters.

Source: Yahoo Finance

[winston]

not vested

S&P 500 Stocks in Trouble: Martin Marietta Materials (MLM)

Free Cash Flow Yield: 1.7%

Martin Marietta Materials, Inc. (NYSE:MLM) provides crushed stone, sand and gravel to the construction industry.

However, it was part of Lockheed Martin Corporation (NYSE:LMT) for just 18 months, and the defense giant took no time hiving off the piece of MLM it didn’t need when it merged with Martin Marietta in the mid-1990s.

On Nov. 1, MLM announced third-quarter earnings that were 36% higher than a year earlier.

Revenues also were up a respectable 2%. The company is benefiting from an improving economy, and that has the stock up nearly 45% year-to-date. That’s the good news.

The bad news? I don’t believe it can sustain this upward trajectory.

Martin Marietta’s stock is two months away from booking a fifth consecutive year with positive returns, and in the process it will have beaten the S&P 500 in three of those years. Impressive to say the least. Its market cap since 2011 has grown by 250%, while its revenue and free cash flow have grown 117% and 165%, respectively.

While these revenue and free cash flow numbers are good, I just don’t seem them being worthy of a sixth or seventh consecutive year of positive gains. In 2017, I see a decent-sized correction in its stock price.

Source: Investor Place

[winston]

Martin Marietta Materials (NYSE: MLM)

This company is a Raleigh, North Carolina-based supplier of aggregates products for the construction industry.

Aggregates are items like crushed stone, gravel, and sand.

The company boasts a market cap of over $12 billion and its shares are higher by an astounding 62% on the year.

Martin Marietta set new records for consolidated net sales, gross profit and net earnings in the third quarter.

Consolidated gross margin (excluding freight and delivery revenues) grew by just over 2% while diluted EPS exploded by 43% to just under $2.50.

At the same time, aggregate product line pricing climbed by 9% with magnesia specialties hitting a record gross margin (excluding freight and delivery revenues) of 38%.

Source: Daily Trade Alert

[winston]

not vested

Infrastructure Stocks to Buy: Martin Marietta Materials (MLM)

What’s needed to build bridges and roads? Well, amongst many things, is gravel and sand, crushed stone, concrete, asphalt and cement.

Martin Marietta Materials, Inc. (NYSE:MLM) supplies all of these for construction projects across the U.S.

In 2010, the company implemented a six-year plan to grow its business through a combination of organic sales and acquisitions.

At the start of the plan, it had $1.6 billion in revenue, $196 million in operating earnings and a market cap of $4.2 billion.

At the end of 2016, those numbers had grown to $3.6 billion, $667 million and $14.0 billion, respectively.

Now operating under its new plan, Soar 2020, it’s looking to continue allocating capital in the best interests of its shareholders through share repurchases, dividends, acquisitions and above-average capital spending on its existing assets.

Martin Marietta’s CEO appeared on Mad Money on CNBC in August expressing optimism that Trump would get the infrastructure bill done. Two months later that hasn’t happened and it might never happen.

As a result, investors have been negative about its stock, providing excellent buying opportunities for those wise enough to understand Martin Marietta’s business is strong with or without President Trump.

Source: Investor Place