MLM

Martin Marietta Materials Inc

Industrial/Transportation


Presented:01/29/2019
Price:$180.28
Cap:$11.31B
Current Price:$561.89
Cap:$34.34B

Presented

Date01/29/2019
Price$180.28
Market Cap$11.31B
Ent Value$14.65B
P/E Ratio15.17x
Book Value$78.76
Div Yield1.07%
Shares O/S62.71M
Ave Daily Vol907,410
Short Int6.70%

Current

Price$561.89
Market Cap$34.34B
Martin Marietta Materials, Inc. engages in the provision of aggregates including crushed stone, sand, and gravel through its network of quarries and distribution yards. It operates through the following geographic segments: Mid-America Group, Southeast Group, and West Group. The Mid-America Group and Southeast Group segments provide aggregates products only. The West Group offers aggregates, as well as cement and downstream products including mixed concrete, asphalt, and paving services. The company was founded in November 1993 and is headquartered in Raleigh, NC.

Publicly traded companies mentioned herein: Martin Marietta Materials Inc. (MLM)

Highlights

Martin Marietta Materials (MLM) is a leading supplier of aggregates, cement, ready-mix, and asphalt with heavy exposure to Texas, the Mid-Atlantic states, and Florida. Its building materials are used in infrastructure, residential, and non-residential construction. As the company moves through the current cycle, the presenter expects to see at least LSD% growth for volume, low-to-MSD% pricing, and “extremely high incremental margins” because the company is vertically integrated. That all should translate to at least HSD% revenue growth and double-digit EBITDA growth for the foreseeable future. With the stock currently at ~$180, and Street EPS estimates of $11 for 2020, the valuation is attractive. The presenter is long, and thinks that EPS can relatively easily beat Street estimates for next year (i.e., that MLM can generate $13 - $14 of EPS). If correct and the stock can trade at a more reasonable multiple (18x - 20x P/E), there could be upside of over 50% to $270.

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Idea Discussion

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