Momentum Stock Watch: Martin Marietta Materials (MLM)

Company Profile:

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 offers crushed stone, sand, and gravel products; ready mixed concrete and asphalt; paving products and services; Portland and specialty cement used in the infrastructure projects, and nonresidential and residential construction markets, as well as in the railroad, agricultural, utility, and environmental industries. The company also manufactures and markets magnesia-based chemical products for the industrial, agricultural, and environmental applications; and dolomitic lime primarily for customers in the steel and mining industries, as well as provides road paving construction services. Its chemical products are used in flame retardants, wastewater treatment, pulp and paper production, and other environmental applications. The company was founded in 1993 and is headquartered in Raleigh, North Carolina.

Recent News:

The company reported third-quarter gross profit of $405 million and record year-to-date gross profit of $927 million. It expanded consolidated gross margin 100 basis points to 30.6 percent, a new record, and generated Adjusted EBITDA of $501.7 million (inclusive of nonrecurring gains) in the third quarter.

On Aug. 13, 2020, its Board of Directors approved a 4 percent increase in its quarterly cash dividend, raising it from $0.55 per share to $0.57 per share on the Company’s outstanding common stock. This dividend, which represents a cash dividend of $2.28 per share on an annualized basis, is payable on September 30, 2020, to shareholders of record at the close of business on September 1, 2020.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

MLM’s strengths can be seen in its better growth and better profitability compared with its peers. Its revenue has increased over recent years. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, MACD is trying to cross back up and the RSI stands at 62.34 with positive bias. We rate Martin Marietta Materials (MLM) a STRONG BUY.