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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Martin Marietta (MLM) ten years ago? It may not have been easy to hold on to MLM for all that time, but if you did, how much would your investment be worth today?
Martin Marietta's Business In-Depth
With that in mind, let's take a look at Martin Marietta's main business drivers.
Based in Raleigh, NC, Martin Marietta Materials, Inc. produces and supplies construction aggregates and other heavy building materials, mainly cement, in the United States. The end uses of the company’s aggregates and cement are infrastructure, private residential and private non-residential construction. Railroad, agricultural, utility and environmental industries also use these products. The company supplies aggregates (crushed stone, sand and gravel) through its network of approximately 300 quarries, mines and distribution yards in 27 states, Canada and the Bahamas.
The company’s total revenues include sales of products and services to customers (net of any discounts or allowances) and freight revenues.
Building Materials (accounting for for 94.9% of 2020 total revenues): The Building Materials business includes aggregates, cement, ready mixed concrete, asphalt and paving product lines. Within the Building Materials business segment, the company modified the reportable segments to the East Group — previously reported in the Mid-America and Southeast — and West Group, effective Jul 1, 2020.
Magnesia Specialties (5.1%): The segment produces magnesia-based chemicals products used in industrial, agricultural and environmental applications and dolomitic lime sold primarily to customers in the steel industry.
At the end of the June quarter, the company had $70.1 million of cash on hand and $967.7 million unused borrowing capacity under the existing revolving facilities.
As of Mar 31, 2021, Martin Marietta had cash and cash equivalents of $313.9 million compared with $207.3 million at 2020-end. Long-term debt (excluding current maturities) was $2.63 billion, almost in line with the 2020 level. Net cash provided by operations was $191.9 million at first quarter-end, up from $106.7 million in the comparable quarter of 2020.
It had $1.1 billion of unused borrowing capacity on the existing credit facility at March-end.
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Martin Marietta ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in May 2011 would be worth $4,248.42, or a gain of 324.84%, as of May 11, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 208.62% and the price of gold increased 16.37% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for MLM.
Martin Marietta’s earnings and revenues (products and services) increased 153.7% and 2.5%, respectively, on a year-over-year basis. Also, earnings surpassed the Zacks Consensus Estimate by 108%. The upside was driven by pricing gains achieved by upstream aggregates and cement businesses as well as disciplined cost management across the enterprise. However, asphalt and paving product’s revenues fell 32.6% from the year-ago quarter. Also, aggregates shipments declined 3% year over year. Unfavorable winter weather conditions in both Texas and Colorado as well as reduced energy-sector demand ailed the segment. Shares of the company have underperformed its industry year to date.
Over the past four weeks, shares have rallied 7.67%, and there have been 6 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
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Martin Marietta Materials, Inc. (MLM) : Free Stock Analysis Report
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