Digging Deep into the Quant Data For Martin Marietta Materials, Inc. (NYSE:MLM)

Looking at some ROIC (Return on Invested Capital) numbers, Martin Marietta Materials, Inc. (NYSE:MLM)’s ROIC Quality Score is 6.470608. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.  This formula is calculated by 5 year average Return on Invested Capital (ROIC) / Standard Deviation of the 5 year ROIC.  The higher the ratio, the better as a higher score indicates a more stable return on invested capital.

Some of the best financial predictions are formed by using a variety of financial tools. Martin Marietta Materials, Inc. (NYSE:MLM) has a Price to Book ratio of 3.024390. This ratio is calculated by dividing the current share price by the book value per share. Investors may use Price to Book to display how the market portrays the value of a stock. Checking in on some other ratios, the company has a Price to Cash Flow ratio of 19.396631, and a current Price to Earnings ratio of 30.208337. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

At the time of writing, Martin Marietta Materials, Inc. (NYSE:MLM) has a Piotroski F-Score of 9. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

Martin Marietta Materials, Inc. (NYSE:MLM) currently has a Montier C-score of 2.00000. This indicator was developed by James Montier in an attempt to identify firms that were cooking the books in order to appear better on paper. The score ranges from zero to six where a 0 would indicate no evidence of book cooking, and a 6 would indicate a high likelihood. A C-score of -1 would indicate that there is not enough information available to calculate the score. Montier used six inputs in the calculation. These inputs included a growing difference between net income and cash flow from operations, increasing receivable days, growing day’s sales of inventory, increasing other current assets, decrease in depreciation relative to gross property plant and equipment, and high total asset growth.

The EBITDA Yield is a great way to determine a company’s profitability.  This number is calculated by dividing a company’s earnings before interest, taxes, depreciation and amortization by the company’s enterprise value.  Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents.  The EBITDA Yield for Martin Marietta Materials, Inc. (NYSE:MLM) is 0.065610.

The Price Range 52 Weeks is one of the tools that investors use to determine the lowest and highest price at which a stock has traded in the previous 52 weeks. The Price Range of Martin Marietta Materials, Inc. (NYSE:MLM) over the past 52 weeks is 0.861000. The 52-week range can be found in the stock’s quote summary.

FCF
Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow.  The FCF Growth of Martin Marietta Materials, Inc. (NYSE:MLM) is 0.117597.  Free cash flow (FCF) is the cash produced by the company minus capital expenditure.  This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends.  The Free Cash Flow Score (FCF Score) is a helpful tool in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow.  The FCF Score of Martin Marietta Materials, Inc. (NYSE:MLM) is 0.732648.  Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

GM Score
The Gross Margin Score is calculated by looking at the Gross Margin and the overall stability of the company over the course of 8 years.  The score is a number between one and one hundred (1 being best and 100 being the worst).  The Gross Margin Score of Martin Marietta Materials, Inc. (NYSE:MLM) is 18.00000.  The more stable the company, the lower the score.  If a company is less stable over the course of time, they will have a higher score.

Rank

The ERP5 Rank is an investment tool that analysts use to discover undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The ERP5 of Martin Marietta Materials, Inc. (NYSE:MLM) is 7736.  The lower the ERP5 rank, the more undervalued a company is thought to be.

Value
The Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of Martin Marietta Materials, Inc. (NYSE:MLM) is 52.  A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company.  The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings.  Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of Martin Marietta Materials, Inc. (NYSE:MLM) is 46.

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