Orin
MLMNYSE·Construction Materials

Martin Marietta Materials, Inc. MLM

Market cap $29.5BP/E 12.0× trailingGross margin 28.2%Reports Tue 3 Nov, before the open
$490.45
−8.89 (−1.78%)Wed close 16:00 ET
52-wk $488.74 – $710.97
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Orin's take
0.62conviction · moderate
Refreshed 24 Aug · take v7. A new filing or a print queues the next refresh.

Martin Marietta remains a hold following the August 21, 2026 completion of the $13.5B Lhoist North America combination, which strategically expands the lime and aggregates platform but introduces substantial integration and leverage risk on top of FY2025's 43% net income decline to $1.137B. The stock at $533.11 trades below both its 50-day ($567.41) and 200-day ($604.93) moving averages, smart money scores have deteriorated from +0.112 in September 2025 to -0.0554 as of June 2026, and the 13.1x P/E—while 59.6% below the peer median—reflects depressed FY2025 EPS of $18.80 rather than a clear bargain.

Hold pending evidence of clean Lhoist integration, synergy realization, and stabilization of the earnings decline.

What could go wrong

  • Lhoist integration and leverage. The $13.5B Lhoist North America combination closed August 21, 2026; integration execution and added leverage on top of FY2025 total debt of $5.323B could pressure margins and free cash flow.
  • Earnings deterioration. FY2025 net income fell 43% YoY to $1.137B with EPS of $18.80, while revenue growth was essentially flat at +0.12%; the prior year's $32.41 EPS was inflated by anomalous operating income of $2.707B that exceeded gross profit.
  • Technical and sentiment weakness. Stock at $533.11 is below both the 50-day ($567.41) and 200-day ($604.93) moving averages with bearish MACD; smart money score deteriorated from +0.112 in September 2025 to -0.0554 as of June 2026.
  • Valuation optical cheapness. The 13.1x P/E is 59.6% below the peer median of 32.5x, but EV/EBITDA of 18.2x is 15.3% above the peer median, suggesting the earnings multiple is depressed by cyclical lows rather than a genuine discount.

What would change my mind

Lhoist synergy realization. Company reports run-rate synergies from the Lhoist combination meeting or exceeding deal-day guidance within 2-3 quartersbullish
Earnings stabilization. Quarterly EPS returns to YoY growth and operating margin holds above 23%bullish
Smart money capitulation. Smart money score falls below -0.10 or fund count drops below 50bearish
Leverage deterioration. Net debt-to-EBITDA exceeds 4.0x post-Lhoist close or credit rating is downgradedbearish

Where this comes from: GlobeNewsWire 2026-08-24; Zacks 2026-08-18 · FMP FY2025 annual; derived_metrics FY2025 · FMP FY2024 annual · Technicals as of 2026-08-24. Orin's read on MLM; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$2.3B0.0% of fund
Vanguard Portfolio Management$1.8B0.1% of fund
State Street$1.8B0.1% of fund
Bank Of America /De/$1.4B0.1% of fund
Fmr$1.3B0.1% of fund
Price T Rowe Associates /Md/$922.3M0.1% of fund

97 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 68 Form 4 filings, net −$8.1M. Of the 50 on hand, none was an open-market trade— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Basic Materials
MetricNowOwn medianSector
P/E12.0×26.4×29.8×
EV/EBITDA16.9×15.8×
P/S4.40×4.85×
P/B2.6×3.7×

Its P/E sits below all 5 of the last 5 years (−1.99σ from its own mean).

What the price assumes

13.3%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $1.0B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

40 firms · 2026-09-23
Consensus target

$646

$556$730 · +32% against today's price

How they rate it
  • 25 buy or overweight
  • 15 hold
  • 0 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 28.8× of 3 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
MLMMartin Marietta Materials, Inc.$29B12.0×16.9×28.2%36.8%23%
CTVACorteva, Inc.$54B53.3×17.4×48.5%5.7%4%
NUENucor Corporation$56B19.7×10.8×15.5%8.0%14%
VMCVulcan Materials Company$32B28.8×14.2×27.4%13.8%13%

The median is of the 3 peers listed above and nothing else — check it against the column. This company trades 58.2% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 40.4×FY25 33.0×

What its sector has traded at

Basic Materials
FY14 23.8×FY26 28.6×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$480$556.89 · −14%2026-06-10
Levered DCF$372$556.89 · −33%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $490.45
52-week range$489 – $711
Analyst targets$556 – $730
Standard DCF$480 as of 2026-06-10, when it was $556.89
Levered DCF$372 as of 2026-06-10, when it was $556.89
At own 5y-median P/E (26×)$1077
At 5y P/E range (16–39×)$648 – $1596
At sector P/E (30×)$1215

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.