Martin Marietta Gross Profit vs. Net Income

MLM Stock  USD 563.45  11.25  1.96%   
Based on the key profitability measurements obtained from Martin Marietta's financial statements, Martin Marietta's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Martin Marietta's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
1994-03-31
Previous Quarter
517 M
Current Value
599 M
Quarterly Volatility
135.2 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Martin Marietta's Price To Sales Ratio is very stable compared to the past year. As of the 11th of December 2024, Days Sales Outstanding is likely to grow to 53.81, while Operating Cash Flow Sales Ratio is likely to drop 0.14. At this time, Martin Marietta's Non Operating Income Net Other is very stable compared to the past year. As of the 11th of December 2024, Net Income Per Share is likely to grow to 19.83, though Total Other Income Expense Net is likely to grow to (98 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.260.2984
Fairly Down
Slightly volatile
Net Profit Margin0.180.1725
Sufficiently Up
Slightly volatile
Operating Profit Margin0.120.2355
Way Down
Slightly volatile
Pretax Profit Margin0.230.2203
Sufficiently Up
Slightly volatile
Return On Assets0.06590.0773
Fairly Down
Slightly volatile
Return On Equity0.130.1455
Moderately Down
Slightly volatile
For Martin Marietta profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Martin Marietta to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Martin Marietta Materials utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Martin Marietta's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Martin Marietta Materials over time as well as its relative position and ranking within its peers.
  

Martin Marietta's Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
Is Construction Materials space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Martin Marietta. If investors know Martin will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Martin Marietta listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.12)
Dividend Share
3.01
Earnings Share
32.24
Revenue Per Share
105.734
Quarterly Revenue Growth
(0.05)
The market value of Martin Marietta Materials is measured differently than its book value, which is the value of Martin that is recorded on the company's balance sheet. Investors also form their own opinion of Martin Marietta's value that differs from its market value or its book value, called intrinsic value, which is Martin Marietta's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Martin Marietta's market value can be influenced by many factors that don't directly affect Martin Marietta's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Martin Marietta's value and its price as these two are different measures arrived at by different means. Investors typically determine if Martin Marietta is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Martin Marietta's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Martin Marietta Materials Net Income vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Martin Marietta's current stock value. Our valuation model uses many indicators to compare Martin Marietta value to that of its competitors to determine the firm's financial worth.
Martin Marietta Materials is regarded fourth in gross profit category among its peers. It is regarded second in net income category among its peers making up about  0.82  of Net Income per Gross Profit. The ratio of Gross Profit to Net Income for Martin Marietta Materials is roughly  1.22 . At this time, Martin Marietta's Gross Profit is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Martin Marietta by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Martin Net Income vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Martin Marietta

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
1.43 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Martin Marietta

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
1.17 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

Martin Net Income Comparison

Martin Marietta is currently under evaluation in net income category among its peers.

Martin Marietta Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Martin Marietta, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Martin Marietta will eventually generate negative long term returns. The profitability progress is the general direction of Martin Marietta's change in net profit over the period of time. It can combine multiple indicators of Martin Marietta, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-49.2 M-51.7 M
Operating Income1.6 B1.7 B
Income Before Tax1.5 B1.6 B
Total Other Income Expense Net-103.2 M-98 M
Net Income1.2 B1.2 B
Income Tax Expense292.5 M307.1 M
Net Income Applicable To Common Shares996.8 MB
Net Income From Continuing Ops1.1 B1.2 B
Non Operating Income Net Other61.4 M64.5 M
Interest Income194.3 M130 M
Net Interest Income-167.7 M-176.1 M
Change To Netincome35 M21.3 M
Net Income Per Share 18.88  19.83 
Income Quality 1.31  2.17 
Net Income Per E B T 0.78  0.58 

Martin Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Martin Marietta. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Martin Marietta position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Martin Marietta's important profitability drivers and their relationship over time.

Use Martin Marietta in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Martin Marietta position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Martin Marietta will appreciate offsetting losses from the drop in the long position's value.

Martin Marietta Pair Trading

Martin Marietta Materials Pair Trading Analysis

The ability to find closely correlated positions to Martin Marietta could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Martin Marietta when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Martin Marietta - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Martin Marietta Materials to buy it.
The correlation of Martin Marietta is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Martin Marietta moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Martin Marietta Materials moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Martin Marietta can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Martin Marietta position

In addition to having Martin Marietta in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Banks - Regional Thematic Idea Now

Banks - Regional
Banks - Regional Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Banks - Regional theme has 19 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Banks - Regional Theme or any other thematic opportunities.
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When determining whether Martin Marietta Materials is a strong investment it is important to analyze Martin Marietta's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Martin Marietta's future performance. For an informed investment choice regarding Martin Stock, refer to the following important reports:
Check out Correlation Analysis.
You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
To fully project Martin Marietta's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Martin Marietta Materials at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Martin Marietta's income statement, its balance sheet, and the statement of cash flows.
Potential Martin Marietta investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Martin Marietta investors may work on each financial statement separately, they are all related. The changes in Martin Marietta's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Martin Marietta's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.