Martin Marietta Net Income vs. Cash Flow From Operations
| MMX Stock | 562.00 2.40 0.43% |
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 |
Martin Marietta Materials Cash Flow From Operations vs. Net Income 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 net income category among its peers. It is regarded fifth in cash flow from operations category among its peers making about 1.14 of Cash Flow From Operations per Net Income. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Martin Marietta's earnings, one of the primary drivers of an investment's value.Martin Cash Flow From Operations vs. Net Income
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 |
| = | 866.8 M |
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.
Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.
Martin Marietta |
| = | 991.2 M |
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.
Martin Cash Flow From Operations Comparison
Martin Marietta is currently under evaluation in cash flow from operations category among its peers.
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.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 Small Growth Funds Thematic Idea Now
Small Growth Funds
Funds or Etfs that invest in stocks of small to mid-sized companies with above-average risk and growth rate that usually reinvest their earnings back into business. The Small Growth Funds theme has 46 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 Small Growth Funds Theme or any other thematic opportunities.
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Additional Tools for Martin Stock Analysis
When running Martin Marietta's price analysis, check to measure Martin Marietta's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Martin Marietta is operating at the current time. Most of Martin Marietta's value examination focuses on studying past and present price action to predict the probability of Martin Marietta's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Martin Marietta's price. Additionally, you may evaluate how the addition of Martin Marietta to your portfolios can decrease your overall portfolio volatility.