Martin Marietta Materials, Inc. (NYSE:MLM)’s Suggested Target Weight Stands at 0.05360 For Portfolios

When investors are recalibrating their portfolios they should take a look at current volatility levels and the target weight calculation of a given stock.  Martin Marietta Materials, Inc. (NYSE:MLM) has a current target weight (% as a decimal) of 0.05360.  This means that any balanced portfolio should not be holding more than this percentage of stock within their holdings group.  This number is based on recent stock volatility for the past 100 days.

Every individual investor strives to make the best possible stock investment decisions. New investors may have a limited knowledge of how the stock market functions. Studying the basics and accumulating as much knowledge as possible can help the investor create a cornerstone for future success. Everybody has to start somewhere, but continually adding to the market education pool might help the investor see something that they might not have noticed before. Taking a view of the stock market from various angles can help build a more robust databank from which to work from. Because market environments are always shifting, investors may need to do a little extra homework in order to stay ahead of the curve.

Martin Marietta Materials, Inc. (NYSE:MLM) of the Construction & Materials sector closed the recent session at 224.320000 with a market value of $14015397.

Taking look at some key returns data we can note the following:

So how has Martin Marietta Materials, Inc. (NYSE:MLM) performed in terms of returns?  The ROIC quality score stands at 4.896273 whilet he actual return on invested capital holds at  0.114330.  Martin Marietta Materials, Inc.’s book to market ratio is at 0.355002 while the book to market mean difference is -0.00614. This indicator tells you how a company is currently valued in terms of Book to Market compared to its average Book to Market over the past 10 years. It’s important to note that BM is the inverse of the Price to book ratio. Thus a high BM ratio means a company is undervalued. Martin Marietta Materials, Inc. (NYSE:MLM) has seen free cash flow growth of 0.333914 and has a free cash flow score of 0.887022.  Free Cash Flow Score (FCF Score) is a value that is calculated by combining Free cash flow growth with free cash flow stability. It thus gives you a combined indication of free cash flow quality.

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.085151 for Martin Marietta Materials, Inc. (NYSE:MLM).  The Capex to PPE ratio shows you how capital intensive a company is. Stocks with an increasing (year over year) ratio may be moving to be more capital intensive and often underperform the market. Higher Capex also often means lower Free Cash Flow (Operating cash flow – Capex) generation and lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.

Investing in the stock market comes with inherent risk. Some stocks are much riskier than others, but there will always be some level of risk no matter which stocks are chosen. Individual investors managing their own portfolios are constantly on the lookout for investing tips or some kind of information that may confirm their gut feeling about a certain stock. Investors may want to be wary when listening to stock investment advice from friends, family members, or even trusted colleagues. People are usually quick to tell others about the winning stocks that they have picked in the past, but they may not be very forthcoming about discussing those portfolio clunkers. After hearing about the next big stock, investors can always do the research and check the prospect out for themselves.

In addition to Capex to PPE we can look at Cash Flow to Capex.  This ration compares a stock’s operating cash flow to its capital expenditure and can identify if a firm can generate enough cash to meet investment needs.  Investors are looking for a ratio greater than one, which indicates that the firm can meet that need. Comparing to other firms in the same industry is relevant for this ratio. Martin Marietta Materials, Inc. (NYSE:MLM)’s Cash Flow to Capex stands at 1.493742.

Debt

In looking at some Debt ratios, Martin Marietta Materials, Inc. (NYSE:MLM) has a debt to equity ratio of 0.63537 and a Free Cash Flow to Debt ratio of 0.075073.  This ratio provides insight as to how high the firm’s total debt is compared to its free cash flow generated.  In terms of Net Debt to EBIT, that ratio stands at 4.27262.  This ratio reveals how easily a company is able to pay interest and capital on its net outstanding debt.  The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio.  Martin Marietta Materials, Inc.’s ND to MV current stands at 0.222893. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

The investing world can be an exciting yet scary place. It is an ever-changing environment filled with profits, losses, and everything in-between. There are always new challenges waiting right around the corner for the individual investor. Just when things seem stable and steady, some unexpected event can send markets into a tizzy. Most investors try hard to create a stock portfolio that can stand on its own during the stormy periods. Unsettling market conditions come with the territory, but knowing how to deal with these conditions can separate the winners from the losers over the long run.

Near-Term Growth Drilldown

Now we’ll take a look at some key growth data as decimals. One year cash flow growth ratio is calculated on a trailing 12 months basis and is a one year percentage growth of a firm’s cash flow from operations.  This number stands at 0.04205 for Martin Marietta Materials, Inc. (NYSE:MLM).  The one year Growth EBIT ratio stands at 0.09957 and is a calculation of one year growth in earnings before interest and taxes.  The one year EBITDA growth number stands at 0.12289 which is calculated similarly to EBIT Growth with just the addition of amortization.

Taking even a further look we note that the 1 year Free Cash Flow (FCF) Growth is at 0.08132.  The one year growth in Net Profit after Tax is -0.26075 and lastly sales growth was 0.11485.

50/200 Simple Moving Average Cross

Martin Marietta Materials, Inc. (NYSE:MLM) has a 1.14726 50/200 day moving average cross value. Cross SMA 50/200 (SMA = Simple Moving Average) and is calculated as follows:

Cross SMA 50/200 = 50 day moving average / 200day moving average. If the Cross SMA 50/200 value is greater than 1, it tell us that the 50 day moving average is above the 200 day moving average (golden cross), indicating an upward moving share price.

On the other hand if the Cross SMA 50/200 value is less than 1, this shows that the 50 day moving average is below the 200 day moving average (a death cross), and tells us that share prices has fallen recently and may continue to do so.

Investing in the stock market offers the potential for big returns. On the flip side, investors can also experience major losses when trading equities. Investors are typically trying their best to maximize returns while limiting losses. Figuring out the best way to do this is no easy proposition. There may be periods where everything seems to be working out, and the returns are rolling in. There may be other times when nothing seems to be going right, and the losses start to pile up. Nobody can predict with pinpoint certainty which way the market will shift in the future. Preparing the portfolio for multiple scenarios can help the investor stick it out when the waters get choppy. Having a properly diversified stock portfolio may help investors ride out the turbulence when it inevitably takes control of the market. 

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