Martin Marietta Materials

Methodology

Martin Marietta's earnings are highly cyclical with infrastructure spending and private construction activity, requiring normalization to mid-cycle profitability levels. Aggregates pricing and volumes swing significantly with demand. Use average earnings across construction cycles rather than peak or trough figures to avoid being misled by temporary conditions.

Methodology

PEG ratios can be misleading for Martin Marietta during construction booms when growth accelerates off elevated bases, or during downturns despite eventual recovery potential. Strategic quarry locations and market share provide some valuation support. Compare to Vulcan Materials and historical ranges while carefully adjusting for infrastructure spending cycles and private construction trends.

Methodology

Martin Marietta offers a modest but growing dividend as management balances capital returns with acquisition opportunities and quarry investments. The dividend adds some stability to cyclical returns. PEGY better captures total return potential for this aggregates leader, though investors should focus primarily on through-cycle returns and strategic positioning.