This score-card analysis attributes an Overall Score to a company by analyzing several aspects that I consider to be among the most important.
In summary, a company to have an overall score close to 100% must have the following characteristics:
- Report high growth rates in the last 3 years (and in the last quarter) in terms of Revenue, Gross Profit, Operating Income and Net Income. Furthermore, it must operate with high and improving margins in recent years.
- Analysts expect Earnings Per Share (EPS) and revenues to grow in the short term (in the next quarter) and in the medium to long term (in the next 5 years). Moreover, they expect the company to be undervalued at current prices and in the last quarter their EPS expectations must have been beaten with a consequent rise in share prices.
- The stock price of the company must have outperformed the S&P 500 index and in the last 3 months the Hedge Funds and Insiders bought shares in the company.
The overall score ranges from 0% (if the characteristics listed above are all very negative) to +100% and it is unlikely that there will be a company with a +100% score because the requirements for achieving this score are very high, however a score higher than +70% can be considered good.
This analysis alone is not enough to decide whether or not to invest in a company because it does not provide indications on the timing of entry, but it is a good starting point.
Martin Marietta Materials Inc (MLM)
- Overall Score: 78,7%
- Positive sides:
- Excellent overall score
- 12 month trailing revenue at $ 5.6 billion, up 58% over the past 3 years
- 12 months trailing net income of $ 617 million, doubled compared to 3 years ago
- Net margin showing a clear improvement in the same period (+ 35.7%)
- Excellent quarterly data
- Quarterly revenue up 16.4% and quarterly net income up 38%
- Also in the last quarter the net margin had a significant increase (+ 18.5%)
- Analysts very positive about the future of MLM
- They believe it is undervalued by 12.3% at current prices despite a double performance compared to the S&P500 index since the beginning of 2019
- Next quarter revenue are expected to increase by 8% and EPS up by 49.3%
- Expected annual growth of EPS by 16.8% for the next 5 years
- Negative sides:
- Hedge Funds and Insiders have reduced their positions on MLM in the last quarter
Martin Marietta Inc. is an American-based company and a member of the S&P 500 Index. The company is a supplier of aggregates and heavy building materials, with operations spanning 26 states, Canada and the Caribbean. In particular, Martin Marietta supplies the resources for roads, sidewalks and foundations.
The overall score of MLM is 79% .
In the last 6 months, MLM has overperformed the S&P500 index by 11,3% and analysts believe the company is undervalued by 12,3% .
In the last quarter, the company reported revenue of 1420,2 million, up by 16,4% compared to the same quarter 12 months earlier. Revenue TTM (Trailing-12-Months) are equal to 5597,8 million, up by 58,1% in the last 3 years.
MLM reported an operating income of 345,3 million in the last quarter, an improvement of 43,5% compared to the same quarter 12 months earlier, also reporting an improvement of 23,2% in the operating margin. Considering the sum of the last four quarters (TTM), MLM reports an operating income of 916,6 Million , a growth of 91,2% compared to three years ago and an improvement of 20,9% in the operating margin.
MLM reported a net income of 248,2 million in the last quarter, an improvement of 38,0% compared to the same quarter 12 months earlier, also reporting an improvement of 18,5% in the net margin. The TTM net income is 617 million , a growth of 114,6% compared to three years ago and the net margin has improved by 35,7% .
In the next quarter, analysts expect growth in EPS (Earnings Per Share) of 49,3% and a growth in revenue of 8,0% . Furthermore, they expect an annual growth of MLM EPS by 16,8% for the next 5 years.
In the last quarter, MLM reported better EPS than analysts’ expectations and the stock price reacted by decreasing by -0,3% .
Finally, in the last 3 months the Hedge Funds have decreased their positions by 89k shares. The Insiders have sold shares worth $6.9M .
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Sources & additional info
*The comparison with the S&P 500 index is visible inside the graph.
*Data updated to the last quarterly report available
*Data in Millions of Dollars
*Data from zacks.com, tipranks.com, reuters.com, finance.yahoo.com
*Company information from wikipedia.com
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DISCLAIMER: The information in this blog post represents my own analysis/opinions and does not contain a recommendation for any particular security or investment.