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Martin Marietta MaterialsMEX:MLM 79 Forward Rate of Return (Yacktman) % is 13.66% as of Jun. 2026, which is 19% below its 10-year median of 16.84. GuruFocus rates MEX:MLM with a GF Score™ of 79/100 and a GF Value™ of MXN11,947.90 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 318 Building Materials companies, Martin Marietta Materials ranks better than 63.21% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Martin Marietta Materials's forward rate of return for was 13.66%.
The historical rank and industry rank for Martin Marietta Materials's Forward Rate of Return (Yacktman) % or its related term are showing as below:
MEX:MLM'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 12.4 Med: 16.84 Max: 22.4
Current: 13.79
During the past 13 years, Martin Marietta Materials's highest Forward Rate of Return was 22.40. The lowest was 12.40. And the median was 16.84.
MEX:MLM's Forward Rate of Return (Yacktman) % is ranked better than 63.21% of 318
companies
in the Building Materials industry
Industry Median: 8.125
vs MEX:MLM: 13.79
Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Martin Marietta Materials (MEX:MLM) Forward Rate of Return (Yacktman) % Explanation
Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.
Be Aware
In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.
Martin Marietta Materials Forward Rate of Return (Yacktman) % Related Terms
Martin Marietta Materials Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Martin Marietta Materials's Forward Rate of Return (Yacktman) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Martin Marietta Materials Forward Rate of Return (Yacktman) % Chart
MEX:MLM vs VMC, JHX, EXP: Forward Rate of Return (Yacktman) % Comparison
For the Building Materials subindustry, Martin Marietta Materials's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Martin Marietta Materials Forward Rate of Return (Yacktman) % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Martin Marietta Materials's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Martin Marietta Materials's Forward Rate of Return (Yacktman) % falls into.
Martin Marietta Materials Forward Rate of Return (Yacktman) % Calculation
Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):
If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.
The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Forward Rate of Return (Yacktman) % of 13.66% mean?
Martin Marietta Materials (MEX:MLM) has a Forward Rate of Return (Yacktman) % of 13.66% as of Jun. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Martin Marietta Materials and its competitors. This is 19% below median its historical median of 16.84. Over the past decade, Martin Marietta Materials' Forward Rate of Return (Yacktman) % has ranged from 12.40 to 22.40. According to the industry distribution chart, Martin Marietta Materials ranks #117 out of 318 companies in the Building Materials industry, placing it in the top 36.8%.
Is Martin Marietta Materials' Forward Rate of Return (Yacktman) % too high?
Martin Marietta Materials' current Forward Rate of Return (Yacktman) % of 13.66% is 19% below median its 10-year median of 16.84. Over the past 10 years, this metric has ranged from a low of 12.40 to a high of 22.40. The Building Materials industry median Forward Rate of Return (Yacktman) % is 8.13. Martin Marietta Materials' value of 13.66% is 68.1% above this industry median. Based on the distribution chart, Martin Marietta Materials ranks #117 out of 318 companies in the Building Materials industry, which is above the industry midpoint. Overall, Martin Marietta Materials has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Martin Marietta Materials' Forward Rate of Return (Yacktman) % compare to VMC and JHX?
According to the Building Materials industry distribution chart, Martin Marietta Materials ranks #117 out of 318 companies for Forward Rate of Return (Yacktman) %. This puts Martin Marietta Materials in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 8.13. Martin Marietta Materials' value of 13.66% is 68.1% above this benchmark. Historically, Martin Marietta Materials' own Forward Rate of Return (Yacktman) % has ranged from 12.40 to 22.40 over the past decade. While the company's 10-year median is 16.84 vs. the industry median of 8.13, Martin Marietta Materials has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward Rate of Return (Yacktman) % for a Building Materials company?
The median Forward Rate of Return (Yacktman) % among Building Materials companies is 8.13, based on 318 companies in the industry. Companies in the top quartile (top 25%) have a Forward Rate of Return (Yacktman) % significantly above this median, while those in the bottom quartile fall well below. However, Forward Rate of Return (Yacktman) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Martin Marietta Materials's current Forward Rate of Return (Yacktman) % of 13.66% is 68.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward Rate of Return (Yacktman) % mean?
A high Forward Rate of Return (Yacktman) % can signal that a stock is expensive relative to its fundamentals. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Martin Marietta Materials and its competitors. For the Building Materials industry, the median Forward Rate of Return (Yacktman) % is 8.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Martin Marietta Materials's current Forward Rate of Return (Yacktman) % is 13.66%, which is 19% below median its own 10-year median of 16.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Martin Marietta Materials stock overvalued right now?
Based on GuruFocus' analysis, Martin Marietta Materials (MEX:MLM) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN11,947.90, compared to a current price of MXN10,527.30 — trading 11.9% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 13.66%, which is 19% below median its 10-year median of 16.84 and 68.1% above the Building Materials industry median of 8.13. Martin Marietta Materials' overall GF Score™ is 79/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward Rate of Return (Yacktman) % calculated?
Forward Rate of Return (Yacktman) % is calculated from a company's financial statements. For Martin Marietta Materials (MEX:MLM), the current Forward Rate of Return (Yacktman) % is 13.66% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Martin Marietta Materials (MEX:MLM) Overvalued in 2026?
Based on GuruFocus' analysis, Martin Marietta Materials stock appears to be undervalued.
The current stock price of MXN10,527.30 is trading 11.9% below its estimated GF Value™ of MXN11,947.90.
GuruFocus considers Martin Marietta Materials to be Modestly Undervalued.
Key valuation signals for MEX:MLM:
Forward Rate of Return (Yacktman) %: 13.66% (19% below median its 10-year median of 16.84)
GF Value™: MXN11,947.90 vs. price of MXN10,527.30 (11.9% below fair value)
Industry Position: 68.1% above the Building Materials median (#117 of 318)
No single metric tells the full story. See the MEX:MLM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Martin Marietta Materials is one of the United States' largest producer of construction aggregates (crushed stone, sand, and gravel). In 2024, Martin Marietta sold 191 million tons of aggregates. Martin Marietta's most important markets include Texas, North Carolina, Colorado, California, and Georgia, accounting for most of its sales. The company also uses its aggregates in its asphalt and ready-mixed concrete businesses. Martin's magnesia specialties business produces magnesia-based chemical products and dolomitic lime.
79GF Score
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