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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Martin Marietta Materials's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 2.42%.
As of today (2026-07-21), Martin Marietta Materials's WACC % is 8.59%. Martin Marietta Materials's ROIC % is 6.60% (calculated using TTM income statement data).
Martin Marietta Materials earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Martin Marietta Materials (MIL:1MLM) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Martin Marietta Materials's WACC % is 8.59%. Martin Marietta Materials's ROIC % is 6.60% (calculated using TTM income statement data).
Martin Marietta Materials earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
* 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.
For the Building Materials subindustry, Martin Marietta Materials's ROIC %, along with its competitors' market caps and ROIC % 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 ROIC % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Martin Marietta Materials's ROIC % distribution charts can be found below:
* The bar in red indicates where Martin Marietta Materials's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 (MIL:1MLM) has a ROIC % of 2.42% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Martin Marietta Materials and its competitors.
Is Martin Marietta Materials' ROIC % too high?
Martin Marietta Materials' current ROIC % is 2.42%. The Building Materials industry median ROIC % is 3.42. Martin Marietta Materials' value of 2.42% is 29.2% below this industry median. Overall, Martin Marietta Materials has a GF Score™ of 92/100, reflecting its overall financial health beyond just this single metric.
How does Martin Marietta Materials' ROIC % compare to VMC and JHX?
Martin Marietta Materials' ROIC % of 2.42% can be compared against companies in the Building Materials industry. The industry median ROIC % is 3.42. Martin Marietta Materials' value of 2.42% is 29.2% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Building Materials company?
The median ROIC % among Building Materials companies is 3.42, based on 397 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Martin Marietta Materials's current ROIC % of 2.42% is 29.2% below 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Martin Marietta Materials and its competitors. For the Building Materials industry, the median ROIC % is 3.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Martin Marietta Materials's current ROIC % is 2.42%. 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?
Martin Marietta Materials (MIL:1MLM) has a current ROIC % of 2.42%. The stock's GF Value™ is €653.58, compared to a current price of €549.50 — trading 15.9% below its estimated fair value. The current ROIC % is 2.42% and 29.2% below the Building Materials industry median of 3.42. Martin Marietta Materials' overall GF Score™ is 92/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Martin Marietta Materials (MIL:1MLM), the current ROIC % is 2.42% as of Mar. 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 (MIL:1MLM) Overvalued in 2026?
Based on GuruFocus' analysis, Martin Marietta Materials stock appears to be undervalued.
The current stock price of €549.50 is trading 15.9% below its estimated GF Value™ of €653.58.
Key valuation signals for MIL:1MLM:
ROIC %: 2.42%
GF Value™: €653.58 vs. price of €549.50 (15.9% below fair value)
Industry Position: 29.2% below the Building Materials median
No single metric tells the full story. See the MIL:1MLM 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.
92GF Score
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