VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
USA - NYSE:VMC - US9291601097 - Common Stock
287.3 USD
+1 (+0.35%)
287.3 USD
0 (0%)
Taking everything into account, VMC scores 5 out of 10 in our fundamental rating. VMC was compared to 13 industry peers in the Construction Materials industry. Both the profitability and the financial health of VMC get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, VMC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
VMC had positive earnings in the past year.
In the past year VMC had a positive cash flow from operations.
VMC had positive earnings in each of the past 5 years.
In the past 5 years VMC always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.59%, VMC is doing good in the industry, outperforming 69.23% of the companies in the same industry.
With a Return On Equity value of 12.80%, VMC perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
With a Return On Invested Capital value of 7.67%, VMC perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VMC is below the industry average of 10.40%.
The last Return On Invested Capital (7.67%) for VMC is above the 3 year average (6.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.59% | ||
| ROE | 12.8% | ||
| ROIC | 7.67% |
ROA(3y)5.26%
ROA(5y)5.14%
ROE(3y)10.67%
ROE(5y)10.39%
ROIC(3y)6.8%
ROIC(5y)6.44%
1.3 Margins
With a decent Profit Margin value of 14.19%, VMC is doing good in the industry, outperforming 76.92% of the companies in the same industry.
VMC's Profit Margin has been stable in the last couple of years.
VMC has a Operating Margin of 20.10%. This is in the better half of the industry: VMC outperforms 69.23% of its industry peers.
In the last couple of years the Operating Margin of VMC has grown nicely.
Looking at the Gross Margin, with a value of 28.23%, VMC is in line with its industry, outperforming 46.15% of the companies in the same industry.
VMC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.1% | ||
| PM (TTM) | 14.19% | ||
| GM | 28.23% |
OM growth 3Y5.54%
OM growth 5Y1.72%
PM growth 3Y0.58%
PM growth 5Y-0.38%
GM growth 3Y2.91%
GM growth 5Y1.13%
2. Health
2.1 Basic Checks
VMC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for VMC remains at a similar level compared to 1 year ago.
Compared to 5 years ago, VMC has about the same amount of shares outstanding.
Compared to 1 year ago, VMC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.09 indicates that VMC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.09, VMC is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
VMC has a debt to FCF ratio of 4.15. This is a neutral value as VMC would need 4.15 years to pay back of all of its debts.
VMC's Debt to FCF ratio of 4.15 is amongst the best of the industry. VMC outperforms 92.31% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that VMC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.50, VMC is in line with its industry, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.15 | ||
| Altman-Z | 4.09 |
ROIC/WACC0.78
WACC9.81%
2.3 Liquidity
A Current Ratio of 2.23 indicates that VMC has no problem at all paying its short term obligations.
VMC's Current ratio of 2.23 is in line compared to the rest of the industry. VMC outperforms 46.15% of its industry peers.
VMC has a Quick Ratio of 1.56. This is a normal value and indicates that VMC is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.56, VMC is doing good in the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
VMC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.87%, which is quite impressive.
VMC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.91% yearly.
Looking at the last year, VMC shows a small growth in Revenue. The Revenue has grown by 6.54% in the last year.
Measured over the past years, VMC shows a quite strong growth in Revenue. The Revenue has been growing by 8.52% on average per year.
EPS 1Y (TTM)23.87%
EPS 3Y14.29%
EPS 5Y9.91%
EPS Q2Q%27.93%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y10.14%
Revenue growth 5Y8.52%
Sales Q2Q%14.35%
3.2 Future
The Earnings Per Share is expected to grow by 11.84% on average over the next years. This is quite good.
Based on estimates for the next years, VMC will show a small growth in Revenue. The Revenue will grow by 7.87% on average per year.
EPS Next Y13.15%
EPS Next 2Y15.18%
EPS Next 3Y15.79%
EPS Next 5Y11.84%
Revenue Next Year8.59%
Revenue Next 2Y7.64%
Revenue Next 3Y7.15%
Revenue Next 5Y7.87%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 33.96, VMC can be considered very expensive at the moment.
Based on the Price/Earnings ratio, VMC is valued a bit more expensive than 76.92% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.83. VMC is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 28.72 indicates a quite expensive valuation of VMC.
Based on the Price/Forward Earnings ratio, VMC is valued a bit more expensive than 69.23% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VMC to the average of the S&P500 Index (32.68), we can say VMC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.96 | ||
| Fwd PE | 28.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VMC indicates a slightly more expensive valuation: VMC is more expensive than 69.23% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VMC is valued a bit cheaper than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.99 | ||
| EV/EBITDA | 18.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VMC does not grow enough to justify the current Price/Earnings ratio.
VMC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as VMC's earnings are expected to grow with 15.79% in the coming years.
PEG (NY)2.58
PEG (5Y)3.43
EPS Next 2Y15.18%
EPS Next 3Y15.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, VMC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.93, VMC pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.69, VMC pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
On average, the dividend of VMC grows each year by 8.29%, which is quite nice.
VMC has been paying a dividend for at least 10 years, so it has a reliable track record.
VMC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.29%
Div Incr Years11
Div Non Decr Years12
5.3 Sustainability
22.91% of the earnings are spent on dividend by VMC. This is a low number and sustainable payout ratio.
The dividend of VMC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.91%
EPS Next 2Y15.18%
EPS Next 3Y15.79%
287.3
+1 (+0.35%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners94.85%
Inst Owner Change-0.89%
Ins Owners0.15%
Ins Owner Change-14.63%
Market Cap37.96B
Revenue(TTM)7.88B
Net Income(TTM)1.12B
Analysts80
Price Target318.21 (10.76%)
Short Float %2.91%
Short Ratio5.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend1.85
Dividend Growth(5Y)8.29%
DP22.91%
Div Incr Years11
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.56%
Min EPS beat(2)-4.43%
Max EPS beat(2)3.31%
EPS beat(4)3
Avg EPS beat(4)11.73%
Min EPS beat(4)-4.43%
Max EPS beat(4)27.04%
EPS beat(8)4
Avg EPS beat(8)2.64%
EPS beat(12)6
Avg EPS beat(12)6.43%
EPS beat(16)9
Avg EPS beat(16)6.23%
Revenue beat(2)1
Avg Revenue beat(2)-2.36%
Min Revenue beat(2)-4.83%
Max Revenue beat(2)0.11%
Revenue beat(4)2
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-4.83%
Max Revenue beat(4)0.9%
Revenue beat(8)2
Avg Revenue beat(8)-2.28%
Revenue beat(12)4
Avg Revenue beat(12)-1.61%
Revenue beat(16)8
Avg Revenue beat(16)-0.22%
PT rev (1m)2.94%
PT rev (3m)3.96%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)3.46%
EPS NY rev (1m)0.26%
EPS NY rev (3m)-0.98%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.96 | ||
| Fwd PE | 28.72 | ||
| P/S | 4.82 | ||
| P/FCF | 35.99 | ||
| P/OCF | 22.2 | ||
| P/B | 4.35 | ||
| P/tB | 12.25 | ||
| EV/EBITDA | 18.17 |
EPS(TTM)8.46
EY2.94%
EPS(NY)10
Fwd EY3.48%
FCF(TTM)7.98
FCFY2.78%
OCF(TTM)12.94
OCFY4.51%
SpS59.66
BVpS66.11
TBVpS23.45
PEG (NY)2.58
PEG (5Y)3.43
Graham Number112.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.59% | ||
| ROE | 12.8% | ||
| ROCE | 9.93% | ||
| ROIC | 7.67% | ||
| ROICexc | 7.76% | ||
| ROICexgc | 12.08% | ||
| OM | 20.1% | ||
| PM (TTM) | 14.19% | ||
| GM | 28.23% | ||
| FCFM | 13.38% |
ROA(3y)5.26%
ROA(5y)5.14%
ROE(3y)10.67%
ROE(5y)10.39%
ROIC(3y)6.8%
ROIC(5y)6.44%
ROICexc(3y)7.09%
ROICexc(5y)6.8%
ROICexgc(3y)11.53%
ROICexgc(5y)11.5%
ROCE(3y)8.82%
ROCE(5y)8.34%
ROICexgc growth 3Y5.03%
ROICexgc growth 5Y-1.37%
ROICexc growth 3Y9.16%
ROICexc growth 5Y1.05%
OM growth 3Y5.54%
OM growth 5Y1.72%
PM growth 3Y0.58%
PM growth 5Y-0.38%
GM growth 3Y2.91%
GM growth 5Y1.13%
F-Score6
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.15 | ||
| Debt/EBITDA | 1.89 | ||
| Cap/Depr | 90.15% | ||
| Cap/Sales | 8.31% | ||
| Interest Coverage | 7.42 | ||
| Cash Conversion | 73.98% | ||
| Profit Quality | 94.3% | ||
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 4.09 |
F-Score6
WACC9.81%
ROIC/WACC0.78
Cap/Depr(3y)113.72%
Cap/Depr(5y)105.98%
Cap/Sales(3y)9.24%
Cap/Sales(5y)8.66%
Profit Quality(3y)84.21%
Profit Quality(5y)91.47%
High Growth Momentum
Growth
EPS 1Y (TTM)23.87%
EPS 3Y14.29%
EPS 5Y9.91%
EPS Q2Q%27.93%
EPS Next Y13.15%
EPS Next 2Y15.18%
EPS Next 3Y15.79%
EPS Next 5Y11.84%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y10.14%
Revenue growth 5Y8.52%
Sales Q2Q%14.35%
Revenue Next Year8.59%
Revenue Next 2Y7.64%
Revenue Next 3Y7.15%
Revenue Next 5Y7.87%
EBIT growth 1Y16.34%
EBIT growth 3Y16.24%
EBIT growth 5Y10.38%
EBIT Next Year77.88%
EBIT Next 3Y28.95%
EBIT Next 5Y19.4%
FCF growth 1Y68.32%
FCF growth 3Y12.87%
FCF growth 5Y6.08%
OCF growth 1Y17.52%
OCF growth 3Y11.68%
OCF growth 5Y7.45%
VULCAN MATERIALS CO / VMC FAQ
What is the fundamental rating for VMC stock?
ChartMill assigns a fundamental rating of 5 / 10 to VMC.
What is the valuation status of VULCAN MATERIALS CO (VMC) stock?
ChartMill assigns a valuation rating of 2 / 10 to VULCAN MATERIALS CO (VMC). This can be considered as Overvalued.
How profitable is VULCAN MATERIALS CO (VMC) stock?
VULCAN MATERIALS CO (VMC) has a profitability rating of 6 / 10.
Can you provide the financial health for VMC stock?
The financial health rating of VULCAN MATERIALS CO (VMC) is 6 / 10.
What is the earnings growth outlook for VULCAN MATERIALS CO?
The Earnings per Share (EPS) of VULCAN MATERIALS CO (VMC) is expected to grow by 13.15% in the next year.