VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
USA - NYSE:VMC - US9291601097 - Common Stock
298.58 USD
+6.33 (+2.17%)
298.58 USD
0 (0%)
Overall VMC gets a fundamental rating of 4 out of 10. We evaluated VMC against 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. VMC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VMC was profitable.
VMC had a positive operating cash flow in the past year.
VMC had positive earnings in each of the past 5 years.
Each year in the past 5 years VMC had a positive operating cash flow.
1.2 Ratios
VMC has a Return On Assets of 5.60%. This is comparable to the rest of the industry: VMC outperforms 46.15% of its industry peers.
With a Return On Equity value of 11.31%, VMC is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
VMC has a Return On Invested Capital of 7.00%. This is in the lower half of the industry: VMC underperforms 61.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VMC is below the industry average of 10.47%.
The last Return On Invested Capital (7.00%) for VMC is above the 3 year average (6.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.6% | ||
| ROE | 11.31% | ||
| ROIC | 7% |
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
The Profit Margin of VMC (12.52%) is better than 61.54% of its industry peers.
In the last couple of years the Profit Margin of VMC has remained more or less at the same level.
Looking at the Operating Margin, with a value of 19.30%, VMC is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
In the last couple of years the Operating Margin of VMC has grown nicely.
With a Gross Margin value of 27.56%, VMC perfoms like the industry average, 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 | 19.3% | ||
| PM (TTM) | 12.52% | ||
| GM | 27.56% |
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.
The number of shares outstanding for VMC remains at a similar level compared to 5 years ago.
VMC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.01 indicates that VMC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.01, 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 4.48. This is a neutral value as VMC would need 4.48 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.48, VMC is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
VMC has a Debt/Equity ratio of 0.58. This is a neutral value indicating VMC is somewhat dependend on debt financing.
The Debt to Equity ratio of VMC (0.58) is worse than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.48 | ||
| Altman-Z | 4.01 |
ROIC/WACC0.73
WACC9.6%
2.3 Liquidity
A Current Ratio of 1.67 indicates that VMC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.67, VMC is doing worse than 61.54% of the companies in the same industry.
A Quick Ratio of 1.13 indicates that VMC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.13, VMC is doing worse than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.62% over the past year.
The Earnings Per Share has been growing by 9.91% on average over the past years. This is quite good.
The Revenue has been growing slightly by 0.19% in the past year.
VMC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.52% yearly.
EPS 1Y (TTM)13.62%
EPS 3Y14.29%
EPS 5Y9.91%
EPS Q2Q%4.26%
Revenue 1Y (TTM)0.19%
Revenue growth 3Y10.14%
Revenue growth 5Y8.52%
Sales Q2Q%4.37%
3.2 Future
The Earnings Per Share is expected to grow by 11.33% on average over the next years. This is quite good.
VMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.51% yearly.
EPS Next Y12.57%
EPS Next 2Y14.97%
EPS Next 3Y14.98%
EPS Next 5Y11.33%
Revenue Next Year9.23%
Revenue Next 2Y7.96%
Revenue Next 3Y7.69%
Revenue Next 5Y7.51%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 38.08, VMC can be considered very expensive at the moment.
76.92% of the companies in the same industry are cheaper than VMC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.41, VMC is valued a bit more expensive.
The Price/Forward Earnings ratio is 29.96, which means the current valuation is very expensive for VMC.
VMC's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. VMC is more expensive than 69.23% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, VMC is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.08 | ||
| Fwd PE | 29.96 |
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 76.92% of the companies listed in the same industry.
VMC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VMC is cheaper than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.92 | ||
| EV/EBITDA | 20.11 |
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.
A more expensive valuation may be justified as VMC's earnings are expected to grow with 14.98% in the coming years.
PEG (NY)3.03
PEG (5Y)3.84
EPS Next 2Y14.97%
EPS Next 3Y14.98%
5. Dividend
5.1 Amount
With a yearly dividend of 0.65%, VMC is not a good candidate for dividend investing.
VMC's Dividend Yield is a higher than the industry average which is at 3.29.
Compared to an average S&P500 Dividend Yield of 2.38, VMC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
The dividend of VMC is nicely growing with an annual growth rate of 8.29%!
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
VMC pays out 26.53% of its income as dividend. This is a sustainable payout ratio.
VMC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP26.53%
EPS Next 2Y14.97%
EPS Next 3Y14.98%
298.58
+6.33 (+2.17%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners94.24%
Inst Owner Change0.31%
Ins Owners0.15%
Ins Owner Change-15.29%
Market Cap39.45B
Analysts80.69
Price Target309.12 (3.53%)
Short Float %2.79%
Short Ratio4.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend1.85
Dividend Growth(5Y)8.29%
DP26.53%
Div Incr Years11
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)11.3%
Min EPS beat(2)-4.43%
Max EPS beat(2)27.04%
EPS beat(4)2
Avg EPS beat(4)9.56%
Min EPS beat(4)-5.39%
Max EPS beat(4)27.04%
EPS beat(8)3
Avg EPS beat(8)2.07%
EPS beat(12)6
Avg EPS beat(12)6.45%
EPS beat(16)8
Avg EPS beat(16)5.54%
Revenue beat(2)0
Avg Revenue beat(2)-3.38%
Min Revenue beat(2)-4.83%
Max Revenue beat(2)-1.94%
Revenue beat(4)1
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-4.83%
Max Revenue beat(4)0.9%
Revenue beat(8)1
Avg Revenue beat(8)-2.37%
Revenue beat(12)4
Avg Revenue beat(12)-1.35%
Revenue beat(16)8
Avg Revenue beat(16)0.01%
PT rev (1m)0.87%
PT rev (3m)1.38%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)0.54%
EPS NY rev (1m)-1.27%
EPS NY rev (3m)-1.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)-0.83%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.08 | ||
| Fwd PE | 29.96 | ||
| P/S | 5.19 | ||
| P/FCF | 35.92 | ||
| P/OCF | 24.23 | ||
| P/B | 4.69 | ||
| P/tB | 14.38 | ||
| EV/EBITDA | 20.11 |
EPS(TTM)7.84
EY2.63%
EPS(NY)9.97
Fwd EY3.34%
FCF(TTM)8.31
FCFY2.78%
OCF(TTM)12.32
OCFY4.13%
SpS57.48
BVpS63.63
TBVpS20.77
PEG (NY)3.03
PEG (5Y)3.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.6% | ||
| ROE | 11.31% | ||
| ROCE | 9.38% | ||
| ROIC | 7% | ||
| ROICexc | 7.15% | ||
| ROICexgc | 11.13% | ||
| OM | 19.3% | ||
| PM (TTM) | 12.52% | ||
| GM | 27.56% | ||
| FCFM | 14.46% |
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%
ROICexcg growth 3Y5.03%
ROICexcg 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-Score5
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.48 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 76.15% | ||
| Cap/Sales | 6.98% | ||
| Interest Coverage | 6.71 | ||
| Cash Conversion | 75.32% | ||
| Profit Quality | 115.46% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 4.01 |
F-Score5
WACC9.6%
ROIC/WACC0.73
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)13.62%
EPS 3Y14.29%
EPS 5Y9.91%
EPS Q2Q%4.26%
EPS Next Y12.57%
EPS Next 2Y14.97%
EPS Next 3Y14.98%
EPS Next 5Y11.33%
Revenue 1Y (TTM)0.19%
Revenue growth 3Y10.14%
Revenue growth 5Y8.52%
Sales Q2Q%4.37%
Revenue Next Year9.23%
Revenue Next 2Y7.96%
Revenue Next 3Y7.69%
Revenue Next 5Y7.51%
EBIT growth 1Y6.09%
EBIT growth 3Y16.24%
EBIT growth 5Y10.38%
EBIT Next Year78.46%
EBIT Next 3Y29.07%
EBIT Next 5Y18.94%
FCF growth 1Y68.01%
FCF growth 3Y12.87%
FCF growth 5Y6.08%
OCF growth 1Y22.41%
OCF growth 3Y11.68%
OCF growth 5Y7.45%