VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:VMC • US9291601097
297.01 USD
-2.46 (-0.82%)
Last: Jan 30, 2026, 09:40 AM
VMC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 13 industry peers in the Construction Materials industry. While VMC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. VMC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year VMC was profitable.
- 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
- VMC has a better Return On Assets (6.59%) than 69.23% of its industry peers.
- VMC has a better Return On Equity (12.80%) than 61.54% of its industry peers.
- VMC's Return On Invested Capital of 7.67% is fine compared to the rest of the industry. VMC outperforms 61.54% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for VMC is below the industry average of 9.37%.
- 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.
- With a decent Operating Margin value of 20.10%, VMC is doing good in the industry, outperforming 76.92% of the companies in the same industry.
- In the last couple of years the Operating Margin of VMC has grown nicely.
- The Gross Margin of VMC (28.23%) is comparable to the rest of the 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VMC is destroying value.
- Compared to 1 year ago, VMC has about the same amount of shares outstanding.
- Compared to 5 years ago, VMC has about the same amount of shares outstanding.
- The debt/assets ratio for VMC is higher compared to a year ago.
2.2 Solvency
- VMC has an Altman-Z score of 4.22. This indicates that VMC is financially healthy and has little risk of bankruptcy at the moment.
- VMC has a Altman-Z score of 4.22. This is amongst the best in the industry. VMC outperforms 84.62% of its industry peers.
- The Debt to FCF ratio of VMC is 4.15, which is a neutral value as it means it would take VMC, 4.15 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of VMC (4.15) is better than 76.92% of its industry peers.
- A Debt/Equity ratio of 0.50 indicates that VMC is not too dependend on debt financing.
- VMC has a Debt to Equity ratio (0.50) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.15 | ||
| Altman-Z | 4.22 |
ROIC/WACC0.72
WACC10.58%
2.3 Liquidity
- VMC has a Current Ratio of 2.23. This indicates that VMC is financially healthy and has no problem in meeting its short term obligations.
- VMC has a Current ratio of 2.23. This is comparable to the rest of the industry: VMC outperforms 53.85% 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.
- Looking at the Quick ratio, with a value of 1.56, VMC is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 23.87% 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 6.54% 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)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 Y12.7%
EPS Next 2Y14.74%
EPS Next 3Y15.19%
EPS Next 5Y11.84%
Revenue Next Year7.96%
Revenue Next 2Y6.39%
Revenue Next 3Y6.44%
Revenue Next 5Y7.87%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- VMC is valuated quite expensively with a Price/Earnings ratio of 35.11.
- Based on the Price/Earnings ratio, VMC is valued a bit more expensive than the industry average as 76.92% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, VMC is valued a bit more expensive.
- A Price/Forward Earnings ratio of 29.92 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.
- VMC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.11 | ||
| Fwd PE | 29.92 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, VMC is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
- VMC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.21 | ||
| EV/EBITDA | 18.93 |
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.
- The decent profitability rating of VMC may justify a higher PE ratio.
- A more expensive valuation may be justified as VMC's earnings are expected to grow with 15.19% in the coming years.
PEG (NY)2.76
PEG (5Y)3.54
EPS Next 2Y14.74%
EPS Next 3Y15.19%
5. Dividend
5.1 Amount
- VMC has a yearly dividend return of 0.65%, which is pretty low.
- Compared to an average industry Dividend Yield of 2.03, VMC pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.65, VMC pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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 their dividend for at least 10 years, which is a reliable track record.
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 2Y14.74%
EPS Next 3Y15.19%
VULCAN MATERIALS CO / VMC FAQ
What is the fundamental rating for VMC stock?
ChartMill assigns a fundamental rating of 6 / 10 to VMC.
What is the valuation status for 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 7 / 10.
How financially healthy is VULCAN MATERIALS CO?
The financial health rating of VULCAN MATERIALS CO (VMC) is 6 / 10.
What is the expected EPS growth for VULCAN MATERIALS CO (VMC) stock?
The Earnings per Share (EPS) of VULCAN MATERIALS CO (VMC) is expected to grow by 12.7% in the next year.