VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
NYSE:VMC - New York Stock Exchange, Inc. - US9291601097 - Common Stock - Currency: USD
Overall VMC gets a fundamental rating of 4 out of 10. We evaluated VMC against 11 industry peers in the Construction Materials industry. VMC has only an average score on both its financial health and profitability. 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
VMC has a worse Return On Assets (5.33%) than 81.82% of its industry peers.
With a Return On Equity value of 11.23%, VMC is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
The Return On Invested Capital of VMC (6.81%) is worse than 81.82% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VMC is significantly below the industry average of 20.57%.
The 3 year average ROIC (6.80%) for VMC is below the current ROIC(6.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 11.23% | ||
| ROIC | 6.81% |
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 (12.29%) is comparable to the rest of the industry.
VMC's Profit Margin has been stable in the last couple of years.
VMC's Operating Margin of 18.86% is in line compared to the rest of the industry. VMC outperforms 54.55% of its industry peers.
VMC's Operating Margin has improved in the last couple of years.
VMC has a Gross Margin (26.96%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of VMC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.86% | ||
| PM (TTM) | 12.29% | ||
| GM | 26.96% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VMC is destroying value.
VMC has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, VMC has about the same amount of shares outstanding.
VMC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.38 indicates that VMC is not in any danger for bankruptcy at the moment.
VMC has a Altman-Z score (3.38) which is comparable to the rest of the industry.
VMC has a debt to FCF ratio of 6.62. This is a slightly negative value and a sign of low solvency as VMC would need 6.62 years to pay back of all of its debts.
VMC has a Debt to FCF ratio (6.62) which is comparable to the rest of the industry.
VMC has a Debt/Equity ratio of 0.61. This is a neutral value indicating VMC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.61, VMC is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.62 | ||
| Altman-Z | 3.38 |
ROIC/WACC0.79
WACC8.61%
2.3 Liquidity
VMC has a Current Ratio of 1.83. 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 Current ratio value of 1.83, VMC perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
A Quick Ratio of 1.28 indicates that VMC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.28, VMC perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
VMC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.87%.
The Earnings Per Share has been growing by 9.91% on average over the past years. This is quite good.
VMC shows a decrease in Revenue. In the last year, the revenue decreased by -4.68%.
The Revenue has been growing by 8.52% on average over the past years. This is quite good.
EPS 1Y (TTM)7.87%
EPS 3Y14.29%
EPS 5Y9.91%
EPS Q2Q%48.63%
Revenue 1Y (TTM)-4.68%
Revenue growth 3Y10.14%
Revenue growth 5Y8.52%
Sales Q2Q%1.05%
3.2 Future
The Earnings Per Share is expected to grow by 12.09% 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 7.12% on average per year.
EPS Next Y20.53%
EPS Next 2Y18.21%
EPS Next 3Y15.8%
EPS Next 5Y12.09%
Revenue Next Year10.59%
Revenue Next 2Y8.95%
Revenue Next 3Y7.44%
Revenue Next 5Y7.12%
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 accelerating.
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
The Price/Earnings ratio is 31.80, which means the current valuation is very expensive for VMC.
Based on the Price/Earnings ratio, VMC is valued more expensive than 81.82% of the companies in the same industry.
When comparing the Price/Earnings ratio of VMC to the average of the S&P500 Index (29.75), we can say VMC is valued inline with the index average.
With a Price/Forward Earnings ratio of 26.38, VMC can be considered very expensive at the moment.
VMC's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.44. VMC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.8 | ||
| Fwd PE | 26.38 |
4.2 Price Multiples
VMC's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. VMC is more expensive than 81.82% of the companies in the same industry.
VMC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.28 | ||
| EV/EBITDA | 18.43 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
VMC's earnings are expected to grow with 15.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.55
PEG (5Y)3.21
EPS Next 2Y18.21%
EPS Next 3Y15.8%
5. Dividend
5.1 Amount
With a yearly dividend of 0.80%, VMC is not a good candidate for dividend investing.
VMC's Dividend Yield is a higher than the industry average which is at 5.69.
With a Dividend Yield of 0.80, VMC pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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
26.80% 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.
DP26.8%
EPS Next 2Y18.21%
EPS Next 3Y15.8%
239.77
-7.54 (-3.05%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners92.75%
Inst Owner Change0.29%
Ins Owners0.13%
Ins Owner Change8.21%
Market Cap31.66B
Analysts79.29
Price Target304.85 (27.14%)
Short Float %1.64%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
Yearly Dividend1.85
Dividend Growth(5Y)8.29%
DP26.8%
Div Incr Years11
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.82%
Min EPS beat(2)-5.39%
Max EPS beat(2)21.03%
EPS beat(4)1
Avg EPS beat(4)-2.13%
Min EPS beat(4)-18.16%
Max EPS beat(4)21.03%
EPS beat(8)4
Avg EPS beat(8)8.3%
EPS beat(12)6
Avg EPS beat(12)5.6%
EPS beat(16)8
Avg EPS beat(16)6.9%
Revenue beat(2)1
Avg Revenue beat(2)-0.36%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)0.9%
Revenue beat(4)1
Avg Revenue beat(4)-2.67%
Min Revenue beat(4)-8.16%
Max Revenue beat(4)0.9%
Revenue beat(8)3
Avg Revenue beat(8)-0.71%
Revenue beat(12)6
Avg Revenue beat(12)0.12%
Revenue beat(16)9
Avg Revenue beat(16)0.54%
PT rev (1m)0.31%
PT rev (3m)1.85%
EPS NQ rev (1m)-27.13%
EPS NQ rev (3m)-27.71%
EPS NY rev (1m)-1.08%
EPS NY rev (3m)-0.87%
Revenue NQ rev (1m)-1.66%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.8 | ||
| Fwd PE | 26.38 | ||
| P/S | 4.27 | ||
| P/FCF | 39.28 | ||
| P/OCF | 22.46 | ||
| P/B | 3.9 | ||
| P/tB | 12.1 | ||
| EV/EBITDA | 18.43 |
EPS(TTM)7.54
EY3.14%
EPS(NY)9.09
Fwd EY3.79%
FCF(TTM)6.1
FCFY2.55%
OCF(TTM)10.67
OCFY4.45%
SpS56.17
BVpS61.48
TBVpS19.81
PEG (NY)1.55
PEG (5Y)3.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 11.23% | ||
| ROCE | 8.82% | ||
| ROIC | 6.81% | ||
| ROICexc | 7.06% | ||
| ROICexgc | 11.02% | ||
| OM | 18.86% | ||
| PM (TTM) | 12.29% | ||
| GM | 26.96% | ||
| FCFM | 10.87% |
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 Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.62 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 95.46% | ||
| Cap/Sales | 8.14% | ||
| Interest Coverage | 7.65 | ||
| Cash Conversion | 69.4% | ||
| Profit Quality | 88.39% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 3.38 |
F-Score5
WACC8.61%
ROIC/WACC0.79
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)7.87%
EPS 3Y14.29%
EPS 5Y9.91%
EPS Q2Q%48.63%
EPS Next Y20.53%
EPS Next 2Y18.21%
EPS Next 3Y15.8%
EPS Next 5Y12.09%
Revenue 1Y (TTM)-4.68%
Revenue growth 3Y10.14%
Revenue growth 5Y8.52%
Sales Q2Q%1.05%
Revenue Next Year10.59%
Revenue Next 2Y8.95%
Revenue Next 3Y7.44%
Revenue Next 5Y7.12%
EBIT growth 1Y1.42%
EBIT growth 3Y16.24%
EBIT growth 5Y10.38%
EBIT Next Year71.36%
EBIT Next 3Y25.75%
EBIT Next 5Y17.23%
FCF growth 1Y21.36%
FCF growth 3Y12.87%
FCF growth 5Y6.08%
OCF growth 1Y-8.28%
OCF growth 3Y11.68%
OCF growth 5Y7.45%