VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VMC - US9291601097 - Common Stock
311.62 USD
+12.49 (+4.18%)
311.62 USD
0 (0%)
Overall VMC gets a fundamental rating of 6 out of 10. We evaluated VMC against 13 industry peers in the Construction Materials industry. VMC scores excellent on profitability, but there are some minor concerns on its financial health. 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.
In the past year VMC had a positive cash flow from operations.
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
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.
VMC's Return On Equity of 12.80% is fine compared to the rest of the industry. VMC outperforms 61.54% of its industry peers.
VMC has a Return On Invested Capital of 7.67%. This is in the better half of the industry: VMC outperforms 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 9.37%.
The 3 year average ROIC (6.80%) for VMC is below the current ROIC(7.67%), indicating increased profibility in the last year.
| 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
VMC has a Profit Margin of 14.19%. This is in the better half of the industry: VMC outperforms 76.92% of its industry peers.
In the last couple of years the Profit Margin of VMC has remained more or less at the same level.
VMC has a better Operating Margin (20.10%) than 76.92% of its industry peers.
In the last couple of years the Operating Margin of VMC has grown nicely.
VMC's Gross Margin of 28.23% is in line compared to the rest of the industry. VMC outperforms 46.15% of its industry peers.
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.
VMC has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for VMC remains at a similar level compared to 5 years ago.
The debt/assets ratio for VMC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.34 indicates that VMC is not in any danger for bankruptcy at the moment.
The Altman-Z score of VMC (4.34) is better than 76.92% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 4.15, 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 0.50. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.50, VMC perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.15 | ||
| Altman-Z | 4.34 |
ROIC/WACC0.73
WACC10.53%
2.3 Liquidity
A Current Ratio of 2.23 indicates that VMC has no problem at all paying its short term obligations.
VMC has a Current ratio (2.23) which is in line with 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.
VMC has a Quick ratio of 1.56. This is in the better half of the industry: VMC outperforms 69.23% of its industry peers.
| 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.
Measured over the past years, VMC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.91% on average per year.
Looking at the last year, VMC shows a small growth in Revenue. The Revenue has grown by 6.54% in the last 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.
VMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.87% yearly.
EPS Next Y12.8%
EPS Next 2Y14.9%
EPS Next 3Y15.33%
EPS Next 5Y11.84%
Revenue Next Year8.18%
Revenue Next 2Y6.59%
Revenue Next 3Y6.45%
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.
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 36.83, which means the current valuation is very expensive for VMC.
Based on the Price/Earnings ratio, VMC is valued a bit more expensive than 76.92% of the companies in the same industry.
VMC's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.19.
The Price/Forward Earnings ratio is 31.31, which means the current valuation is very expensive for 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 is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.83 | ||
| Fwd PE | 31.31 |
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.
VMC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.04 | ||
| EV/EBITDA | 19.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VMC has a very decent profitability rating, which may justify a higher PE ratio.
VMC's earnings are expected to grow with 15.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.88
PEG (5Y)3.72
EPS Next 2Y14.9%
EPS Next 3Y15.33%
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, VMC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.09, VMC pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.66, VMC pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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.
VMC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.91%
EPS Next 2Y14.9%
EPS Next 3Y15.33%
311.62
+12.49 (+4.18%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners95.53%
Inst Owner Change0.35%
Ins Owners0.14%
Ins Owner Change-1.93%
Market Cap41.17B
Revenue(TTM)7.88B
Net Income(TTM)1.12B
Analysts80
Price Target325.62 (4.49%)
Short Float %3.55%
Short Ratio4.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend1.85
Dividend Growth(5Y)8.29%
DP22.91%
Div Incr Years11
Div Non Decr Years12
Ex-DateN/A
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)0.34%
PT rev (3m)5.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.41%
EPS NY rev (1m)0%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.83 | ||
| Fwd PE | 31.31 | ||
| P/S | 5.22 | ||
| P/FCF | 39.04 | ||
| P/OCF | 24.08 | ||
| P/B | 4.71 | ||
| P/tB | 13.29 | ||
| EV/EBITDA | 19.62 |
EPS(TTM)8.46
EY2.71%
EPS(NY)9.95
Fwd EY3.19%
FCF(TTM)7.98
FCFY2.56%
OCF(TTM)12.94
OCFY4.15%
SpS59.65
BVpS66.1
TBVpS23.45
PEG (NY)2.88
PEG (5Y)3.72
Graham Number112.17
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 | 4.34 |
F-Score6
WACC10.53%
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)23.87%
EPS 3Y14.29%
EPS 5Y9.91%
EPS Q2Q%27.93%
EPS Next Y12.8%
EPS Next 2Y14.9%
EPS Next 3Y15.33%
EPS Next 5Y11.84%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y10.14%
Revenue growth 5Y8.52%
Sales Q2Q%14.35%
Revenue Next Year8.18%
Revenue Next 2Y6.59%
Revenue Next 3Y6.45%
Revenue Next 5Y7.87%
EBIT growth 1Y16.34%
EBIT growth 3Y16.24%
EBIT growth 5Y10.38%
EBIT Next Year76.87%
EBIT Next 3Y28.68%
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 6 / 10 to VMC.
What is the valuation status for VMC stock?
ChartMill assigns a valuation rating of 1 / 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 12.8% in the next year.