VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
NYSE:VMC - New York Stock Exchange, Inc. - US9291601097 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to VMC. VMC was compared to 12 industry peers in the Construction Materials industry. VMC is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 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.
In the past 5 years VMC has always been profitable.
VMC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 5.89%, VMC is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
VMC's Return On Equity of 10.75% is on the low side compared to the rest of the industry. VMC is outperformed by 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.60%, VMC is doing worse than 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VMC is significantly below the industry average of 19.95%.
The last Return On Invested Capital (7.60%) for VMC is above the 3 year average (6.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.89% | ||
| ROE | 10.75% | ||
| ROIC | 7.6% |
ROA(3y)5.12%
ROA(5y)5.23%
ROE(3y)10.34%
ROE(5y)10.34%
ROIC(3y)6.18%
ROIC(5y)6.25%
1.3 Margins
The Profit Margin of VMC (11.43%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of VMC has remained more or less at the same level.
With a Operating Margin value of 18.41%, VMC perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
In the last couple of years the Operating Margin of VMC has remained more or less at the same level.
The Gross Margin of VMC (26.15%) 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 | 18.41% | ||
| PM (TTM) | 11.43% | ||
| GM | 26.15% |
OM growth 3Y-1.17%
OM growth 5Y1.17%
PM growth 3Y-0.12%
PM growth 5Y0.38%
GM growth 3Y-1.73%
GM growth 5Y-0.06%
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.
VMC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, VMC has about the same amount of shares outstanding.
The debt/assets ratio for VMC has been reduced compared to a year ago.
2.2 Solvency
VMC has an Altman-Z score of 4.76. This indicates that VMC is financially healthy and has little risk of bankruptcy at the moment.
VMC has a better Altman-Z score (4.76) than 66.67% of its industry peers.
The Debt to FCF ratio of VMC is 4.17, which is a neutral value as it means it would take VMC, 4.17 years of fcf income to pay off all of its debts.
VMC's Debt to FCF ratio of 4.17 is in line compared to the rest of the industry. VMC outperforms 58.33% of its industry peers.
VMC has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
VMC has a better Debt to Equity ratio (0.42) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 4.76 |
ROIC/WACC0.79
WACC9.67%
2.3 Liquidity
A Current Ratio of 2.86 indicates that VMC has no problem at all paying its short term obligations.
The Current ratio of VMC (2.86) is better than 83.33% of its industry peers.
A Quick Ratio of 2.02 indicates that VMC has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.02, VMC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 2.02 |
3. Growth
3.1 Past
VMC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.33%.
Measured over the past years, VMC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.48% on average per year.
VMC shows a decrease in Revenue. In the last year, the revenue decreased by -3.66%.
Measured over the past years, VMC shows a quite strong growth in Revenue. The Revenue has been growing by 12.17% on average per year.
EPS 1Y (TTM)3.33%
EPS 3Y14.15%
EPS 5Y11.48%
EPS Q2Q%-3.06%
Revenue 1Y (TTM)-3.66%
Revenue growth 3Y17.02%
Revenue growth 5Y12.17%
Sales Q2Q%-8.32%
3.2 Future
VMC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.19% yearly.
The Revenue is expected to grow by 4.65% on average over the next years.
EPS Next Y3.65%
EPS Next 2Y14.75%
EPS Next 3Y15.03%
EPS Next 5Y12.19%
Revenue Next Year-5.12%
Revenue Next 2Y2.26%
Revenue Next 3Y3.9%
Revenue Next 5Y4.65%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
VMC is valuated quite expensively with a Price/Earnings ratio of 40.46.
83.33% of the companies in the same industry are cheaper than VMC, based on the Price/Earnings ratio.
VMC's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.51.
A Price/Forward Earnings ratio of 30.03 indicates a quite expensive valuation of VMC.
VMC's Price/Forward Earnings is on the same level as the industry average.
VMC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 93.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.46 | ||
| Fwd PE | 30.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VMC is valued a bit more expensive than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VMC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.4 | ||
| EV/EBITDA | 19.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as VMC's earnings are expected to grow with 15.03% in the coming years.
PEG (NY)11.1
PEG (5Y)3.53
EPS Next 2Y14.75%
EPS Next 3Y15.03%
5. Dividend
5.1 Amount
VMC has a yearly dividend return of 0.67%, which is pretty low.
Compared to an average industry Dividend Yield of 3.42, VMC pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.67, VMC pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
On average, the dividend of VMC grows each year by 8.97%, 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)8.97%
Div Incr Years11
Div Non Decr Years12
5.3 Sustainability
VMC pays out 28.43% 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.
DP28.43%
EPS Next 2Y14.75%
EPS Next 3Y15.03%
VULCAN MATERIALS CO
NYSE:VMC (1/30/2025, 5:34:44 PM)
After market: 276.36 0 (0%)276.36
+4.16 (+1.53%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners93.92%
Inst Owner Change0.3%
Ins Owners0.14%
Ins Owner Change-10.12%
Market Cap36.50B
Analysts79.29
Price Target305.18 (10.43%)
Short Float %1.51%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend1.72
Dividend Growth(5Y)8.97%
DP28.43%
Div Incr Years11
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.69%
Min EPS beat(2)-5.99%
Max EPS beat(2)-5.39%
EPS beat(4)1
Avg EPS beat(4)-6.46%
Min EPS beat(4)-18.16%
Max EPS beat(4)3.69%
EPS beat(8)3
Avg EPS beat(8)3.78%
EPS beat(12)6
Avg EPS beat(12)4.4%
EPS beat(16)8
Avg EPS beat(16)6.06%
Revenue beat(2)0
Avg Revenue beat(2)-1.7%
Min Revenue beat(2)-1.78%
Max Revenue beat(2)-1.62%
Revenue beat(4)0
Avg Revenue beat(4)-3.13%
Min Revenue beat(4)-8.16%
Max Revenue beat(4)-0.96%
Revenue beat(8)2
Avg Revenue beat(8)-1.69%
Revenue beat(12)6
Avg Revenue beat(12)0.18%
Revenue beat(16)9
Avg Revenue beat(16)0.51%
PT rev (1m)1.14%
PT rev (3m)8.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.62%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.37%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-2.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.46 | ||
| Fwd PE | 30.03 | ||
| P/S | 4.93 | ||
| P/FCF | 45.4 | ||
| P/OCF | 25.15 | ||
| P/B | 4.64 | ||
| P/tB | 12.29 | ||
| EV/EBITDA | 19.6 |
EPS(TTM)6.83
EY2.47%
EPS(NY)9.2
Fwd EY3.33%
FCF(TTM)6.09
FCFY2.2%
OCF(TTM)10.99
OCFY3.98%
SpS56.02
BVpS59.59
TBVpS22.5
PEG (NY)11.1
PEG (5Y)3.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.89% | ||
| ROE | 10.75% | ||
| ROCE | 10.03% | ||
| ROIC | 7.6% | ||
| ROICexc | 7.85% | ||
| ROICexgc | 12.51% | ||
| OM | 18.41% | ||
| PM (TTM) | 11.43% | ||
| GM | 26.15% | ||
| FCFM | 10.86% |
ROA(3y)5.12%
ROA(5y)5.23%
ROE(3y)10.34%
ROE(5y)10.34%
ROIC(3y)6.18%
ROIC(5y)6.25%
ROICexc(3y)6.42%
ROICexc(5y)6.59%
ROICexgc(3y)10.81%
ROICexgc(5y)11.43%
ROCE(3y)8.18%
ROCE(5y)8.27%
ROICexcg growth 3Y0.57%
ROICexcg growth 5Y4.02%
ROICexc growth 3Y4.45%
ROICexc growth 5Y6.48%
OM growth 3Y-1.17%
OM growth 5Y1.17%
PM growth 3Y-0.12%
PM growth 5Y0.38%
GM growth 3Y-1.73%
GM growth 5Y-0.06%
F-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 4.17 | ||
| Debt/EBITDA | 1.68 | ||
| Cap/Depr | 104.24% | ||
| Cap/Sales | 8.75% | ||
| Interest Coverage | 7.56 | ||
| Cash Conversion | 73.17% | ||
| Profit Quality | 95.05% | ||
| Current Ratio | 2.86 | ||
| Quick Ratio | 2.02 | ||
| Altman-Z | 4.76 |
F-Score7
WACC9.67%
ROIC/WACC0.79
Cap/Depr(3y)114.39%
Cap/Depr(5y)107.4%
Cap/Sales(3y)9.24%
Cap/Sales(5y)8.59%
Profit Quality(3y)82.6%
Profit Quality(5y)93.22%
High Growth Momentum
Growth
EPS 1Y (TTM)3.33%
EPS 3Y14.15%
EPS 5Y11.48%
EPS Q2Q%-3.06%
EPS Next Y3.65%
EPS Next 2Y14.75%
EPS Next 3Y15.03%
EPS Next 5Y12.19%
Revenue 1Y (TTM)-3.66%
Revenue growth 3Y17.02%
Revenue growth 5Y12.17%
Sales Q2Q%-8.32%
Revenue Next Year-5.12%
Revenue Next 2Y2.26%
Revenue Next 3Y3.9%
Revenue Next 5Y4.65%
EBIT growth 1Y7.07%
EBIT growth 3Y15.65%
EBIT growth 5Y13.48%
EBIT Next Year47.6%
EBIT Next 3Y23.74%
EBIT Next 5Y16.06%
FCF growth 1Y77.71%
FCF growth 3Y-2.12%
FCF growth 5Y12.8%
OCF growth 1Y40.15%
OCF growth 3Y12.81%
OCF growth 5Y13.04%