VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
USA - NYSE:VMC - US9291601097 - Common Stock
293.67 USD
-3.9 (-1.31%)
293.67 USD
0 (0%)
Overall VMC gets a fundamental rating of 5 out of 10. We evaluated VMC against 13 industry peers in the Construction Materials industry. VMC has an average financial health and profitability rating. While showing a medium growth rate, VMC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year VMC was profitable.
VMC had a positive operating cash flow in the past year.
Each year in the past 5 years VMC has been profitable.
VMC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VMC has a Return On Assets of 5.60%. This is comparable to the rest of the industry: VMC outperforms 53.85% of its industry peers.
VMC has a Return On Equity (11.31%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 7.00%, VMC is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for VMC is below the industry average of 10.33%.
The 3 year average ROIC (6.80%) for VMC is below the current ROIC(7.00%), indicating increased profibility in the last year.
| 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
VMC's Profit Margin of 12.52% is fine compared to the rest of the industry. VMC outperforms 69.23% of its industry peers.
In the last couple of years the Profit Margin of VMC has remained more or less at the same level.
The Operating Margin of VMC (19.30%) is better than 69.23% of its industry peers.
In the last couple of years the Operating Margin of VMC has grown nicely.
The Gross Margin of VMC (27.56%) 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VMC is destroying value.
The number of shares outstanding for VMC remains at a similar level compared to 1 year ago.
Compared to 5 years ago, VMC has about the same amount of shares outstanding.
Compared to 1 year ago, VMC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.00 indicates that VMC is not in any danger for bankruptcy at the moment.
The Altman-Z score of VMC (4.00) is better than 76.92% of its industry peers.
The Debt to FCF ratio of VMC is 4.48, which is a neutral value as it means it would take VMC, 4.48 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VMC (4.48) is better than 84.62% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that VMC is somewhat dependend on debt financing.
VMC's Debt to Equity ratio of 0.58 is on the low side compared to the rest of the industry. VMC is outperformed by 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.48 | ||
| Altman-Z | 4 |
ROIC/WACC0.71
WACC9.82%
2.3 Liquidity
A Current Ratio of 1.67 indicates that VMC should not have too much problems paying its short term obligations.
VMC has a Current ratio of 1.67. This is in the lower half of the industry: VMC underperforms 61.54% of its industry peers.
VMC has a Quick Ratio of 1.13. This is a normal value and indicates that VMC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of VMC (1.13) is worse than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
VMC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.62%, which is quite good.
VMC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.91% yearly.
Looking at the last year, VMC shows a small growth in Revenue. The Revenue has grown by 0.19% in the last year.
Measured over the past years, VMC shows a quite strong growth in Revenue. The Revenue has been growing by 8.52% on average per year.
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
VMC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.33% yearly.
The Revenue is expected to grow by 7.51% on average over the next years.
EPS Next Y12.6%
EPS Next 2Y15.04%
EPS Next 3Y14.79%
EPS Next 5Y11.33%
Revenue Next Year9.27%
Revenue Next 2Y7.99%
Revenue Next 3Y7.69%
Revenue Next 5Y7.51%
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 37.46.
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 27.57, VMC is valued a bit more expensive.
The Price/Forward Earnings ratio is 29.43, which means the current valuation is very expensive for VMC.
69.23% of the companies in the same industry are cheaper than VMC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of VMC to the average of the S&P500 Index (23.09), we can say VMC is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.46 | ||
| Fwd PE | 29.43 |
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.
84.62% of the companies in the same industry are more expensive than VMC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.33 | ||
| EV/EBITDA | 20.05 |
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 14.79% in the coming years.
PEG (NY)2.97
PEG (5Y)3.78
EPS Next 2Y15.04%
EPS Next 3Y14.79%
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 4.09, 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 2.32.
| 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
26.53% 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.
DP26.53%
EPS Next 2Y15.04%
EPS Next 3Y14.79%
293.67
-3.9 (-1.31%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners94.85%
Inst Owner Change0.42%
Ins Owners0.15%
Ins Owner Change-15.23%
Market Cap38.80B
Revenue(TTM)7.59B
Net Income(TTM)951.10M
Analysts80.69
Price Target309.12 (5.26%)
Short Float %2.88%
Short Ratio4.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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%
PT rev (3m)0.99%
EPS NQ rev (1m)0.63%
EPS NQ rev (3m)1.6%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-1.24%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-0.79%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.46 | ||
| Fwd PE | 29.43 | ||
| P/S | 5.11 | ||
| P/FCF | 35.33 | ||
| P/OCF | 23.83 | ||
| P/B | 4.62 | ||
| P/tB | 14.14 | ||
| EV/EBITDA | 20.05 |
EPS(TTM)7.84
EY2.67%
EPS(NY)9.98
Fwd EY3.4%
FCF(TTM)8.31
FCFY2.83%
OCF(TTM)12.32
OCFY4.2%
SpS57.48
BVpS63.63
TBVpS20.77
PEG (NY)2.97
PEG (5Y)3.78
Graham Number105.95
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%
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-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 |
F-Score5
WACC9.82%
ROIC/WACC0.71
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 Y12.6%
EPS Next 2Y15.04%
EPS Next 3Y14.79%
EPS Next 5Y11.33%
Revenue 1Y (TTM)0.19%
Revenue growth 3Y10.14%
Revenue growth 5Y8.52%
Sales Q2Q%4.37%
Revenue Next Year9.27%
Revenue Next 2Y7.99%
Revenue Next 3Y7.69%
Revenue Next 5Y7.51%
EBIT growth 1Y6.09%
EBIT growth 3Y16.24%
EBIT growth 5Y10.38%
EBIT Next Year77.88%
EBIT Next 3Y28.95%
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%