VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VMC - US9291601097 - Common Stock
291.04 USD
-4.74 (-1.6%)
291.04 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to VMC. VMC was compared to 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
VMC had positive earnings in the past year.
VMC had a positive operating cash flow in the past year.
Each year in the past 5 years VMC has been profitable.
In the past 5 years VMC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.59%, VMC is in the better half of 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'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.
Measured over the past 3 years, the Average Return On Invested Capital for VMC is below the industry average of 9.36%.
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
Looking at the Profit Margin, with a value of 14.19%, VMC is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
In the last couple of years the Profit Margin of VMC has remained more or less at the same level.
VMC's Operating Margin of 20.10% is fine compared to the rest of the industry. VMC outperforms 76.92% of its industry peers.
VMC's Operating Margin has improved in the last couple of years.
VMC has a Gross Margin (28.23%) 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VMC is destroying value.
The number of shares outstanding for VMC remains at a similar level compared to 1 year ago.
VMC has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for VMC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.14 indicates that VMC is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.14, VMC is doing good in the industry, outperforming 76.92% of the companies in the same industry.
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.
VMC's Debt to FCF ratio of 4.15 is fine compared to the rest of the industry. VMC outperforms 76.92% of its industry peers.
VMC has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.50, VMC is in line with its industry, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.15 | ||
| Altman-Z | 4.14 |
ROIC/WACC0.75
WACC10.16%
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.
The Quick ratio of VMC (1.56) is better than 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.
VMC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.91% yearly.
VMC shows a small growth in Revenue. In the last year, the Revenue has grown by 6.54%.
The Revenue has been growing by 8.52% on average over the past years. This is quite good.
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
Based on estimates for the next years, VMC will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.84% on average per year.
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 Y12.8%
EPS Next 2Y14.73%
EPS Next 3Y15.04%
EPS Next 5Y11.84%
Revenue Next Year8.18%
Revenue Next 2Y6.56%
Revenue Next 3Y6.41%
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.
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 34.40, 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 is valuated rather expensively when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 29.32, VMC can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, VMC is valued a bit more expensive than 69.23% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.52. VMC is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.4 | ||
| Fwd PE | 29.32 |
4.2 Price Multiples
VMC's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. VMC is more expensive than 69.23% of the companies in the same industry.
VMC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.46 | ||
| EV/EBITDA | 18.44 |
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.
VMC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as VMC's earnings are expected to grow with 15.04% in the coming years.
PEG (NY)2.69
PEG (5Y)3.47
EPS Next 2Y14.73%
EPS Next 3Y15.04%
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 3.75, VMC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, VMC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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 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 2Y14.73%
EPS Next 3Y15.04%
291.04
-4.74 (-1.6%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners95.55%
Inst Owner Change0.11%
Ins Owners0.14%
Ins Owner Change-3.16%
Market Cap38.46B
Revenue(TTM)7.88B
Net Income(TTM)1.12B
Analysts80
Price Target324.51 (11.5%)
Short Float %3.08%
Short Ratio4.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend1.85
Dividend Growth(5Y)8.29%
DP22.91%
Div Incr Years11
Div Non Decr Years12
Ex-Date
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)1.98%
PT rev (3m)4.98%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)-6.41%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)-4.02%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.4 | ||
| Fwd PE | 29.32 | ||
| P/S | 4.88 | ||
| P/FCF | 36.46 | ||
| P/OCF | 22.49 | ||
| P/B | 4.4 | ||
| P/tB | 12.41 | ||
| EV/EBITDA | 18.44 |
EPS(TTM)8.46
EY2.91%
EPS(NY)9.93
Fwd EY3.41%
FCF(TTM)7.98
FCFY2.74%
OCF(TTM)12.94
OCFY4.45%
SpS59.65
BVpS66.1
TBVpS23.45
PEG (NY)2.69
PEG (5Y)3.47
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 | 4.14 |
F-Score6
WACC10.16%
ROIC/WACC0.75
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 2Y14.73%
EPS Next 3Y15.04%
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 2Y6.56%
Revenue Next 3Y6.41%
Revenue Next 5Y7.87%
EBIT growth 1Y16.34%
EBIT growth 3Y16.24%
EBIT growth 5Y10.38%
EBIT Next Year76.87%
EBIT Next 3Y28.47%
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 of VULCAN MATERIALS CO (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.
Can you provide the financial health for VMC stock?
The financial health rating of VULCAN MATERIALS CO (VMC) is 6 / 10.
What is the earnings growth outlook for VULCAN MATERIALS CO?
The Earnings per Share (EPS) of VULCAN MATERIALS CO (VMC) is expected to grow by 12.8% in the next year.