VULCAN MATERIALS CO (VMC)
US9291601097 - Common Stock
VMC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 12 industry peers in the Construction Materials industry. While VMC has a great health rating, its profitability is only average at the moment. 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
VMC has a Return On Assets of 5.89%. This is in the lower half of the industry: VMC underperforms 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 10.75%, VMC is doing worse than 66.67% of the companies in the same industry.
VMC has a Return On Invested Capital (7.60%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for VMC is below the industry average of 10.78%.
The 3 year average ROIC (6.18%) for VMC is below the current ROIC(7.60%), indicating increased profibility in the last year.
| 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
VMC has a Profit Margin (11.43%) which 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 18.41% is fine compared to the rest of the industry. VMC outperforms 66.67% of its industry peers.
VMC's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 26.15%, VMC perfoms like the industry average, outperforming 41.67% of the companies in the same 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VMC is destroying value.
VMC has less 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.
Compared to 1 year ago, VMC has an improved debt to assets ratio.
2.2 Solvency
VMC has an Altman-Z score of 4.87. This indicates that VMC is financially healthy and has little risk of bankruptcy at the moment.
VMC's Altman-Z score of 4.87 is fine compared to the rest of the industry. VMC outperforms 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.
With a Debt to FCF ratio value of 4.17, VMC perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
A Debt/Equity ratio of 0.42 indicates that VMC is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.42, VMC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 4.87 |
ROIC/WACC0.89
WACC8.53%
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 belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 2.02 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.33% 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 11.48% yearly.
VMC shows a decrease in Revenue. In the last year, the revenue decreased by -3.66%.
The Revenue has been growing by 12.17% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 12.35% 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 5.61% on average per year.
EPS Next Y3.5%
EPS Next 2Y14.52%
EPS Next 3Y14.53%
EPS Next 5Y12.35%
Revenue Next Year-5.13%
Revenue Next 2Y2.17%
Revenue Next 3Y3.79%
Revenue Next 5Y5.61%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 41.67 indicates a quite expensive valuation of VMC.
The rest of the industry has a similar Price/Earnings ratio as VMC.
The average S&P500 Price/Earnings ratio is at 29.20. VMC is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 31.04, which means the current valuation is very expensive for VMC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VMC is on the same level as its industry peers.
VMC is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.67 | ||
| Fwd PE | 31.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VMC is on the same level as its industry peers.
VMC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VMC is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.76 | ||
| EV/EBITDA | 20.2 |
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's earnings are expected to grow with 14.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)11.91
PEG (5Y)3.63
EPS Next 2Y14.52%
EPS Next 3Y14.53%
5. Dividend
5.1 Amount
VMC has a yearly dividend return of 0.65%, which is pretty low.
Compared to an average industry Dividend Yield of 3.65, VMC pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.65, VMC pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
The dividend of VMC is nicely growing with an annual growth rate of 8.97%!
VMC has paid a dividend for at least 10 years, which is 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 Years10
Div Non Decr Years11
5.3 Sustainability
28.43% 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.
DP28.43%
EPS Next 2Y14.52%
EPS Next 3Y14.53%
VULCAN MATERIALS CO
NYSE:VMC (11/22/2024, 5:05:00 PM)
After market: 284 -0.61 (-0.21%)284.61
+3.43 (+1.22%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap37.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.67 | ||
| Fwd PE | 31.04 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)11.91
PEG (5Y)3.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.89% | ||
| ROE | 10.75% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.41% | ||
| PM (TTM) | 11.43% | ||
| GM | 26.15% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.86 | ||
| Quick Ratio | 2.02 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)3.33%
EPS 3Y14.15%
EPS 5Y
EPS Q2Q%
EPS Next Y3.5%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.66%
Revenue growth 3Y17.02%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y