VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
NYSE:VMC - New York Stock Exchange, Inc. - US9291601097 - Common Stock - Currency: USD
Overall VMC gets a fundamental rating of 4 out of 10. We evaluated VMC against 12 industry peers in the Construction Materials industry. While VMC is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
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 Return On Assets value of 5.33%, VMC is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
VMC has a worse Return On Equity (11.23%) than 83.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.81%, 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 20.02%.
The 3 year average ROIC (6.80%) for VMC is below the current ROIC(6.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 11.23% | ||
| ROIC | 6.81% |
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 (12.29%) which 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.
VMC's Operating Margin of 18.86% is in line compared to the rest of the industry. VMC outperforms 58.33% of its industry peers.
VMC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 26.96%, VMC is in line with its industry, outperforming 50.00% 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 | 18.86% | ||
| PM (TTM) | 12.29% | ||
| GM | 26.96% |
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.
Compared to 5 years ago, VMC has about the same amount of shares outstanding.
The debt/assets ratio for VMC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.34 indicates that VMC is not in any danger for bankruptcy at the moment.
VMC has a Altman-Z score (3.34) which is comparable to the rest of the industry.
The Debt to FCF ratio of VMC is 6.62, which is on the high side as it means it would take VMC, 6.62 years of fcf income to pay off all of its debts.
VMC has a Debt to FCF ratio of 6.62. This is in the lower half of the industry: VMC underperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that VMC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.61, VMC is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.62 | ||
| Altman-Z | 3.34 |
ROIC/WACC0.78
WACC8.72%
2.3 Liquidity
A Current Ratio of 1.83 indicates that VMC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.83, VMC is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.28 indicates that VMC should not have too much problems paying its short term obligations.
VMC has a Quick ratio (1.28) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
VMC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.87%.
The Earnings Per Share has been growing by 9.91% on average over the past years. This is quite good.
The Revenue has decreased by -4.68% in the past year.
The Revenue has been growing by 8.52% on average over the past years. This is quite good.
EPS 1Y (TTM)7.87%
EPS 3Y14.29%
EPS 5Y9.91%
EPS Q2Q%48.63%
Revenue 1Y (TTM)-4.68%
Revenue growth 3Y10.14%
Revenue growth 5Y8.52%
Sales Q2Q%1.05%
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 12.16% on average per year.
The Revenue is expected to grow by 8.02% on average over the next years. This is quite good.
EPS Next Y12.43%
EPS Next 2Y15.02%
EPS Next 3Y14.03%
EPS Next 5Y12.16%
Revenue Next Year11.68%
Revenue Next 2Y9.52%
Revenue Next 3Y8.71%
Revenue Next 5Y8.02%
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 accelerating.
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
Based on the Price/Earnings ratio of 32.09, the valuation of VMC can be described as expensive.
Based on the Price/Earnings ratio, VMC is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
The average S&P500 Price/Earnings ratio is at 28.29. VMC is around the same levels.
With a Price/Forward Earnings ratio of 28.54, VMC can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as VMC.
When comparing the Price/Forward Earnings ratio of VMC to the average of the S&P500 Index (21.32), we can say VMC is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.09 | ||
| Fwd PE | 28.54 |
4.2 Price Multiples
VMC's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. VMC is more expensive than 83.33% of the companies 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 | 39.65 | ||
| EV/EBITDA | 18.09 |
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 14.03% in the coming years.
PEG (NY)2.58
PEG (5Y)3.24
EPS Next 2Y15.02%
EPS Next 3Y14.03%
5. Dividend
5.1 Amount
With a yearly dividend of 0.81%, VMC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.42, VMC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, VMC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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
26.80% 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.
DP26.8%
EPS Next 2Y15.02%
EPS Next 3Y14.03%
241.93
+1.38 (+0.57%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners92.75%
Inst Owner Change0.27%
Ins Owners0.13%
Ins Owner Change8.21%
Market Cap31.96B
Analysts80
Price Target309.1 (27.76%)
Short Float %1.31%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Yearly Dividend1.85
Dividend Growth(5Y)8.29%
DP26.8%
Div Incr Years11
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.82%
Min EPS beat(2)-5.39%
Max EPS beat(2)21.03%
EPS beat(4)1
Avg EPS beat(4)-2.13%
Min EPS beat(4)-18.16%
Max EPS beat(4)21.03%
EPS beat(8)4
Avg EPS beat(8)8.3%
EPS beat(12)6
Avg EPS beat(12)5.6%
EPS beat(16)8
Avg EPS beat(16)6.9%
Revenue beat(2)1
Avg Revenue beat(2)-0.36%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)0.9%
Revenue beat(4)1
Avg Revenue beat(4)-2.67%
Min Revenue beat(4)-8.16%
Max Revenue beat(4)0.9%
Revenue beat(8)3
Avg Revenue beat(8)-0.71%
Revenue beat(12)6
Avg Revenue beat(12)0.12%
Revenue beat(16)9
Avg Revenue beat(16)0.54%
PT rev (1m)-0.25%
PT rev (3m)1.28%
EPS NQ rev (1m)-2.89%
EPS NQ rev (3m)-29.16%
EPS NY rev (1m)-6.73%
EPS NY rev (3m)-7.9%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.09 | ||
| Fwd PE | 28.54 | ||
| P/S | 4.31 | ||
| P/FCF | 39.65 | ||
| P/OCF | 22.67 | ||
| P/B | 3.94 | ||
| P/tB | 12.22 | ||
| EV/EBITDA | 18.09 |
EPS(TTM)7.54
EY3.12%
EPS(NY)8.48
Fwd EY3.5%
FCF(TTM)6.1
FCFY2.52%
OCF(TTM)10.67
OCFY4.41%
SpS56.15
BVpS61.46
TBVpS19.8
PEG (NY)2.58
PEG (5Y)3.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 11.23% | ||
| ROCE | 8.82% | ||
| ROIC | 6.81% | ||
| ROICexc | 7.06% | ||
| ROICexgc | 11.02% | ||
| OM | 18.86% | ||
| PM (TTM) | 12.29% | ||
| GM | 26.96% | ||
| FCFM | 10.87% |
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%
ROICexcg growth 3Y5.03%
ROICexcg 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 Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.62 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 95.46% | ||
| Cap/Sales | 8.14% | ||
| Interest Coverage | 7.65 | ||
| Cash Conversion | 69.4% | ||
| Profit Quality | 88.39% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 3.34 |
F-Score5
WACC8.72%
ROIC/WACC0.78
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)7.87%
EPS 3Y14.29%
EPS 5Y9.91%
EPS Q2Q%48.63%
EPS Next Y12.43%
EPS Next 2Y15.02%
EPS Next 3Y14.03%
EPS Next 5Y12.16%
Revenue 1Y (TTM)-4.68%
Revenue growth 3Y10.14%
Revenue growth 5Y8.52%
Sales Q2Q%1.05%
Revenue Next Year11.68%
Revenue Next 2Y9.52%
Revenue Next 3Y8.71%
Revenue Next 5Y8.02%
EBIT growth 1Y1.42%
EBIT growth 3Y16.24%
EBIT growth 5Y10.38%
EBIT Next Year80.71%
EBIT Next 3Y28.31%
EBIT Next 5Y19.02%
FCF growth 1Y21.36%
FCF growth 3Y12.87%
FCF growth 5Y6.08%
OCF growth 1Y-8.28%
OCF growth 3Y11.68%
OCF growth 5Y7.45%