VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VMC - US9291601097 - Common Stock
291.88 USD
0.01 (0%)
291.88 USD
0 (0%)
VMC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 13 industry peers in the Construction Materials industry. VMC has an excellent profitability rating, but there are some minor 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.
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
The Return On Assets of VMC (6.59%) is better than 69.23% of its industry peers.
Looking at the Return On Equity, with a value of 12.80%, VMC is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.67%, VMC is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VMC is below the industry average of 9.37%.
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 has a Operating Margin of 20.10%. This is in the better half of the industry: VMC outperforms 76.92% of its industry peers.
In the last couple of years the Operating Margin of VMC has grown nicely.
The Gross Margin of VMC (28.23%) 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 | 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
VMC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, VMC has about the same amount of shares outstanding.
VMC has about the same amout of shares outstanding than it did 5 years ago.
VMC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.15 indicates that VMC is not in any danger for bankruptcy at the moment.
VMC has a Altman-Z score of 4.15. This is in the better half of the industry: VMC outperforms 76.92% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 4.15, VMC is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that VMC is not too dependend on debt financing.
VMC has a Debt to Equity ratio (0.50) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.15 | ||
| Altman-Z | 4.15 |
ROIC/WACC0.73
WACC10.48%
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.
A Quick Ratio of 1.56 indicates that VMC should not have too much problems paying its short term obligations.
VMC has a Quick ratio of 1.56. This is in the better half of the industry: VMC outperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
VMC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.87%, which is quite impressive.
Measured over the past years, VMC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.91% on average per year.
The Revenue has been growing slightly by 6.54% 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)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.
The Revenue is expected to grow by 7.87% on average over the next years.
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.
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
A Price/Earnings ratio of 34.50 indicates a quite expensive valuation of VMC.
Compared to the rest of the industry, the Price/Earnings ratio of VMC indicates a slightly more expensive valuation: VMC is more expensive than 76.92% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.61, VMC is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 29.41, the valuation of VMC can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VMC indicates a slightly more expensive valuation: VMC is more expensive than 69.23% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.01. VMC is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.5 | ||
| Fwd PE | 29.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VMC is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as VMC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.57 | ||
| EV/EBITDA | 18.49 |
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.
VMC's earnings are expected to grow with 15.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.7
PEG (5Y)3.48
EPS Next 2Y14.73%
EPS Next 3Y15.04%
5. Dividend
5.1 Amount
VMC has a yearly dividend return of 0.66%, which is pretty low.
Compared to an average industry Dividend Yield of 2.20, VMC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, VMC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
The dividend of VMC is nicely growing with an annual growth rate of 8.29%!
VMC has paid a dividend for at least 10 years, which is 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%
291.88
0.01 (0%)
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-1.93%
Market Cap38.57B
Revenue(TTM)7.88B
Net Income(TTM)1.12B
Analysts80
Price Target324.51 (11.18%)
Short Float %3.58%
Short Ratio4.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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)0.65%
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 | 34.5 | ||
| Fwd PE | 29.41 | ||
| P/S | 4.89 | ||
| P/FCF | 36.57 | ||
| P/OCF | 22.55 | ||
| P/B | 4.42 | ||
| P/tB | 12.45 | ||
| EV/EBITDA | 18.49 |
EPS(TTM)8.46
EY2.9%
EPS(NY)9.93
Fwd EY3.4%
FCF(TTM)7.98
FCFY2.73%
OCF(TTM)12.94
OCFY4.43%
SpS59.65
BVpS66.1
TBVpS23.45
PEG (NY)2.7
PEG (5Y)3.48
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 | 4.15 |
F-Score6
WACC10.48%
ROIC/WACC0.73
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.