VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VMC - US9291601097 - Common Stock
301.71 USD
+3.23 (+1.08%)
302.25 USD
+0.54 (+0.18%)
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
- 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.
- VMC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- VMC's Return On Assets of 6.59% is fine compared to the rest of the industry. VMC outperforms 69.23% of its industry peers.
- VMC has a better Return On Equity (12.80%) than 61.54% of its industry peers.
- VMC has a Return On Invested Capital of 7.67%. This is in the better half of the industry: VMC outperforms 61.54% of its industry peers.
- VMC had an Average Return On Invested Capital over the past 3 years of 6.80%. This is below the industry average of 9.37%.
- The last Return On Invested Capital (7.67%) for VMC is above the 3 year average (6.80%), which is a sign of increasing profitability.
| 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.
- VMC's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 28.23%, VMC is in line with its industry, outperforming 46.15% 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 | 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.
- The number of shares outstanding for VMC remains at a similar level compared to 5 years ago.
- The debt/assets ratio for VMC is higher compared to a year ago.
2.2 Solvency
- VMC has an Altman-Z score of 4.24. This indicates that VMC is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 4.24, VMC is doing good in the industry, outperforming 76.92% of the companies in the same industry.
- VMC has a debt to FCF ratio of 4.15. This is a neutral value as VMC would need 4.15 years to pay back of 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.
- VMC has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
- VMC has a Debt to Equity ratio (0.50) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.15 | ||
| Altman-Z | 4.24 |
ROIC/WACC0.74
WACC10.43%
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.
- Looking at the Quick ratio, with a value of 1.56, VMC is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
| 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.
- The Earnings Per Share has been growing by 9.91% on average over the past years. This is quite good.
- VMC shows a small growth in Revenue. In the last year, the Revenue has grown by 6.54%.
- VMC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.52% yearly.
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 2Y14.9%
EPS Next 3Y15.33%
EPS Next 5Y11.84%
Revenue Next Year8.18%
Revenue Next 2Y6.59%
Revenue Next 3Y6.45%
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
- With a Price/Earnings ratio of 35.66, VMC can be considered very expensive at the moment.
- 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 27.54, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 30.31, the valuation of VMC can be described as expensive.
- Based on the Price/Forward Earnings ratio, VMC is valued a bit more expensive than 69.23% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of VMC to the average of the S&P500 Index (24.31), we can say VMC is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.66 | ||
| Fwd PE | 30.31 |
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 61.54% of the companies listed in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as VMC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.8 | ||
| EV/EBITDA | 19.05 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- 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 15.33% in the coming years.
PEG (NY)2.79
PEG (5Y)3.6
EPS Next 2Y14.9%
EPS Next 3Y15.33%
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 2.09, VMC pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.92, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.29%
Div Incr Years11
Div Non Decr Years12
5.3 Sustainability
- VMC pays out 22.91% of its income as dividend. This is a sustainable payout ratio.
- The dividend of VMC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.91%
EPS Next 2Y14.9%
EPS Next 3Y15.33%
301.71
+3.23 (+1.08%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-16 2026-02-16/amc
Inst Owners95.53%
Inst Owner Change0.35%
Ins Owners0.14%
Ins Owner Change-1.93%
Market Cap39.86B
Revenue(TTM)7.88B
Net Income(TTM)1.12B
Analysts80
Price Target325.62 (7.92%)
Short Float %3.55%
Short Ratio4.43
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-DateN/A
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)0.34%
PT rev (3m)5.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.41%
EPS NY rev (1m)0%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.66 | ||
| Fwd PE | 30.31 | ||
| P/S | 5.06 | ||
| P/FCF | 37.8 | ||
| P/OCF | 23.31 | ||
| P/B | 4.56 | ||
| P/tB | 12.87 | ||
| EV/EBITDA | 19.05 |
EPS(TTM)8.46
EY2.8%
EPS(NY)9.95
Fwd EY3.3%
FCF(TTM)7.98
FCFY2.65%
OCF(TTM)12.94
OCFY4.29%
SpS59.65
BVpS66.1
TBVpS23.45
PEG (NY)2.79
PEG (5Y)3.6
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 | 4.24 |
F-Score6
WACC10.43%
ROIC/WACC0.74
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 2Y14.9%
EPS Next 3Y15.33%
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 2Y6.59%
Revenue Next 3Y6.45%
Revenue Next 5Y7.87%
EBIT growth 1Y16.34%
EBIT growth 3Y16.24%
EBIT growth 5Y10.38%
EBIT Next Year76.87%
EBIT Next 3Y28.68%
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 for 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.
How financially healthy is VULCAN MATERIALS CO?
The financial health rating of VULCAN MATERIALS CO (VMC) is 6 / 10.
What is the expected EPS growth for VULCAN MATERIALS CO (VMC) stock?
The Earnings per Share (EPS) of VULCAN MATERIALS CO (VMC) is expected to grow by 12.8% in the next year.