VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VMC - US9291601097 - Common Stock
285.22 USD
-3.66 (-1.27%)
285.5 USD
+0.28 (+0.1%)
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. VMC is quite expensive at the moment. 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.
In the past 5 years VMC has always 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.
The Return On Equity of VMC (12.80%) is better than 61.54% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital for VMC 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
With a decent Profit Margin value of 14.19%, VMC is doing good in 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.
With a decent Operating Margin value of 20.10%, VMC is doing good in the industry, outperforming 76.92% of the companies in the same industry.
VMC's Operating Margin has improved in the last couple of years.
The Gross Margin of VMC (28.23%) 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VMC is destroying value.
Compared to 1 year ago, VMC has about the same amount of shares outstanding.
The number of shares outstanding for VMC remains at a similar level compared to 5 years ago.
Compared to 1 year ago, VMC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.08 indicates that VMC is not in any danger for bankruptcy at the moment.
VMC has a better Altman-Z score (4.08) than 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.
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.
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 | 4.08 |
ROIC/WACC0.73
WACC10.52%
2.3 Liquidity
VMC has a Current Ratio of 2.23. This indicates that VMC is financially healthy and has no problem in meeting its short term obligations.
VMC has a Current ratio of 2.23. This is comparable to the rest of the industry: VMC outperforms 53.85% of 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.
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.
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
VMC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.84% yearly.
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.
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
A Price/Earnings ratio of 33.71 indicates a quite expensive valuation of VMC.
VMC's Price/Earnings ratio is a bit more expensive when compared to the industry. VMC is more expensive than 76.92% of the companies in the same industry.
VMC's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.51.
VMC is valuated quite expensively with a Price/Forward Earnings ratio of 28.66.
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.
When comparing the Price/Forward Earnings ratio of VMC to the average of the S&P500 Index (23.13), we can say VMC is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.71 | ||
| Fwd PE | 28.66 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VMC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.73 | ||
| EV/EBITDA | 18.11 |
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.
VMC's earnings are expected to grow with 15.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.63
PEG (5Y)3.4
EPS Next 2Y14.9%
EPS Next 3Y15.33%
5. Dividend
5.1 Amount
VMC has a yearly dividend return of 0.67%, which is pretty low.
VMC's Dividend Yield is a higher than the industry average which is at 2.15.
Compared to an average S&P500 Dividend Yield of 2.00, 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 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
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%
285.22
-3.66 (-1.27%)
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 Cap37.69B
Revenue(TTM)7.88B
Net Income(TTM)1.12B
Analysts80
Price Target325.62 (14.16%)
Short Float %3.55%
Short Ratio4.43
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-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)0.11%
EPS NQ rev (3m)-6.41%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)0.17%
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 | 33.71 | ||
| Fwd PE | 28.66 | ||
| P/S | 4.78 | ||
| P/FCF | 35.73 | ||
| P/OCF | 22.04 | ||
| P/B | 4.31 | ||
| P/tB | 12.16 | ||
| EV/EBITDA | 18.11 |
EPS(TTM)8.46
EY2.97%
EPS(NY)9.95
Fwd EY3.49%
FCF(TTM)7.98
FCFY2.8%
OCF(TTM)12.94
OCFY4.54%
SpS59.65
BVpS66.1
TBVpS23.45
PEG (NY)2.63
PEG (5Y)3.4
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 | 4.08 |
F-Score6
WACC10.52%
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 2Y14.9%
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.