VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VMC - US9291601097 - Common Stock
292.72 USD
+5.53 (+1.93%)
292.72 USD
0 (0%)
VMC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 13 industry peers in the Construction Materials industry. VMC has an average financial health and profitability rating. While showing a medium growth rate, VMC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
VMC had positive earnings in the past year.
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 better Return On Assets (6.59%) than 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 better Return On Invested Capital (7.67%) than 61.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VMC is below the industry average of 9.42%.
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
VMC's Profit Margin of 14.19% is fine compared to the rest of the industry. VMC outperforms 76.92% of its industry peers.
VMC's Profit Margin has been stable in the last couple of years.
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.
In the last couple of years the Operating Margin of VMC has grown nicely.
The Gross Margin of VMC (28.23%) is worse than 61.54% of its industry peers.
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.
Compared to 5 years ago, VMC has about the same amount of shares outstanding.
VMC has a worse debt/assets ratio than last year.
2.2 Solvency
VMC has an Altman-Z score of 4.15. This indicates that VMC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of VMC (4.15) is better 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 amongst the best of the industry. VMC outperforms 84.62% of its industry peers.
VMC has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.50, VMC perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.15 | ||
| Altman-Z | 4.15 |
ROIC/WACC0.77
WACC9.96%
2.3 Liquidity
A Current Ratio of 2.23 indicates that VMC has no problem at all paying its short term obligations.
The Current ratio of VMC (2.23) is comparable to the rest of the industry.
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 better Quick ratio (1.56) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.87% over the past year.
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.
Looking at the last year, VMC shows a small growth in Revenue. The Revenue has grown by 6.54% in the last 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.
VMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.87% yearly.
EPS Next Y13.15%
EPS Next 2Y15.18%
EPS Next 3Y15.79%
EPS Next 5Y11.84%
Revenue Next Year8.59%
Revenue Next 2Y7.64%
Revenue Next 3Y7.15%
Revenue Next 5Y7.87%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 34.60, VMC can be considered very expensive at the moment.
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 25.98.
VMC is valuated quite expensively with a Price/Forward Earnings ratio of 29.26.
Based on the Price/Forward Earnings ratio, VMC is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
VMC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 35.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.6 | ||
| Fwd PE | 29.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VMC is valued a bit 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 | 36.67 | ||
| EV/EBITDA | 18.54 |
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 15.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.63
PEG (5Y)3.49
EPS Next 2Y15.18%
EPS Next 3Y15.79%
5. Dividend
5.1 Amount
VMC has a yearly dividend return of 0.69%, which is pretty low.
VMC's Dividend Yield is a higher than the industry average which is at 4.03.
With a Dividend Yield of 0.69, VMC pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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.
VMC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.91%
EPS Next 2Y15.18%
EPS Next 3Y15.79%
292.72
+5.53 (+1.93%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners94.85%
Inst Owner Change0.11%
Ins Owners0.15%
Ins Owner Change-2.74%
Market Cap38.67B
Revenue(TTM)7.88B
Net Income(TTM)1.12B
Analysts80
Price Target324.51 (10.86%)
Short Float %2.93%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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)4.98%
PT rev (3m)5.45%
EPS NQ rev (1m)-7.17%
EPS NQ rev (3m)-6.56%
EPS NY rev (1m)0.22%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)-4.95%
Revenue NQ rev (3m)-4.31%
Revenue NY rev (1m)-1.06%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.6 | ||
| Fwd PE | 29.26 | ||
| P/S | 4.91 | ||
| P/FCF | 36.67 | ||
| P/OCF | 22.62 | ||
| P/B | 4.43 | ||
| P/tB | 12.48 | ||
| EV/EBITDA | 18.54 |
EPS(TTM)8.46
EY2.89%
EPS(NY)10
Fwd EY3.42%
FCF(TTM)7.98
FCFY2.73%
OCF(TTM)12.94
OCFY4.42%
SpS59.66
BVpS66.11
TBVpS23.45
PEG (NY)2.63
PEG (5Y)3.49
Graham Number112.18
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
WACC9.96%
ROIC/WACC0.77
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 Y13.15%
EPS Next 2Y15.18%
EPS Next 3Y15.79%
EPS Next 5Y11.84%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y10.14%
Revenue growth 5Y8.52%
Sales Q2Q%14.35%
Revenue Next Year8.59%
Revenue Next 2Y7.64%
Revenue Next 3Y7.15%
Revenue Next 5Y7.87%
EBIT growth 1Y16.34%
EBIT growth 3Y16.24%
EBIT growth 5Y10.38%
EBIT Next Year77.88%
EBIT Next 3Y28.95%
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 5 / 10 to VMC.
What is the valuation status of VULCAN MATERIALS CO (VMC) stock?
ChartMill assigns a valuation rating of 2 / 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 6 / 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 13.15% in the next year.