VULCAN MATERIALS CO (VMC)
US9291601097 - Common Stock
VMC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 12 industry peers in the Construction Materials industry. While VMC has a great health rating, its profitability is only average at the moment. 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.
VMC had a positive operating cash flow in the past year.
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 worse Return On Assets (5.89%) than 75.00% of its industry peers.
VMC's Return On Equity of 10.75% is on the low side compared to the rest of the industry. VMC is outperformed by 75.00% of its industry peers.
VMC has a Return On Invested Capital (7.60%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VMC is significantly below the industry average of 19.73%.
The 3 year average ROIC (6.18%) for VMC is below the current ROIC(7.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.89% | ||
| ROE | 10.75% | ||
| ROIC | 7.6% |
ROA(3y)5.12%
ROA(5y)5.23%
ROE(3y)10.34%
ROE(5y)10.34%
ROIC(3y)6.18%
ROIC(5y)6.25%
1.3 Margins
With a Profit Margin value of 11.43%, VMC perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
VMC's Profit Margin has been stable in the last couple of years.
The Operating Margin of VMC (18.41%) is comparable to the rest of the industry.
VMC's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 26.15%, VMC perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
VMC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.41% | ||
| PM (TTM) | 11.43% | ||
| GM | 26.15% |
OM growth 3Y-1.17%
OM growth 5Y1.17%
PM growth 3Y-0.12%
PM growth 5Y0.38%
GM growth 3Y-1.73%
GM growth 5Y-0.06%
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.
VMC has less shares outstanding than it did 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 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.67 indicates that VMC is not in any danger for bankruptcy at the moment.
VMC has a Altman-Z score of 4.67. This is comparable to the rest of the industry: VMC outperforms 58.33% of its industry peers.
The Debt to FCF ratio of VMC is 4.17, which is a neutral value as it means it would take VMC, 4.17 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.17, VMC is in line with its industry, outperforming 58.33% of the companies in the same industry.
A Debt/Equity ratio of 0.42 indicates that VMC is not too dependend on debt financing.
VMC has a better Debt to Equity ratio (0.42) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 4.67 |
ROIC/WACC0.81
WACC9.33%
2.3 Liquidity
VMC has a Current Ratio of 2.86. This indicates that VMC is financially healthy and has no problem in meeting its short term obligations.
VMC has a better Current ratio (2.86) than 83.33% of its industry peers.
A Quick Ratio of 2.02 indicates that VMC has no problem at all paying its short term obligations.
VMC has a better Quick ratio (2.02) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 2.02 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.33% over the past year.
The Earnings Per Share has been growing by 11.48% on average over the past years. This is quite good.
The Revenue has decreased by -3.66% in the past year.
VMC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.17% yearly.
EPS 1Y (TTM)3.33%
EPS 3Y14.15%
EPS 5Y11.48%
EPS Q2Q%-3.06%
Revenue 1Y (TTM)-3.66%
Revenue growth 3Y17.02%
Revenue growth 5Y12.17%
Sales Q2Q%-8.32%
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 12.19% yearly.
Based on estimates for the next years, VMC will show a small growth in Revenue. The Revenue will grow by 4.65% on average per year.
EPS Next Y3.65%
EPS Next 2Y14.75%
EPS Next 3Y15.03%
EPS Next 5Y12.19%
Revenue Next Year-5.11%
Revenue Next 2Y2.26%
Revenue Next 3Y3.9%
Revenue Next 5Y4.65%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 38.70, the valuation of VMC can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of VMC indicates a slightly more expensive valuation: VMC is more expensive than 75.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.54, VMC is valued a bit more expensive.
VMC is valuated quite expensively with a Price/Forward Earnings ratio of 28.72.
The rest of the industry has a similar Price/Forward Earnings ratio as VMC.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.99, VMC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.7 | ||
| Fwd PE | 28.72 |
4.2 Price Multiples
VMC's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, VMC is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.42 | ||
| EV/EBITDA | 19.07 |
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's earnings are expected to grow with 15.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)10.61
PEG (5Y)3.37
EPS Next 2Y14.75%
EPS Next 3Y15.03%
5. Dividend
5.1 Amount
VMC has a yearly dividend return of 0.71%, which is pretty low.
VMC's Dividend Yield is a higher than the industry average which is at 3.60.
With a Dividend Yield of 0.71, VMC pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
5.2 History
The dividend of VMC is nicely growing with an annual growth rate of 8.97%!
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)8.97%
Div Incr Years11
Div Non Decr Years12
5.3 Sustainability
VMC pays out 28.43% 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.
DP28.43%
EPS Next 2Y14.75%
EPS Next 3Y15.03%
VULCAN MATERIALS CO
NYSE:VMC (12/24/2024, 7:44:24 PM)
Premarket: 263.1 -1.21 (-0.46%)264.31
+1.44 (+0.55%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners93.92%
Inst Owner Change0.48%
Ins Owners0.14%
Ins Owner Change-10.12%
Market Cap34.90B
Analysts79.29
Price Target301.74 (14.16%)
Short Float %1.34%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Dividend Growth(5Y)8.97%
DP28.43%
Div Incr Years11
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.69%
Min EPS beat(2)-5.99%
Max EPS beat(2)-5.39%
EPS beat(4)1
Avg EPS beat(4)-6.46%
Min EPS beat(4)-18.16%
Max EPS beat(4)3.69%
EPS beat(8)3
Avg EPS beat(8)3.78%
EPS beat(12)6
Avg EPS beat(12)4.4%
EPS beat(16)8
Avg EPS beat(16)6.06%
Revenue beat(2)0
Avg Revenue beat(2)-1.7%
Min Revenue beat(2)-1.78%
Max Revenue beat(2)-1.62%
Revenue beat(4)0
Avg Revenue beat(4)-3.13%
Min Revenue beat(4)-8.16%
Max Revenue beat(4)-0.96%
Revenue beat(8)2
Avg Revenue beat(8)-1.69%
Revenue beat(12)6
Avg Revenue beat(12)0.18%
Revenue beat(16)9
Avg Revenue beat(16)0.51%
PT rev (1m)7.59%
PT rev (3m)5.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.62%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-7.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.37%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-2.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.7 | ||
| Fwd PE | 28.72 | ||
| P/S | 4.72 | ||
| P/FCF | 43.42 | ||
| P/OCF | 24.05 | ||
| P/B | 4.44 | ||
| P/tB | 11.75 | ||
| EV/EBITDA | 19.07 |
EPS(TTM)6.83
EY2.58%
EPS(NY)9.2
Fwd EY3.48%
FCF(TTM)6.09
FCFY2.3%
OCF(TTM)10.99
OCFY4.16%
SpS56.02
BVpS59.59
TBVpS22.5
PEG (NY)10.61
PEG (5Y)3.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.89% | ||
| ROE | 10.75% | ||
| ROCE | 10.03% | ||
| ROIC | 7.6% | ||
| ROICexc | 7.85% | ||
| ROICexgc | 12.51% | ||
| OM | 18.41% | ||
| PM (TTM) | 11.43% | ||
| GM | 26.15% | ||
| FCFM | 10.86% |
ROA(3y)5.12%
ROA(5y)5.23%
ROE(3y)10.34%
ROE(5y)10.34%
ROIC(3y)6.18%
ROIC(5y)6.25%
ROICexc(3y)6.42%
ROICexc(5y)6.59%
ROICexgc(3y)10.81%
ROICexgc(5y)11.43%
ROCE(3y)8.18%
ROCE(5y)8.27%
ROICexcg growth 3Y0.57%
ROICexcg growth 5Y4.02%
ROICexc growth 3Y4.45%
ROICexc growth 5Y6.48%
OM growth 3Y-1.17%
OM growth 5Y1.17%
PM growth 3Y-0.12%
PM growth 5Y0.38%
GM growth 3Y-1.73%
GM growth 5Y-0.06%
F-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 4.17 | ||
| Debt/EBITDA | 1.68 | ||
| Cap/Depr | 104.24% | ||
| Cap/Sales | 8.75% | ||
| Interest Coverage | 7.56 | ||
| Cash Conversion | 73.17% | ||
| Profit Quality | 95.05% | ||
| Current Ratio | 2.86 | ||
| Quick Ratio | 2.02 | ||
| Altman-Z | 4.67 |
F-Score7
WACC9.33%
ROIC/WACC0.81
Cap/Depr(3y)114.39%
Cap/Depr(5y)107.4%
Cap/Sales(3y)9.24%
Cap/Sales(5y)8.59%
Profit Quality(3y)82.6%
Profit Quality(5y)93.22%
High Growth Momentum
Growth
EPS 1Y (TTM)3.33%
EPS 3Y14.15%
EPS 5Y11.48%
EPS Q2Q%-3.06%
EPS Next Y3.65%
EPS Next 2Y14.75%
EPS Next 3Y15.03%
EPS Next 5Y12.19%
Revenue 1Y (TTM)-3.66%
Revenue growth 3Y17.02%
Revenue growth 5Y12.17%
Sales Q2Q%-8.32%
Revenue Next Year-5.11%
Revenue Next 2Y2.26%
Revenue Next 3Y3.9%
Revenue Next 5Y4.65%
EBIT growth 1Y7.07%
EBIT growth 3Y15.65%
EBIT growth 5Y13.48%
EBIT Next Year47.74%
EBIT Next 3Y23.66%
EBIT Next 5Y16.06%
FCF growth 1Y77.71%
FCF growth 3Y-2.12%
FCF growth 5Y12.8%
OCF growth 1Y40.15%
OCF growth 3Y12.81%
OCF growth 5Y13.04%