VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VMC - US9291601097 - Common Stock
300.07 USD
-3.2 (-1.06%)
300.07 USD
0 (0%)
Overall VMC gets a fundamental rating of 6 out of 10. We evaluated VMC against 13 industry peers in the Construction Materials industry. While VMC belongs to the best of the industry regarding profitability, 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
- With a decent Return On Assets value of 6.59%, VMC is doing good in the industry, outperforming 69.23% of the companies in the same industry.
- VMC has a Return On Equity of 12.80%. This is in the better half of the industry: VMC outperforms 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 9.37%.
- 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.
- VMC's Profit Margin has been stable in the last couple of years.
- The Operating Margin of VMC (20.10%) is better than 76.92% of its industry peers.
- In the last couple of years the Operating Margin of VMC has grown nicely.
- 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
- 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.
- The debt/assets ratio for VMC is higher compared to a year ago.
2.2 Solvency
- VMC has an Altman-Z score of 4.22. This indicates that VMC is financially healthy and has little risk of bankruptcy at the moment.
- VMC's Altman-Z score of 4.22 is fine compared to the rest 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.
- VMC has a better Debt to FCF ratio (4.15) than 76.92% 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.
- 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 | 4.22 |
ROIC/WACC0.73
WACC10.57%
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.
- Looking at the Current ratio, with a value of 2.23, VMC is in line with its industry, outperforming 53.85% of the companies in the same 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's Quick ratio of 1.56 is fine compared to the rest 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.
- VMC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.91% yearly.
- 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.
- VMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.87% yearly.
EPS Next Y12.7%
EPS Next 2Y14.74%
EPS Next 3Y15.19%
EPS Next 5Y11.84%
Revenue Next Year7.96%
Revenue Next 2Y6.39%
Revenue Next 3Y6.44%
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 35.47, 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 is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 30.23, VMC can be considered very expensive at the moment.
- 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.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. VMC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.47 | ||
| Fwd PE | 30.23 |
4.2 Price Multiples
- 69.23% of the companies in the same industry are cheaper than VMC, based on the Enterprise Value to EBITDA ratio.
- VMC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.59 | ||
| EV/EBITDA | 18.96 |
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.
- 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 15.19% in the coming years.
PEG (NY)2.79
PEG (5Y)3.58
EPS Next 2Y14.74%
EPS Next 3Y15.19%
5. Dividend
5.1 Amount
- VMC has a yearly dividend return of 0.65%, which is pretty low.
- Compared to an average industry Dividend Yield of 2.03, VMC pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.65, VMC pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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 2Y14.74%
EPS Next 3Y15.19%
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 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 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 12.7% in the next year.