VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
USA - NYSE:VMC - US9291601097 - Common Stock
280.58 USD
-3.51 (-1.24%)
280.7 USD
+0.12 (+0.04%)
Overall VMC gets a fundamental rating of 5 out of 10. We evaluated VMC against 13 industry peers in the Construction Materials industry. VMC has an average financial health and profitability rating. 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.
Each year in the past 5 years VMC has been profitable.
VMC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VMC has a better Return On Assets (6.59%) than 69.23% of its industry peers.
Looking at the Return On Equity, with a value of 12.80%, VMC is in line with its industry, outperforming 53.85% of the companies in the same industry.
The Return On Invested Capital of VMC (7.67%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for VMC is below the industry average of 9.84%.
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
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.
VMC's Profit Margin has been stable in the last couple of years.
VMC has a Operating Margin of 20.10%. This is in the better half of the industry: VMC outperforms 69.23% of its industry peers.
VMC's Operating Margin has improved in the last couple of years.
VMC has a Gross Margin of 28.23%. This is in the lower half of the industry: VMC underperforms 61.54% of its industry peers.
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.
VMC has about the same amout of 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 is higher compared to a year ago.
2.2 Solvency
VMC has an Altman-Z score of 4.04. This indicates that VMC is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.04, VMC is doing good in the industry, outperforming 76.92% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 4.15, VMC belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that VMC is not too dependend on debt financing.
VMC has a Debt to Equity ratio of 0.50. This is comparable to the rest of the industry: VMC outperforms 53.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.15 | ||
| Altman-Z | 4.04 |
ROIC/WACC0.75
WACC10.22%
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 (2.23) which is in line with 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's Quick ratio of 1.56 is fine compared to the rest of the industry. VMC outperforms 61.54% 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.
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%.
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
The Earnings Per Share is expected to grow by 11.84% on average over the next years. This is quite good.
Based on estimates for the next years, VMC will show a small growth in Revenue. The Revenue will grow by 7.87% on average per year.
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.
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
VMC is valuated quite expensively with a Price/Earnings ratio of 33.17.
Based on the Price/Earnings ratio, VMC is valued a bit 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 25.89.
VMC is valuated quite expensively with a Price/Forward Earnings ratio of 28.05.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, VMC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.17 | ||
| Fwd PE | 28.05 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.15 | ||
| EV/EBITDA | 17.85 |
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.
The decent profitability rating of VMC 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)2.52
PEG (5Y)3.35
EPS Next 2Y15.18%
EPS Next 3Y15.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, VMC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.99, VMC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, VMC's dividend is way lower than the S&P500 average.
| 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 been paying a dividend for at least 10 years, so it has 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
22.91% of the earnings are spent on dividend by VMC. This is a low number and 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%
280.58
-3.51 (-1.24%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners94.85%
Inst Owner Change0.19%
Ins Owners0.15%
Ins Owner Change-65.65%
Market Cap37.07B
Revenue(TTM)7.88B
Net Income(TTM)1.12B
Analysts80
Price Target318.21 (13.41%)
Short Float %2.91%
Short Ratio5.33
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)2.94%
PT rev (3m)3.84%
EPS NQ rev (1m)-7.34%
EPS NQ rev (3m)-5.67%
EPS NY rev (1m)0.49%
EPS NY rev (3m)-0.76%
Revenue NQ rev (1m)-3.94%
Revenue NQ rev (3m)-4.31%
Revenue NY rev (1m)-0.63%
Revenue NY rev (3m)-1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.17 | ||
| Fwd PE | 28.05 | ||
| P/S | 4.7 | ||
| P/FCF | 35.15 | ||
| P/OCF | 21.68 | ||
| P/B | 4.24 | ||
| P/tB | 11.96 | ||
| EV/EBITDA | 17.85 |
EPS(TTM)8.46
EY3.02%
EPS(NY)10
Fwd EY3.56%
FCF(TTM)7.98
FCFY2.85%
OCF(TTM)12.94
OCFY4.61%
SpS59.66
BVpS66.11
TBVpS23.45
PEG (NY)2.52
PEG (5Y)3.35
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 | 4.04 |
F-Score6
WACC10.22%
ROIC/WACC0.75
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.