VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VMC - US9291601097 - Common Stock
299.73 USD
+1.06 (+0.35%)
299.73 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. VMC scores excellent on profitability, 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.
- 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
- Looking at the Return On Assets, with a value of 6.59%, VMC is in the better half of 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.
- With a decent Return On Invested Capital value of 7.67%, VMC is doing good in 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
- The Profit Margin of VMC (14.19%) is better than 76.92% of its industry peers.
- VMC's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 20.10%, VMC is in the better half of 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.
- VMC's Gross Margin of 28.23% is in line compared to the rest of the industry. VMC outperforms 46.15% 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.
- 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 has a better Altman-Z score (4.22) than 76.92% of its industry peers.
- VMC has a debt to FCF ratio of 4.15. This is a neutral value as VMC would need 4.15 years to pay back of 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.
- VMC has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of VMC (0.50) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.15 | ||
| Altman-Z | 4.22 |
ROIC/WACC0.73
WACC10.56%
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's Current ratio of 2.23 is in line compared 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.
- Looking at the last year, VMC shows a small growth in Revenue. The Revenue has grown by 6.54% in the last 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
- The Earnings Per Share is expected to grow by 11.84% on average over the next years. This is quite good.
- The Revenue is expected to grow by 7.87% on average over the next years.
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.
- 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
- The Price/Earnings ratio is 35.43, which means the current valuation is very expensive for VMC.
- Based on the Price/Earnings ratio, VMC is valued a bit more expensive than the industry average as 76.92% of the companies are valued more cheaply.
- When comparing the Price/Earnings ratio of VMC to the average of the S&P500 Index (28.60), we can say VMC is valued slightly more expensively.
- A Price/Forward Earnings ratio of 30.19 indicates a quite expensive valuation of VMC.
- 69.23% of the companies in the same industry are cheaper than VMC, based on the Price/Forward Earnings ratio.
- VMC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.43 | ||
| Fwd PE | 30.19 |
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.
- 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 | 37.55 | ||
| EV/EBITDA | 18.94 |
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 15.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.79
PEG (5Y)3.57
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.
- Compared to an average S&P500 Dividend Yield of 1.82, VMC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
- On average, the dividend of VMC grows each year by 8.29%, which is quite nice.
- 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
- 22.91% of the earnings are spent on dividend by VMC. This is a low number and 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.