VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
NYSE:VMC - US9291601097 - Common Stock
301.65 USD
+7.22 (+2.45%)
301.65 USD
0 (0%)
VMC gets a fundamental rating of 4 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
In the past year VMC was profitable.
VMC had a positive operating cash flow in the past year.
Each year in the past 5 years VMC has been profitable.
Each year in the past 5 years VMC had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 5.60%, VMC perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
With a Return On Equity value of 11.31%, VMC is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
VMC's Return On Invested Capital of 7.00% is on the low side compared to the rest of the industry. VMC is outperformed by 61.54% of its industry peers.
VMC had an Average Return On Invested Capital over the past 3 years of 6.80%. This is below the industry average of 10.47%.
The last Return On Invested Capital (7.00%) for VMC is above the 3 year average (6.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.6% | ||
| ROE | 11.31% | ||
| ROIC | 7% |
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 12.52% is fine compared to the rest of the industry. VMC outperforms 61.54% of its industry peers.
In the last couple of years the Profit Margin of VMC has remained more or less at the same level.
Looking at the Operating Margin, with a value of 19.30%, VMC is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
In the last couple of years the Operating Margin of VMC has grown nicely.
VMC has a Gross Margin of 27.56%. This is comparable to the rest of the industry: VMC outperforms 46.15% 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 | 19.3% | ||
| PM (TTM) | 12.52% | ||
| GM | 27.56% |
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.
The number of shares outstanding for VMC remains at a similar level compared to 1 year ago.
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
An Altman-Z score of 4.04 indicates that VMC is not in any danger for bankruptcy at the moment.
VMC has a Altman-Z score of 4.04. This is in the better half of the industry: VMC outperforms 76.92% of its industry peers.
The Debt to FCF ratio of VMC is 4.48, which is a neutral value as it means it would take VMC, 4.48 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.48, VMC is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
VMC has a Debt/Equity ratio of 0.58. This is a neutral value indicating VMC is somewhat dependend on debt financing.
VMC has a worse Debt to Equity ratio (0.58) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.48 | ||
| Altman-Z | 4.04 |
ROIC/WACC0.73
WACC9.58%
2.3 Liquidity
VMC has a Current Ratio of 1.67. 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 Current ratio of 1.67. This is in the lower half of the industry: VMC underperforms 61.54% of its industry peers.
A Quick Ratio of 1.13 indicates that VMC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.13, VMC is doing worse than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
VMC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.62%, which is quite good.
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.
VMC shows a small growth in Revenue. In the last year, the Revenue has grown by 0.19%.
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)13.62%
EPS 3Y14.29%
EPS 5Y9.91%
EPS Q2Q%4.26%
Revenue 1Y (TTM)0.19%
Revenue growth 3Y10.14%
Revenue growth 5Y8.52%
Sales Q2Q%4.37%
3.2 Future
The Earnings Per Share is expected to grow by 11.33% 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 7.51% on average per year.
EPS Next Y12.57%
EPS Next 2Y14.97%
EPS Next 3Y14.98%
EPS Next 5Y11.33%
Revenue Next Year9.23%
Revenue Next 2Y7.96%
Revenue Next 3Y7.73%
Revenue Next 5Y7.51%
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 38.48, VMC can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of VMC indicates a slightly more expensive valuation: VMC is more expensive than 76.92% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of VMC to the average of the S&P500 Index (27.43), we can say VMC is valued slightly more expensively.
VMC is valuated quite expensively with a Price/Forward Earnings ratio of 30.26.
VMC's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. VMC is more expensive than 69.23% of the companies in the same industry.
VMC is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.48 | ||
| Fwd PE | 30.26 |
4.2 Price Multiples
VMC's Enterprise Value to EBITDA 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.
Based on the Price/Free Cash Flow ratio, VMC is valued a bit cheaper than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.29 | ||
| EV/EBITDA | 20.3 |
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.
A more expensive valuation may be justified as VMC's earnings are expected to grow with 14.98% in the coming years.
PEG (NY)3.06
PEG (5Y)3.88
EPS Next 2Y14.97%
EPS Next 3Y14.98%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, VMC is not a good candidate for dividend investing.
VMC's Dividend Yield is a higher than the industry average which is at 4.12.
Compared to an average S&P500 Dividend Yield of 2.45, VMC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
On average, the dividend of VMC grows each year by 8.29%, which is quite nice.
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)8.29%
Div Incr Years11
Div Non Decr Years12
5.3 Sustainability
VMC pays out 26.53% 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.
DP26.53%
EPS Next 2Y14.97%
EPS Next 3Y14.98%
301.65
+7.22 (+2.45%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners94.24%
Inst Owner Change0.31%
Ins Owners0.15%
Ins Owner Change-15.29%
Market Cap39.85B
Analysts80.69
Price Target309.12 (2.48%)
Short Float %3.23%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend1.85
Dividend Growth(5Y)8.29%
DP26.53%
Div Incr Years11
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)11.3%
Min EPS beat(2)-4.43%
Max EPS beat(2)27.04%
EPS beat(4)2
Avg EPS beat(4)9.56%
Min EPS beat(4)-5.39%
Max EPS beat(4)27.04%
EPS beat(8)3
Avg EPS beat(8)2.07%
EPS beat(12)6
Avg EPS beat(12)6.45%
EPS beat(16)8
Avg EPS beat(16)5.54%
Revenue beat(2)0
Avg Revenue beat(2)-3.38%
Min Revenue beat(2)-4.83%
Max Revenue beat(2)-1.94%
Revenue beat(4)1
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-4.83%
Max Revenue beat(4)0.9%
Revenue beat(8)1
Avg Revenue beat(8)-2.37%
Revenue beat(12)4
Avg Revenue beat(12)-1.35%
Revenue beat(16)8
Avg Revenue beat(16)0.01%
PT rev (1m)0.87%
PT rev (3m)1.38%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-0.54%
EPS NY rev (1m)-1.27%
EPS NY rev (3m)-1.01%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)-0.83%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.48 | ||
| Fwd PE | 30.26 | ||
| P/S | 5.25 | ||
| P/FCF | 36.29 | ||
| P/OCF | 24.48 | ||
| P/B | 4.74 | ||
| P/tB | 14.53 | ||
| EV/EBITDA | 20.3 |
EPS(TTM)7.84
EY2.6%
EPS(NY)9.97
Fwd EY3.3%
FCF(TTM)8.31
FCFY2.76%
OCF(TTM)12.32
OCFY4.09%
SpS57.48
BVpS63.63
TBVpS20.77
PEG (NY)3.06
PEG (5Y)3.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.6% | ||
| ROE | 11.31% | ||
| ROCE | 9.38% | ||
| ROIC | 7% | ||
| ROICexc | 7.15% | ||
| ROICexgc | 11.13% | ||
| OM | 19.3% | ||
| PM (TTM) | 12.52% | ||
| GM | 27.56% | ||
| FCFM | 14.46% |
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%
ROICexcg growth 3Y5.03%
ROICexcg 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-Score5
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.48 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 76.15% | ||
| Cap/Sales | 6.98% | ||
| Interest Coverage | 6.71 | ||
| Cash Conversion | 75.32% | ||
| Profit Quality | 115.46% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 4.04 |
F-Score5
WACC9.58%
ROIC/WACC0.73
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)13.62%
EPS 3Y14.29%
EPS 5Y9.91%
EPS Q2Q%4.26%
EPS Next Y12.57%
EPS Next 2Y14.97%
EPS Next 3Y14.98%
EPS Next 5Y11.33%
Revenue 1Y (TTM)0.19%
Revenue growth 3Y10.14%
Revenue growth 5Y8.52%
Sales Q2Q%4.37%
Revenue Next Year9.23%
Revenue Next 2Y7.96%
Revenue Next 3Y7.73%
Revenue Next 5Y7.51%
EBIT growth 1Y6.09%
EBIT growth 3Y16.24%
EBIT growth 5Y10.38%
EBIT Next Year78.46%
EBIT Next 3Y29.07%
EBIT Next 5Y18.94%
FCF growth 1Y68.01%
FCF growth 3Y12.87%
FCF growth 5Y6.08%
OCF growth 1Y22.41%
OCF growth 3Y11.68%
OCF growth 5Y7.45%