VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
NYSE:VMC - New York Stock Exchange, Inc. - US9291601097 - Common Stock - Currency: USD
Taking everything into account, VMC scores 4 out of 10 in our fundamental rating. VMC was compared to 12 industry peers in the Construction Materials industry. VMC has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
VMC had positive earnings in each of the past 5 years.
In the past 5 years VMC always reported a positive cash flow from operatings.
1.2 Ratios
VMC has a Return On Assets of 5.33%. This is amonst the worse of the industry: VMC underperforms 83.33% of its industry peers.
With a Return On Equity value of 11.23%, VMC is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 6.81%, VMC is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
VMC had an Average Return On Invested Capital over the past 3 years of 6.80%. This is significantly below the industry average of 20.02%.
The last Return On Invested Capital (6.81%) for VMC is above the 3 year average (6.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 11.23% | ||
| ROIC | 6.81% |
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 has a Profit Margin of 12.29%. This is comparable to the rest of the industry: VMC outperforms 58.33% of its industry peers.
In the last couple of years the Profit Margin of VMC has remained more or less at the same level.
VMC has a Operating Margin (18.86%) which is in line with its industry peers.
In the last couple of years the Operating Margin of VMC has grown nicely.
The Gross Margin of VMC (26.96%) is comparable to the rest of the industry.
VMC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.86% | ||
| PM (TTM) | 12.29% | ||
| GM | 26.96% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VMC is destroying value.
VMC has about the same amout of shares outstanding than it did 1 year ago.
VMC has about the same amout of shares outstanding than it did 5 years ago.
VMC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.37 indicates that VMC is not in any danger for bankruptcy at the moment.
The Altman-Z score of VMC (3.37) is comparable to the rest of the industry.
VMC has a debt to FCF ratio of 6.62. This is a slightly negative value and a sign of low solvency as VMC would need 6.62 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.62, VMC is doing worse than 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that VMC is somewhat dependend on debt financing.
VMC has a worse Debt to Equity ratio (0.61) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.62 | ||
| Altman-Z | 3.37 |
ROIC/WACC0.78
WACC8.71%
2.3 Liquidity
A Current Ratio of 1.83 indicates that VMC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.83, VMC is in line with its industry, outperforming 50.00% of the companies in the same industry.
VMC has a Quick Ratio of 1.28. 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 1.28 is in line compared to the rest of the industry. VMC outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.87% over the past year.
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.
The Revenue has decreased by -4.68% in the past 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)7.87%
EPS 3Y14.29%
EPS 5Y9.91%
EPS Q2Q%48.63%
Revenue 1Y (TTM)-4.68%
Revenue growth 3Y10.14%
Revenue growth 5Y8.52%
Sales Q2Q%1.05%
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 12.16% yearly.
The Revenue is expected to grow by 8.02% on average over the next years. This is quite good.
EPS Next Y12.43%
EPS Next 2Y15.02%
EPS Next 3Y14.03%
EPS Next 5Y12.16%
Revenue Next Year11.3%
Revenue Next 2Y9.32%
Revenue Next 3Y8.84%
Revenue Next 5Y8.02%
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 accelerating.
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
A Price/Earnings ratio of 34.79 indicates a quite expensive valuation of VMC.
Based on the Price/Earnings ratio, VMC is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
Compared to an average S&P500 Price/Earnings ratio of 28.88, VMC is valued a bit more expensive.
The Price/Forward Earnings ratio is 30.95, which means the current valuation is very expensive for VMC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VMC is on the same level as its industry peers.
VMC's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.79 | ||
| Fwd PE | 30.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VMC is valued more expensive than 83.33% of the companies in the same industry.
VMC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.99 | ||
| EV/EBITDA | 18.31 |
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's earnings are expected to grow with 14.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.8
PEG (5Y)3.51
EPS Next 2Y15.02%
EPS Next 3Y14.03%
5. Dividend
5.1 Amount
VMC has a yearly dividend return of 0.79%, which is pretty low.
Compared to an average industry Dividend Yield of 6.65, VMC pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.79, VMC pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
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 26.80% 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.
DP26.8%
EPS Next 2Y15.02%
EPS Next 3Y14.03%
262.33
+16.98 (+6.92%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners92.75%
Inst Owner Change0.01%
Ins Owners0.13%
Ins Owner Change8.21%
Market Cap34.65B
Analysts80
Price Target297.8 (13.52%)
Short Float %2.4%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend1.85
Dividend Growth(5Y)8.29%
DP26.8%
Div Incr Years11
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.82%
Min EPS beat(2)-5.39%
Max EPS beat(2)21.03%
EPS beat(4)1
Avg EPS beat(4)-2.13%
Min EPS beat(4)-18.16%
Max EPS beat(4)21.03%
EPS beat(8)4
Avg EPS beat(8)8.3%
EPS beat(12)6
Avg EPS beat(12)5.6%
EPS beat(16)8
Avg EPS beat(16)6.9%
Revenue beat(2)1
Avg Revenue beat(2)-0.36%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)0.9%
Revenue beat(4)1
Avg Revenue beat(4)-2.67%
Min Revenue beat(4)-8.16%
Max Revenue beat(4)0.9%
Revenue beat(8)3
Avg Revenue beat(8)-0.71%
Revenue beat(12)6
Avg Revenue beat(12)0.12%
Revenue beat(16)9
Avg Revenue beat(16)0.54%
PT rev (1m)-3.9%
PT rev (3m)-2.42%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-29.16%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)-7.9%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.79 | ||
| Fwd PE | 30.95 | ||
| P/S | 4.67 | ||
| P/FCF | 42.99 | ||
| P/OCF | 24.58 | ||
| P/B | 4.27 | ||
| P/tB | 13.25 | ||
| EV/EBITDA | 18.31 |
EPS(TTM)7.54
EY2.87%
EPS(NY)8.48
Fwd EY3.23%
FCF(TTM)6.1
FCFY2.33%
OCF(TTM)10.67
OCFY4.07%
SpS56.15
BVpS61.46
TBVpS19.8
PEG (NY)2.8
PEG (5Y)3.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 11.23% | ||
| ROCE | 8.82% | ||
| ROIC | 6.81% | ||
| ROICexc | 7.06% | ||
| ROICexgc | 11.02% | ||
| OM | 18.86% | ||
| PM (TTM) | 12.29% | ||
| GM | 26.96% | ||
| FCFM | 10.87% |
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 Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 6.62 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 95.46% | ||
| Cap/Sales | 8.14% | ||
| Interest Coverage | 7.65 | ||
| Cash Conversion | 69.4% | ||
| Profit Quality | 88.39% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 3.37 |
F-Score5
WACC8.71%
ROIC/WACC0.78
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)7.87%
EPS 3Y14.29%
EPS 5Y9.91%
EPS Q2Q%48.63%
EPS Next Y12.43%
EPS Next 2Y15.02%
EPS Next 3Y14.03%
EPS Next 5Y12.16%
Revenue 1Y (TTM)-4.68%
Revenue growth 3Y10.14%
Revenue growth 5Y8.52%
Sales Q2Q%1.05%
Revenue Next Year11.3%
Revenue Next 2Y9.32%
Revenue Next 3Y8.84%
Revenue Next 5Y8.02%
EBIT growth 1Y1.42%
EBIT growth 3Y16.24%
EBIT growth 5Y10.38%
EBIT Next Year80.71%
EBIT Next 3Y28.31%
EBIT Next 5Y19.02%
FCF growth 1Y21.36%
FCF growth 3Y12.87%
FCF growth 5Y6.08%
OCF growth 1Y-8.28%
OCF growth 3Y11.68%
OCF growth 5Y7.45%