VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VMC - US9291601097 - Common Stock
294.87 USD
+1.22 (+0.42%)
292.99 USD
-1.88 (-0.64%)
Taking everything into account, VMC scores 6 out of 10 in our fundamental rating. VMC was compared to 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.
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
VMC has a Return On Assets of 6.59%. This is in the better half of the industry: VMC outperforms 69.23% of its industry peers.
Looking at the Return On Equity, with a value of 12.80%, VMC is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
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 9.36%.
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
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.
VMC's Operating Margin has improved in the last couple of years.
VMC has a Gross Margin of 28.23%. 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VMC 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.
VMC has a worse debt/assets ratio than last year.
2.2 Solvency
VMC has an Altman-Z score of 4.17. This indicates that VMC is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.17, VMC is doing good in the industry, outperforming 76.92% of the companies in the same industry.
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.
A Debt/Equity ratio of 0.50 indicates that VMC is not too dependend on debt financing.
VMC has a Debt to Equity ratio (0.50) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.15 | ||
| Altman-Z | 4.17 |
ROIC/WACC0.78
WACC9.88%
2.3 Liquidity
A Current Ratio of 2.23 indicates that VMC has no problem at all paying its short term obligations.
The Current ratio of VMC (2.23) is comparable to the rest of the industry.
A Quick Ratio of 1.56 indicates that VMC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.56, VMC is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.87% 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.
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
VMC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.84% yearly.
The Revenue is expected to grow by 7.87% on average over the next years.
EPS Next Y12.8%
EPS Next 2Y14.73%
EPS Next 3Y15.04%
EPS Next 5Y11.84%
Revenue Next Year8.18%
Revenue Next 2Y6.56%
Revenue Next 3Y6.41%
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
VMC is valuated quite expensively with a Price/Earnings ratio of 34.85.
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's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.49.
Based on the Price/Forward Earnings ratio of 29.71, the valuation of VMC can be described as expensive.
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.
VMC is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.85 | ||
| Fwd PE | 29.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VMC indicates a slightly more expensive valuation: VMC is more expensive than 69.23% of the companies listed 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 | 36.94 | ||
| EV/EBITDA | 18.66 |
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.
A more expensive valuation may be justified as VMC's earnings are expected to grow with 15.04% in the coming years.
PEG (NY)2.72
PEG (5Y)3.52
EPS Next 2Y14.73%
EPS Next 3Y15.04%
5. Dividend
5.1 Amount
VMC has a yearly dividend return of 0.67%, which is pretty low.
VMC's Dividend Yield is a higher than the industry average which is at 3.75.
Compared to an average S&P500 Dividend Yield of 2.31, 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 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 2Y14.73%
EPS Next 3Y15.04%
294.87
+1.22 (+0.42%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners95.55%
Inst Owner Change0.11%
Ins Owners0.14%
Ins Owner Change-3.16%
Market Cap38.96B
Revenue(TTM)7.88B
Net Income(TTM)1.12B
Analysts80
Price Target324.51 (10.05%)
Short Float %3.08%
Short Ratio4.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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)1.98%
PT rev (3m)4.98%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)-6.41%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)-4.02%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.85 | ||
| Fwd PE | 29.71 | ||
| P/S | 4.94 | ||
| P/FCF | 36.94 | ||
| P/OCF | 22.78 | ||
| P/B | 4.46 | ||
| P/tB | 12.57 | ||
| EV/EBITDA | 18.66 |
EPS(TTM)8.46
EY2.87%
EPS(NY)9.93
Fwd EY3.37%
FCF(TTM)7.98
FCFY2.71%
OCF(TTM)12.94
OCFY4.39%
SpS59.65
BVpS66.1
TBVpS23.45
PEG (NY)2.72
PEG (5Y)3.52
Graham Number112.17
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 | 4.17 |
F-Score6
WACC9.88%
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)23.87%
EPS 3Y14.29%
EPS 5Y9.91%
EPS Q2Q%27.93%
EPS Next Y12.8%
EPS Next 2Y14.73%
EPS Next 3Y15.04%
EPS Next 5Y11.84%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y10.14%
Revenue growth 5Y8.52%
Sales Q2Q%14.35%
Revenue Next Year8.18%
Revenue Next 2Y6.56%
Revenue Next 3Y6.41%
Revenue Next 5Y7.87%
EBIT growth 1Y16.34%
EBIT growth 3Y16.24%
EBIT growth 5Y10.38%
EBIT Next Year76.87%
EBIT Next 3Y28.47%
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 12.8% in the next year.