VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
USA - NYSE:VMC - US9291601097 - Common Stock
294.97 USD
+2.38 (+0.81%)
294.97 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to VMC. VMC was compared to 13 industry peers in the Construction Materials industry. Both the profitability and the financial health of VMC get a neutral evaluation. Nothing too spectacular is happening here. 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.
Each year in the past 5 years VMC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of VMC (5.60%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 11.31%, VMC is in line with its industry, outperforming 46.15% of the companies in the same industry.
With a Return On Invested Capital value of 7.00%, VMC is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for VMC is below the industry average of 10.33%.
The 3 year average ROIC (6.80%) for VMC is below the current ROIC(7.00%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 12.52%, VMC is doing good in the industry, outperforming 69.23% 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 (19.30%) is better than 69.23% of its industry peers.
VMC's Operating Margin has improved in the last couple of years.
VMC has a Gross Margin (27.56%) which 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VMC 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 3.96 indicates that VMC is not in any danger for bankruptcy at the moment.
VMC has a Altman-Z score of 3.96. This is in the better half of the industry: VMC outperforms 76.92% of its industry peers.
VMC has a debt to FCF ratio of 4.48. This is a neutral value as VMC would need 4.48 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 4.48, VMC belongs to the best of the industry, outperforming 84.62% 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 Debt to Equity ratio of 0.58. This is in the lower half of the industry: VMC underperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.48 | ||
| Altman-Z | 3.96 |
ROIC/WACC0.71
WACC9.89%
2.3 Liquidity
A Current Ratio of 1.67 indicates that VMC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.67, VMC is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
A Quick Ratio of 1.13 indicates that VMC should not have too much problems paying its short term obligations.
The Quick ratio of VMC (1.13) is worse than 61.54% of its industry peers.
| 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.
VMC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.91% yearly.
The Revenue has been growing slightly by 0.19% in the past year.
Measured over the past years, VMC shows a quite strong growth in Revenue. The Revenue has been growing by 8.52% on average per year.
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
VMC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.33% yearly.
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 Y12.9%
EPS Next 2Y15.22%
EPS Next 3Y15.44%
EPS Next 5Y11.33%
Revenue Next Year9.75%
Revenue Next 2Y8.55%
Revenue Next 3Y7.94%
Revenue Next 5Y7.51%
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 stable.
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
The Price/Earnings ratio is 37.62, which means the current valuation is very expensive for VMC.
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.
VMC is valuated rather expensively when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
VMC is valuated quite expensively with a Price/Forward Earnings ratio of 29.47.
Based on the Price/Forward Earnings ratio, VMC is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
VMC is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.62 | ||
| Fwd PE | 29.47 |
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 a bit cheaper when compared to the industry. VMC is cheaper than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.49 | ||
| EV/EBITDA | 19.74 |
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.
A more expensive valuation may be justified as VMC's earnings are expected to grow with 15.44% in the coming years.
PEG (NY)2.92
PEG (5Y)3.79
EPS Next 2Y15.22%
EPS Next 3Y15.44%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, VMC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.88, VMC pays a bit more dividend than its industry peers.
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 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
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 2Y15.22%
EPS Next 3Y15.44%
294.97
+2.38 (+0.81%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners94.85%
Inst Owner Change0.48%
Ins Owners0.15%
Ins Owner Change-15.23%
Market Cap38.97B
Revenue(TTM)7.59B
Net Income(TTM)951.10M
Analysts80.69
Price Target309.12 (4.8%)
Short Float %2.91%
Short Ratio5.33
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%
PT rev (3m)0.99%
EPS NQ rev (1m)0.81%
EPS NQ rev (3m)2.04%
EPS NY rev (1m)0.26%
EPS NY rev (3m)-0.98%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.62 | ||
| Fwd PE | 29.47 | ||
| P/S | 5.13 | ||
| P/FCF | 35.49 | ||
| P/OCF | 23.93 | ||
| P/B | 4.64 | ||
| P/tB | 14.21 | ||
| EV/EBITDA | 19.74 |
EPS(TTM)7.84
EY2.66%
EPS(NY)10.01
Fwd EY3.39%
FCF(TTM)8.31
FCFY2.82%
OCF(TTM)12.32
OCFY4.18%
SpS57.48
BVpS63.63
TBVpS20.77
PEG (NY)2.92
PEG (5Y)3.79
Graham Number105.95
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%
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-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 | 3.96 |
F-Score5
WACC9.89%
ROIC/WACC0.71
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 Y12.9%
EPS Next 2Y15.22%
EPS Next 3Y15.44%
EPS Next 5Y11.33%
Revenue 1Y (TTM)0.19%
Revenue growth 3Y10.14%
Revenue growth 5Y8.52%
Sales Q2Q%4.37%
Revenue Next Year9.75%
Revenue Next 2Y8.55%
Revenue Next 3Y7.94%
Revenue Next 5Y7.51%
EBIT growth 1Y6.09%
EBIT growth 3Y16.24%
EBIT growth 5Y10.38%
EBIT Next Year77.88%
EBIT Next 3Y28.95%
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%
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 5 / 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 12.9% in the next year.