VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
NYSE:VMC - New York Stock Exchange, Inc. - US9291601097 - Common Stock - Currency: USD
Overall VMC gets a fundamental rating of 4 out of 10. We evaluated VMC against 12 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. 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.
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 worse Return On Assets (5.61%) than 83.33% of its industry peers.
VMC has a Return On Equity of 11.53%. This is amonst the worse of the industry: VMC underperforms 91.67% of its industry peers.
VMC has a Return On Invested Capital of 7.02%. This is amonst the worse of the industry: VMC underperforms 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VMC is significantly below the industry average of 19.75%.
The last Return On Invested Capital (7.02%) for VMC is above the 3 year average (6.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.61% | ||
| ROE | 11.53% | ||
| ROIC | 7.02% |
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
Looking at the Profit Margin, with a value of 12.50%, VMC is in line with its industry, outperforming 58.33% of the companies in the same industry.
VMC's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 19.26%, VMC is in line with its industry, outperforming 58.33% of the companies in the same industry.
VMC's Operating Margin has improved in the last couple of years.
VMC has a Gross Margin (27.44%) which is in line with 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 | 19.26% | ||
| PM (TTM) | 12.5% | ||
| GM | 27.44% |
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.
The number of shares outstanding for VMC remains at a similar level compared to 1 year ago.
The number of shares outstanding for VMC remains at a similar level compared to 5 years ago.
Compared to 1 year ago, VMC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.78 indicates that VMC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.78, VMC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of VMC is 5.67, which is a neutral value as it means it would take VMC, 5.67 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 5.67, VMC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that VMC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.60, VMC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 5.67 | ||
| Altman-Z | 3.78 |
ROIC/WACC0.75
WACC9.32%
2.3 Liquidity
A Current Ratio of 2.42 indicates that VMC has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.42, VMC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
VMC has a Quick Ratio of 1.51. 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 1.51 is fine compared to the rest of the industry. VMC outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
VMC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.16%, which is quite good.
The Earnings Per Share has been growing by 9.91% on average over the past years. This is quite good.
VMC shows a decrease in Revenue. In the last year, the revenue decreased by -2.24%.
The Revenue has been growing by 8.52% on average over the past years. This is quite good.
EPS 1Y (TTM)13.16%
EPS 3Y14.29%
EPS 5Y9.91%
EPS Q2Q%25%
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y10.14%
Revenue growth 5Y8.52%
Sales Q2Q%5.75%
3.2 Future
Based on estimates for the next years, VMC will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.16% on average per year.
Based on estimates for the next years, VMC will show a quite strong growth in Revenue. The Revenue will grow by 8.02% on average per year.
EPS Next Y13.72%
EPS Next 2Y15.31%
EPS Next 3Y14.64%
EPS Next 5Y12.16%
Revenue Next Year10.21%
Revenue Next 2Y8.59%
Revenue Next 3Y7.98%
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 35.31 indicates a quite expensive valuation of VMC.
Based on the Price/Earnings ratio, VMC is valued more expensive than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, VMC is valued a bit more expensive.
A Price/Forward Earnings ratio of 27.27 indicates a quite expensive valuation of VMC.
Based on the Price/Forward Earnings ratio, VMC is valued a bit more expensive than 66.67% of the companies in the same industry.
VMC is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.31 | ||
| Fwd PE | 27.27 |
4.2 Price Multiples
VMC's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. VMC is more expensive than 83.33% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as VMC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.55 | ||
| EV/EBITDA | 19.33 |
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 14.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.57
PEG (5Y)3.56
EPS Next 2Y15.31%
EPS Next 3Y14.64%
5. Dividend
5.1 Amount
VMC has a yearly dividend return of 0.72%, which is pretty low.
Compared to an average industry Dividend Yield of 5.29, VMC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, VMC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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 26.48% 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.
DP26.48%
EPS Next 2Y15.31%
EPS Next 3Y14.64%
273.33
-2.68 (-0.97%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners92.75%
Inst Owner Change0.83%
Ins Owners0.13%
Ins Owner Change8.34%
Market Cap36.11B
Analysts80.67
Price Target300.14 (9.81%)
Short Float %2.52%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly Dividend1.85
Dividend Growth(5Y)8.29%
DP26.48%
Div Incr Years11
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.03%
Min EPS beat(2)21.03%
Max EPS beat(2)27.04%
EPS beat(4)2
Avg EPS beat(4)9.17%
Min EPS beat(4)-5.99%
Max EPS beat(4)27.04%
EPS beat(8)4
Avg EPS beat(8)4.94%
EPS beat(12)6
Avg EPS beat(12)6.49%
EPS beat(16)8
Avg EPS beat(16)5.44%
Revenue beat(2)1
Avg Revenue beat(2)-0.52%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)0.9%
Revenue beat(4)1
Avg Revenue beat(4)-1.11%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)0.9%
Revenue beat(8)2
Avg Revenue beat(8)-1.46%
Revenue beat(12)5
Avg Revenue beat(12)-0.59%
Revenue beat(16)8
Avg Revenue beat(16)0.2%
PT rev (1m)-2.9%
PT rev (3m)-1.25%
EPS NQ rev (1m)-0.94%
EPS NQ rev (3m)-8.34%
EPS NY rev (1m)1.16%
EPS NY rev (3m)-6.73%
Revenue NQ rev (1m)-0.67%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)-1.32%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.31 | ||
| Fwd PE | 27.27 | ||
| P/S | 4.81 | ||
| P/FCF | 41.55 | ||
| P/OCF | 24.27 | ||
| P/B | 4.44 | ||
| P/tB | 14.6 | ||
| EV/EBITDA | 19.33 |
EPS(TTM)7.74
EY2.83%
EPS(NY)10.02
Fwd EY3.67%
FCF(TTM)6.58
FCFY2.41%
OCF(TTM)11.26
OCFY4.12%
SpS56.83
BVpS61.58
TBVpS18.72
PEG (NY)2.57
PEG (5Y)3.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.61% | ||
| ROE | 11.53% | ||
| ROCE | 9.08% | ||
| ROIC | 7.02% | ||
| ROICexc | 7.1% | ||
| ROICexgc | 11.09% | ||
| OM | 19.26% | ||
| PM (TTM) | 12.5% | ||
| GM | 27.44% | ||
| FCFM | 11.58% |
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 | 0.6 | ||
| Debt/FCF | 5.67 | ||
| Debt/EBITDA | 2.33 | ||
| Cap/Depr | 92.66% | ||
| Cap/Sales | 8.24% | ||
| Interest Coverage | 8.4 | ||
| Cash Conversion | 70.4% | ||
| Profit Quality | 92.62% | ||
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 3.78 |
F-Score5
WACC9.32%
ROIC/WACC0.75
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)13.16%
EPS 3Y14.29%
EPS 5Y9.91%
EPS Q2Q%25%
EPS Next Y13.72%
EPS Next 2Y15.31%
EPS Next 3Y14.64%
EPS Next 5Y12.16%
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y10.14%
Revenue growth 5Y8.52%
Sales Q2Q%5.75%
Revenue Next Year10.21%
Revenue Next 2Y8.59%
Revenue Next 3Y7.98%
Revenue Next 5Y8.02%
EBIT growth 1Y5.82%
EBIT growth 3Y16.24%
EBIT growth 5Y10.38%
EBIT Next Year80.71%
EBIT Next 3Y28.31%
EBIT Next 5Y19.02%
FCF growth 1Y58.55%
FCF growth 3Y12.87%
FCF growth 5Y6.08%
OCF growth 1Y24.61%
OCF growth 3Y11.68%
OCF growth 5Y7.45%