VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
USA - NYSE:VMC - US9291601097 - Common Stock
303.37 USD
+1.73 (+0.57%)
303.37 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. VMC has only an average score on both its financial health and profitability. 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.
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
Looking at the Return On Assets, with a value of 5.60%, VMC is in line with its industry, outperforming 53.85% of the companies in the same industry.
The Return On Equity of VMC (11.31%) is comparable to the rest of the industry.
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.
The Average Return On Invested Capital over the past 3 years for VMC is below the industry average of 10.33%.
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
The Profit Margin of VMC (12.52%) is better than 69.23% 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's Operating Margin of 19.30% is fine compared to the rest of the industry. VMC outperforms 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
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.
VMC has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for VMC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.06 indicates that VMC is not in any danger for bankruptcy at the moment.
VMC has a better Altman-Z score (4.06) than 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.
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's Debt to Equity ratio of 0.58 is on the low side compared to the rest of the industry. VMC is outperformed by 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.48 | ||
| Altman-Z | 4.06 |
ROIC/WACC0.73
WACC9.59%
2.3 Liquidity
A Current Ratio of 1.67 indicates that VMC should not have too much problems paying its short term obligations.
The Current ratio of VMC (1.67) is worse than 61.54% of its industry peers.
VMC has a Quick Ratio of 1.13. This is a normal value and indicates that VMC is financially healthy and should not expect problems in meeting 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
The Earnings Per Share has grown by an nice 13.62% over the past year.
The Earnings Per Share has been growing by 9.91% on average over the past years. This is quite good.
The Revenue has been growing slightly by 0.19% in the past year.
The Revenue has been growing by 8.52% on average over the past years. This is quite good.
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.
VMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.51% yearly.
EPS Next Y12.6%
EPS Next 2Y15.04%
EPS Next 3Y14.79%
EPS Next 5Y11.33%
Revenue Next Year9.23%
Revenue Next 2Y7.96%
Revenue Next 3Y7.69%
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
Based on the Price/Earnings ratio of 38.70, the valuation of VMC can be described as expensive.
Based on the Price/Earnings ratio, VMC is valued a bit more expensive than 76.92% of the companies in the same industry.
When comparing the Price/Earnings ratio of VMC to the average of the S&P500 Index (27.86), we can say VMC is valued slightly more expensively.
A Price/Forward Earnings ratio of 30.40 indicates a quite expensive valuation of VMC.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.29, VMC is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.7 | ||
| Fwd PE | 30.4 |
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 76.92% of the companies listed 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 | 36.5 | ||
| EV/EBITDA | 20.4 |
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 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 14.79% in the coming years.
PEG (NY)3.07
PEG (5Y)3.9
EPS Next 2Y15.04%
EPS Next 3Y14.79%
5. Dividend
5.1 Amount
VMC has a yearly dividend return of 0.67%, which is pretty low.
Compared to an average industry Dividend Yield of 4.34, VMC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, VMC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
The dividend of VMC is nicely growing with an annual growth rate of 8.29%!
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
26.53% of the earnings are spent on dividend by VMC. This is a low number and sustainable payout ratio.
VMC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP26.53%
EPS Next 2Y15.04%
EPS Next 3Y14.79%
303.37
+1.73 (+0.57%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners94.85%
Inst Owner Change0.31%
Ins Owners0.15%
Ins Owner Change-15.23%
Market Cap40.08B
Analysts80.69
Price Target309.12 (1.9%)
Short Float %2.88%
Short Ratio4.44
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)0.45%
PT rev (3m)1.38%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)0.54%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-1.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.7 | ||
| Fwd PE | 30.4 | ||
| P/S | 5.28 | ||
| P/FCF | 36.5 | ||
| P/OCF | 24.62 | ||
| P/B | 4.77 | ||
| P/tB | 14.61 | ||
| EV/EBITDA | 20.4 |
EPS(TTM)7.84
EY2.58%
EPS(NY)9.98
Fwd EY3.29%
FCF(TTM)8.31
FCFY2.74%
OCF(TTM)12.32
OCFY4.06%
SpS57.48
BVpS63.63
TBVpS20.77
PEG (NY)3.07
PEG (5Y)3.9
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 | 4.06 |
F-Score5
WACC9.59%
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 Y12.6%
EPS Next 2Y15.04%
EPS Next 3Y14.79%
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 3Y7.69%
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%