VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
NYSE:VMC - New York Stock Exchange, Inc. - US9291601097 - Common Stock - Currency: USD
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. While showing a medium growth rate, VMC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
VMC had positive earnings in the past year.
In the past year VMC had a positive cash flow from operations.
VMC had positive earnings in each of the past 5 years.
Each year in the past 5 years VMC had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 5.61%, VMC is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
The Return On Equity of VMC (11.53%) is worse than 76.92% of its industry peers.
VMC has a Return On Invested Capital of 7.02%. This is in the lower half of the industry: VMC underperforms 69.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VMC is below the industry average of 10.96%.
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
With a decent Profit Margin value of 12.50%, VMC is doing good in the industry, outperforming 69.23% of the companies in the same industry.
In the last couple of years the Profit Margin of VMC has remained more or less at the same level.
With a decent Operating Margin value of 19.26%, VMC is doing good in the industry, outperforming 69.23% of the companies in the same industry.
VMC's Operating Margin has improved in the last couple of years.
VMC's Gross Margin of 27.44% is in line compared to the rest of the industry. VMC outperforms 53.85% 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 | 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
VMC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, VMC has about the same amount of shares outstanding.
VMC has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, VMC has a worse debt to assets ratio.
2.2 Solvency
VMC has an Altman-Z score of 3.79. This indicates that VMC is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.79, VMC is doing good in the industry, outperforming 69.23% of the companies in the same industry.
VMC has a debt to FCF ratio of 5.67. This is a neutral value as VMC would need 5.67 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.67, VMC is doing good in the industry, outperforming 61.54% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that VMC is somewhat dependend on debt financing.
The Debt to Equity ratio of VMC (0.60) is worse than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 5.67 | ||
| Altman-Z | 3.79 |
ROIC/WACC0.69
WACC10.17%
2.3 Liquidity
VMC has a Current Ratio of 2.42. This indicates that VMC is financially healthy and has no problem in meeting its short term obligations.
VMC has a Current ratio of 2.42. This is in the better half of the industry: VMC outperforms 76.92% of its industry peers.
A Quick Ratio of 1.51 indicates that VMC should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.51, VMC is doing good in the industry, outperforming 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.62% over the past year.
VMC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.91% yearly.
Looking at the last year, VMC shows a decrease in Revenue. The Revenue has decreased by -4.68% in the last 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)-4.68%
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 11.80% yearly.
The Revenue is expected to grow by 8.19% on average over the next years. This is quite good.
EPS Next Y14.02%
EPS Next 2Y15.3%
EPS Next 3Y15.34%
EPS Next 5Y11.8%
Revenue Next Year10.14%
Revenue Next 2Y8.59%
Revenue Next 3Y8.32%
Revenue Next 5Y8.19%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 35.07 indicates a quite expensive valuation of VMC.
69.23% of the companies in the same industry are cheaper than VMC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.82, VMC is valued a bit more expensive.
A Price/Forward Earnings ratio of 27.43 indicates a quite expensive valuation of VMC.
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 61.54% of the companies listed in the same industry.
VMC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.07 | ||
| Fwd PE | 27.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VMC is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, VMC is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.79 | ||
| EV/EBITDA | 19.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as VMC's earnings are expected to grow with 15.34% in the coming years.
PEG (NY)2.5
PEG (5Y)3.54
EPS Next 2Y15.3%
EPS Next 3Y15.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, VMC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.43, VMC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, 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 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
26.48% 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.
DP26.48%
EPS Next 2Y15.3%
EPS Next 3Y15.34%
274.94
+0.27 (+0.1%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners93.97%
Inst Owner Change-0.33%
Ins Owners0.14%
Ins Owner Change-2.72%
Market Cap36.32B
Analysts81.33
Price Target306.1 (11.33%)
Short Float %2.59%
Short Ratio3.46
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)0.39%
PT rev (3m)2.79%
EPS NQ rev (1m)-2.9%
EPS NQ rev (3m)-3.41%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)1.42%
Revenue NQ rev (1m)-1.11%
Revenue NQ rev (3m)-1.38%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.07 | ||
| Fwd PE | 27.43 | ||
| P/S | 4.84 | ||
| P/FCF | 41.79 | ||
| P/OCF | 24.41 | ||
| P/B | 4.47 | ||
| P/tB | 14.69 | ||
| EV/EBITDA | 19.41 |
EPS(TTM)7.84
EY2.85%
EPS(NY)10.02
Fwd EY3.65%
FCF(TTM)6.58
FCFY2.39%
OCF(TTM)11.26
OCFY4.1%
SpS56.83
BVpS61.58
TBVpS18.72
PEG (NY)2.5
PEG (5Y)3.54
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 | 3.79 |
F-Score5
WACC10.17%
ROIC/WACC0.69
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 Y14.02%
EPS Next 2Y15.3%
EPS Next 3Y15.34%
EPS Next 5Y11.8%
Revenue 1Y (TTM)-4.68%
Revenue growth 3Y10.14%
Revenue growth 5Y8.52%
Sales Q2Q%4.37%
Revenue Next Year10.14%
Revenue Next 2Y8.59%
Revenue Next 3Y8.32%
Revenue Next 5Y8.19%
EBIT growth 1Y5.82%
EBIT growth 3Y16.24%
EBIT growth 5Y10.38%
EBIT Next Year81.8%
EBIT Next 3Y29.36%
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%