VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
NYSE:VMC - New York Stock Exchange, Inc. - US9291601097 - Common Stock - Currency: USD
Taking everything into account, VMC scores 5 out of 10 in our fundamental rating. 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
VMC had positive earnings in the past year.
In the past year VMC had a positive cash flow from operations.
Each year in the past 5 years VMC has 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 5.61%, VMC is doing worse than 69.23% of the companies in the same industry.
VMC has a Return On Equity of 11.53%. This is in the lower half of the industry: VMC underperforms 76.92% of its industry peers.
The Return On Invested Capital of VMC (7.02%) is worse than 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 3 year average ROIC (6.80%) for VMC is below the current ROIC(7.02%), indicating increased profibility in the last year.
| 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
VMC has a better Profit Margin (12.50%) than 69.23% of its industry peers.
VMC's Profit Margin has been stable in the last couple of years.
VMC's Operating Margin of 19.26% 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'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
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
An Altman-Z score of 3.70 indicates that VMC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.70, VMC is in the better half of the industry, outperforming 69.23% 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.
Looking at the Debt to FCF ratio, with a value of 5.67, VMC is in the better half of 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.
VMC has a Debt to Equity ratio of 0.60. This is in the lower half of the industry: VMC underperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 5.67 | ||
| Altman-Z | 3.7 |
ROIC/WACC0.69
WACC10.15%
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.
Looking at the Current ratio, with a value of 2.42, VMC is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
A Quick Ratio of 1.51 indicates that VMC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.51, VMC is in the better half of 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 13.16% over the past year.
The Earnings Per Share has been growing by 9.91% on average over the past years. This is quite good.
Looking at the last year, VMC shows a decrease in Revenue. The Revenue has decreased by -2.24% 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)13.16%
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
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 Year10.46%
Revenue Next 2Y8.75%
Revenue Next 3Y8.17%
Revenue Next 5Y8.19%
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.
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
VMC is valuated quite expensively with a Price/Earnings ratio of 34.60.
Compared to the rest of the industry, the Price/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.
The average S&P500 Price/Earnings ratio is at 27.53. VMC is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 26.71 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.71, VMC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.6 | ||
| Fwd PE | 26.71 |
4.2 Price Multiples
VMC's Enterprise Value to EBITDA 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.
Based on the Price/Free Cash Flow ratio, VMC is valued a bit cheaper than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.71 | ||
| EV/EBITDA | 18.81 |
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.
A more expensive valuation may be justified as VMC's earnings are expected to grow with 15.34% in the coming years.
PEG (NY)2.47
PEG (5Y)3.49
EPS Next 2Y15.3%
EPS Next 3Y15.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, VMC is not a good candidate for dividend investing.
VMC's Dividend Yield is a higher than the industry average which is at 4.93.
With a Dividend Yield of 0.75, VMC pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
The dividend of VMC is nicely growing with an annual growth rate of 8.29%!
VMC has paid a dividend for at least 10 years, which is 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 26.48% of its income as dividend. This is a 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%
267.78
+2.77 (+1.05%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners93.97%
Inst Owner Change-0.28%
Ins Owners0.14%
Ins Owner Change-2.72%
Market Cap35.37B
Analysts81.33
Price Target306.1 (14.31%)
Short Float %2.44%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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)-0.97%
EPS NQ rev (1m)-1.17%
EPS NQ rev (3m)-1.68%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)1.42%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.6 | ||
| Fwd PE | 26.71 | ||
| P/S | 4.71 | ||
| P/FCF | 40.71 | ||
| P/OCF | 23.78 | ||
| P/B | 4.35 | ||
| P/tB | 14.31 | ||
| EV/EBITDA | 18.81 |
EPS(TTM)7.74
EY2.89%
EPS(NY)10.02
Fwd EY3.74%
FCF(TTM)6.58
FCFY2.46%
OCF(TTM)11.26
OCFY4.21%
SpS56.83
BVpS61.58
TBVpS18.72
PEG (NY)2.47
PEG (5Y)3.49
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 | 3.7 |
F-Score5
WACC10.15%
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)13.16%
EPS 3Y14.29%
EPS 5Y9.91%
EPS Q2Q%25%
EPS Next Y14.02%
EPS Next 2Y15.3%
EPS Next 3Y15.34%
EPS Next 5Y11.8%
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y10.14%
Revenue growth 5Y8.52%
Sales Q2Q%5.75%
Revenue Next Year10.46%
Revenue Next 2Y8.75%
Revenue Next 3Y8.17%
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%