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 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
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.
VMC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VMC has a worse Return On Assets (5.61%) than 75.00% of its industry peers.
The Return On Equity of VMC (11.53%) is worse than 83.33% of its industry peers.
VMC's Return On Invested Capital of 7.02% is on the low side compared to the rest of the industry. VMC is outperformed by 75.00% of its industry peers.
VMC had an Average Return On Invested Capital over the past 3 years of 6.80%. This is below the industry average of 10.74%.
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 66.67% 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 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of VMC has grown nicely.
Looking at the Gross Margin, with a value of 27.44%, VMC is in line with its industry, outperforming 50.00% of the companies in the same industry.
VMC's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VMC is destroying value.
VMC has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for VMC remains at a similar level compared to 5 years ago.
VMC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.68 indicates that VMC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.68, VMC is in the better half of the industry, outperforming 66.67% 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.
VMC has a better Debt to FCF ratio (5.67) than 66.67% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that VMC is somewhat dependend on debt financing.
VMC has a worse Debt to Equity ratio (0.60) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 5.67 | ||
| Altman-Z | 3.68 |
ROIC/WACC0.72
WACC9.79%
2.3 Liquidity
A Current Ratio of 2.42 indicates that VMC has no problem at all paying its short term obligations.
VMC has a better Current ratio (2.42) than 75.00% of its industry peers.
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 has a Quick ratio of 1.51. This is in the better half 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
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.
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 11.80% 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 8.19% on average per year.
EPS Next Y14.17%
EPS Next 2Y15.55%
EPS Next 3Y14.95%
EPS Next 5Y11.8%
Revenue Next Year10.58%
Revenue Next 2Y8.79%
Revenue Next 3Y8.08%
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
Based on the Price/Earnings ratio of 33.70, the valuation of VMC can be described as expensive.
Based on the Price/Earnings ratio, VMC is valued a bit more expensive than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.98, VMC is valued a bit more expensive.
With a Price/Forward Earnings ratio of 25.91, VMC can be considered very expensive at the moment.
66.67% of the companies in the same industry are cheaper than VMC, based on the Price/Forward Earnings ratio.
VMC's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.7 | ||
| Fwd PE | 25.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VMC is valued a bit more expensive than 75.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VMC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.65 | ||
| EV/EBITDA | 18.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VMC's earnings are expected to grow with 14.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.38
PEG (5Y)3.4
EPS Next 2Y15.55%
EPS Next 3Y14.95%
5. Dividend
5.1 Amount
With a yearly dividend of 0.76%, VMC is not a good candidate for dividend investing.
VMC's Dividend Yield is a higher than the industry average which is at 4.22.
Compared to an average S&P500 Dividend Yield of 2.42, VMC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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 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.
VMC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP26.48%
EPS Next 2Y15.55%
EPS Next 3Y14.95%
260.82
-1.36 (-0.52%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners93.97%
Inst Owner Change0.87%
Ins Owners0.14%
Ins Owner Change-2.72%
Market Cap34.45B
Analysts81.33
Price Target304.9 (16.9%)
Short Float %2.34%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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)1.59%
PT rev (3m)-1.23%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)-0.59%
EPS NY rev (1m)0.39%
EPS NY rev (3m)1.05%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.7 | ||
| Fwd PE | 25.91 | ||
| P/S | 4.59 | ||
| P/FCF | 39.65 | ||
| P/OCF | 23.16 | ||
| P/B | 4.24 | ||
| P/tB | 13.93 | ||
| EV/EBITDA | 18.63 |
EPS(TTM)7.74
EY2.97%
EPS(NY)10.07
Fwd EY3.86%
FCF(TTM)6.58
FCFY2.52%
OCF(TTM)11.26
OCFY4.32%
SpS56.83
BVpS61.58
TBVpS18.72
PEG (NY)2.38
PEG (5Y)3.4
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 | 3.68 |
F-Score5
WACC9.79%
ROIC/WACC0.72
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 Y14.17%
EPS Next 2Y15.55%
EPS Next 3Y14.95%
EPS Next 5Y11.8%
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y10.14%
Revenue growth 5Y8.52%
Sales Q2Q%5.75%
Revenue Next Year10.58%
Revenue Next 2Y8.79%
Revenue Next 3Y8.08%
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%