VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
NYSE:VMC - US9291601097 - Common Stock
291.94 USD
+3.66 (+1.27%)
Taking everything into account, VMC scores 4 out of 10 in our fundamental rating. 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
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's Return On Assets of 5.60% is on the low side compared to the rest of the industry. VMC is outperformed by 61.54% of its industry peers.
The Return On Equity of VMC (11.31%) is worse than 69.23% of its industry peers.
VMC has a Return On Invested Capital of 7.00%. This is in the lower half of the industry: VMC underperforms 61.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VMC is below the industry average of 10.71%.
The 3 year average ROIC (6.80%) for VMC is below the current ROIC(7.00%), indicating increased profibility in the last year.
| 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
VMC has a better Profit Margin (12.52%) than 69.23% of its industry peers.
VMC's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 19.30%, VMC is in the better half of 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 has a Gross Margin (27.56%) 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 | 19.3% | ||
| 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
VMC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for VMC remains at a similar level compared to 1 year ago.
Compared to 5 years ago, VMC has about the same amount of shares outstanding.
Compared to 1 year ago, VMC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.92 indicates that VMC is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.92, VMC is doing good in the industry, outperforming 76.92% of the companies in the same industry.
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.
VMC's Debt to FCF ratio of 4.48 is fine compared to the rest of the industry. VMC outperforms 61.54% of its industry peers.
VMC has a Debt/Equity ratio of 0.58. This is a neutral value indicating VMC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.58, VMC is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.48 | ||
| Altman-Z | 3.92 |
ROIC/WACC0.73
WACC9.64%
2.3 Liquidity
A Current Ratio of 1.67 indicates that VMC should not have too much problems paying its short term obligations.
VMC has a Current ratio of 1.67. This is in the lower half of the industry: VMC underperforms 69.23% of its industry peers.
A Quick Ratio of 1.13 indicates that VMC should not have too much problems paying its short term obligations.
VMC has a worse Quick ratio (1.13) than 69.23% of its industry peers.
| 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.
VMC shows a small growth in Revenue. In the last year, the Revenue has grown by 0.19%.
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
VMC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.33% yearly.
Based on estimates for the next years, VMC will show a small growth in Revenue. The Revenue will grow by 7.51% on average per year.
EPS Next Y14.02%
EPS Next 2Y15.3%
EPS Next 3Y15.34%
EPS Next 5Y11.33%
Revenue Next Year10.14%
Revenue Next 2Y8.59%
Revenue Next 3Y8.32%
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.
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 37.24 indicates a quite expensive valuation of VMC.
Compared to the rest of the industry, the Price/Earnings ratio of VMC indicates a slightly more expensive valuation: VMC is more expensive than 76.92% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.76, VMC is valued a bit more expensive.
A Price/Forward Earnings ratio of 29.12 indicates a quite expensive valuation of VMC.
Based on the Price/Forward Earnings ratio, VMC is valued a bit more expensive than 61.54% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VMC to the average of the S&P500 Index (34.91), we can say VMC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.24 | ||
| Fwd PE | 29.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VMC is valued a bit more expensive than the industry average as 76.92% 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 76.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.12 | ||
| EV/EBITDA | 19.48 |
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)2.66
PEG (5Y)3.76
EPS Next 2Y15.3%
EPS Next 3Y15.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, VMC is not a good candidate for dividend investing.
VMC's Dividend Yield is a higher than the industry average which is at 4.46.
With a Dividend Yield of 0.67, VMC pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
On average, the dividend of VMC grows each year by 8.29%, which is quite nice.
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 26.53% 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.
DP26.53%
EPS Next 2Y15.3%
EPS Next 3Y15.34%
NYSE:VMC (8/22/2025, 2:29:06 PM)
291.94
+3.66 (+1.27%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners94.24%
Inst Owner Change0.3%
Ins Owners0.15%
Ins Owner Change-13.09%
Market Cap38.57B
Analysts80.69
Price Target306.45 (4.97%)
Short Float %2.8%
Short Ratio3.78
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)0.51%
PT rev (3m)2.1%
EPS NQ rev (1m)1.09%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)0%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.24 | ||
| Fwd PE | 29.12 | ||
| P/S | 5.08 | ||
| P/FCF | 35.12 | ||
| P/OCF | 23.68 | ||
| P/B | 4.59 | ||
| P/tB | 14.06 | ||
| EV/EBITDA | 19.48 |
EPS(TTM)7.84
EY2.69%
EPS(NY)10.02
Fwd EY3.43%
FCF(TTM)8.31
FCFY2.85%
OCF(TTM)12.33
OCFY4.22%
SpS57.49
BVpS63.64
TBVpS20.77
PEG (NY)2.66
PEG (5Y)3.76
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 | 3.92 |
F-Score5
WACC9.64%
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 Y14.02%
EPS Next 2Y15.3%
EPS Next 3Y15.34%
EPS Next 5Y11.33%
Revenue 1Y (TTM)0.19%
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 5Y7.51%
EBIT growth 1Y6.09%
EBIT growth 3Y16.24%
EBIT growth 5Y10.38%
EBIT Next Year78.46%
EBIT Next 3Y29.07%
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%