VULCAN MATERIALS CO (VMC) Stock Fundamental Analysis
NYSE:VMC - New York Stock Exchange, Inc. - US9291601097 - Common Stock - Currency: USD
VMC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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
In the past year VMC was profitable.
VMC had a positive operating cash flow in the past year.
VMC had positive earnings in each of the past 5 years.
In the past 5 years VMC always reported a positive cash flow from operatings.
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's Return On Invested Capital of 7.02% is on the low side compared to the rest of the industry. VMC is outperformed by 69.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
The Profit Margin of VMC (12.50%) is better 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 19.26%, 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 of 27.44%. This is comparable 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.
VMC has about the same amout of shares outstanding than it did 1 year ago.
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
An Altman-Z score of 3.75 indicates that VMC is not in any danger for bankruptcy at the moment.
The Altman-Z score of VMC (3.75) is better than 69.23% of its industry peers.
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.
VMC has a better Debt to FCF ratio (5.67) than 61.54% of its industry peers.
VMC has a Debt/Equity ratio of 0.60. This is a neutral value indicating VMC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.60, 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 | 0.6 | ||
| Debt/FCF | 5.67 | ||
| Altman-Z | 3.75 |
ROIC/WACC0.69
WACC10.19%
2.3 Liquidity
A Current Ratio of 2.42 indicates that VMC has no problem at all paying its short term obligations.
The Current ratio of VMC (2.42) is better than 76.92% 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 76.92% 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.
Measured over the past years, VMC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.91% on average per year.
The Revenue has decreased by -2.24% 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)13.16%
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
The Earnings Per Share is expected to grow by 11.80% on average over the next years. This is quite good.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
VMC is valuated quite expensively with a Price/Earnings ratio of 35.39.
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.
When comparing the Price/Earnings ratio of VMC to the average of the S&P500 Index (27.91), we can say VMC is valued slightly more expensively.
The Price/Forward Earnings ratio is 27.33, which means the current valuation is very expensive for VMC.
61.54% of the companies in the same industry are cheaper than VMC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 37.11. VMC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.39 | ||
| Fwd PE | 27.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VMC is valued a bit more expensive than 69.23% of the companies in the same industry.
69.23% of the companies in the same industry are more expensive than VMC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.64 | ||
| EV/EBITDA | 19.13 |
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's earnings are expected to grow with 15.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.52
PEG (5Y)3.57
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.
VMC's Dividend Yield is a higher than the industry average which is at 4.52.
Compared to an average S&P500 Dividend Yield of 2.32, 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 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
26.48% of the earnings are spent on dividend by VMC. This is a low number and sustainable payout ratio.
The dividend of VMC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP26.48%
EPS Next 2Y15.3%
EPS Next 3Y15.34%
273.92
+3.81 (+1.41%)
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 Cap36.18B
Analysts81.33
Price Target306.1 (11.75%)
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 | 35.39 | ||
| Fwd PE | 27.33 | ||
| P/S | 4.82 | ||
| P/FCF | 41.64 | ||
| P/OCF | 24.32 | ||
| P/B | 4.45 | ||
| P/tB | 14.63 | ||
| EV/EBITDA | 19.13 |
EPS(TTM)7.74
EY2.83%
EPS(NY)10.02
Fwd EY3.66%
FCF(TTM)6.58
FCFY2.4%
OCF(TTM)11.26
OCFY4.11%
SpS56.83
BVpS61.58
TBVpS18.72
PEG (NY)2.52
PEG (5Y)3.57
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 | 3.75 |
F-Score5
WACC10.19%
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%