Vulcan Materials
Market Cap
US$13.2b
Last Updated
2020/04/04 00:35 UTC
Data Sources
Company Financials +
Executive Summary
Vulcan Materials Company produces and supplies construction materials primarily in the United States.
Rewards
Risk Analysis
Snowflake Analysis
Acceptable track record with mediocre balance sheet.
Similar Companies
Share Price & News
How has Vulcan Materials's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: VMC's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
0%
VMC
-0.5%
US Basic Materials
-2.0%
US Market
1 Year Return
-17.5%
VMC
-21.1%
US Basic Materials
-15.1%
US Market
Return vs Industry: VMC underperformed the US Basic Materials industry which returned -15.3% over the past year.
Return vs Market: VMC underperformed the US Market which returned -14.9% over the past year.
Shareholder returns
| VMC | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | -0.5% | -2.0% |
| 30 Day | -23.5% | -28.6% | -19.7% |
| 90 Day | -30.2% | -35.7% | -23.2% |
| 1 Year | -16.7%-17.5% | -20.4%-21.1% | -13.4%-15.1% |
| 3 Year | -17.7%-20.0% | -26.4%-28.2% | 10.9%3.7% |
| 5 Year | 23.9%19.0% | 10.1%6.0% | 28.4%14.4% |
Price Volatility Vs. Market
How volatile is Vulcan Materials's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
A Sliding Share Price Has Us Looking At Vulcan Materials Company's (NYSE:VMC) P/E Ratio3 weeks ago | Simply Wall St
Does Vulcan Materials Company's (NYSE:VMC) CEO Pay Compare Well With Peers?1 month ago | Simply Wall St
Is It Smart To Buy Vulcan Materials Company (NYSE:VMC) Before It Goes Ex-Dividend?Valuation
Is Vulcan Materials undervalued compared to its fair value and its price relative to the market?
5.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VMC ($99.21) is trading below our estimate of fair value ($104.41)
Significantly Below Fair Value: VMC is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: VMC is poor value based on its PE Ratio (21.1x) compared to the Basic Materials industry average (14.1x).
PE vs Market: VMC is poor value based on its PE Ratio (21.1x) compared to the US market (12.5x).
Price to Earnings Growth Ratio
PEG Ratio: VMC is poor value based on its PEG Ratio (2.7x)
Price to Book Ratio
PB vs Industry: VMC is overvalued based on its PB Ratio (2.3x) compared to the US Basic Materials industry average (1.1x).
Next Steps
Future Growth
How is Vulcan Materials forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
7.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VMC's forecast earnings growth (7.9% per year) is above the savings rate (1.7%).
Earnings vs Market: VMC's earnings (7.9% per year) are forecast to grow slower than the US market (12.2% per year).
High Growth Earnings: VMC's earnings are forecast to grow, but not significantly.
Revenue vs Market: VMC's revenue (3% per year) is forecast to grow slower than the US market (7.1% per year).
High Growth Revenue: VMC's revenue (3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: VMC's Return on Equity is forecast to be low in 3 years time (9.6%).
Next Steps
Past Performance
How has Vulcan Materials performed over the past 5 years?
24.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VMC has high quality earnings.
Growing Profit Margin: VMC's current net profit margins (12.6%) are higher than last year (11.8%).
Past Earnings Growth Analysis
Earnings Trend: VMC's earnings have grown significantly by 24.6% per year over the past 5 years.
Accelerating Growth: VMC's earnings growth over the past year (20.2%) is below its 5-year average (24.6% per year).
Earnings vs Industry: VMC earnings growth over the past year (20.2%) underperformed the Basic Materials industry 32.4%.
Return on Equity
High ROE: VMC's Return on Equity (11.1%) is considered low.
Next Steps
Financial Health
How is Vulcan Materials's financial position?
Financial Position Analysis
Short Term Liabilities: VMC's short term assets ($1.4B) exceed its short term liabilities ($535.6M).
Long Term Liabilities: VMC's short term assets ($1.4B) do not cover its long term liabilities ($4.5B).
Debt to Equity History and Analysis
Debt Level: VMC's debt to equity ratio (49.5%) is considered high.
Reducing Debt: VMC's debt to equity ratio has increased from 47.6% to 49.5% over the past 5 years.
Debt Coverage: VMC's debt is well covered by operating cash flow (35.3%).
Interest Coverage: VMC's interest payments on its debt are well covered by EBIT (6.8x coverage).
Balance Sheet
Inventory Level: VMC has a high level of physical assets or inventory.
Debt Coverage by Assets: VMC's debt is not covered by short term assets (assets are 0.5x debt).
Next Steps
Dividend
What is Vulcan Materials's current dividend yield, its reliability and sustainability?
1.37%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: VMC's dividend (1.37%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.04%).
High Dividend: VMC's dividend (1.37%) is low compared to the top 25% of dividend payers in the US market (5.7%).
Stability and Growth of Payments
Stable Dividend: VMC's dividend payments have been volatile in the past 10 years.
Growing Dividend: VMC's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (26.4%), VMC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: VMC's dividends in 3 years are forecast to be well covered by earnings (20.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.9yrs
Average management tenure
CEO
Tom Hill (60yo)
5.75s
Tenure
US$9,556,186
Compensation
Mr. James Thomas Hill, also known as Tom, has been the Chief Executive Officer and President at Vulcan Materials Company since July 14, 2014. Mr. Hill served as the Chief Operating Officer and Executive Vi ...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD9.56M) is about average for companies of similar size in the US market ($USD11.87M).
Compensation vs Earnings: Tom's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 5.75yrs | US$9.56m | 0.097% $12.8m | |
| Senior VP & CFO | 1.58yrs | US$3.14m | 0.00036% $47.3k | |
| Chief Operating Officer | 0.92yr | US$2.87m | 0.015% $2.0m | |
| Chief Growth Officer | 8.25yrs | US$3.15m | 0.033% $4.4m | |
| Senior Vice President of Mountain West & Western Divisions | 5.25yrs | US$1.78m | 0.0084% $1.1m | |
| Vice President of Investor Relations | no data | no data | no data | |
| VP & Deputy General Counsel | 0.50yr | no data | no data | |
| Senior VP | 0.33yr | no data | 0.000090% $11.8k | |
| Vice President of External Affairs & Corporate Communications | no data | no data | no data | |
| Vice President of Human Resources | 2.25yrs | no data | no data |
1.9yrs
Average Tenure
58.5yo
Average Age
Experienced Management: VMC's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 5.75yrs | US$9.56m | 0.097% $12.8m | |
| Lead Independent Director | 0.92yr | US$305.75k | no data | |
| Independent Director | 2.5yrs | US$262.78k | no data | |
| Independent Director | 7.08yrs | US$282.87k | 0.0030% $397.2k | |
| Independent Director | 3.17yrs | US$279.25k | 0.0038% $495.8k | |
| Independent Director | 11.5yrs | US$303.74k | no data | |
| Independent Director | 10.33yrs | US$281.09k | no data | |
| Independent Director | 5.17yrs | US$288.10k | no data | |
| Independent Director | 5.75yrs | US$268.10k | no data | |
| Independent Director | 0.50yr | US$55.00k | no data |
4.7yrs
Average Tenure
59.5yo
Average Age
Experienced Board: VMC's board of directors are considered experienced (4.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: VMC insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Vulcan Materials Company's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Vulcan Materials Company
- Ticker: VMC
- Exchange: NYSE
- Founded: 1909
- Industry: Construction Materials
- Sector: Materials
- Market Cap: US$13.151b
- Shares outstanding: 132.56m
- Website: https://www.vulcanmaterials.com
Number of Employees
Location
- Vulcan Materials Company
- 1200 Urban Center Drive
- Birmingham
- Alabama
- 35242
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| VMC | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| VMC | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| 0LRK | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
| VMC | BRSE (Berne Stock Exchange) | Yes | Common Stock | CH | CHF | Jan 1968 |
| V1MC34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 4 REPR 1 COM | BR | BRL | Jan 2020 |
Biography
Vulcan Materials Company produces and supplies construction materials primarily in the United States. The company operates through four segments: Aggregates, Asphalt, Concrete, and Calcium. The Aggregates segment provides crushed stones, sand and gravel, sand, and other aggregates; and related products and services that are applied in construction and maintenance of highways, streets, and other public works, as well as in the construction of housing and commercial, industrial, and other nonresidential facilities. The Asphalt Mix segment offers asphalt mix in Alabama, Arizona, California, New Mexico, Tennessee, and Texas. The Concrete segment provides ready-mixed concrete in California, Maryland, New Mexico, Texas, Virginia, Washington D.C., and the Bahamas. The Calcium segment mines, produces, and sells calcium products for the animal feed, plastics, and water treatment industries. The company was formerly known as Virginia Holdco, Inc. and changed its name to Vulcan Materials Company. Vulcan Materials Company was founded in 1909 and is headquartered in Birmingham, Alabama.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/04 00:35 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.