Vulcan Materials
Market Cap
US$22.5b
Last Updated
2021/09/18 22:03 UTC
Data Sources
Company Financials +
Executive Summary
Vulcan Materials Company produces and supplies construction aggregate primarily in the United States. More Details
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet with acceptable track record.
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: VMC's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-4.4%
VMC
-5.5%
US Basic Materials
-0.6%
US Market
1 Year Return
29.3%
VMC
47.0%
US Basic Materials
33.8%
US Market
Return vs Industry: VMC underperformed the US Basic Materials industry which returned 47% over the past year.
Return vs Market: VMC underperformed the US Market which returned 33.8% over the past year.
Shareholder returns
| VMC | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.4% | -5.5% | -0.6% |
| 30 Day | -7.3% | -8.2% | 1.6% |
| 90 Day | 2.4% | 1.8% | 4.6% |
| 1 Year | 30.4%29.3% | 48.1%47.0% | 35.8%33.8% |
| 3 Year | 51.4%47.0% | 62.7%58.6% | 60.0%50.1% |
| 5 Year | 58.8%51.6% | 75.4%68.7% | 123.0%98.7% |
Long-Term 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
5 days ago | Simply Wall St
Returns On Capital At Vulcan Materials (NYSE:VMC) Have Hit The Brakes2 weeks ago | Simply Wall St
This Insider Has Just Sold Shares In Vulcan Materials Company (NYSE:VMC)3 weeks ago | Simply Wall St
Is Vulcan Materials Company's (NYSE:VMC) Latest Stock Performance Being Led By Its Strong Fundamentals?Valuation
Is Vulcan Materials undervalued compared to its fair value and its price relative to the market?
49.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VMC ($169.88) is trading below our estimate of fair value ($335.91)
Significantly Below Fair Value: VMC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: VMC is poor value based on its PE Ratio (33.4x) compared to the US Basic Materials industry average (17x).
PE vs Market: VMC is poor value based on its PE Ratio (33.4x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: VMC is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: VMC is overvalued based on its PB Ratio (3.6x) compared to the US Basic Materials industry average (3x).
Future Growth
How is Vulcan Materials forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
16.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VMC's forecast earnings growth (16.4% per year) is above the savings rate (2%).
Earnings vs Market: VMC's earnings (16.4% per year) are forecast to grow faster than the US market (14.9% per year).
High Growth Earnings: VMC's earnings are forecast to grow, but not significantly.
Revenue vs Market: VMC's revenue (12.5% per year) is forecast to grow faster than the US market (9.8% per year).
High Growth Revenue: VMC's revenue (12.5% 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 (14.3%).
Past Performance
How has Vulcan Materials performed over the past 5 years?
9.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VMC has high quality earnings.
Growing Profit Margin: VMC's current net profit margins (13.7%) are higher than last year (12.7%).
Past Earnings Growth Analysis
Earnings Trend: VMC's earnings have grown by 9.7% per year over the past 5 years.
Accelerating Growth: VMC's earnings growth over the past year (6.9%) is below its 5-year average (9.7% per year).
Earnings vs Industry: VMC earnings growth over the past year (6.9%) underperformed the Basic Materials industry 51.2%.
Return on Equity
High ROE: VMC's Return on Equity (10.7%) is considered low.
Financial Health
How is Vulcan Materials's financial position?
Financial Position Analysis
Short Term Liabilities: VMC's short term assets ($2.2B) exceed its short term liabilities ($599.2M).
Long Term Liabilities: VMC's short term assets ($2.2B) do not cover its long term liabilities ($4.7B).
Debt to Equity History and Analysis
Debt Level: VMC's debt to equity ratio (44.3%) is considered high.
Reducing Debt: VMC's debt to equity ratio has reduced from 44.3% to 44.3% over the past 5 years.
Debt Coverage: VMC's debt is well covered by operating cash flow (37.4%).
Interest Coverage: VMC's interest payments on its debt are well covered by EBIT (6.4x coverage).
Balance Sheet
Dividend
What is Vulcan Materials's current dividend yield, its reliability and sustainability?
0.87%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: VMC's dividend (0.87%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: VMC's dividend (0.87%) is low compared to the top 25% of dividend payers in the US market (3.6%).
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 increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (27.9%), 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 (17.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.7yrs
Average management tenure
CEO
Tom Hill (62 yo)
7.17yrs
Tenure
US$9,883,031
Compensation
Mr. James Thomas Hill, also known as Tom, has been the Chief Executive Officer and President at Vulcan Materials Company since July 14, 2014. Mr. Hill served as the Chief Operating Officer and Executive Vi...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD9.88M) is about average for companies of similar size in the US market ($USD11.36M).
Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: VMC's management team is considered experienced (2.7 years average tenure).
Board Members
Experienced Board: VMC's board of directors are considered experienced (5.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: VMC insiders have only sold shares 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$22.539b
- Shares outstanding: 132.68m
- Website: https://www.vulcanmaterials.com
Number of Employees
Location
- Vulcan Materials Company
- 1200 Urban Center Drive
- Birmingham
- Alabama
- 35242
- United States
Listings
Biography
Vulcan Materials Company produces and supplies construction aggregate primarily in the United States. It operates through four segments: Aggregates, Asphalt, Concrete, and Calcium. The Aggregates segment p...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/18 22:03 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.