NYSE:VMC

Stock Analysis Report

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Executive Summary

Vulcan Materials Company produces and supplies construction materials primarily in the United States. More Details


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

VMC

0.3%

US Basic Materials

-1.5%

US Market


1 Year Return

-12.3%

VMC

-13.4%

US Basic Materials

12.9%

US Market

Return vs Industry: VMC exceeded the US Basic Materials industry which returned -13.3% over the past year.

Return vs Market: VMC underperformed the US Market which returned 12.8% over the past year.


Shareholder returns

VMCIndustryMarket
7 Day0.8%0.3%-1.5%
30 Day4.4%4.5%-1.8%
90 Day9.8%8.5%6.6%
1 Year-11.3%-12.3%-12.5%-13.4%15.4%12.9%
3 Year17.0%13.5%5.5%2.8%39.6%30.2%
5 Year58.5%51.6%43.2%37.3%93.4%71.7%

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

Valuation

Is Vulcan Materials undervalued compared to its fair value and its price relative to the market?

7.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VMC ($131.39) is trading below our estimate of fair value ($141.97)

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 (27.6x) compared to the US Basic Materials industry average (22.6x).

PE vs Market: VMC is poor value based on its PE Ratio (27.6x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: VMC is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: VMC is overvalued based on its PB Ratio (3x) compared to the US Basic Materials industry average (1.5x).


Next Steps

Future Growth

How is Vulcan Materials forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VMC's forecast earnings growth (8.6% per year) is above the savings rate (2.2%).

Earnings vs Market: VMC's earnings (8.6% per year) are forecast to grow slower than the US market (23.1% per year).

High Growth Earnings: VMC's earnings are forecast to grow, but not significantly.

Revenue vs Market: VMC's revenue (3.8% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: VMC's revenue (3.8% 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 (11%).


Next Steps

Past Performance

How has Vulcan Materials performed over the past 5 years?

19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VMC has high quality earnings.

Growing Profit Margin: VMC's current net profit margins (12.7%) are higher than last year (12.2%).


Past Earnings Growth Analysis

Earnings Trend: VMC's earnings have grown by 19.7% per year over the past 5 years.

Accelerating Growth: VMC's earnings growth over the past year (11.5%) is below its 5-year average (19.7% per year).

Earnings vs Industry: VMC earnings growth over the past year (11.5%) underperformed the Basic Materials industry 17.2%.


Return on Equity

High ROE: VMC's Return on Equity (11%) 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 ($2.0B) exceed its short term liabilities ($1.0B).

Long Term Liabilities: VMC's short term assets ($2.0B) do not cover its long term liabilities ($4.6B).


Debt to Equity History and Analysis

Debt Level: VMC's debt to equity ratio (57%) is considered high.

Reducing Debt: VMC's debt to equity ratio has increased from 48.3% to 57% over the past 5 years.

Debt Coverage: VMC's debt is well covered by operating cash flow (33.7%).

Interest Coverage: VMC's interest payments on its debt are well covered by EBIT (7.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Vulcan Materials's current dividend yield, its reliability and sustainability?

1.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VMC's dividend (1.04%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: VMC's dividend (1.04%) is low compared to the top 25% of dividend payers in the US market (4.7%).


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 increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.3%), 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 (23.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Tom Hill (61 yo)

6.17yrs

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 ($USD9.56M) is about average for companies of similar size in the US market ($USD11.35M).

Compensation vs Earnings: Tom's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Hill
Chairman6.17yrsUS$9.56m0.097%
$ 16.9m
Suzanne Wood
Senior VP & CFO2yrsUS$3.14m0.00036%
$ 62.6k
Thompson Baker
Chief Operating Officer1.33yrsUS$2.87m0.015%
$ 2.7m
Stanley Bass
Chief Growth Officer8.67yrsUS$3.15m0.033%
$ 5.8m
David Clement
Senior Vice President of Mountain West & Western Divisions5.67yrsUS$1.78m0.0084%
$ 1.5m
Mark Warren
Vice President of Investor Relationsno datano datano data
Mitesh Shah
VP & Deputy General Counsel0.92yrno datano data
Denson Franklin
Senior VP0.75yrno data0.000090%
$ 15.7k
Janet Kavinoky
Vice President of External Affairs & Corporate Communicationsno datano datano data
Larry Miller
Vice President of Human Resources2.67yrsno datano data
Jerry Perkins
Senior Vice President of Southern & Gulf Coast and Southwest Divisions1.33yrsno data0.012%
$ 2.1m
Jason Teter
Senior Vice President of Southeast & Mideast Divisions0.50yrno data0.0069%
$ 1.2m

1.7yrs

Average Tenure

59yo

Average Age

Experienced Management: VMC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
James Hill
Chairman6.17yrsUS$9.56m0.097%
$ 16.9m
O. B. Hall
Lead Independent Director1.33yrsUS$305.75k0%
$ 0
Kathleen Quirk
Independent Director2.92yrsUS$262.78k0%
$ 0
Lee Styslinger
Independent Director7.5yrsUS$282.87k0.0030%
$ 525.6k
David Steiner
Independent Director3.58yrsUS$279.25k0.0038%
$ 657.8k
Richard O'Brien
Independent Director11.92yrsUS$303.74k0%
$ 0
James Prokopanko
Independent Director10.75yrsUS$281.09k0%
$ 0
Thomas Fanning
Independent Director5.58yrsUS$288.10k0%
$ 0
Cynthia Hostetler
Independent Director6.17yrsUS$268.10k0%
$ 0
Melissa Anderson
Independent Director0.92yrUS$55.00kno data
George Willis
Independent Director0.50yrno datano data

4.7yrs

Average Tenure

60yo

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: Insufficient data to determine if 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$17.402b
  • Shares outstanding: 132.45m
  • Website: https://www.vulcanmaterials.com

Number of Employees


Location

  • Vulcan Materials Company
  • 1200 Urban Center Drive
  • Birmingham
  • Alabama
  • 35242
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VMCNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
VMCDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0LRKLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
V1MC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/21 05:53
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.