Vulcan Materials
Market Cap
US$18.7b
Last Updated
2020/01/20 23:51 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
Mediocre balance sheet with questionable 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.8%
VMC
-0.4%
US Basic Materials
1.2%
US Market
1 Year Return
36.2%
VMC
38.0%
US Basic Materials
24.2%
US Market
Return vs Industry: VMC underperformed the US Basic Materials industry which returned 37.6% over the past year.
Return vs Market: VMC exceeded the US Market which returned 24.7% over the past year.
Shareholder returns
| VMC | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.8% | -0.4% | 1.2% |
| 30 Day | -0.5% | -0.8% | 3.5% |
| 90 Day | -3.2% | -0.4% | 11.7% |
| 1 Year | 37.5%36.2% | 39.3%38.0% | 26.9%24.2% |
| 3 Year | 12.0%8.9% | 9.2%6.6% | 53.0%43.2% |
| 5 Year | 108.1%100.1% | 105.7%97.0% | 75.3%56.0% |
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
Are Insiders Selling Vulcan Materials Company (NYSE:VMC) Stock?1 month ago | Simply Wall St
You Have To Love Vulcan Materials Company's (NYSE:VMC) Dividend1 month ago | Simply Wall St
Is Vulcan Materials's (NYSE:VMC) 128% Share Price Increase Well Justified?Valuation
Is Vulcan Materials undervalued compared to its fair value and its price relative to the market?
11.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VMC ($139.4) is trading below our estimate of fair value ($158.4)
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 (30.5x) compared to the Basic Materials industry average (29.5x).
PE vs Market: VMC is poor value based on its PE Ratio (30.5x) compared to the US market (18.9x).
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 (3.3x) compared to the US Basic Materials industry average (2.1x).
Next Steps
Future Growth
How is Vulcan Materials forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
15.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VMC's forecast earnings growth (15.1% per year) is above the savings rate (1.7%).
Earnings vs Market: VMC's earnings (15.1% per year) are forecast to grow faster than the US market (14.3% per year).
High Growth Earnings: VMC's earnings are forecast to grow, but not significantly.
Revenue vs Market: VMC's revenue (6.4% per year) is forecast to grow slower than the US market (7.5% per year).
High Growth Revenue: VMC's revenue (6.4% 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 (12.8%).
Next Steps
Past Performance
How has Vulcan Materials performed over the past 5 years?
26.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VMC has high quality earnings.
Growing Profit Margin: VMC's current net profit margins (12.5%) are lower than last year (16.9%).
Past Earnings Growth Analysis
Earnings Trend: VMC's earnings have grown significantly by 26.3% per year over the past 5 years.
Accelerating Growth: VMC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: VMC had negative earnings growth (-16.3%) over the past year, making it difficult to compare to the Basic Materials industry average (-19.9%).
Return on Equity
High ROE: VMC's Return on Equity (10.9%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Vulcan Materials's financial position?
Financial Position Analysis
Short Term Liabilities: VMC's short term assets ($1.3B) exceed its short term liabilities ($535.3M).
Long Term Liabilities: VMC's short term assets ($1.3B) do not cover its long term liabilities ($4.5B).
Debt to Equity History and Analysis
Debt Level: VMC's debt to equity ratio (50.2%) is considered high.
Reducing Debt: VMC's debt to equity ratio has increased from 47.7% to 50.2% over the past 5 years.
Debt Coverage: VMC's debt is well covered by operating cash flow (32.6%).
Interest Coverage: VMC's interest payments on its debt are well covered by EBIT (6.4x 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?
0.88%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: VMC's dividend (0.89%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: VMC's dividend (0.89%) is low compared to the top 25% of dividend payers in the US market (3.66%).
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 (26.5%), 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 (22.1% payout ratio).
Next Steps
Management
What is the CEO of Vulcan Materials's salary, the management and board of directors tenure and is there insider trading?
1.0yrs
Average management tenure
CEO
Tom Hill (60yo)
5.5yrs
Tenure
US$7,681,409
Compensation
Mr. James Thomas Hill, also known as Tom, has been the Chief Executive Officer and President at Vulcan Materials Company since July 14, 2014. Mr. Hill served as the Chief Operating Officer and Executive Vi ...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD7.68M) is about average for companies of similar size in the US market ($USD10.76M).
Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.
Management Age and Tenure
1.0yrs
Average Tenure
58yo
Average Age
Experienced Management: VMC's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Board Age and Tenure
4.5yrs
Average Tenure
59.5yo
Average Age
Experienced Board: VMC's board of directors are considered experienced (4.5 years average tenure).
Insider Trading
Insider Buying: VMC insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 643 |
| Max Price | US$140.64 |
| Entity | Individual |
| Shares | 1,171 |
| Max Price | US$134.93 |
| Entity | Individual |
| Shares | 2,789 |
| Max Price | US$114.28 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Tom Baker (61yo)
Chief Operating Officer
- Tenure: 0.7yrs
- Compensation: US$2.46m
D. Franklin
Senior Vice President & General Counsel
- Tenure: 0.08yrs
Tom Hill (60yo)
Chairman
- Tenure: 5.5yrs
- Compensation: US$7.68m
Mark Warren
Vice President of Investor Relations
Stan Bass (58yo)
Chief Growth Officer
- Tenure: 8yrs
- Compensation: US$2.66m
Suzanne Wood (58yo)
Senior VP
- Tenure: 1.3yrs
- Compensation: US$1.44m
Jerry Perkins (49yo)
President of Southern & Gulf Coast Division
- Tenure: 0.7yrs
Larry Miller
Vice President of Human Resources
- Tenure: 2yrs
Janet Kavinoky
Vice President of External Affairs & Corporate Communications
Mitesh Shah
VP & Deputy General Counsel
- Tenure: 0.3yrs
Board Members
O. B. Hall (62yo)
Lead Director
- Tenure: 0.7yrs
- Compensation: US$283.41k
Kathleen Quirk (55yo)
Independent Director
- Tenure: 2.3yrs
- Compensation: US$261.29k
Lee Styslinger (58yo)
Independent Director
- Tenure: 6.8yrs
- Compensation: US$270.31k
David Steiner (59yo)
Independent Director
- Tenure: 2.9yrs
- Compensation: US$262.60k
Richard O’Brien (65yo)
Independent Director
- Tenure: 11.3yrs
- Compensation: US$300.03k
Jim Prokopanko (66yo)
Independent Director
- Tenure: 10.1yrs
- Compensation: US$317.66k
Tom Fanning (62yo)
Independent Director
- Tenure: 4.9yrs
- Compensation: US$266.05k
D. Wilson (56yo)
Independent Director
- Tenure: 0.5yrs
Tom Hill (60yo)
Chairman
- Tenure: 5.5yrs
- Compensation: US$7.68m
Cynthia Hostetler (56yo)
Independent Director
- Tenure: 5.5yrs
- Compensation: US$276.05k
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$18.677b
- Shares outstanding: 132.35m
- 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 |
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. 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 | 2020/01/20 23:51 |
| End of Day Share Price | 2020/01/17 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.