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VMC

Vulcan Materials NYSE:VMC Stock Report

Last Price

US$164.88

Market Cap

US$21.3b

7D

2.1%

1Y

-13.2%

Updated

17 May, 2022

Data

Company Financials +
VMC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance2/6
Financial Health3/6
Dividends3/6

VMC Stock Overview

Vulcan Materials Company, together with its subsidiaries, produces and supplies construction aggregates primarily in the United States.

Vulcan Materials Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Vulcan Materials
Historical stock prices
Current Share PriceUS$164.88
52 Week HighUS$213.65
52 Week LowUS$156.53
Beta0.70
1 Month Change-5.66%
3 Month Change-14.00%
1 Year Change-13.25%
3 Year Change25.33%
5 Year Change30.19%
Change since IPO1,005.34%

Recent News & Updates

Shareholder Returns

VMCUS Basic MaterialsUS Market
7D2.1%2.8%2.7%
1Y-13.2%-12.3%-8.1%

Return vs Industry: VMC exceeded the US Basic Materials industry which returned -16.5% over the past year.

Return vs Market: VMC underperformed the US Market which returned -10.8% over the past year.

Price Volatility

Is VMC's price volatile compared to industry and market?
VMC volatility
VMC Average Weekly Movement5.5%
Basic Materials Industry Average Movement6.4%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market2.9%

Stable Share Price: VMC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: VMC's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
190911,912Tom Hillhttps://www.vulcanmaterials.com

Vulcan Materials Company, together with its subsidiaries, produces and supplies construction aggregates primarily in the United States. It 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.

Vulcan Materials Fundamentals Summary

How do Vulcan Materials's earnings and revenue compare to its market cap?
VMC fundamental statistics
Market CapUS$21.28b
Earnings (TTM)US$606.00m
Revenue (TTM)US$6.02b

36.2x

P/E Ratio

3.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VMC income statement (TTM)
RevenueUS$6.02b
Cost of RevenueUS$4.61b
Gross ProfitUS$1.41b
Other ExpensesUS$806.90m
EarningsUS$606.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.56
Gross Margin23.45%
Net Profit Margin10.06%
Debt/Equity Ratio60.3%

How did VMC perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

33%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: VMC ($164.88) is trading below our estimate of fair value ($395.39)

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 (36.2x) compared to the US Basic Materials industry average (16.5x).

PE vs Market: VMC is poor value based on its PE Ratio (36.2x) compared to the US market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: VMC is poor value based on its PEG Ratio (1.8x)


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 (2.2x).


Future Growth

How is Vulcan Materials forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


19.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VMC's forecast earnings growth (19.8% per year) is above the savings rate (1.9%).

Earnings vs Market: VMC's earnings (19.8% per year) are forecast to grow faster than the US market (12.5% per year).

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

Revenue vs Market: VMC's revenue (8.2% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: VMC's revenue (8.2% 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 (14.9%).


Past Performance

How has Vulcan Materials performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


6.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VMC has high quality earnings.

Growing Profit Margin: VMC's current net profit margins (10.1%) are lower than last year (14.1%).


Past Earnings Growth Analysis

Earnings Trend: VMC's earnings have grown by 6.5% 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 (-12.1%) over the past year, making it difficult to compare to the Basic Materials industry average (-12.2%).


Return on Equity

High ROE: VMC's Return on Equity (9.2%) is considered low.


Financial Health

How is Vulcan Materials's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: VMC's short term assets ($1.7B) exceed its short term liabilities ($892.7M).

Long Term Liabilities: VMC's short term assets ($1.7B) do not cover its long term liabilities ($6.4B).


Debt to Equity History and Analysis

Debt Level: VMC's net debt to equity ratio (58.4%) is considered high.

Reducing Debt: VMC's debt to equity ratio has increased from 51.8% to 60.3% over the past 5 years.

Debt Coverage: VMC's debt is well covered by operating cash flow (25.6%).

Interest Coverage: VMC's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet


Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.97%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: VMC's dividend (0.97%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: VMC's dividend (0.97%) is low compared to the top 25% of dividend payers in the US market (4.06%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (33.1%), VMC's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (41.9%), VMC's dividend payments are well covered by cash flows.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Tom Hill (62 yo)

7.83yrs

Tenure

US$10,420,114

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 ($USD10.42M) is about average for companies of similar size in the US market ($USD13.27M).

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 (3.3 years average tenure).


Board Members

Experienced Board: VMC's board of directors are considered experienced (7.8 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 employee growth, exchange listings and data sources


Key Information

  • Name: Vulcan Materials Company
  • Ticker: VMC
  • Exchange: NYSE
  • Founded: 1909
  • Industry: Construction Materials
  • Sector: Materials
  • Implied Market Cap: US$21.281b
  • Shares outstanding: 132.90m
  • Website: https://www.vulcanmaterials.com

Number of Employees


Location

  • Vulcan Materials Company
  • 1200 Urban Center Drive
  • Birmingham
  • Alabama
  • 35242-5014
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/17 00:00
End of Day Share Price2022/05/17 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.