Vulcan Materials Co. (VMC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Smart Sand, Inc.

Northwest Pipe Co.

United States Lime & Minerals, Inc.

Smith-Midland Corp.

Vulcan Materials Co.

Eagle Materials, Inc.

Summit Materials, Inc.

Martin Marietta Materials, Inc.

Knife River Corp.

Atlas Energy Solutions, Inc.

ReTo Eco-Solutions, Inc.

Why is Vulcan Materials Co. ?

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 8.82%

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at USD 1,628.3 MM
DIVIDEND PER SHARE(HY) Highest at USD 7.1
RAW MATERIAL COST(Y) Fallen by -1.2% (YoY)

With ROCE of 11.91%, it has a very expensive valuation with a 3.08 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 2.13%, its profits have risen by 8% ; the PEG ratio of the company is 4.2

Underperformed the market in the last 1 year

The stock has generated a return of 2.13% in the last 1 year, much lower than market (S&P 500) returns of 12.94%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Vulcan Materials Co. should be less than 10%
Overall Portfolio exposure to Building Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Building Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Vulcan Materials Co. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Vulcan Materials Co.

2.8%

0.75

23.96%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.82%

EBIT Growth (5y)

10.91%

EBIT to Interest (avg)

7.20

Debt to EBITDA (avg)

1.97

Net Debt to Equity (avg)

0.59

Sales to Capital Employed (avg)

0.64

Tax Ratio

21.31%

Dividend Payout Ratio

26.86%

Pledged Shares

Institutional Holding

99.03%

ROCE (avg)

11.21%

ROE (avg)

11.11%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.30

EV to EBIT

25.86

EV to EBITDA

17.92

EV to Capital Employed

3.08

EV to Sales

5.30

PEG Ratio

4.20

Dividend Yield

0.72%

ROCE (Latest)

11.91%

ROE (Latest)

12.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,628.3 MM

DIVIDEND PER SHARE(HY)

Highest at USD 7.1

RAW MATERIAL COST(Y)

Fallen by -1.2% (YoY

NET SALES(Q)

Highest at USD 2,102.4 MM

OPERATING PROFIT(Q)

Highest at USD 666.7 MM

OPERATING PROFIT MARGIN(Q)

Highest at 31.71 %

PRE-TAX PROFIT(Q)

Highest at USD 414.8 MM

NET PROFIT(Q)

Highest at USD 323.47 MM

EPS(Q)

Highest at USD 2.41

-6What is not working for the Company

INTEREST(HY)

At USD 117.7 MM has Grown at 50.51%

INVENTORY TURNOVER RATIO(HY)

Lowest at 8 times

Here's what is working for Vulcan Materials Co.

Operating Cash Flow

Highest at USD 1,628.3 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 7.1 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 2,102.4 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 666.7 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 31.71 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 414.8 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 323.47 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 2.41

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by -1.2% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Vulcan Materials Co.

Interest

At USD 117.7 MM has Grown at 50.51%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Inventory Turnover Ratio

Lowest at 8 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio