Vulcan Materials (VMC) AI Stock Analysis

• Market Cap: $31.64B
• Dividend Yield: 0.78%
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): 35.0
• Beta (1Y): 0.89
• Revenue Growth: -4.68%
• EPS Growth: -1.73%
• Country: US
• Employees: 11,971
• Sector: Basic Materials
• Sector Strength: 52
• Industry: Construction Materials
• EPS (TTM): 6.86
• Shares Outstanding: 132,101,180
• 10 Day Avg. Volume: 1,790,786
• 30 Day Avg. Volume: 1,585,719
• PEG Ratio: 14.12
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.17
• Price to Cash Flow (P/CF): 17.60
• P/FCF Ratio: 25.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $292.08
• Price Target Upside: 23.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

Vulcan Materials shows strong financial performance with substantial revenue growth and effective cost management. Technical analysis reveals a bearish trend but nearing oversold levels, which could lead to a reversal. The valuation is on the higher side, suggesting a premium market perception. Positive sentiment from the earnings call, driven by strategic initiatives and robust EBITDA growth, supports the outlook, although shipment declines and non-residential demand challenges present risks.

Positive Factors

Earnings

Vulcan Materials Company posted a solid fourth quarter with EBITDA increasing 16% year-over-year, supported by strong pricing and improved operational efficiency.

Pricing Power

The pricing environment remains positive, with aggregates freight-adjusted price growth expected to be 5% to 7% year-over-year in 2025.

Negative Factors

Interest Rates

On the private side, there is caution due to lingering impacts from elevated interest rates, with aggregates shipments already falling 7% and construction activity relatively weak.

Weather Impact

The coldest 3-month period in the US since the winter of 2013-14 impacted demand in VMC’s Southeastern heartland.

Vulcan Materials Business Overview & Revenue Model

Company Description

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. The Asphalt Mix segment offers asphalt mix in Alabama, Arizona, California, New Mexico, Tennessee, and Texas, as well as engages in the asphalt construction paving activity in Alabama, Tennessee, and Texas. The Concrete segment provides ready-mixed concrete in California, Maryland, New Jersey, New York, Oklahoma, Pennsylvania, Texas and Virginia, and Washington D.C. 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. and changed its name to Vulcan Materials Company. Vulcan Materials Company was founded in 1909 and is headquartered in Birmingham, Alabama.

How the Company Makes Money

Vulcan Materials Company generates revenue primarily through the sale of construction aggregates, which are used in a wide range of infrastructure projects including roads, bridges, and commercial buildings. The company's key revenue streams include the production and distribution of crushed stone, sand, and gravel, which are sold to construction companies, government agencies, and other entities involved in building and infrastructure development. Vulcan Materials also earns from its asphalt mix and ready-mixed concrete segments, which provide further diversification and stability to its income. The company's strategic location of quarries and production facilities near high-growth markets and urban centers enhances its ability to efficiently supply materials, thus contributing to its profitability. Additionally, Vulcan's partnerships and contracts with state and local governments for infrastructure projects play a significant role in sustaining its revenue growth.

Vulcan Materials Financial Statement Overview

Summary

Vulcan Materials demonstrates strong financial health with substantial revenue growth, effective cost management, and solid cash flow generation. Despite a rise in leverage, the company maintains a strong equity position and profitability, suggesting a well-balanced financial strategy. Future stability will depend on managing debt levels while sustaining growth.

Income Statement

Vulcan Materials has shown strong revenue growth over the years, with a notable increase of 12.5% in 2021 and a consistent rise in gross profit margin, reaching 26.9% in 2024. However, the net profit margin has slightly declined from 12.0% to 12.3% over the same period. The EBIT and EBITDA margins are stable, indicating good operational efficiency, although the decline in net income in 2024 might be a concern.

Balance Sheet

The company's debt-to-equity ratio has increased, reflecting higher leverage in 2024. However, Vulcan Materials maintains a healthy equity ratio of 47.5%, showcasing a stable financial structure. The return on equity improved impressively to 11.2%, indicating effective utilization of equity despite increased debt levels.

Cash Flow

Vulcan Materials' cash flow performance is solid, with a commendable free cash flow growth and an operating cash flow to net income ratio of 1.5 in 2024, signifying efficient cash generation. Despite increased capital expenditures, the company's free cash flow remains robust, although fluctuations in investing cash flows indicate potential risk.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.42B	7.78B	7.32B	5.55B	4.86B
	Gross Profit
2.00B	1.95B	1.56B	1.37B	1.28B
	EBIT
1.36B	1.43B	951.40M	1.01B	895.73M
	EBITDA
1.36B	2.06B	1.53B	1.53B	1.31B
	Net Income Common Stockholders
911.90M	933.20M	575.60M	670.80M	584.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
559.70M	931.10M	161.40M	235.00M	1.20B
	Total Assets
17.10B	14.55B	14.23B	13.68B	11.69B
	Total Debt
5.83B	4.39B	4.52B	4.52B	3.69B
	Net Debt
5.27B	3.45B	4.36B	4.29B	2.49B
	Total Liabilities
8.96B	7.04B	7.28B	7.11B	5.66B
	Stockholders Equity
8.12B	7.48B	6.93B	6.54B	6.03B
Cash Flow		Free Cash Flow
806.10M	664.20M	535.60M	560.60M	708.16M
	Operating Cash Flow
1.41B	1.54B	1.15B	1.01B	1.07B
	Investing Cash Flow
-2.81B	-163.50M	-1.05B	-1.87B	-381.51M
	Financing Cash Flow
1.06B	-585.60M	-175.20M	-94.30M	234.66M

Vulcan Materials Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 235.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VMC, the sentiment is Negative. The current price of 235.58 is below the 20-day moving average (MA) of 235.74, below the 50-day MA of 246.42, and below the 200-day MA of 255.23, indicating a bearish trend. The MACD of -3.50 indicates Negative momentum. The RSI at 46.96 is Neutral, neither overbought nor oversold. The STOCH value of 39.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VMC.

Vulcan Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNF	77 Outperform	$5.20B	25.19	14.71%	―	2.42%	10.21%
EXP	72 Outperform	$7.50B	16.09	33.51%	0.44%	0.64%	-1.15%
VMC	72 Outperform	$31.64B	34.96	11.79%	0.78%	-4.68%	-1.73%
JHX	68 Neutral	$8.64B	21.26	21.77%	―	1.26%	-17.38%
CX	66 Neutral	$7.99B	8.61	8.39%	1.55%	-5.07%	417.07%
MLM	63 Neutral	$29.37B	14.87	22.83%	0.65%	-3.56%	70.93%
Sector *	47 Neutral	$2.44B	-2.84	-22.09%	3.51%	4.02%	-28.91%