Vulcan Materials (VMC) AI Stock Analysis

• Market Cap: $39.02B
• Dividend Yield: 0.65%
• Average Volume (3M): 702.45K
• Price to Earnings (P/E): 41.3
• Beta (1Y): 0.83
• Revenue Growth: 0.19%
• EPS Growth: 4.33%
• Country: US
• Employees: 11,971
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 2.45
• Shares Outstanding: 132,124,160
• 10 Day Avg. Volume: 642,211
• 30 Day Avg. Volume: 702,452
• PEG Ratio: -20.15
• Price to Book (P/B): 4.19
• Price to Sales (P/S): 4.59
• P/FCF Ratio: 42.22
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 5.25
• Enterprise Value/Gross Profit: 19.04
• Enterprise Value/Ebitda: 18.75
• 1Y Price Target: $314.36
• Price Target Upside: 6.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 76 Outperform
• Price Target: $328.00 ▲(11.01% Upside)

Vulcan Materials demonstrates strong financial performance and resilience in challenging conditions, supported by robust earnings and cash flow growth. The technical indicators suggest a bullish trend, though caution is advised due to potential overvaluation and overbought signals. The positive outlook in public infrastructure demand further supports the stock's potential, despite challenges in residential construction.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business operations, supporting long-term financial stability.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, enabling strategic investments and debt management, crucial for sustained growth.

Public Infrastructure Demand

Increased infrastructure spending, driven by legislative support, provides a stable demand base, benefiting Vulcan's core aggregates business.

Negative Factors

Rising Liabilities

Increased liabilities can strain financial resources, potentially impacting future investment capacity and financial health.

Residential Construction Weakness

Weakness in residential construction could limit growth opportunities in this segment, affecting revenue diversification.

EBITDA Margin Decline

A declining EBITDA margin suggests rising operational costs or reduced pricing power, potentially impacting profitability.

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 generates revenue primarily through the sale of construction aggregates, which account for a significant portion of its income. The company has a diversified customer base that includes contractors, government agencies, and industrial customers, allowing for stable demand across various sectors. Additional revenue is derived from its Concrete and Asphalt segment, which complements its aggregates business. Vulcan also engages in strategic partnerships and acquisitions to expand its market presence and operational efficiency. Factors contributing to its earnings include infrastructure spending, housing market trends, and regional economic growth, as well as the company's ability to leverage its extensive network of production facilities and distribution channels.

Vulcan Materials Financial Statement Overview

Summary

Vulcan Materials maintains a strong financial position with consistent revenue growth and profitability. The company shows effective operational efficiency and a solid balance sheet, evidenced by manageable debt levels and strong returns on equity. Cash flow generation is robust, though attention to rising liabilities and capital expenditures is warranted to maintain financial health.

Income Statement

Vulcan Materials demonstrates robust revenue growth with a TTM revenue increase of 2.38% compared to the previous year. The gross profit margin is strong at 27.55%, and the net profit margin is healthy at 12.52%. EBIT margin stands at 18.90%, indicating solid operational efficiency. However, EBITDA margin declined in the TTM to 16.60% from a higher value in the previous year, suggesting potential increased operating expenses or lower non-operating income.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.58, which is manageable for the industry. The equity ratio is 49.53%, indicating a balanced spread between equity and total assets. Return on equity is strong at 11.31%, reflecting effective use of shareholders’ funds. However, the company's total liabilities increased, which could indicate growing leverage.

Cash Flow

Vulcan Materials shows a significant free cash flow growth rate of 36.23% in the TTM, highlighting improved cash generation. The operating cash flow to net income ratio of 1.71 suggests healthy cash flow relative to net income. However, the free cash flow to net income ratio is 1.15, indicating a slight decrease when compared to the previous year, suggesting increased capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.59B	7.42B	7.78B	7.32B	5.55B	4.86B
Gross Profit	2.09B	2.00B	1.95B	1.56B	1.37B	1.28B
EBITDA	2.12B	1.98B	2.04B	1.53B	1.47B	1.28B
Net Income	951.10M	911.90M	933.20M	575.60M	670.80M	584.50M
Balance Sheet
Total Assets	16.97B	17.10B	14.55B	14.23B	13.68B	11.69B
Cash, Cash Equivalents and Short-Term Investments	347.40M	559.70M	931.10M	161.40M	235.00M	1.20B
Total Debt	5.45B	5.83B	4.39B	4.52B	4.52B	3.69B
Total Liabilities	8.54B	8.96B	7.04B	7.28B	7.11B	5.66B
Stockholders Equity	8.41B	8.12B	7.48B	6.93B	6.54B	6.03B
Cash Flow
Free Cash Flow	1.10B	806.10M	664.20M	535.60M	560.60M	708.16M
Operating Cash Flow	1.63B	1.41B	1.54B	1.15B	1.01B	1.07B
Investing Cash Flow	-2.52B	-2.81B	-163.50M	-1.05B	-1.87B	-381.51M
Financing Cash Flow	1.13B	1.06B	-585.60M	-175.20M	-94.30M	234.66M

Vulcan Materials Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 295.47
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VMC, the sentiment is Neutral. The current price of 295.47 is below the 20-day moving average (MA) of 301.11, below the 50-day MA of 296.13, and above the 200-day MA of 267.22, indicating a neutral trend. The MACD of 1.04 indicates Positive momentum. The RSI at 45.52 is Neutral, neither overbought nor oversold. The STOCH value of 8.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VMC.

Vulcan Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRH	82 Outperform	$79.01B	24.55	15.22%	1.24%	3.85%	-0.93%
VMC	76 Outperform	$39.02B	41.29	11.89%	0.65%	0.19%	4.33%
EXP	76 Outperform	$7.71B	17.48	31.87%	0.42%	0.88%	-4.17%
MLM	76 Outperform	$37.72B	34.65	12.10%	0.51%	1.02%	-45.31%
CX	73 Outperform	$14.61B	9.40	7.12%	0.89%	-9.62%	795.20%
KNF	63 Neutral	$3.68B	24.14	11.11%	―	2.64%	-22.49%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Vulcan Materials Corporate Events

Vulcan Materials Holds Annual Shareholder Meeting

On May 9, 2025, Vulcan Materials held its Annual Meeting where shareholders voted on several key proposals. The election of directors resulted in the appointment of Lydia H. Kennard, Kathleen L. Quirk, David P. Steiner, and Lee J. Styslinger, III to three-year terms. Additionally, the 2025 Omnibus Long-Term Incentive Plan was approved, as well as an advisory vote on executive compensation. The appointment of Deloitte & Touche LLP as the independent registered public accounting firm for 2025 was also ratified.

The most recent analyst rating on (VMC) stock is a Buy with a $297.00 price target. To see the full list of analyst forecasts on Vulcan Materials stock, see the VMC Stock Forecast page.