Vulcan Materials (VMC) AI Stock Analysis

• Market Cap: $38.57B
• Dividend Yield: 0.67%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 34.7
• Beta (1Y): 0.74
• Revenue Growth: 6.54%
• EPS Growth: 32.48%
• Country: US
• Employees: 11,971
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 2.84
• Shares Outstanding: 132,130,900
• 10 Day Avg. Volume: 998,495
• 30 Day Avg. Volume: 1,012,630
• 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: 1.18
• Enterprise Value/Revenue: 5.80
• Enterprise Value/Gross Profit: 20.59
• Enterprise Value/Ebitda: 17.53
• 1Y Price Target: $331.22
• Price Target Upside: 13.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $335.00 ▲(14.78% Upside)

Vulcan Materials' strong financial performance and positive earnings call outlook are the most significant factors driving the score. The technical analysis supports a positive trend, although valuation concerns due to a high P/E ratio and low dividend yield slightly temper the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth reflects strong demand for Vulcan's products, supporting long-term business expansion and market position.

Public Construction Growth

Increased public construction activity ensures a steady demand for Vulcan's materials, bolstering future revenue and stability.

CEO Transition Plan

The planned CEO transition ensures strategic continuity and leadership stability, which is crucial for sustained growth and innovation.

Negative Factors

Weak Residential Demand

Weak residential demand could limit growth opportunities in this segment, affecting overall revenue diversification and resilience.

Mixed Pricing Dynamics

Mixed pricing dynamics may pressure margins, challenging Vulcan's ability to maintain profitability in varying market conditions.

M&A Activity Pause

Paused M&A activity could slow strategic expansion and market share growth, impacting long-term competitive positioning.

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 and related products. The company operates a revenue model based on the production and sale of these materials, which are sold to construction companies and government projects. Key revenue streams include the sale of crushed stone, sand, gravel, and asphalt mix, which are indispensable for various infrastructure projects. Additionally, Vulcan benefits from long-term contracts with governmental and municipal entities for road and infrastructure maintenance. The company also engages in strategic acquisitions and partnerships to expand its market presence and production capabilities, further contributing to its earnings.

Vulcan Materials Financial Statement Overview

Summary

Vulcan Materials demonstrates solid financial health with strong revenue growth and profitability. The balance sheet reflects a stable capital structure with improved leverage ratios. However, the decline in free cash flow growth suggests potential challenges in cash generation. Overall, the company is well-positioned in the construction materials industry, but careful management of cash flow is essential for sustaining growth.

Income Statement

Vulcan Materials shows strong revenue growth with a TTM increase of 3.79%. The gross profit margin improved to 28.23%, indicating efficient cost management. Net profit margin also increased to 14.19%, reflecting enhanced profitability. However, the EBIT margin slightly decreased to 14.08%, suggesting some operational cost pressures. Overall, the income statement reflects a positive growth trajectory and solid profitability.

Balance Sheet

The company's debt-to-equity ratio improved to 0.56, indicating a healthier leverage position. Return on equity increased to 13.40%, showcasing effective use of equity to generate profits. The equity ratio stands at 51.44%, reflecting a stable capital structure. While the balance sheet shows strength in equity utilization, the total debt remains significant, which could pose risks if not managed carefully.

Cash Flow

Operating cash flow increased, with a strong coverage ratio of 1.68. However, free cash flow growth is negative at -3.95%, which could impact future investments. The free cash flow to net income ratio is 0.62, indicating a moderate conversion of profits into cash. While cash flow from operations is robust, the decline in free cash flow growth warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.87B	7.42B	7.78B	7.32B	5.55B	4.86B
Gross Profit	2.22B	2.00B	1.95B	1.56B	1.37B	1.28B
EBITDA	2.60B	1.98B	2.04B	1.53B	1.47B	1.28B
Net Income	1.12B	911.90M	933.20M	575.60M	670.80M	584.50M
Balance Sheet
Total Assets	16.98B	17.10B	14.55B	14.23B	13.68B	11.69B
Cash, Cash Equivalents and Short-Term Investments	191.30M	559.70M	931.10M	161.40M	235.00M	1.20B
Total Debt	4.93B	5.83B	4.39B	4.52B	4.52B	3.69B
Total Liabilities	8.22B	8.96B	7.04B	7.28B	7.11B	5.66B
Stockholders Equity	8.73B	8.12B	7.48B	6.93B	6.54B	6.03B
Cash Flow
Free Cash Flow	1.05B	806.10M	664.20M	535.60M	560.60M	708.16M
Operating Cash Flow	1.71B	1.41B	1.54B	1.15B	1.01B	1.07B
Investing Cash Flow	-2.62B	-2.81B	-163.50M	-1.05B	-1.87B	-381.51M
Financing Cash Flow	674.80M	1.06B	-585.60M	-175.20M	-94.30M	234.66M

Vulcan Materials Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 291.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VMC, the sentiment is Positive. The current price of 291.87 is below the 20-day moving average (MA) of 292.80, below the 50-day MA of 292.07, and above the 200-day MA of 273.30, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 49.85 is Neutral, neither overbought nor oversold. The STOCH value of 34.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VMC.

Vulcan Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CX	78 Outperform	$17.59B	12.58	7.10%	0.75%	-6.34%	210.97%
EXP	77 Outperform	$6.98B	16.06	30.10%	0.46%	1.50%	-4.44%
VMC	77 Outperform	$38.57B	34.69	13.56%	0.67%	6.54%	32.48%
CRH	76 Outperform	$83.26B	24.76	15.21%	1.19%	4.28%	0.39%
MLM	73 Outperform	$38.23B	33.40	11.63%	0.51%	1.99%	-41.08%
KNF	67 Neutral	$4.16B	28.23	9.71%	―	5.52%	-25.56%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Vulcan Materials Corporate Events

Vulcan Materials Announces CSO Retirement Plan

On December 10, 2025, Vulcan Materials announced that Stanley G. Bass, the Chief Strategy Officer, will retire effective April 30, 2026. The company’s Board approved the proration of his current base salary until his retirement, while maintaining his incentive opportunities unchanged for 2026.

Vulcan Materials Announces CEO Transition Plan

On October 10, 2025, Vulcan Materials Company announced that Ronnie A. Pruitt, currently the Chief Operating Officer, will become the Chief Executive Officer effective January 1, 2026, succeeding J. Thomas Hill, who will transition to Executive Chairman of the Board. This leadership change is part of a comprehensive succession plan, with Pruitt bringing over three decades of experience in the building materials industry. The transition aims to ensure continuity in Vulcan’s strategic direction and continued growth, with Pruitt’s leadership expected to drive innovation and value creation for shareholders, customers, and employees.