Vulcan Materials (VMC) AI Stock Analysis

• Market Cap: $38.53B
• Dividend Yield: 0.67%
• Average Volume (3M): 1.00M
• Price to Earnings (P/E): 40.8
• Beta (1Y): 0.90
• Revenue Growth: 0.19%
• EPS Growth: 4.33%
• Country: US
• Employees: 11,971
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Construction Materials
• EPS (TTM): 2.45
• Shares Outstanding: 132,124,160
• 10 Day Avg. Volume: 953,491
• 30 Day Avg. Volume: 1,004,426
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 5.25
• Enterprise Value/Gross Profit: 19.04
• Enterprise Value/Ebitda: 18.75
• 1Y Price Target: $309.17
• Price Target Upside: 6.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 76 Outperform
• Price Target: $328.00 ▲(13.15% 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

Financial Performance

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

Mergers and Acquisitions

VMC expects $150 million in EBITDA contribution from recent transactions, with well-capitalized assets generating higher margins than VMC's legacy business.

Pricing Strategy

Pricing remains strong and VMC is starting to see costs moderate, which should drive good margin expansion and sets VMC up for a strong 2025.

Negative Factors

Construction Activity

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.

Project Delays

Encouragingly, VMC noted that it is bidding on a lot of large projects, but there have been delays in converting that bidding activity to actual work.

Vulcan Materials Business Overview & Revenue Model

Company Description

Vulcan Materials Company (VMC) is a leading producer of construction aggregates in the United States, primarily engaged in the production and sale of crushed stone, sand, and gravel. The company operates in two main segments: the Aggregates segment, which includes the extraction and processing of raw materials, and the Concrete and Asphalt segment, which provides ready-mixed concrete and asphalt products. Vulcan serves various markets including infrastructure, commercial, and residential construction, positioning itself as a critical supplier in the construction industry.

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	2.06B	1.53B	1.53B	1.31B
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: Positive
• Last Price: 289.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 289.88 is above the 20-day moving average (MA) of 280.21, above the 50-day MA of 269.91, and above the 200-day MA of 262.62, indicating a bullish trend. The MACD of 6.71 indicates Negative momentum. The RSI at 65.65 is Neutral, neither overbought nor oversold. The STOCH value of 74.47 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
MLM	78 Outperform	$36.76B	33.77	12.10%	0.52%	1.02%	-45.31%
VMC	76 Outperform	$38.53B	40.76	11.89%	0.67%	0.19%	4.33%
CX	75 Outperform	$12.94B	8.31	7.12%	0.98%	-9.62%	795.20%
EXP	74 Outperform	$7.58B	17.20	31.87%	0.43%	0.88%	-4.17%
KNF	65 Neutral	$5.10B	33.46	11.11%	―	2.64%	-22.49%
Sector *	61 Neutral	$10.10B	6.09	1.13%	3.02%	2.99%	-45.49%

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.