Vulcan Materials (VMC) AI Stock Analysis

• Market Cap: $39.55B
• Dividend Yield: 0.67%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 36.9
• 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): 1.70
• Shares Outstanding: 132,130,900
• 10 Day Avg. Volume: 1,228,954
• 30 Day Avg. Volume: 1,008,105
• PEG Ratio: 1.90
• Price to Book (P/B): 4.41
• Price to Sales (P/S): 4.74
• P/FCF Ratio: 33.15
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 5.74
• Enterprise Value/Gross Profit: 21.04
• Enterprise Value/Ebitda: 17.80
• 1Y Price Target: $329.89
• Price Target Upside: 8.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $369.00 ▲(21.84% Upside)

The score is driven primarily by improving profitability, strong operating/free cash flow, and better leverage, reinforced by constructive 2026 guidance and backlog commentary. Technicals support the view with a clear uptrend, but the overall rating is capped by a high P/E and low dividend yield, plus macro/mix risks highlighted on the call (notably residential weakness and pricing mix noise).

Positive Factors

Cash generation

Vulcan converted operational performance into durable cash: OCF ~$1.81B and FCF ~$1.14B in 2025. Sustained FCF funds maintenance/IG capex, dividends, buybacks and debt paydown, supporting execution of strategy and financial flexibility over the next several quarters.

Improving profitability and margins

Margins have expanded materially (net ~13.6%, EBITDA ~32.3%), reflecting pricing power and cost control. Higher sustained margins make earnings and cash flow less cyclically sensitive, improving ability to fund growth and withstand near-term volume variability across 2–6 months.

Scale, backlog and project pipeline

Backlog shifted toward large, nearby projects and a concentrated data‑center pipeline, reinforcing durable demand and logistical advantage. Proximity to sites reduces transport cost/risk and supports sustained higher per‑ton cash gross profit over multiple quarters.

Negative Factors

Residential exposure

Vulcan’s downstream products (concrete/ready‑mix) are exposed to single‑family housing, which management expects to stay weak absent rate/affordability improvements. Prolonged residential weakness could constrain volumes and slow downstream recovery over the medium term.

Mix-related pricing pressure

A shift toward lower‑ASP base/fill and acquisition/geographic mix can depress reported ASPs and margins despite per‑ton cash gains. If large‑project and base/fill mix persists, reported revenue and margin metrics may remain muted for several quarters, complicating comparability.

Absolute debt and refinancing exposure

Leverage metrics improved, but sizable absolute debt and recent issuance of long‑term notes leave refinancing and interest exposure. Ongoing capex and cyclical revenue risk could constrain flexibility if market funding costs rise or cash flow dips in the coming quarters.

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

Strong and improving profitability (net margin up to ~13.6% in 2025; EBITDA margin ~32.3%) and solid cash generation (operating cash flow ~$1.81B; free cash flow ~$1.14B). Balance sheet is improving with lower leverage (debt-to-equity ~0.57 in 2025), though revenue has been uneven and absolute debt remains meaningful.

Income Statement

Profitability strengthened meaningfully over the last several years, with net margin rising from ~7.9% (2022) to ~13.6% (2025) and EBITDA margin expanding to ~32.3% (2025). Revenue has grown strongly over the multi-year period, though the path has been uneven (a decline in 2024 followed by a sharp rebound in 2025). Overall, the earnings profile looks resilient with improving margins, but the volatility in year-to-year growth tempers the score.

Balance Sheet

Leverage appears manageable and improving recently, with debt-to-equity moving down from ~0.72 (2024) to ~0.57 (2025). Equity has grown steadily, supporting a solid capital base, and returns on equity are healthy in the low-to-mid teens (~12.7% in 2025). The main watch-out is that total debt remains sizable in absolute terms, so the story relies on maintaining current profitability and cash generation.

Cash Flow

Cash generation is strong: operating cash flow increased to ~$1.81B (2025) and comfortably covered net income (about 1.9x in 2025). Free cash flow also improved to ~$1.14B (2025) and has been positive across the period, although conversion of earnings into free cash flow is not consistently high (free cash flow running at ~43%–66% of net income over time, ~63% in 2025). Overall cash flow strength is a key support, with some variability in free cash flow efficiency.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.93B	7.42B	7.78B	7.32B	5.55B
Gross Profit	2.17B	2.00B	1.95B	1.56B	1.37B
EBITDA	2.56B	1.98B	2.04B	1.53B	1.47B
Net Income	1.08B	911.90M	933.20M	575.60M	670.80M
Balance Sheet
Total Assets	16.70B	17.10B	14.55B	14.23B	13.68B
Cash, Cash Equivalents and Short-Term Investments	183.30M	559.70M	931.10M	161.40M	235.00M
Total Debt	5.41B	5.83B	4.39B	4.52B	4.52B
Total Liabilities	8.15B	8.96B	7.04B	7.28B	7.11B
Stockholders Equity	8.53B	8.12B	7.48B	6.93B	6.54B
Cash Flow
Free Cash Flow	1.14B	806.10M	664.20M	535.60M	560.60M
Operating Cash Flow	1.81B	1.41B	1.54B	1.15B	1.01B
Investing Cash Flow	-529.20M	-2.81B	-163.50M	-1.05B	-1.87B
Financing Cash Flow	-1.70B	1.06B	-585.60M	-175.20M	-94.30M

Vulcan Materials Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 302.85
• 50DMA: Positive
• 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 302.85 is below the 20-day moving average (MA) of 309.83, above the 50-day MA of 301.65, and above the 200-day MA of 286.57, indicating a neutral trend. The MACD of 2.77 indicates Positive momentum. The RSI at 46.13 is Neutral, neither overbought nor oversold. The STOCH value of 18.58 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
VMC	75 Outperform	$39.55B	36.91	12.99%	0.67%	6.54%	32.48%
CX	71 Outperform	$18.94B	18.91	3.14%	0.74%	-6.34%	210.97%
EXP	70 Outperform	$7.28B	17.53	28.77%	0.47%	1.50%	-4.44%
CRH	70 Outperform	$83.48B	22.64	15.21%	1.17%	4.28%	0.39%
MLM	69 Neutral	$39.91B	35.25	10.65%	0.51%	1.99%	-41.08%
KNF	65 Neutral	$5.14B	32.07	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.

The most recent analyst rating on (VMC) stock is a Buy with a $335.00 price target. To see the full list of analyst forecasts on Vulcan Materials stock, see the VMC Stock Forecast page.