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Vulcan Materials Co VMC

Morningstar Rating
$216.44 +2.21 (1.03%)
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Company Report

Vulcan Is Well-Positioned to Capitalize on Infrastructure Spending Despite Housing Market Weakness

Aggregates producer Vulcan Materials is well positioned to benefit from the ongoing recovery of U.S. construction spending. We forecast strengthening demand growth for the public sector and modest growth for the private sector. Accounting for roughly 40% of shipments, public-sector demand is generally more stable, and projects, primarily highway construction, are more aggregate-intensive per dollar of spending. Federal funding power has weakened as better vehicle mileage and inflation have diminished the buying power of the $0.18 per gallon gasoline tax, unchanged since 1993. The FAST Act, passed in December 2015, provided stability and near-term funding certainty but did not solve the still-weakening gas tax. However, long-term federal funding was passed in late 2021, totaling $1.2 trillion.

Price vs Fair Value

VMC is trading at a 39% premium.
Price
$214.17
Fair Value
$534.00
Uncertainty
Medium
1-Star Price
$684.90
5-Star Price
$763.10
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Vulcan has a favorable geographic footprint in states that have a strong need for increased road work and the capability to fund it.

Bears

Political partisanship and the desire to reduce government spending threaten the stability of publicly funding infrastructure projects.

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News

Trading Information

Previous Close Price
$214.23
Day Range
$212.67216.81
52-Week Range
$159.85229.69
Bid/Ask
$216.35 / $216.44
Market Cap
$28.76 Bil
Volume/Avg
335,928 / 845,389

Key Statistics

Price/Earnings (Normalized)
32.40
Price/Sales
3.73
Dividend Yield
0.80%
Dividend Yield (Forward)
0.80%
Total Yield
0.80%

Company Profile

Vulcan Materials is the United States' largest producer of construction aggregates (crushed stone, sand, and gravel). Its largest markets include Texas, California, Virginia, Tennessee, Georgia, Florida, North Carolina, and Alabama. In 2022, Vulcan sold 263.4 million tons of aggregates, 12.2 million tons of asphalt mix, and 10.5 million cubic yards of ready-mix. As of Dec. 31, 2022, the company had nearly 16 billion tons of aggregates reserves.
Sector
Basic Materials
Industry
Building Materials
Stock Style Box
Mid Growth
Total Number of Employees
11,397

Competitors

Valuation

Metric
VMC
MLM
CRH
Price/Earnings (Normalized)
32.4026.0615.00
Price/Book Value
3.833.692.24
Price/Sales
3.734.361.35
Price/Cash Flow
17.7418.019.99
Price/Earnings
VMC
MLM
CRH

Financial Strength

Metric
VMC
MLM
CRH
Quick Ratio
1.761.490.96
Current Ratio
3.132.471.34
Interest Coverage
6.569.259.60
Quick Ratio
VMC
MLM
CRH

Profitability

Metric
VMC
MLM
CRH
Return on Assets (Normalized)
6.42%7.65%6.71%
Return on Equity (Normalized)
13.04%15.66%14.44%
Return on Invested Capital (Normalized)
9.25%10.14%10.12%
Return on Assets
VMC
MLM
CRH

Building Materials Industry Comparables

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Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
CRH
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HCMLY
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HCMLF
Holcim LtdMtwbyh$42.4 Bil
MLM
Martin Marietta Materials IncTbrlrdr$28.8 Bil
HDELY
Heidelberg Materials AG ADRNbt$15.5 Bil
HLBZF
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AHCHY
Anhui Conch Cement Co Ltd ADRDkdxd$15.3 Bil
AHCHF
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JHX
James Hardie Industries PLC ADRVxdjh$14.4 Bil