Vulcan Materials CO (VMC) stock analysis

P/E below its 5-year median

Vulcan Materials's P/E of 33.7 is below its own 5-year median of 37.4.

P/E above the industry

Vulcan Materials's P/E of 33.7 is above the Mining & quarrying of nonmetallic minerals (no fuels) median of 25.1.

EV/EBITDA below its 5-year median

Vulcan Materials's EV/EBITDA of 17.6 is below its 5-year median of 18.4.

P/B above the industry

Vulcan Materials's price-to-book of 4.34 is above the Mining & quarrying of nonmetallic minerals (no fuels) median of 1.80.

Trading above fair value

The share price of $284.37 is above our fair value estimate of $212.07.

Margin of safety under 20%

The price is 34.1% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 2.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 23.5% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -1.4% over the last twelve months, against a 5-year average of 13.0% a year.

Growing slower than the industry

Revenue grew 1.6% over the last twelve months; the Mining & quarrying of nonmetallic minerals (no fuels) median is 8.3%.

Guidance lowered

Vulcan Materials lowered its 2026 Interest expense outlook on Feb 17, 2026.

Gross margin slipping

Gross margin was 27.5% over the last twelve months, against 28.2% a year earlier.

Return on equity under 15%

Return on equity was 12.9% over the last twelve months and averaged 11.4% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 9.8%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Vulcan Materials's return on equity of 12.9% is above the Mining & quarrying of nonmetallic minerals (no fuels) median of 4.8%.

Earnings grew over 5 years

Net income grew 13.0% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 13.8% over the last twelve months, against a 5-year average of 11.6%.

Net margin above the industry

Vulcan Materials's net margin of 13.8% is above the Mining & quarrying of nonmetallic minerals (no fuels) median of 4.2%.

High debt

Debt is 55.7% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 54.5% five years ago to 55.7%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 32.3% of total debt.

Interest well covered

Operating income covers interest expense 7.2 times.

Short-term assets cover short-term debts

Current assets are 1.43 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.95; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Vulcan Materials paid dividends worth 0.5% of the share price over the last twelve months.

Yield below Treasuries

The 0.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Vulcan Materials yields 0.5%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 24.2% of net income.

Covered by free cash flow

Dividends take 34.1% of free cash flow.