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Vulcan Materials

NYSE:VMC
Snowflake Description

Mediocre balance sheet with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VMC
NYSE
$13B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

Vulcan Materials Company produces and supplies construction materials primarily in the United States. The last earnings update was 39 days ago. More info.


Add to Portfolio Compare Print
  • Vulcan Materials has significant price volatility in the past 3 months.
VMC Share Price and Events
7 Day Returns
0%
NYSE:VMC
-2.7%
US Basic Materials
-2.8%
US Market
1 Year Returns
-17.5%
NYSE:VMC
-22.9%
US Basic Materials
-15.9%
US Market
VMC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Vulcan Materials (VMC) 0% -22.2% -30.1% -17.5% -20% 19%
US Basic Materials -2.7% -29% -37.1% -22.9% -29.8% 3.5%
US Market -2.8% -18.8% -24% -15.9% 2.8% 13.3%
1 Year Return vs Industry and Market
  • VMC outperformed the Basic Materials industry which returned -22.9% over the past year.
  • VMC underperformed the Market in United States of America which returned -15.9% over the past year.
Price Volatility
VMC
Industry
5yr Volatility vs Market

VMC Value

 Is Vulcan Materials undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Vulcan Materials to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Vulcan Materials.

NYSE:VMC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:VMC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Basic Materials Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.809 (1 + (1- 21%) (24.35%))
0.976
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.976 * 5.44%)
7.05%

Discounted Cash Flow Calculation for NYSE:VMC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Vulcan Materials is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:VMC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.05%)
2020 641.19 Analyst x7 598.95
2021 744.94 Analyst x5 650.03
2022 765.70 Analyst x3 624.14
2023 783.26 Est @ 2.29% 596.40
2024 799.92 Est @ 2.13% 568.96
2025 816.01 Est @ 2.01% 542.17
2026 831.75 Est @ 1.93% 516.23
2027 847.33 Est @ 1.87% 491.26
2028 862.86 Est @ 1.83% 467.31
2029 878.44 Est @ 1.81% 444.41
Present value of next 10 years cash flows $5,499.00
NYSE:VMC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $878.44 × (1 + 1.74%) ÷ (7.05% – 1.74%)
$16,826.34
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $16,826.34 ÷ (1 + 7.05%)10
$8,512.65
NYSE:VMC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,499.00 + $8,512.65
$14,011.65
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $14,011.65 / 132.56
$105.7
NYSE:VMC Discount to Share Price
Calculation Result
Value per share (USD) From above. $105.70
Current discount Discount to share price of $99.21
= -1 x ($99.21 - $105.70) / $105.70
6.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Vulcan Materials is available for.
Intrinsic value
6%
Share price is $99.21 vs Future cash flow value of $105.7
Current Discount Checks
For Vulcan Materials to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Vulcan Materials's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Vulcan Materials's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Vulcan Materials's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Vulcan Materials's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:VMC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $4.71
NYSE:VMC Share Price ** NYSE (2020-04-03) in USD $99.21
United States of America Basic Materials Industry PE Ratio Median Figure of 9 Publicly-Listed Basic Materials Companies 14.41x
United States of America Market PE Ratio Median Figure of 2,947 Publicly-Listed Companies 12.21x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Vulcan Materials.

NYSE:VMC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:VMC Share Price ÷ EPS (both in USD)

= 99.21 ÷ 4.71

21.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vulcan Materials is overvalued based on earnings compared to the US Basic Materials industry average.
  • Vulcan Materials is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Vulcan Materials's expected growth come at a high price?
Raw Data
NYSE:VMC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.09x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
7.9%per year
United States of America Basic Materials Industry PEG Ratio Median Figure of 6 Publicly-Listed Basic Materials Companies 0.7x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.88x

*Line of best fit is calculated by linear regression .

NYSE:VMC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.09x ÷ 7.9%

2.68x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vulcan Materials is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Vulcan Materials's assets?
Raw Data
NYSE:VMC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $42.47
NYSE:VMC Share Price * NYSE (2020-04-03) in USD $99.21
United States of America Basic Materials Industry PB Ratio Median Figure of 12 Publicly-Listed Basic Materials Companies 1.1x
United States of America Market PB Ratio Median Figure of 5,146 Publicly-Listed Companies 1.2x
NYSE:VMC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:VMC Share Price ÷ Book Value per Share (both in USD)

= 99.21 ÷ 42.47

2.34x

* Primary Listing of Vulcan Materials.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vulcan Materials is overvalued based on assets compared to the US Basic Materials industry average.
X
Value checks
We assess Vulcan Materials's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Basic Materials industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Basic Materials industry average (and greater than 0)? (1 check)
  5. Vulcan Materials has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

VMC Future Performance

 How is Vulcan Materials expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Vulcan Materials expected to grow at an attractive rate?
  • Vulcan Materials's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Vulcan Materials's earnings growth is positive but not above the United States of America market average.
  • Vulcan Materials's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:VMC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:VMC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 7.9%
NYSE:VMC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 3%
United States of America Basic Materials Industry Earnings Growth Rate Market Cap Weighted Average 10.5%
United States of America Basic Materials Industry Revenue Growth Rate Market Cap Weighted Average 4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:VMC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:VMC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 5,596 855 1
2023-12-31 5,967 952 2
2022-12-31 5,103 1,192 735 5
2021-12-31 5,288 1,212 756 16
2020-12-31 5,036 1,096 662 16
2020-04-05
NYSE:VMC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 4,929 984 623
2019-09-30 4,831 906 604
2019-06-30 4,652 859 566
2019-03-31 4,525 856 528
2018-12-31 4,383 833 518
2018-09-30 4,272 818 722
2018-06-30 4,127 765 652
2018-03-31 3,957 643 603
2017-12-31 3,890 645 593
2017-09-30 3,786 640 373
2017-06-30 3,699 645 408
2017-03-31 3,625 650 424

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Vulcan Materials's earnings are expected to grow by 7.9% yearly, however this is not considered high growth (20% yearly).
  • Vulcan Materials's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:VMC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Vulcan Materials Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:VMC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31 8.55 8.55 8.55 1.00
2022-12-31 5.50 7.58 4.29 4.00
2021-12-31 5.67 6.84 3.97 13.00
2020-12-31 4.97 5.80 3.53 13.00
2020-04-05
NYSE:VMC Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 4.71
2019-09-30 4.57
2019-06-30 4.28
2019-03-31 4.00
2018-12-31 3.91
2018-09-30 5.45
2018-06-30 4.92
2018-03-31 4.55
2017-12-31 4.48
2017-09-30 2.82
2017-06-30 3.08
2017-03-31 3.19

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Vulcan Materials is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Vulcan Materials's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Vulcan Materials has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

VMC Past Performance

  How has Vulcan Materials performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Vulcan Materials's growth in the last year to its industry (Basic Materials).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Vulcan Materials has delivered over 20% year on year earnings growth in the past 5 years.
  • Vulcan Materials's 1-year earnings growth is less than its 5-year average (20.2% vs 24.6%)
  • Vulcan Materials's earnings growth has not exceeded the US Basic Materials industry average in the past year (20.2% vs 32.4%).
Earnings and Revenue History
Vulcan Materials's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Vulcan Materials Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:VMC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 4,929.10 622.50 372.09
2019-09-30 4,831.00 604.19 339.32
2019-06-30 4,652.44 565.99 335.41
2019-03-31 4,524.91 528.38 327.67
2018-12-31 4,382.87 517.84 339.28
2018-09-30 4,272.31 721.53 337.30
2018-06-30 4,126.83 651.82 322.86
2018-03-31 3,957.44 603.26 316.32
2017-12-31 3,890.30 593.39 327.89
2017-09-30 3,785.78 373.49 312.52
2017-06-30 3,699.21 408.47 317.24
2017-03-31 3,625.27 423.96 318.88
2016-12-31 3,592.67 422.41 303.05
2016-09-30 3,576.98 407.90 314.95
2016-06-30 3,607.30 388.97 310.03
2016-03-31 3,545.62 311.55 296.55
2015-12-31 3,422.18 232.91 286.84
2015-09-30 3,319.92 177.70 278.83
2015-06-30 3,155.04 119.28 273.52
2015-03-31 3,051.04 115.97 271.93
2014-12-31 2,994.17 207.15 272.29
2014-09-30 2,919.39 178.89 262.62
2014-06-30 2,859.38 153.26 262.40
2014-03-31 2,806.97 136.88 259.69
2013-12-31 2,770.71 20.76 258.23
2013-09-30 2,698.89 15.15 261.38
2013-06-30 2,614.19 -11.38 260.97

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Vulcan Materials has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Vulcan Materials used its assets less efficiently than the US Basic Materials industry average last year based on Return on Assets.
  • Vulcan Materials has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Vulcan Materials's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Basic Materials industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Vulcan Materials has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

VMC Health

 How is Vulcan Materials's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Vulcan Materials's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Vulcan Materials is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Vulcan Materials's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Vulcan Materials's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Vulcan Materials Company Filings, last reported 3 months ago.

NYSE:VMC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 5,621.86 2,784.34 271.59
2019-09-30 5,542.24 2,783.09 90.41
2019-06-30 5,371.45 2,918.85 26.03
2019-03-31 5,217.21 2,959.11 30.84
2018-12-31 5,202.90 2,912.38 40.04
2018-09-30 5,145.79 2,978.15 38.03
2018-06-30 5,020.63 3,136.93 55.06
2018-03-31 4,913.21 2,975.71 38.14
2017-12-31 4,968.89 2,854.87 141.65
2017-09-30 4,685.13 2,814.79 701.16
2017-06-30 4,602.10 3,335.07 1,129.80
2017-03-31 4,520.76 2,329.39 286.96
2016-12-31 4,572.48 1,982.89 258.99
2016-09-30 4,503.97 1,983.77 135.37
2016-06-30 4,479.33 1,982.66 91.90
2016-03-31 4,421.05 1,981.56 191.89
2015-12-31 4,454.19 1,980.46 284.06
2015-09-30 4,363.28 1,979.62 168.68
2015-06-30 4,226.96 2,046.36 74.74
2015-03-31 4,160.17 2,277.90 392.66
2014-12-31 4,176.70 1,984.78 141.27
2014-09-30 4,201.10 2,006.11 91.87
2014-06-30 4,086.19 2,006.54 227.68
2014-03-31 4,031.12 2,006.95 268.77
2013-12-31 3,938.11 2,522.41 193.74
2013-09-30 3,862.91 2,523.55 245.81
2013-06-30 3,813.52 2,624.58 86.98
  • Vulcan Materials's level of debt (49.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (47.6% vs 49.5% today).
  • Debt is well covered by operating cash flow (35.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.8x coverage).
X
Financial health checks
We assess Vulcan Materials's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Vulcan Materials has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

VMC Dividends

 What is Vulcan Materials's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.37%
Current annual income from Vulcan Materials dividends. Estimated to be 1.28% next year.
If you bought $2,000 of Vulcan Materials shares you are expected to receive $27 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Vulcan Materials's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (2.07%).
  • Vulcan Materials's dividend is below the markets top 25% of dividend payers in United States of America (5.82%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:VMC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
United States of America Basic Materials Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1936 Stocks 3.1%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2.1%
United States of America Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:VMC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 1.22 4.00
2021-12-31 1.32 12.00
2020-12-31 1.25 12.00
2020-04-05
NYSE:VMC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-14 1.360 1.237
2019-10-11 1.240 0.870
2019-07-12 1.240 0.872
2019-05-10 1.240 0.937
2019-02-08 1.240 1.057
2018-10-12 1.120 1.116
2018-07-13 1.120 0.990
2018-05-11 1.120 0.868
2018-02-09 1.120 0.948
2017-10-13 1.000 0.794
2017-07-14 1.000 0.841
2017-05-12 1.000 0.782
2017-02-10 1.000 0.831
2016-10-14 0.800 0.646
2016-07-08 0.800 0.689
2016-05-13 0.800 0.684
2016-02-12 0.800 0.762
2015-10-09 0.400 0.428
2015-07-10 0.400 0.426
2015-05-08 0.400 0.450
2015-02-17 0.400 0.477
2014-10-10 0.240 0.364
2014-07-11 0.240 0.385
2014-05-09 0.200 0.319
2014-02-14 0.200 0.305
2013-10-11 0.040 0.070
2013-07-12 0.040 0.080
2013-05-10 0.040 0.077
2013-02-08 0.040 0.078
2012-10-12 0.040 0.078
2012-07-13 0.040 0.094
2012-06-01 0.040 0.110
2012-05-02 0.040 0.107
2012-04-26 0.040 0.094
2011-10-14 0.040 0.104
2011-07-08 1.000 3.093
2011-05-13 1.000 2.571
2011-02-11 1.000 2.283
2010-10-08 1.000 2.442
2010-05-14 1.000 2.362
2010-02-12 1.000 2.036
2009-10-09 1.000 2.041
2009-07-10 1.000 2.027
2009-05-08 1.960 4.487

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Vulcan Materials's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.5x coverage).
X
Income/ dividend checks
We assess Vulcan Materials's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Vulcan Materials afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Vulcan Materials has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

VMC Management

 What is the CEO of Vulcan Materials's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tom Hill
COMPENSATION $9,556,186
AGE 60
TENURE AS CEO 5.8 years
CEO Bio

Mr. James Thomas Hill, also known as Tom, has been the Chief Executive Officer and President at Vulcan Materials Company since July 14, 2014. Mr. Hill served as the Chief Operating Officer and Executive Vice President of Vulcan Materials Company since January 2014 until July 2014. Mr. Hill served as Senior Vice President of South at Vulcan Materials Company since December 9, 2011 until December 2013. Mr. Hill served as the President of Florida Rock Division of Vulcan Materials Company from September 1, 2010 to December 2011. Mr. Hill served as President of Southwest Division of Vulcan Materials Co. from May 17, 2004 to September 1, 2010. Mr. Hill served as Vice President and General Manager for Vulcan Materials Co.'s Southwest Division. He has been Chairman and a Director of Vulcan Materials Company since January 1, 2016 and July 2014 respectively. Mr. Hill is a graduate of the University of Pittsburgh and the Wharton School of Business, Executive Management Program. Mr. Hill has served in leadership positions in a number of industry trade groups, including the Texas Concrete and Aggregates Association, the Florida Concrete and Products Association, and the National Stone, Sand and Gravel Association. In addition, he serves on the boards of the U.S. Chamber of Commerce, the United Way of Central Alabama, the Birmingham Business Alliance, and the Economic Development Partnership of Alabama.

CEO Compensation
  • Tom's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Tom's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Vulcan Materials management team in years:

1.9
Average Tenure
58.5
Average Age
  • The average tenure for the Vulcan Materials management team is less than 2 years, this suggests a new team.
Management Team

Tom Hill

TITLE
Chairman
COMPENSATION
$10M
AGE
60
TENURE
5.8 yrs

Suzanne Wood

TITLE
Senior VP & CFO
COMPENSATION
$3M
AGE
58
TENURE
1.6 yrs

Tom Baker

TITLE
Chief Operating Officer
COMPENSATION
$3M
AGE
61
TENURE
0.9 yrs

Stan Bass

TITLE
Chief Growth Officer
COMPENSATION
$3M
AGE
58
TENURE
8.3 yrs

David Clement

TITLE
Senior Vice President of Mountain West & Western Divisions
COMPENSATION
$2M
AGE
59
TENURE
5.3 yrs

Mark Warren

TITLE
Vice President of Investor Relations

Mitesh Shah

TITLE
VP & Deputy General Counsel
TENURE
0.5 yrs

D. Franklin

TITLE
Senior VP
AGE
55
TENURE
0.3 yrs

Janet Kavinoky

TITLE
Vice President of External Affairs & Corporate Communications

Larry Miller

TITLE
Vice President of Human Resources
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the Vulcan Materials board of directors in years:

4.7
Average Tenure
59.5
Average Age
  • The tenure for the Vulcan Materials board of directors is about average.
Board of Directors

Tom Hill

TITLE
Chairman
COMPENSATION
$10M
AGE
60
TENURE
4.3 yrs

Richard O’Brien

TITLE
Independent Director
COMPENSATION
$304K
AGE
65
TENURE
11.5 yrs

O. B. Hall

TITLE
Lead Independent Director
COMPENSATION
$306K
AGE
62
TENURE
0.9 yrs

Tom Fanning

TITLE
Independent Director
COMPENSATION
$288K
AGE
62
TENURE
5.2 yrs

David Steiner

TITLE
Independent Director
COMPENSATION
$279K
AGE
59
TENURE
3.2 yrs

Jim Prokopanko

TITLE
Independent Director
COMPENSATION
$281K
AGE
66
TENURE
10.3 yrs

Lee Styslinger

TITLE
Independent Director
COMPENSATION
$283K
AGE
58
TENURE
7.1 yrs

Cynthia Hostetler

TITLE
Independent Director
COMPENSATION
$268K
AGE
56
TENURE
5.8 yrs

Kathleen Quirk

TITLE
Independent Director
COMPENSATION
$263K
AGE
55
TENURE
2.5 yrs

Melissa Anderson

TITLE
Independent Director
COMPENSATION
$55K
AGE
54
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Vulcan Materials individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
18. Mar 20 Buy David Steiner Individual 17. Mar 20 17. Mar 20 5,000 $93.00 $465,000
20. Nov 19 Sell Randy Pigg Individual 19. Nov 19 19. Nov 19 -643 $140.64 $-90,432
10. Jun 19 Sell Randy Pigg Individual 10. Jun 19 10. Jun 19 -1,171 $134.93 $-158,003
X
Management checks
We assess Vulcan Materials's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Vulcan Materials has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

VMC News

Simply Wall St News

What Are Analysts Saying About Vulcan Materials Company's (NYSE:VMC) Future?

In June 2019, Vulcan Materials Company (NYSE:VMC) released its earnings update. … Check out our latest analysis for Vulcan Materials Exciting times ahead? … NYSE:VMC Past and Future Earnings, September 2nd 2019 This results in an annual growth rate of 13% based on the most recent earnings level of US$518m to the final forecast of US$806m by 2022.

Simply Wall St -

Shareholders Are Thrilled That The Vulcan Materials (NYSE:VMC) Share Price Increased 120%

During five years of share price growth, Vulcan Materials achieved compound earnings per share (EPS) growth of 30% per year. … As it happens, Vulcan Materials's TSR for the last 5 years was 129%, which exceeds the share price return mentioned earlier. … A Different Perspective We're pleased to report that Vulcan Materials shareholders have received a total shareholder return of 26% over one year.

Simply Wall St -

Is It Smart To Buy Vulcan Materials Company (NYSE:VMC) Before It Goes Ex-Dividend?

So we need to check whether the dividend payments are covered, and if earnings are growing. … It's positive to see that Vulcan Materials's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. … It's great that Vulcan Materials is growing earnings per share while simultaneously paying out a low percentage of both its earnings and cash flow.

Simply Wall St -

Vulcan Materials Company (NYSE:VMC) Insiders Have Been Selling

So before you buy or sell Vulcan Materials Company (NYSE:VMC), you may well want to know whether insiders have been buying or selling. … Over the last year we saw more insider selling of Vulcan Materials shares, than buying. … NYSE:VMC Recent Insider Trading, August 9th 2019 Vulcan Materials Insiders Are Selling The Stock Over the last three months, we've seen significant insider selling at Vulcan Materials.

Simply Wall St -

Is Vulcan Materials Company's (NYSE:VMC) Capital Allocation Ability Worth Your Time?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Vulcan Materials: 0.086 = US$842m ÷ (US$10b - US$664m) (Based on the trailing twelve months to June 2019.) So, Vulcan Materials has an ROCE of 8.6%. … Do Vulcan Materials's Current Liabilities Skew Its ROCE? … Vulcan Materials has a low level of current liabilities, which have a minimal impact on its uninspiring ROCE.

Simply Wall St -

Is Vulcan Materials Company (NYSE:VMC) Undervalued After Accounting For Its Future Growth?

This illustrates that Vulcan Materials is overvalued compared to the US market average ratio of 17.92x , and overvalued based on current earnings compared to the Basic Materials industry average of 28.21x. … However, to properly examine the value of a high-growth stock such as Vulcan Materials, we must reflect its earnings growth into the valuation. … This tells us that when we include its growth in our analysis Vulcan Materials's stock can be considered overvalued , based on the fundamentals.

Simply Wall St -

At US$137, Is It Time To Put Vulcan Materials Company (NYSE:VMC) On Your Watch List?

According to my valuation model, Vulcan Materials seems to be fairly priced at around 1.19% above my intrinsic value, which means if you buy Vulcan Materials today, you’d be paying a relatively fair price for it. … What's more, Vulcan Materials’s share price may be more stable over time (relative to the market), as indicated by its low beta. … VMC’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.

Simply Wall St -

Vulcan Materials Company (NYSE:VMC): How To Win In A Volatile Market

Looking at its size, financial health and track record, I believe there's an opportunity with Vulcan Materials during these volatile times. … See our latest analysis for Vulcan Materials Vulcan Materials Company produces and supplies construction materials primarily in the United States. … This continuous market outperformance demonstrates a strong track record of delivering robust returns over many years, raising my confidence in Vulcan Materials as a long-term hold.

Simply Wall St -

Taking A Look At Vulcan Materials Company's (NYSE:VMC) ROE

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Vulcan Materials: 10% = US$528m ÷ US$5.2b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … In the latter case, the debt used for growth will improve returns, but won't affect the total equity. … Vulcan Materials's Debt And Its 10% ROE Vulcan Materials has a debt to equity ratio of 0.65, which is far from excessive.

Simply Wall St -

A Look At The Fair Value Of Vulcan Materials Company (NYSE:VMC)

Today we will run through one way of estimating the intrinsic value of Vulcan Materials Company (NYSE:VMC) by taking the expected future cash flows and discounting them to today's value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $589.90 $747.02 $962.75 $1.11k $1.19k $1.26k $1.32k $1.38k $1.43k $1.48k Growth Rate Estimate Source Analyst x6 Analyst x6 Analyst x2 Analyst x1 Analyst x1 Est @ 5.68% Est @ 4.8% Est @ 4.18% Est @ 3.74% Est @ 3.44% Present Value ($, Millions) Discounted @ 8.85% $541.93 $630.47 $746.48 $792.10 $780.04 $757.34 $729.14 $697.83 $665.09 $632.02 Present Value of 10-year Cash Flow (PVCF)= $6.97b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … NYSE:VMC Intrinsic value, May 29th 2019 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

VMC Company Info

Description

Vulcan Materials Company produces and supplies construction materials primarily in the United States. The company 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. The Concrete segment provides ready-mixed concrete in California, Maryland, New Mexico, Texas, Virginia, Washington D.C., and the Bahamas. 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.

Details
Name: Vulcan Materials Company
VMC
Exchange: NYSE
Founded: 1909
$13,150,809,924
132,555,286
Website: http://www.vulcanmaterials.com
Address: Vulcan Materials Company
1200 Urban Center Drive,
Birmingham,
Alabama, 35242,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE VMC Common Stock New York Stock Exchange US USD 02. Jan 1968
DB VMC Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0LRK Common Stock London Stock Exchange GB USD 02. Jan 1968
BRSE VMC Common Stock Berne Stock Exchange CH CHF 02. Jan 1968
BOVESPA V1MC34 BDR EACH 4 REPR 1 COM Bolsa de Valores de Sao Paulo BR BRL 27. Jan 2020
Number of employees
Current staff
Staff numbers
9,173
Vulcan Materials employees.
Industry
Construction Materials
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/05 04:13
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/04
Last earnings filing: 2020/02/26
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.