Vulcan Materials (VMC) AI Stock Analysis

• Market Cap: $36.40B
• Dividend Yield: 0.68%
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 39.1
• Beta (1Y): 0.88
• Revenue Growth: -2.24%
• EPS Growth: 3.00%
• Country: US
• Employees: 11,971
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Construction Materials
• EPS (TTM): 1.00
• Shares Outstanding: 132,103,520
• 10 Day Avg. Volume: 861,453
• 30 Day Avg. Volume: 1,200,828
• PEG Ratio: 13.13
• Price to Book (P/B): 4.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 40.99
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 12.29
• Enterprise Value/Ebitda: 5.09
• 1Y Price Target: $301.08
• Price Target Upside: 9.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

Vulcan Materials reflects strong financial performance, particularly in profitability and cash flow management, which supports its high overall score. The earnings call highlights robust improvements in profitability and positive outlook despite some sector challenges. However, technical analysis suggests potential overbought conditions, and a high P/E ratio raises valuation concerns. Overall, the company's solid fundamentals and positive outlook in public demand sectors support a favorable stock score.

Positive Factors

Earnings Outlook

The company expects a strong EBITDA for 2025, partially driven by contributions from recent acquisitions.

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.

Negative Factors

Market Conditions

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 Execution

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, 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 Company generates revenue primarily through the sale of construction aggregates, which are used in a wide range of infrastructure projects including roads, bridges, and commercial buildings. The company's key revenue streams include the production and distribution of crushed stone, sand, and gravel, which are sold to construction companies, government agencies, and other entities involved in building and infrastructure development. Vulcan Materials also earns from its asphalt mix and ready-mixed concrete segments, which provide further diversification and stability to its income. The company's strategic location of quarries and production facilities near high-growth markets and urban centers enhances its ability to efficiently supply materials, thus contributing to its profitability. Additionally, Vulcan's partnerships and contracts with state and local governments for infrastructure projects play a significant role in sustaining its revenue growth.

Vulcan Materials Financial Statement Overview

Summary

Vulcan Materials presents a solid financial profile with strong profitability, a stable balance sheet, and robust cash flow generation. The company exhibits consistent revenue growth and efficient cost management, which supports its profitability metrics. While the increase in debt is a point to monitor, the overall financial health remains strong, positioning the company well within the construction materials industry.

Income Statement

Vulcan Materials demonstrates strong profitability with a healthy Gross Profit Margin of 44.35% and solid Net Profit Margin of 12.50% for the TTM period. The company has shown consistent revenue growth, with a TTM Revenue Growth Rate of 1.20%. Additionally, the EBIT Margin is robust at 18.96%, indicating efficient cost management. While the EBITDA Margin of 27.54% highlights strong operating performance, the growth trajectory, although positive, is moderate.

Balance Sheet

The balance sheet reveals a stable financial structure with a Debt-to-Equity Ratio of 0.67, which is manageable for the construction materials industry. The Equity Ratio stands at 48.67%, indicating a balanced capital structure. Return on Equity is commendable at 11.54%, reflecting effective use of shareholder funds. However, the slight increase in total debt over recent periods could pose a potential risk if not managed carefully.

Cash Flow

The cash flow analysis shows positive trends with a Free Cash Flow Growth Rate of 7.80% in the TTM period. The Operating Cash Flow to Net Income Ratio is strong at 1.59, indicating that the company generates ample cash relative to its net earnings. The Free Cash Flow to Net Income Ratio of 0.93 supports this, showcasing healthy liquidity for reinvestment or debt servicing. Overall, the company maintains solid cash flow management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.51B	7.42B	7.78B	7.32B	5.55B	4.86B
	Gross Profit
3.33B	2.00B	1.95B	1.56B	1.37B	1.28B
	EBIT
1.42B	1.36B	1.43B	951.40M	1.01B	895.73M
	EBITDA
2.07B	1.98B	2.06B	1.53B	1.53B	1.31B
	Net Income Common Stockholders
938.20M	911.90M	933.20M	575.60M	670.80M	584.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
300.10M	559.70M	931.10M	161.40M	235.00M	1.20B
	Total Assets
13.91B	17.10B	14.55B	14.23B	13.68B	11.69B
	Total Debt
3.91B	5.83B	4.39B	4.52B	4.52B	3.69B
	Net Debt
3.61B	5.27B	3.45B	4.36B	4.29B	2.49B
	Total Liabilities
6.39B	8.96B	7.04B	7.28B	7.11B	5.66B
	Stockholders Equity
7.49B	8.12B	7.48B	6.93B	6.54B	6.03B
Cash Flow		Free Cash Flow
869.00M	806.10M	664.20M	535.60M	560.60M	708.16M
	Operating Cash Flow
1.49B	1.41B	1.54B	1.15B	1.01B	1.07B
	Investing Cash Flow
-2.78B	-2.81B	-163.50M	-1.05B	-1.87B	-381.51M
	Financing Cash Flow
1.18B	1.06B	-585.60M	-175.20M	-94.30M	234.66M

Vulcan Materials Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 276.01
• 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 276.01 is above the 20-day moving average (MA) of 261.82, above the 50-day MA of 245.93, and above the 200-day MA of 255.91, indicating a bullish trend. The MACD of 8.10 indicates Negative momentum. The RSI at 68.51 is Neutral, neither overbought nor oversold. The STOCH value of 71.76 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
VMC	78 Outperform	$36.40B	39.06	12.10%	0.68%	-2.24%	3.00%
KNF	77 Outperform	$5.71B	31.78	13.76%	―	2.48%	2.22%
EXP	76 Outperform	$7.99B	17.15	33.51%	0.42%	0.64%	-1.15%
MLM	75 Outperform	$34.01B	32.43	11.88%	0.55%	-0.54%	-48.61%
CX	73 Outperform	$10.40B	7.10	6.58%	1.21%	-8.41%	570.14%
JHX	68 Neutral	$10.57B	25.09	21.77%	―	1.26%	-17.38%
Sector *	50 Neutral	$1.98B	-1.08	-21.29%	3.61%	1.96%	-30.59%

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.

Spark’s Take on VMC Stock

According to Spark, TipRanks’ AI Analyst, VMC is a Outperform.

Vulcan Materials reflects strong financial performance, particularly in profitability and cash flow management, which supports its high overall score. The earnings call highlights robust improvements in profitability and positive outlook despite some sector challenges. However, technical analysis suggests potential overbought conditions, and a high P/E ratio raises valuation concerns. Overall, the company’s solid fundamentals and positive outlook in public demand sectors support a favorable stock score.

To see Spark’s full report on VMC stock, click here.