Strong Price-to-Earnings Ratio
Healthy Profit Margins
Good Return on Equity
Strong Liquidity Ratios
Manageable Debt Levels
🏆 Strong Performance Metrics
💰 Solid Cash Gross Profit Growth
📈 Strategic Acquisitions and Expansion
🔮 Positive 2025 Outlook
🚧 Infrastructure Investment Support
High Price-to-Sales and Price-to-Cash Flow Ratios
Interest Coverage
⚠️ Headwinds in Private Construction
Vulcan Materials exhibits strong business quality through solid metrics, strategic acquisitions, and effective pricing power, although it faces challenges in private construction demand. The future looks promising with a positive EBITDA outlook and supportive infrastructure investments.
Analysis Date: February 18, 2025
Last Updated: March 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$265.60
Current Market Price: $230.57
IV/P Ratio: 1.15x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
13.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for VMC
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (33.45)
P/B ratio ≤ 1.5 (3.76)
Current ratio ≥ 2.0 (1.83x)
Long-term debt < Net current assets (5.29x)
Margin of safety (13.0%)
VMC does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
With a gross profit margin of 26.95%, operating profit margin of 18.50%, and net profit margin of 12.30%, VMC demonstrates strong profitability across various levels.
A return on equity of 11.70% indicates that the company effectively utilizes shareholders' equity to generate profits.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
11.70%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
1.72%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
26.95%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
12.30%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
A current ratio of 1.83 and quick ratio of 1.28 indicate that VMC has good short-term financial health and can cover its liabilities with its current assets.
The debt-to-equity ratio of 0.72 and debt-to-assets ratio of 0.34 suggest that the company maintains a balanced approach to leveraging its operations.
While interest coverage at 7.18 is healthy, it indicates some reliance on debt, which may pose risks if cash flows fluctuate.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.72x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.83x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Vulcan Materials demonstrated a solid year with a 16% improvement in adjusted EBITDA for Q4 2024 compared to the prior year, showcasing effective execution of their growth strategy.
The company improved cash gross profit per ton by 12% and achieved a record gross margin in Q4, indicating strong pricing power and operational efficiency.
Vulcan successfully deployed over $2 billion towards strategic acquisitions that enhanced their market presence in top revenue states, strengthening their competitive moat.
Vulcan expects adjusted EBITDA to grow between $2.35 and $2.55 billion in 2025, driven by stable public construction demand and growth in aggregate shipments.
Significant funding initiatives at state and local levels are expected to spur transportation investment, supporting Vulcan's growth in public construction.
While public construction is stable, Vulcan anticipates modest contraction in private non-residential construction, which could impact overall volume growth.