Vulcan Materials Company (VMC)
Materials · $37.0B market cap · SEC CIK 0001396009
ahead of 53% of the S&P 500 · #12 of 26 in Materials
Next reports on Feb 15, 2027, after the close, with analysts expecting $2.13 in earnings per share.
52-week range $237.03 to $331.09. 13% below its 52-week high and 21% above its low.
The case for VMC
- Has compounded revenue at 10.3% a year over five years.
The case against
- Expensive for its growth: 37.8× mid-cycle earnings, where 8%+ a year of growth plus a 0.8% dividend would justify about 21×.
- Long-term debt of $4.4B against $183M of cash.
- Revenue grew only 1.6%, roughly the pace of inflation.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Materials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 41 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 64 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 64 |
| Momentumhow the price has behaved lately | 51 |
| Stabilityhow violently it moves, what it owes and what it pays you | 64 |
- Its profits follow commodity prices, so its earnings and margin are read as half the latest year and half the average of the years on file (5), and last year's change in earnings per share is not counted as growth.
- Each factor except momentum is half fixed thresholds, half rank among the 26 Materials companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +1.6% |
|---|---|
| Over 5 years | +10.3% a year |
| FY2025 revenue | $7.9B (+7%) |
Free cash flow
Is it generating real cash? Yes
| FY2025 free cash flow | $1.1B |
|---|---|
| Of revenue | 14% |
| Of profit | 105% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 27% |
|---|---|
| Operating margin | 20% |
| Net margin, FY24 → FY25 → now | 12.3% → 13.6% → 13.8% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $183M |
|---|---|
| Long-term debt | $4.4B |
| Net debt | $4.2B |
| Years to repay | 2.4 yrs |
Valuation
Is the stock price reasonable? No, expensive
| P/E | 33.5× |
|---|---|
| P/E on mid-cycle earnings | 37.8× |
| Fair P/E for its growth | 21× |
| P/FCF | 32.6× |
| Forward P/E | 28.5× |
| EV / EBITDA | 17.8× |
Its profits follow commodity prices, so they are taken as half the latest year and half the average of recent years. At 37.8× those mid-cycle earnings (33.5× the latest year's) it trades well above the 21× that 8%+ a year of growth plus a 0.8% dividend would justify. At 32.6× free cash flow it trades above that same mark.
The financials, five years deep
Pulled from Vulcan Materials Company's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $7.9B | $7.4B | $7.8B | $7.3B | $5.6B |
| Change on the year | +7% | −5% | +6% | +32% | — |
| Free cash flow | |||||
| Free cash flow | $1.1B | $806M | $664M | $536M | $561M |
| Of revenue | 14% | 11% | 9% | 7% | 10% |
| Profit margins | |||||
| Gross margin | 27.4% | 27.0% | 25.0% | 21.3% | 24.7% |
| Operating margin | 20.4% | 18.4% | 18.3% | 13.0% | 18.2% |
| Net margin | 13.6% | 12.3% | 12.0% | 7.9% | 12.1% |
| Debt vs. cash | |||||
| Cash | $183M | $560M | $931M | $161M | $235M |
| Long-term debt | $4.4B | $4.9B | $3.9B | $3.9B | $3.9B |
| Net cash (debt) | −$4.2B | −$4.3B | −$2.9B | −$3.7B | −$3.6B |
What Vulcan Materials Company says it does
Vulcan Materials Company operates primarily in the U.S. and is the nation’s largest supplier of construction aggregates (mainly crushed stone, sand and gravel) and a major producer of aggregates-intensive downstream products such as asphalt mix and ready-mixed concrete. Delivered by trucks, ships, barges and trains, we provide the materials needed for the infrastructure that maintains and expands the U.S. economy. Our products are essential for building homes, offices, data centers, places of worship, schools, hospitals and factories, as well as vital infrastructure including highways, bridges, roads, ports and harbors, water systems, campuses, dams, airports and rail networks. During the year ended December 31, 2025, we had 425 active aggregates facilities as shown below. Production and sales are currently halted at our Calica operations in Mexico and our Puerto Cort é s operations in Honduras. For additional information regarding our…
Risk factors VMC lists in its 10-K
- Our business is dependent on the construction industry and is subject to economic cycles
- Our business is dependent on the timing and amount of federal, state and local funding for infrastructure
- We are subject to various risks arising from our international business operations and relationships
- Within our local markets, we operate in a highly competitive industry
- Certain markets are experiencing the expanded use of aggregates substitutes
- Our long-term success depends upon securing and permitting aggregates reserves in strategically located areas
- Our future growth depends in part on acquiring and successfully integrating other businesses in our industry
- Our aggregates operations are subject to the risks of open pit and underground mining
- Our industry is capital intensive, resulting in significant fixed and semi-fixed costs
- A deterioration in our credit ratings and/or the state of the capital markets could negatively impact the cost and/or availability of financing
- We use estimates in accounting for a number of significant items
- Our effective tax rate is subject to change
- Our operations are subject to changes in legal requirements and governmental policies
- We are involved in certain environmental matters and other legal proceedings
- Climate change legislation or regulations may adversely impact our business
- Expectations relating to sustainability considerations and related reporting obligations expose us to potential liabilities, increased costs, reputational harm and other adverse effects on our business
- We may incur material costs and losses as a result of claims that our products do not meet regulatory requirements or contractual specifications
- Our future success depends upon attracting and retaining qualified personnel, particularly in sales and operations
- Disputes with organized labor could disrupt our business operations
- We are dependent on information technology systems (our own and those of our service providers), and these systems contain non-public data about our business, employees, suppliers and customers
- Weather can, and climate change may, materially affect our operations
- Our product distribution is multi-modal and often dependent upon third-party providers
- The production of our products is dependent upon the supply chain for several key inputs