Quality Investor

Vulcan Materials Company

Rank #421Capital Return

VMC · NYSE · Basic Materials

Vulcan Materials Company (VMC) — Rank #421 by gross profitability (GP/assets 0.13) · ROE 12.7% · Piotroski F-Score 8 / 9.

As-of 2026-09-15 · CIK 0001396009 · all metrics point-in-time as of the filing date.

About

Vulcan Materials Company produces and supplies construction aggregates in the United States.

Show more

It operates through three segments: Aggregates, Asphalt, and Concrete. The company provides crushed stone, sand and gravel, sand, and other aggregates for use 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; aggregates that are used as ballast for construction and maintenance of railroad tracks; riprap and jetty stones for use in erosion control along roads and waterways; asphalt mix; asphalt construction paving services; and ready-mixed concrete products. 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.

Industry
Building Materials
Sector
Basic Materials
State
NJ
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

VMC+45.9% · +7.8% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$32.19B

P/E (annual)

30.6

P/S (annual)

4.1

P/B

3.8

P/OCF (annual)

17.8

Shareholder Yield

1.5%

Employees

11,548

Industry

Building Materials

Exchange

NYSE

Signal Flags

2 green1 yellow
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass
GP / assets
0.13
Return on equity
12.7%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.97
Current ratio
2.59×
Net cash
-$4.42B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.8%

Growth

2/2 pass
Revenue growth
8.6%
Piotroski F-Score
8 / 9
Share dilution
-0.7%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

12.8%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -0.7% — per-share value needs a total required return of 12.1% once share-count change is priced in.

vs. own 6-year median revenue growth: 12.6%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

8.2%

r = 10% (base)

12.8%

r = 12%

16.8%

Net debt / market cap: 13.4%

Base FCF: $1.1B3Y mean FCF: $586.8M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

36.8xFair
25.4xmed 36.7x4341.0x

P / S

Price / revenue per share

4.4xExpensive
1.3xmed 3.7x4.6x

P / B

Price / book value per share

4.6xExpensive
1.3xmed 3.2x4.6x

P / GP

Price / gross profit per share

17.6xExpensive
6.4xmed 15.5x17.8x

P / FCF

Price / free cash flow per share

51.7xFair
15.1xmed 44.8x82.5x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.13

Primary signal (Novy-Marx).

4th of 6 SIC 1400 peers

Return on equity

12.7%

Gross margin

27.4%

5th of 6 SIC 1400 peers

Revenue growth (YoY)

8.6%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2020202120222023
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

Revenue CAGR (5Y)

Earnings CAGR (3Y)

23.2%

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.97

6th of 6 SIC 1400 peers (best = lowest)

Current ratio

2.59×

5th of 6 SIC 1400 peers

Quick ratio

Net cash

-$4.42B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$1.14B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.05

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.8%

Stock-based comp intensity.

Dividend safety

Composite score

4.2 / 5

Strong
Payout ratio
24.1%5/5 Strong
FCF coverage
4.37×5/5 Strong
Dividend growth streak
10 yr5/5 Strong
Balance-sheet health
D/E 0.97 · IC N/A2/5 Fair

Piotroski F-Score

F-Score

8 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20182023
Capital Return
Value
Hypergrowth