Vulcan Materials (VMC)
Materials · NYSE · US
Fundamentals
Valuation and ratings
Vulcan Materials trades at $293.47, close to the $324.94 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 52 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 35.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Vulcan Materials
Vulcan Materials Company produces and supplies construction aggregates in the United States. 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.
VMC passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
18 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- John Armitage, Egerton Capital (UK) LLP$481.76M · 5.3% of book
- Parnassus Investments, PARNASSUS INVESTMENTS, LLC$471.32M · 1.4% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$209.68M · 0.1% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$141.54M · 0.1% of book
- Ken Griffin, CITADEL ADVISORS LLC$138.52M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Vulcan Materials (VMC) undervalued?
Against our discounted cash flow estimate of $324.94, VMC at $293.47 is 11% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own VMC?
18 of the institutions we track reported a position in VMC in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is VMC's P/E ratio?
VMC trades at 35.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.