Just How Solid Are Vulcan Materials' Fundamentals?

VMC has chart support in place after its February record high

Mar 19, 2021 at 10:02 AM
facebook X logo linkedin

Vulcan Materials Company (NYSE:VMC) is one of the United States’ largest producers of construction materials. Vulcan stock has nearly doubled in value year-over-year. The shares scored a record high of $175.02 back on Feb. 24, and the consolidation afterward has been contained by their 30-day moving average.

On February 12, Vulcan Materials announced an increase to its quarterly dividend up to $0.37 per share. The new quarterly dividend represented a $0.03 or 8.8% increase. Vulcan’s forward dividend now stand at $1.48, which equates to a dividend yield of 0.88%.

VMC Stock Chart

Fundamentally, Vulcan Materials stock valuation is undoubtedly on the pricier side, with its price-earnings ratio coming in at a 38.33. VMC's forward price-earnings ratio is also rich at 33.44. Its high valuation is likely a result of the company fast growing revenues. Although Vulcan Materials revenues decreased by $75 million in fiscal 2020, the company still managed to increase sales by roughly $1 billion since fiscal 2017. Vulcan Materials total annual sales currently stand at $4.86 billion.

Vulcan Materials has lacked consistent growth on the bottom-line. The company has lost $33 million in net income over the past year and is currently down about $15 million since fiscal 2017. VMC last reported $584 million in annual net profits for 2020. Moreover, the company doesn’t have the greatest balance sheet. With a debt load of $3.73 billion, Vulcan Materials' cash amount of $1.2 billion is less than a third of what it owes. Overall, the company’s current valuation makes the most sense with a 3-4 year holding period on the stock. The Vulcan Materials stock is likely best suited for long-term investors.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI