One-glance verdict
Overvalued
$161.37 our estimate vs market $281.25
Wall Street consensus: $307.87 (90.8% higher than our fair-value estimate)
74% above our estimate, beyond the bull case
Fundamentals snapshot
Vulcan Materials Company
VMC · NYQ · Basic Materials · Building Materials
Current price
$281.25
52-week range
$237.03 - $331.09
Market cap
$36.10B
Balance sheet
Watch
6.54x Adequate
Net debt $5.22B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 0.9% last year.
- Reward Returns 12.9% on equity, ahead of 40% of its peers.
- Risk Net debt grew 7.8% over 3 years.
- Risk Insider ownership is only 0.2% (peer median: 0.8%).
What this company does
Vulcan Materials Company
Vulcan Materials Company sells essential building materials like crushed stone, sand, and gravel, primarily to construction projects across the United States. The money they make mainly comes from selling these aggregates, which are crucial for building roads, bridges, and homes. Understanding their sales helps us see how much construction activity is happening, which is important for the economy.
How the company got here
Vulcan Materials Company, originally founded in 1909, has a long history rooted in providing essential materials for infrastructure. It started as Virginia Holdco, Inc. before adopting its current name. Over more than a century, the company has grown to become a major supplier of construction aggregates, playing a key role in building and maintaining the roads, railways, and buildings that form the backbone of communities across the United States.
What it actually does
Vulcan Materials is essentially a quarrying and materials company. Think of them as the people who dig up rocks, crush them into different sizes, and then sell those crushed rocks, sand, and gravel to builders. These materials are the fundamental ingredients used in almost all construction projects, from the asphalt you drive on to the concrete that forms bridges and buildings.
Aggregates
This is the largest part of Vulcan's business, making up the bulk of its revenue. They dig up and process stone, sand, and gravel, which are then sold to customers for use in building and repairing highways, streets, and other public infrastructure projects. These materials are also crucial for constructing homes, commercial buildings, and industrial facilities. Essentially, aggregates are the foundational components for most construction you see around you.
Asphalt
In this segment, Vulcan not only supplies the aggregate materials but also produces asphalt mix, which is the black, sticky substance used for paving roads. They also offer asphalt construction and paving services, meaning they can take the materials they produce and lay them down to create or repair roads. This business line is closely tied to the Aggregates segment, as it uses many of the same raw materials.
Concrete
This part of Vulcan's business focuses on producing ready-mixed concrete. Concrete is made by mixing aggregates (like stone and sand) with cement and water. Vulcan supplies this mixture directly to construction sites, where it's used for everything from building foundations and sidewalks to constructing bridges and large structures. It's a vital material for creating durable and strong construction elements.
What management is betting on now
Vulcan's management is focused on capitalizing on the ongoing need for infrastructure development and repair across the country. They are likely prioritizing efficient operations within their existing quarries and production facilities to maximize profitability. Additionally, strategic investments in expanding their reach or acquiring new sites could be part of their plan to meet future demand for essential construction materials.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$277.60M
FY2025 Q1
$83.50M
FY2025 Q2
$238.80M
FY2025 Q3
$454.80M
FY2025 Q4
$358.20M
FY2026 Q1
$64.60M
FY2026 Q2
$149.60M
FY2026 Q3
$208.80M
Revenue
$2.18B
Net income
$362.30M
Diluted EPS
2.80
Operating cash flow
$386.40M
Free cash flow
$208.80M
Fetching…
Sources
Revenue
$2.16B
Net income
$323.40M
Diluted EPS
2.48
Operating cash flow
$343.50M
Free cash flow
$149.60M
Fetching…
Sources
Revenue
$1.76B
Net income
$165.50M
Diluted EPS
1.26
Operating cash flow
$241.10M
Free cash flow
$64.60M
Fetching…
Sources
Revenue
$1.91B
Net income
$252.00M
Diluted EPS
1.90
Operating cash flow
$543.00M
Free cash flow
$358.20M
Fetching…
Sources
Revenue
$2.29B
Net income
$374.90M
Diluted EPS
2.82
Operating cash flow
$676.80M
Free cash flow
$454.80M
Fetching…
Sources
Revenue
$2.10B
Net income
$320.90M
Diluted EPS
2.42
Operating cash flow
$341.70M
Free cash flow
$238.80M
Fetching…
Sources
Revenue
$1.63B
Net income
$128.90M
Diluted EPS
0.97
Operating cash flow
$251.50M
Free cash flow
$83.50M
Fetching…
Sources
Revenue
$1.85B
Net income
$293.60M
Diluted EPS
2.21
Operating cash flow
$440.10M
Free cash flow
$277.60M
Fetching…
Sources
Is it cheap or expensive?
Fair value $161.37 vs current price $281.25
Wall Street consensus is the average analyst price target: $307.87 (90.8% higher than our fair-value estimate).
Our most-likely fair value is $161.37 a share — about 42.6% below today's price of $281.25, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $5.2B. Interest coverage 6.5x.
Net debt
$5.22B
Interest coverage
6.54x
Vulcan Materials Company's profit covers its interest bill about 6.5 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
VMC
BASELINE
Vulcan Materials Company
Total debt $5.32B Interest coverage 6.54x This is the baseline the peer rows are being compared against.
Total debt $6.34B Interest coverage 6.33x -3% vs VMC Has roughly the same debt cushion as VMC.
Total debt $21.58B Interest coverage 6.57x +1% vs VMC Has roughly the same debt cushion as VMC.
Total debt $1.80B Interest coverage 10.70x +64% vs VMC Carries about 1.6x more debt cushion than VMC.
Total debt $1.67B Interest coverage 3.49x -47% vs VMC Carries about 1.9x less debt cushion than VMC.
What you should know
The case for and against VMC
3 Rewards
2 Risks
Rewards
-
Revenue grew 0.9% last year.
-
Returns 12.9% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 7.8% over 3 years.
-
Insider ownership is only 0.2% (peer median: 0.8%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
33.17x
Forward P/E
27.71x
P/B
4.31x
P/S
4.51x
EV/EBITDA
17.95x
PEG ratio
1.90x
Profitability
How much profit each dollar creates
Gross margin
27.5%
Operating margin
23.9%
Net margin
13.8%
ROE
12.9%
ROA
5.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.63x
Current ratio
1.43x
Quick ratio
0.84x
Total debt
$5.32B
Total cash
$106.60M
Growth
How the business has been compounding
Revenue TTM
$8.01B
Revenue 5Y CAGR
9.4%
EPS TTM
8.48
EPS 5Y CAGR
23.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.51B
Free CF TTM
$1.14B
FCF margin
14.2%
Dividend
Shareholder payout
Yield
0.7%
Payout ratio
24.3%
Last ex-div date
2026-11-09