📊 VMC Key Takeaways
Is Vulcan Materials CO (VMC) a Good Investment?
Vulcan Materials operates in an essential industry with modest 7.1% revenue growth, but exhibits concerning capital inefficiency with ROE of only 2% and ROA of 1%. The combination of dangerously tight 1.4x interest coverage, flat net income despite revenue gains, and weak free cash flow generation (3.7% margin) signals structural profitability challenges that outweigh the stability of its business model.
Vulcan Materials shows strong underlying fundamentals with healthy revenue growth, robust operating and free cash flow generation, and solid profitability for a heavy materials business. The balance sheet appears sound with good liquidity, manageable leverage, and adequate interest coverage, although flat net income growth despite higher revenue suggests investors should watch cost discipline and end-market cyclicality.
Vulcan Materials CO Key Strengths (VMC)
- Stable revenue growth of 7.1% YoY in an essential nonmetallic minerals sector
- Strong liquidity position with current ratio of 2.59x and quick ratio of 1.89x
- Reasonable operational margins with gross margin of 24.1% and operating margin of 15.1%
- Strong profitability with 27.4% gross margin, 20.4% operating margin, and 13.6% net margin
- High-quality cash generation with $1.81B operating cash flow and $1.14B free cash flow
- Healthy financial position supported by 2.69x current ratio, 0.51x debt-to-equity, and 8.3x interest coverage
VMC Stock Risks: Vulcan Materials CO Investment Risks
- Critically low interest coverage of 1.4x leaves minimal buffer for rate increases or operational stress
- Extremely poor returns on capital: ROE of 2% and ROA of 1% indicate severe capital inefficiency
- Net income essentially flat (-0.1% YoY) despite 7.1% revenue growth signals persistent margin compression and rising cost pressures
- Weak free cash flow generation at 3.7% margin relative to revenue suggests limited cash returns to shareholders
- Net income was essentially flat year over year despite 7.1% revenue growth, which may indicate margin or cost pressures
- Business remains exposed to cyclical construction, infrastructure, and aggregates demand
- Low cash balance relative to total debt reduces flexibility if markets weaken or capital needs rise
Key Metrics to Watch
- Interest coverage ratio - critical threshold below 1.4x indicates potential covenant risk
- Net margin trend - must improve from 9.4% to justify revenue growth trajectory
- Free cash flow conversion - should exceed 5% of revenue to support debt service and growth
- Return on equity and assets - need sustained improvement above 5% ROE to justify capital structure
- Operating margin and net income conversion on future revenue growth
- Free cash flow after capital expenditures and changes in debt levels
Vulcan Materials CO (VMC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.7% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.59x current ratio provides a solid financial cushion.
VMC Profit Margin, ROE & Profitability Analysis
VMC vs Materials Sector: How Vulcan Materials CO Compares
How Vulcan Materials CO compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Vulcan Materials CO Stock Overvalued? VMC Valuation Analysis 2026
Based on fundamental analysis, Vulcan Materials CO has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Vulcan Materials CO Balance Sheet: VMC Debt, Cash & Liquidity
VMC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Vulcan Materials CO's revenue has shown modest growth of 2% over the 5-year period. The most recent EPS of $6.98 reflects profitable operations.
VMC Revenue Growth, EPS Growth & YoY Performance
VMC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.6B | $128.9M | $0.97 |
| Q3 2025 | $2.0B | $207.6M | $1.56 |
| Q2 2025 | $2.0B | $308.0M | $2.31 |
| Q1 2025 | $1.5B | $102.7M | $0.77 |
| Q3 2024 | $2.0B | $207.6M | $1.56 |
| Q2 2024 | $2.0B | $308.0M | $2.31 |
| Q1 2024 | $1.5B | $102.7M | $0.77 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Vulcan Materials CO Dividends, Buybacks & Capital Allocation
VMC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Vulcan Materials CO (CIK: 0001396009)
📋 Recent SEC Filings
❓ Frequently Asked Questions about VMC
What is the AI rating for VMC?
Vulcan Materials CO (VMC) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are VMC's key strengths?
Claude: Stable revenue growth of 7.1% YoY in an essential nonmetallic minerals sector. Strong liquidity position with current ratio of 2.59x and quick ratio of 1.89x. ChatGPT: Strong profitability with 27.4% gross margin, 20.4% operating margin, and 13.6% net margin. High-quality cash generation with $1.81B operating cash flow and $1.14B free cash flow.
What are the risks of investing in VMC?
Claude: Critically low interest coverage of 1.4x leaves minimal buffer for rate increases or operational stress. Extremely poor returns on capital: ROE of 2% and ROA of 1% indicate severe capital inefficiency. ChatGPT: Net income was essentially flat year over year despite 7.1% revenue growth, which may indicate margin or cost pressures. Business remains exposed to cyclical construction, infrastructure, and aggregates demand.
What is VMC's revenue and growth?
Vulcan Materials CO reported revenue of $1.8B.
Does VMC pay dividends?
Vulcan Materials CO pays dividends, with $67.9M distributed to shareholders in the trailing twelve months.
Where can I find VMC SEC filings?
Official SEC filings for Vulcan Materials CO (CIK: 0001396009) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is VMC's EPS?
Vulcan Materials CO has a diluted EPS of $1.26.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is VMC's fundamental grade?
Based on our AI fundamental analysis in June 2026, Vulcan Materials CO has a B grade with 77% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is VMC stock overvalued or undervalued?
Valuation metrics for VMC: ROE of 2.0% (sector avg: 14%), net margin of 9.4% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is VMC's AI grade for 2026?
Our dual AI analysis gives Vulcan Materials CO a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is VMC's free cash flow?
Vulcan Materials CO's operating cash flow is $241.1M, with capital expenditures of $176.5M. FCF margin is 3.7%.
How does VMC compare to other Materials stocks?
Vs Materials sector averages: Net margin 9.4% (avg: 10%), ROE 2.0% (avg: 14%), current ratio 2.59 (avg: 1.6).