📊 VMC Key Takeaways
Is Vulcan Materials CO (VMC) a Good Investment?
Vulcan Materials demonstrates solid operational performance with strong profitability metrics (20.4% operating margin, 13.6% net margin) and healthy financial discipline, supported by robust free cash flow generation of $1.1B. The company maintains conservative leverage (0.51x debt/equity) with excellent interest coverage (8.3x) and strong liquidity ratios, positioning it well for capital returns and strategic investments.
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.
Why Buy Vulcan Materials CO Stock? VMC Key Strengths
- Strong profitability with 20.4% operating margin and 27.4% gross margin indicating pricing power and operational efficiency in nonmetallic minerals extraction
- Solid free cash flow generation of $1.1B (14.3% FCF margin) with conservative capital intensity (capex $678M represents ~35% of operating cash flow)
- Conservative balance sheet with 0.51x debt/equity ratio, $183.3M cash position, and 8.3x interest coverage providing financial flexibility
- Consistent revenue growth of 7.1% YoY with diluted EPS growth of 18.4% YoY, indicating improving operational leverage
- Strong liquidity position with 2.69x current ratio and 1.97x quick ratio ensuring operational stability
- 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
- Modest net income decline of 0.1% YoY despite revenue growth suggests potential margin pressure or elevated expenses requiring monitoring
- Limited cash position of $183.3M relative to $4.4B long-term debt, though manageable given strong cash flow generation
- Cyclical industry exposure to construction and infrastructure spending; revenue growth highly dependent on macroeconomic conditions and capital spending cycles
- High insider trading activity (29 Form 4 filings in 90 days) warrants monitoring for signaling of management sentiment
- Return on equity of 12.6% and ROA of 6.4% are moderate, suggesting room for operational or financial optimization
- 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
- Gross margin trends and pricing power in nonmetallic minerals markets
- Free cash flow conversion and capital allocation priorities (dividends vs. debt reduction vs. acquisitions)
- Operating margin sustainability amid potential input cost inflation or labor pressures
- Debt/equity ratio trajectory and debt service capacity under economic stress scenarios
- Revenue growth rates segmented by end markets (construction, infrastructure, aggregates demand)
- 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
Strong liquidity with a 2.69x 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 |
|---|---|---|---|
| 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 Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are VMC's key strengths?
Claude: Strong profitability with 20.4% operating margin and 27.4% gross margin indicating pricing power and operational efficiency in nonmetallic minerals extraction. Solid free cash flow generation of $1.1B (14.3% FCF margin) with conservative capital intensity (capex $678M represents ~35% of operating cash flow). 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: Modest net income decline of 0.1% YoY despite revenue growth suggests potential margin pressure or elevated expenses requiring monitoring. Limited cash position of $183.3M relative to $4.4B long-term debt, though manageable given strong cash flow generation. 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 $7.9B.
Does VMC pay dividends?
Vulcan Materials CO pays dividends, with $259.8M 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 $8.11.
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 rating reflects both perspectives for balanced insights.
Is VMC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Vulcan Materials CO has a BUY rating with 80% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is VMC stock overvalued or undervalued?
Valuation metrics for VMC: ROE of 12.6% (sector avg: 14%), net margin of 13.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy VMC stock in 2026?
Our dual AI analysis gives Vulcan Materials CO a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is VMC's free cash flow?
Vulcan Materials CO's operating cash flow is $1.8B, with capital expenditures of $677.7M. FCF margin is 14.3%.
How does VMC compare to other Materials stocks?
Vs Materials sector averages: Net margin 13.6% (avg: 10%), ROE 12.6% (avg: 14%), current ratio 2.69 (avg: 1.6).