Vulcan Materials Co (VMC, Financial) has recently garnered attention from investors and financial analysts, thanks to its solid financial standing. With a current share price of $256.27, Vulcan Materials Co has experienced a daily gain of 0.54%, contrasting with a three-month change of -1.02%. A detailed analysis, supported by the GF Score, indicates that Vulcan Materials Co is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 representing the highest potential for outperformance. Vulcan Materials Co boasts a GF Score of 93, indicating a top-tier potential for market outperformance.
- Financial strength rank: 6/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 8/10
Understanding Vulcan Materials Co Business
Vulcan Materials Co, with a market cap of $33.84 billion and sales of $7.58 billion, is the largest producer of construction aggregates in the United States. Its major markets include several high-growth states such as Texas and California. In 2023, Vulcan sold 234.3 million tons of aggregates, alongside substantial quantities of asphalt mix and ready-mix. The company's vast reserves and strategic market presence underscore its industry dominance.
Financial Strength Breakdown
Vulcan Materials Co's financial resilience is evident in its robust balance sheet and strategic debt management. The company's Interest Coverage ratio stands at 7.68, showcasing its ability to comfortably meet interest obligations. Additionally, its Debt-to-Revenue ratio of 0.52 further solidifies its financial health, reflecting prudent capital management.
Profitability and Growth Metrics
The Profitability Rank of Vulcan Materials Co is impressive, with an Operating Margin that has shown growth over the past five years. The company's commitment to expansion is reflected in its Growth Rank of 10/10, with a notable 3-Year Revenue Growth Rate of 16.9%. This growth trajectory is supported by a strong increase in EBITDA, highlighting Vulcan Materials Co's operational efficiency and market expansion capabilities.
Conclusion
Considering Vulcan Materials Co's robust financial strength, impressive profitability, and strategic growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
