Vulcan Materials Co (VMC, Financial) has recently captured the attention of investors and financial analysts with its strong financial position. Currently trading at $245.15 per share, Vulcan Materials Co has experienced a slight daily increase of 0.01%, despite a three-month decline of -3.94%. 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: financial strength, profitability, growth, GF Value, and momentum. These aspects are weighted differently to calculate a comprehensive score ranging from 0 to 100, with 100 indicating the highest potential for outperformance. Vulcan Materials Co boasts a GF Score of 94, signaling strong future performance potential.
- Financial strength rank: 6/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 8/10
Understanding Vulcan Materials Co Business
Vulcan Materials Co, with a market cap of $32.37 billion and annual sales of $7.58 billion, is the largest producer of construction aggregates in the United States. The company operates in key markets such as Texas, California, and Florida, among others. In 2023, Vulcan sold 234.3 million tons of aggregates, 13.4 million tons of asphalt mix, and 7.5 million cubic yards of ready-mix. With nearly 16 billion tons of aggregates reserves as of the end of 2022, Vulcan Materials Co is well-equipped for sustained growth.
Financial Strength Breakdown
Vulcan Materials Co's financial strength 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 Rank Breakdown
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 ability to generate profit is further affirmed by its high Predictability Rank of 5.0 stars, indicating consistent operational performance and reliability for investors.
Growth Rank Breakdown
Vulcan Materials Co's commitment to growth is demonstrated by its high Growth Rank. The company's 3-Year Revenue Growth Rate of 16.9% outperforms a significant portion of its industry peers. This growth is complemented by a strong increase in EBITDA, highlighting Vulcan Materials Co's ongoing expansion and operational efficiency.
Conclusion
Considering Vulcan Materials Co's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score underscores the company's strong 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.
