Vulcan Materials Co (VMC, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. Currently trading at $253.79 per share, Vulcan Materials Co has experienced a daily increase of 0.39%, despite a slight decline of -3.13% over the past three months. A detailed evaluation using the GF Score indicates that Vulcan Materials Co is poised for significant growth, making it a potentially lucrative investment opportunity.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. These aspects have been proven to correlate strongly with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield better returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Vulcan Materials Co boasts a GF Score of 93, reflecting its strong potential in the market.
- Financial strength rank: 6/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 7/10
Understanding Vulcan Materials Co Business
Vulcan Materials Co, with a market cap of $33.51 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, alongside substantial quantities of asphalt mix and ready-mix. With nearly 16 billion tons of aggregates reserves as of the end of 2022, Vulcan Materials Co is well-equipped for sustained operations and 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 an impressive 7.68, indicating a strong ability to meet its interest obligations. Additionally, its Debt-to-Revenue ratio of 0.52 showcases prudent debt handling, further solidifying its financial health.
Profitability and Growth Metrics
Vulcan Materials Co's profitability is highlighted by its high Profitability Rank and increasing Operating Margin, which has grown to 17.73% in 2023. The company's growth is also noteworthy, with a 3-Year Revenue Growth Rate of 16.9%, outperforming 75.47% of its industry peers. This is complemented by a strong increase in EBITDA, emphasizing Vulcan's expanding operational capabilities.
Conclusion
Considering Vulcan Materials Co's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for strong, growth-oriented stocks may find Vulcan Materials Co an attractive option. For more insights into companies with high GF Scores, consider exploring our 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.
