Vulcan Materials Co (VMC, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. Currently trading at $257.89 per share, Vulcan Materials Co has experienced a slight daily decrease of 1.47%, yet it maintains a positive three-month change of 0.95%. 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 components are weighted differently and have been backtested from 2006 to 2021, showing a strong correlation with long-term stock performance. Stocks with higher GF Scores typically yield higher returns. Vulcan Materials Co boasts a GF Score of 93 out of 100, indicating a high potential for outperformance.
Understanding Vulcan Materials Co's Business
Vulcan Materials Co, with a market cap of $34.06 billion and annual sales of $7.58 billion, is the largest producer of construction aggregates in the United States. The company operates extensively across several key states, including Texas and California, and reported sales of 234.3 million tons of aggregates in 2023. Vulcan Materials Co's diverse product range and substantial aggregate reserves underline its industry dominance and operational stability.
Financial Strength Breakdown
Vulcan Materials Co's financial robustness is reflected in its Financial Strength Rank of 6/10. The company's Interest Coverage ratio stands at an impressive 7.68, showcasing its ability to comfortably meet interest obligations. Additionally, its strategic debt management is evidenced by a Debt-to-Revenue ratio of 0.52, further solidifying its financial health.
Profitability and Growth Metrics
The Profitability Rank of Vulcan Materials Co is exceptional at 9/10. The company has demonstrated a consistent improvement in its Operating Margin, which has increased to 17.73% in 2023. Its growth trajectory is equally impressive, with a Growth Rank of 10/10, supported by a 3-Year Revenue Growth Rate of 16.9%, outperforming 75.4% of its industry peers.
Conclusion: Vulcan Materials Co's Position for Future Success
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 outperformance. Investors looking for solid investment opportunities may find Vulcan Materials Co an attractive option. For more insights into companies with strong 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.
