Vulcan Materials VMC
Vulcan Materials is the leading producer of aggregates (gravel, sand, and crushed stone) in the United States, and also produces asphalt and concrete, selling to the construction, infrastructure, and public works sectors. Vulcan Materials has solid financial health (score 6.97) with an operating margin of 21.61%, but its valuation is demanding (P/E 29.2) and growth is moderate (2.5% revenue), limiting its appeal in a high-interest-rate environment.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Vulcan Materials is the leading producer of aggregates (gravel, sand, and crushed stone) in the United States, and also produces asphalt and concrete, selling to the construction, infrastructure, and public works sectors. Vulcan Materials has solid financial health (score 6.97) with an operating margin of 21.61%, but its valuation is demanding (P/E 29.2) and growth is moderate (2.5% revenue), limiting its appeal in a high-interest-rate environment.
Score by category
| Category | Score |
|---|---|
| Financial health | 7.0 |
| Quality / Moat | 5.2 |
| Valuation | 4.1 |
| Growth | 4.8 |
| Dividend | 4.8 |
| Momentum | 4.5 |
| Risk & Context | 5.6 |
OVERALL SCORE: 5.1/10
Context and risks
The aggregates business is tied to the construction and infrastructure cycle, which is sensitive to interest rates. With the 10-year Treasury at highs (5.17%), the financing cost for construction and public works projects could pressure future demand for aggregates, a material risk for Vulcan's business volume.
News considered in the analysis
- Reflecting On Building Materials Stocks’ Q2 Earnings: Vulcan Materials (NYSE:VMC) — Análisis retrospectivo de resultados del segundo trimestre, sin información nueva que no esté ya en el precio.
- 1 Safe-and-Steady Stock to Research Further and 2 We Turn Down — Artículo de opinión genérico sin datos concretos sobre la empresa.
- Billionaire Ray Dalio’s Bridgewater’s 2 Non-AI Stock Picks — Mención de la empresa en una lista de posiciones de un fondo, sin impacto directo en fundamentales.
- Is Vulcan Materials Stock Underperforming the S&P 500? — Comparativa de rendimiento bursátil sin información fundamental nueva.
- Uber initiated, Thermo Fisher upgraded: Wall Street's top analyst calls — Resumen de llamadas de analistas que no menciona a Vulcan Materials.
Verdict: Hold. The strong market position and operating margin do not compensate for a demanding valuation and slow growth in a context of high rates pressuring construction demand.
Main risk: The main risk is the business's sensitivity to the construction and infrastructure cycle: a slowdown in public or private investment, exacerbated by high interest rates, could reduce demand for aggregates and impact volumes and margins.
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