Vulcan Materials Company (NYE:VMC) has seen its share price rise 50% in the last five years, outperforming the market average. The stock has seen a 1.9% increase over the past year. The company has achieved a compound earnings per share (EPS) growth of 10% per year over the same period, which is higher than the 8% average annual increase in the share price.
The total shareholder return (TSR) of Vulcan Materials over the last 5 years has been 57%, which exceeds the share price return. This is due to the dividend payments the company has made. The stock has seen a total shareholder return of 2.8% over the last year, including the dividend.
Though the stock has done well in recent years, there are some warning signs investors should be aware of. It is important to consider the different impacts that market conditions can have on the share price, as well as other factors.
Vulcan Materials Company Stock Analysis:
The average forecast of 12 analysts for Vulcan Materials Company’s stock is USD 198.42 for the next 12 months. The company has a Buy rating from analysts on average. Stock Target Advisor’s Analyst ratings for the stock is Slightly Bearish, based on 6 positive and 9 negative signals. At the close of trading, the price of Vulcan Materials Company’s stock was USD 187.52. Over the past week, there was an increase of 8.85%, 12.41% over the past month, and 1.17% over the past year.
What we like:
High market capitalization
This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.
Superior risk adjusted returns
This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.
Low volatility
The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.
Superior return on equity
The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.
Positive cash flow
The company had positive total cash flow in the most recent four quarters.
Positive free cash flow
The company had positive total free cash flow in the most recent four quarters.
What we don’t like:
Below median total returns
The company has under performed its peers on annual average total returns in the past 5 years.
Below median dividend returns
The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.
Overpriced compared to earnings
The stock is trading high compared to its peers on a price to earning basis and is above the sector median.
Overpriced compared to book value
The stock is trading high compared to its peers median on a price to book value basis.
Overpriced on cashflow basis
The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.
Poor capital utilization
The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.
Poor return on assets
The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.
Overpriced on free cash flow basis
The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.
Low Earnings Growth
This stock has shown below median earnings growth in the previous 5 years compared to its sector
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
