# Vulcan Materials (VMC.US)

Canonical: https://gigainvestors.com/s/VMC

Analysis as of: 2026-10-16T07:32:53.914Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $252.40 per share; close as of 2026-10-15.

Estimated value: low $99.33 per share, central $136.57 per share, high $160.10 per share. Buy at or below the central value $136.57 per share. Valuation as of 2026-10-16T07:32:53.914Z; scenarios are not confidence intervals.

Expected annual return: 6.8% at the stated quote. About 6.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.11×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.16×

- FY2018: 0.17×

- FY2019: 0.18×

- FY2020: 0.18×

- FY2021: 0.18×

- FY2022: 0.13×

- FY2023: 0.18×

- FY2024: 0.18×

- FY2025: 0.20×

- LTM to Jun 2026: 0.20×

### moat: fail

- ROIC median below threshold

- ROIC, median of available years: 12.8%

- ROIC, second-lowest year: 10.9%

- Typical minus recent gross margin: -1.8 pp

- Typical gross margin (annual median): 25.5%

- Recent gross margin (lower of latest and 3-year median): 27.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 8.5%

- ROIC including acquisitions, ten-year median: 7.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 13.0%

- FY2018: 12.7%

- FY2019: 13.5%

- FY2020: 13.2%

- FY2021: 10.9%

- FY2022: 9.5%

- FY2023: 14.6%

- FY2024: 11.2%

- FY2025: 12.7%

- LTM to Jun 2026: 13.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.02×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $4.3B

- Net income, five-year total: $4.2B

- Return on incremental invested capital: 80.4%

- Working capital / revenue, annual change: -0.5 pp

- Working capital / revenue, change between three-year averages: -4.0 pp

- Working capital / revenue, final three-year average: 14.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.03×

- FY2025: 1.07×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 13.0% vs 12.7%

- Per-share earnings: 3.09 to 6.98 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.2%

- Ordinary dilution, 5-year annual growth: -0.1%

- Market cap gain: $21B

- Cumulative retained earnings: $3.8B

- Diluted shares, 10-year annual growth: -0.2%

- Diluted shares, 5-year annual growth: -0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 10.7%

- Per-share value change: $3.89

- Per-share value, starting three-year median: $3.09

- Per-share value, ending three-year median: $6.98

- Buybacks concentrated in cheaper years (correlation): 0.22

- Average buyback yield: 0.5%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $2.3B

- Cumulative net income, 10 years: $6.9B

- ROIC, first three-year median: 13.0%

- ROIC, last three-year median: 12.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: $3.09

- FY2017: $4.46

- FY2018: $3.85

- FY2019: $4.63

- FY2020: $4.39

- FY2021: $5.02

- FY2022: $4.31

- FY2023: $6.98

- FY2024: $6.85

- FY2025: $8.15

### accounting: pass

- Sloan accruals: -4.4%

- Receivables to sales index (DSRI): 0.93×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 3.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.68×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.62×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.7%

- FY2017: -0.5%

- FY2018: -3.2%

- FY2019: -3.4%

- FY2020: -4.2%

- FY2021: -2.5%

- FY2022: -4.0%

- FY2023: -4.1%

- FY2024: -2.9%

- FY2025: -4.4%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [John Armitage](https://gigainvestors.com/EC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Thomas Russo](https://gigainvestors.com/GR): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Wallace Weitz](https://gigainvestors.com/WIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Chris Hohn](https://gigainvestors.com/tci): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 13.4% a year for ten years · sales +2.2%

Story as of 2026-10-16T09:59:48.599Z; price observation 2026-10-15.

Price needs cash profits to grow 13.4% a year for ten years

- 2025-04-30: Vulcan Materials (NYSE:VMC) Reports US$129 Million Net Income With 6% Sales Increase ([finance.yahoo.com](https://finance.yahoo.com/news/vulcan-materials-nyse-vmc-reports-174400662.html))

- 2025-05-14: VMC Q1 Earnings Call: Profitability Gains Offset Revenue Miss Amid Mixed Market Demand ([finance.yahoo.com](https://finance.yahoo.com/news/vmc-q1-earnings-call-profitability-113650615.html))

- 2025-07-31: Vulcan Materials reaffirms $2.35B-$2.55B adjusted EBITDA guidance as public demand accelerates ([seekingalpha.com](https://seekingalpha.com/news/4475845-vulcan-materials-reaffirms-2_35b-2_55b-adjusted-ebitda-guidance-as-public-demand-accelerates?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-02-17: Vulcan Materials (NYSE:VMC) Misses Q4 CY2025 Revenue Estimates, Stock Drops ([finance.yahoo.com](https://finance.yahoo.com/news/vulcan-materials-nyse-vmc-misses-122002987.html))

- 2026-03-09: Vulcan Materials Outlook Tested As Q4 Miss Fuels Demand Concerns ([finance.yahoo.com](https://finance.yahoo.com/news/vulcan-materials-outlook-tested-q4-211224674.html))

- 2026-07-29: Vulcan reiterates $2.4B-$2.6B adjusted EBITDA outlook as it flags nearly $40M energy headwinds ([seekingalpha.com](https://seekingalpha.com/news/4620748-vulcan-reiterates-2_4b-2_6b-adjusted-ebitda-outlook-as-it-flags-nearly-40m-energy-headwinds?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2025–2026

sales +2.2%; source https://www.sec.gov/Archives/edgar/data/1396009/000162828026009546/vmc-20251231.htm; observed 2026-02-19.

- FY2017: $3.9B 

- FY2018: $4.4B 

- FY2019: $4.9B 

- FY2020: $4.9B 

- FY2021: $5.6B 

- FY2022: $7.3B 

- FY2023: $7.8B 

- FY2024: $7.4B 

- FY2025: $7.9B 

- FY2026: $8.1B 

### Gross margin · FY2026

gross margin 27.4%; source https://www.sec.gov/Archives/edgar/data/1396009/000162828026009546/vmc-20251231.htm; observed 2026-02-19.

- FY2017: 25.5% 

- FY2018: 25.1% 

- FY2019: 25.5% 

- FY2020: 26.4% 

- FY2021: 24.7% 

- FY2022: 21.3% 

- FY2023: 25.0% 

- FY2024: 27.0% 

- FY2025: 27.3% 

- FY2026: 27.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in building materials; annual sales are USD 7.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1396009/000162828026009546/vmc-20251231.htm (filed 2026-02-19); FY2025: revenue 7932800000; grossProfit 2166000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); VMC.US: Vulcan Materials Company produces and supplies construction aggregates in the United States. It operates through three segments: Aggregates, Asphalt, and Concrete. The company provides crushed stone, sand and gravel, sand, and other aggregates for use in construction and maintenance of highways, streets, and other public works, as well as in the construction of housing and commercial, industrial, and other nonresidential facilities; aggregates that are used as ballast for construction and maintenance of railroad tracks; riprap and jetty stones for use in erosion control along roads and waterways; asphalt mix; asphalt construction paving services; and ready-mixed concrete products. The company was formerly known as Virginia Holdco, Inc. and changed its name to Vulcan Materials Company. Vulcan Materials Company was founded in 1909 and is headquartered in Birmingham, Alabama.

### Why customers stay

Margins ranged from 25% to 27.3% during 2023–25; it earns 12.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2023: grossProfit / revenue = 25%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: grossProfit / revenue = 27%.

- Source: https://www.sec.gov/Archives/edgar/data/1396009/000162828026009546/vmc-20251231.htm (filed 2026-02-19); FY2025: grossProfit / revenue = 27.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); 10-year return on capital observations [[2017,0.13015706778557376],[2018,0.12652401959342865],[2019,0.13461037248640867],[2020,0.13246743176674014],[2021,0.10921368751328372],[2022,0.0945063616045107],[2023,0.14639386231994256],[2024,0.11165389559092732],[2025,0.12669715036835702],[2026,0.13733738585247768]]; median 0.1284271090769654. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

"Shipments decreased 1%, and pricing increased 2.3%, or $1.84 per ton." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1396009/000162828026009546/vmc-20251231.htm (filed 2026-02-19); Shipments decreased 1%, and pricing increased 2.3%, or $1.84 per ton.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 438.4 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2016: growth capex 65208000; upkeep 284940000; owner earnings 419491000. Growth capex / owner earnings = 0.15544552803278258.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2017: growth capex 153601000; upkeep 305965000; owner earnings 601185000. Growth capex / owner earnings = 0.25549705997321953.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2018: growth capex 122842000; upkeep 346246000; owner earnings 515805000. Growth capex / owner earnings = 0.23815589224610076.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2019: growth capex 9494000; upkeep 374600000; owner earnings 617662000. Growth capex / owner earnings = 0.015370866266663645.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2020: growth capex 0; upkeep 362194000; owner earnings 619106000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2021: growth capex 32600000; upkeep 418700000; owner earnings 670800000. Growth capex / owner earnings = 0.048598688133571856.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2022: growth capex 39200000; upkeep 573400000; owner earnings 575600000. Growth capex / owner earnings = 0.06810284920083391.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2023: growth capex 255600000; upkeep 617000000; owner earnings 933200000. Growth capex / owner earnings = 0.2738962708958423.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: growth capex 0; upkeep 603500000; owner earnings 940600000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1396009/000162828026009546/vmc-20251231.htm (filed 2026-02-19); FY2025: growth capex 0; upkeep 677700000; owner earnings 1151800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Dividend observations: [[2016,106333000],[2017,132335000],[2018,148109000],[2019,163973000],[2020,180216000],[2021,196400000],[2022,212600000],[2023,228400000],[2024,244400000],[2025,259800000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1396009/000162828026009546/vmc-20251231.htm (filed 2026-02-19); FY2025: cash repurchases 438400000 USD.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); VMC.US SharesStats.PercentInsiders = 0.231 percentage points; cache date 2026-10-16.

### What could break it

"Our long-term success depends upon securing and permitting aggregates reserves in strategically located areas" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1396009/000162828026009546/vmc-20251231.htm (filed 2026-02-19); Our long-term success depends upon securing and permitting aggregates reserves in strategically located areas

### What the price says

The price assumes cash profits grow 13.4% yearly over ten years; actual growth was 18.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Ten-year compound average after fade. Initial solved rate 0.1798271101050687. Price 252.4; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.6372202852849518 → FY2025 8.67972871137905. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $113.20 per share

- 2016-11: $125.65 per share

- 2016-12: $125.15 per share

- 2017-01: $128.33 per share

- 2017-02: $120.61 per share

- 2017-03: $120.48 per share

- 2017-04: $120.88 per share

- 2017-05: $124.65 per share

- 2017-06: $126.68 per share

- 2017-07: $123.12 per share

- 2017-08: $121.26 per share

- 2017-09: $119.60 per share

- 2017-10: $121.75 per share

- 2017-11: $125.65 per share

- 2017-12: $128.37 per share

- 2018-01: $135.40 per share

- 2018-02: $117.73 per share

- 2018-03: $114.17 per share

- 2018-04: $111.69 per share

- 2018-05: $127.74 per share

- 2018-06: $129.06 per share

- 2018-07: $112.00 per share

- 2018-08: $110.80 per share

- 2018-09: $111.20 per share

- 2018-10: $101.14 per share

- 2018-11: $105.71 per share

- 2018-12: $98.80 per share

- 2019-01: $101.65 per share

- 2019-02: $111.46 per share

- 2019-03: $118.40 per share

- 2019-04: $126.11 per share

- 2019-05: $124.91 per share

- 2019-06: $137.31 per share

- 2019-07: $138.35 per share

- 2019-08: $141.25 per share

- 2019-09: $151.24 per share

- 2019-10: $142.87 per share

- 2019-11: $141.87 per share

- 2019-12: $143.99 per share

- 2020-01: $141.63 per share

- 2020-02: $120.26 per share

- 2020-03: $108.07 per share

- 2020-04: $112.97 per share

- 2020-05: $108.32 per share

- 2020-06: $115.85 per share

- 2020-07: $117.42 per share

- 2020-08: $120.00 per share

- 2020-09: $135.54 per share

- 2020-10: $144.84 per share

- 2020-11: $139.65 per share

- 2020-12: $148.31 per share

- 2021-01: $149.14 per share

- 2021-02: $166.99 per share

- 2021-03: $168.75 per share

- 2021-04: $178.24 per share

- 2021-05: $183.32 per share

- 2021-06: $174.07 per share

- 2021-07: $179.99 per share

- 2021-08: $185.93 per share

- 2021-09: $169.16 per share

- 2021-10: $190.12 per share

- 2021-11: $191.64 per share

- 2021-12: $207.58 per share

- 2022-01: $190.31 per share

- 2022-02: $181.45 per share

- 2022-03: $183.70 per share

- 2022-04: $172.29 per share

- 2022-05: $164.87 per share

- 2022-06: $142.10 per share

- 2022-07: $165.33 per share

- 2022-08: $166.49 per share

- 2022-09: $157.71 per share

- 2022-10: $163.70 per share

- 2022-11: $183.33 per share

- 2022-12: $175.11 per share

- 2023-01: $183.33 per share

- 2023-02: $180.91 per share

- 2023-03: $171.56 per share

- 2023-04: $175.12 per share

- 2023-05: $195.50 per share

- 2023-06: $225.44 per share

- 2023-07: $220.50 per share

- 2023-08: $218.25 per share

- 2023-09: $202.02 per share

- 2023-10: $196.49 per share

- 2023-11: $213.56 per share

- 2023-12: $227.01 per share

- 2024-01: $226.01 per share

- 2024-02: $265.85 per share

- 2024-03: $272.92 per share

- 2024-04: $257.63 per share

- 2024-05: $255.77 per share

- 2024-06: $248.68 per share

- 2024-07: $274.51 per share

- 2024-08: $245.21 per share

- 2024-09: $250.43 per share

- 2024-10: $273.93 per share

- 2024-11: $288.13 per share

- 2024-12: $257.23 per share

- 2025-01: $274.15 per share

- 2025-02: $247.31 per share

- 2025-03: $233.30 per share

- 2025-04: $262.33 per share

- 2025-05: $265.07 per share

- 2025-06: $260.82 per share

- 2025-07: $274.67 per share

- 2025-08: $291.16 per share

- 2025-09: $307.62 per share

- 2025-10: $289.50 per share

- 2025-11: $297.24 per share

- 2025-12: $285.22 per share

- 2026-01: $300.54 per share

- 2026-02: $310.00 per share

- 2026-03: $272.30 per share

- 2026-04: $301.74 per share

- 2026-05: $282.92 per share

- 2026-06: $295.01 per share

- 2026-07: $268.57 per share

- 2026-08: $269.58 per share

- 2026-09: $244.63 per share

- 2026-10: $243.54 per share

## Annual estimated value (USD per share)

- FY2016: low $20.24 per share, central $22.84 per share, high $26.30 per share

- FY2017: low $27.80 per share, central $31.57 per share, high $36.59 per share

- FY2018: low $41.77 per share, central $47.53 per share, high $55.19 per share

- FY2019: low $48.83 per share, central $55.38 per share, high $64.10 per share

- FY2020: low $66.04 per share, central $84.86 per share, high $97.93 per share

- FY2021: low $67.05 per share, central $88.89 per share, high $103.90 per share

- FY2022: low $89.76 per share, central $127.74 per share, high $150.01 per share

- FY2023: low $101.25 per share, central $141.92 per share, high $165.68 per share

- FY2024: low $92.42 per share, central $127.53 per share, high $149.10 per share

- FY2025: low $94.86 per share, central $130.43 per share, high $152.92 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:38:39.612Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1396009/000162828026009546/vmc-20251231.htm); period 2025-12-31, filed 2026-02-19.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.