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OLDER Analysis Report
Aug 25, 2026
43 days ago · 100% complete
This report is 43 days old — newer filings and price moves since then are not reflected.
SEC data is missing this company's latest quarter
SEC data is missing this company's latest quarter: the SEC's companyfacts (refetched) ends at 2026-03-31 while its index lists a statement period 2026-06-30 — the SEC's aggregation omitted the filing; not recoverable from any archive we read Found by the Foundation Sweep four-quarter pass 2026-09-11; held under the four-quarter coverage policy (2026-09-11) and released automatically once the pass resolves it.
This page shows our last published analysis, from Aug 25, 2026. It is not being updated, and new reports can't be run for this company.
For AI assistants & researchers — machine-readable summary of this page

What this page is: Delvantic's full research page for Vulcan Materials Company (VMC) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.

Our current read (analysis of 2026-09-11): Designation Low · Gem Score -19 (−100…+100 Quality+Value blend) · Quality 69 · Value -78 · Sentiment 4 (timing only, not weighted) · Composite fair value $114.08 vs $275.94 at analysis

Page map (sections in order; each card carries a stable reference-name attribute you can cite):

  • profile-header / price-overview — company profile, live quote, market cap
  • extended-analysis — the core: three AI lens reads with findings, scores, and the analyst memo
  • future-predictions — our forward price-band predictions
  • market-narrative / ai-findings / gpt-critique — narrative context, cross-model findings, and an adversarial critique of our own analysis (near the end of the document)
  • Members-only sections (render as login gates for anonymous readers): price-history, income-trend, key-metrics, financials (statement tables), insider-trading. The analysis above is public; the raw data tables require a free account.

More for machine readers: site briefing at /llms.txt · any ticker resolves at delvantic.com/stock/TICKER · raw inputs are public-company filings and market data (via licensed data feeds); every model, score, lens read, and prediction on this page is Delvantic's own analysis.

Vulcan Materials Company

VMC NYSE
Basic Materials · Building Materials
Birmingham, AL 35242, United States vulcanmaterials.com Updated Aug 25, 5:00am
Price
$275.94
Market Cap
$35.8B
Employees
11,548
Beta
1.06
Avg Volume
961,790
Last Dividend
$2.05
CEO
Mr. Ronnie A. Pruitt

Vulcan Materials Company is a leading building materials company that supplies the foundational products used in infrastructure, commercial development, and residential construction. The company is primarily focused on construction aggregates, including crushed stone, sand, and gravel, and also produces asphalt mix and ready-mixed concrete through its operating segments. Its products support road building, public works, and large-scale construction projects, making it an important supplier within the North American construction materials market. Vulcan Materials Company serves contractors, government agencies, and other customers that rely on durable raw materials for essential construction and maintenance work. Founded in 1909 and headquartered in Birmingham, Alabama, the company plays a central role in the production and distribution of materials that form the base of modern infrastructure.

Runs with full report Generated: Aug 25, 2026 6:30am
Price Overview
Price at report time
$275.94
as of Aug 25, 5:00am (43d ago)
Change · Aug 25
-0.10 (-0.04%)
Day Range
$274.06 – $280.55
52-Week Range
$252.35 – $331.09
50-Day MA
$288.22
200-Day MA
$289.26
Volume
825,854.00
Right now · live
Log in to get the live feed
Members see the real-time price and the move since this report (over 43d).
Share Structure
Outstanding 129,400,000.00
Float 129,142,059.00
Free Float 99.8%
High free float — 99.8% of shares trade freely, ~0.2% held by insiders/institutions
Very liquid — most shares trade freely. Low insider ownership can mean less management alignment, but makes large position sizing straightforward.
Price History (1 Year)
Last updated: Aug 25, 2026 6:39am (43d ago)
Revenue & Net Income Trend
The directional story — useful even when net income is negative.
Last updated: Aug 25, 2026 6:39am (43d ago)
Revenue
The top line — total sales before any costs or taxes are subtracted. A measure of how much business the company is doing.
Net Income
The bottom line — profit left after subtracting all expenses, interest, and taxes from revenue. Reflects accounting profitability, but includes non-cash items like depreciation, so it isn't the same as cash earned.
Operating Cash Flow
The real cash generated by the day-to-day business — selling products, paying suppliers, collecting from customers. Calculated from net income by adding back non-cash items and adjusting for timing (unpaid bills, unsold inventory). When OCF consistently lags net income, the reported profit may not be converting to real money.
Period Revenue Net Income Net Margin YoY/QoQ
Key Metrics
TD Twelve Data statement HEX SEC filing
Industry comparison last run: Aug 25, 2026 6:28am
P/E · trailing (TTM) (Price per dollar of earnings over the past year — not a run-rate or forward P/E)
HEX
Stock Price / EPS (Diluted)
34.02
Stock Price: $275.94
EPS (Diluted): 8.11
P/B Ratio (Price vs net asset value)
HEX
Stock Price / Book Value Per Share
4.28
Stock Price: $275.94
Total Equity: $8.55B
Shares: 132,700,000
EV/EBITDA (Total value vs operating profit)
HEX
Enterprise Value / EBITDA
17.15
Market Cap: $35.76B
Total Debt: $4.36B
Cash: $183.30M
EBITDA: $2.37B
Enterprise Value (Takeover price (cap + debt - cash))
HEX
Market Cap + Total Debt - Cash
$40.6B
Market Cap: $35.76B
Total Debt: $4.36B
Cash: $183.30M
Gross Margin (Revenue left after direct costs)
HEX
Gross Profit / Revenue
27.4%
Gross Profit: $2.17B
Revenue: $7.94B
Operating Margin (Revenue left after all operations)
HEX
Operating Income / Revenue
20.4%
Operating Income: $1.62B
Revenue: $7.94B
Net Margin (Revenue left as actual profit)
HEX
Net Income / Revenue
13.6%
Net Income: $1.08B
Revenue: $7.94B
ROE (Profit from shareholder equity)
HEX
Net Income / Total Equity
12.6%
Net Income: $1.08B
Total Equity: $8.55B
ROIC (Profit from all invested capital)
HEX
NOPAT / Invested Capital
9.9%
Operating Income: $1.62B
Tax Rate: 22.1%
Equity: $8.55B
Total Debt: $4.36B
Cash: $183.30M
Current Ratio (Can it pay short-term bills)
HEX
Current Assets / Current Liabilities
2.69
Current Assets: $2.57B
Current Liabilities: $956.10M
Debt/Equity (Leverage — debt vs equity)
HEX
Total Debt / Total Equity
0.51
Short-Term Debt: $400,000
Long-Term Debt: $4.36B
Total Debt: $4.36B
Total Equity: $8.55B
Rev/Share (Top-line per share)
HEX
Revenue / Shares Outstanding
$59.84
Revenue: $7.94B
Shares: 132,700,000
Book Value/Share (Net assets per share)
HEX
(Total Assets - Total Liabilities) / Shares
$64.42
Total Equity: $8.55B
Shares: 132,700,000
FCF/Share (Real cash generated per share)
HEX
(Operating Cash Flow + CapEx) / Shares
$8.56
Operating CF: $1.81B
CapEx: -$677.70M
Shares: 132,700,000
CapEx is negative (outflow) — added to OCF to get FCF
Div Yield (Annual income from holding)
TD
Last Annual Dividend / Stock Price
0.7%
Last Dividend: $2.05
Stock Price: $275.94
Payout Ratio (Earnings paid out as dividends)
HEX
Dividends Paid / Net Income
24.1%
Dividends Paid: -$259.80M
Net Income: $1.08B
Industry Benchmarks
Last run: Aug 25, 2026 6:28am
Compares VMC against LLM-researched typical ranges for its industry. One research call per industry, cached indefinitely — every stock in the same industry reuses the same baseline.
Income Statement (Annual)
Last updated: Aug 25, 2026 6:39am (43d ago)
Metric 2021 2022 2023 2024 2025
Revenue — $7.3B $7.8B $7.4B $7.9B
Cost of Revenue $4.2B $5.8B $5.8B $5.4B $5.8B
Gross Profit $1.4B $1.6B $1.9B $2.0B $2.2B
Operating Expenses $362.6M $606.3M $521.1M $635.1M $555.0M
Operating Income $1.0B $951.4M $1.4B $1.4B $1.6B
Net Income $670.8M $575.6M $933.2M $911.9M $1.1B
EBITDA $1.5B $1.5B $2.0B $2.0B $2.4B
EPS $5.05 $4.33 $7.02 $6.89 $8.16
EPS (Diluted) $5.02 $4.31 $6.98 $6.85 $8.11
Balance Sheet (Annual)
Last updated: Aug 25, 2026 5:00am (43d ago)
Metric 2021 2022 2023 2024 2025
Cash & Equivalents $235.0M $161.4M $931.1M $559.7M $183.3M
Total Current Assets $1.7B $1.9B $2.5B $2.3B $2.6B
Total Assets $13.7B $14.2B $14.5B $17.1B $16.7B
Current Liabilities $769.3M $956.6M $797.6M $1.2B $956.1M
Long-Term Debt $3.9B $3.9B $3.9B $4.9B $4.4B
Total Liabilities $7.1B $7.3B $7.0B $9.0B $8.2B
Total Equity $6.6B $7.0B $7.5B $8.1B $8.5B
Retained Earnings $3.7B $4.1B $4.6B $5.2B $5.6B
Cash Flow (Annual)
Last updated: Aug 25, 2026 6:39am (43d ago)
Metric 2021 2022 2023 2024 2025
Operating Cash Flow $1.0B $1.1B $1.5B $1.4B $1.8B
Capital Expenditure -$451.3M -$612.6M -$872.6M -$603.5M -$677.7M
Free Cash Flow $560.6M $535.6M $664.2M $806.1M $1.1B
Acquisitions (net) -$1.6B -$529.2M $900,000 -$2.3B -$13.5M
Net Debt Issued / (Repaid) $148.3M -$7.7M $-500,000 $1.4B -$400.5M
Dividends Paid -$196.4M -$212.6M -$228.4M -$244.4M -$259.8M
Stock Buybacks $0 $0 -$200.0M -$68.8M -$438.4M
Net Change in Cash -$956.5M -$80.0M $787.7M -$348.4M -$411.4M
Growth Trends (YoY %)
Last updated: Aug 25, 2026 6:39am (43d ago)
Metric 2022 2023 2024 2025
Revenue Growth — +6.4% -4.7% +7.1%
Gross Profit Growth +13.4% +25.1% +2.6% +8.8%
Operating Income Growth -5.9% +50.0% -4.4% +18.7%
Net Income Growth -14.2% +62.1% -2.3% +18.1%
EBITDA Growth +4.4% +32.8% -2.3% +18.6%
Dividend History (Last 20)
Last updated: Aug 23, 2026 8:31am (45d ago)
Date Dividend Declaration Record Payment
2026-08-13 $0.52 — — —
2026-05-22 $0.52 — — —
2026-03-09 $0.52 — — —
2025-11-10 $0.49 — — —
2025-08-14 $0.49 — — —
2025-05-23 $0.49 — — —
2025-03-10 $0.49 — — —
2024-11-04 $0.46 — — —
2024-08-15 $0.46 — — —
2024-05-23 $0.46 — — —
2024-03-01 $0.46 — — —
2023-11-10 $0.43 — — —
2023-08-16 $0.43 — — —
2023-05-25 $0.43 — — —
2023-03-03 $0.43 — — —
2022-11-14 $0.40 — — —
2022-08-16 $0.40 — — —
2022-05-26 $0.40 — — —
2022-02-28 $0.40 — — —
2021-11-15 $0.37 — — —
0Company Classification 1Industry Landscape 2Company Momentum 3Forward Projection 4aDCF Valuation 4bEarnings Power Value 4cAnchored PE 4dReverse DCF 4eRevenue-Based DCF 4fAnchored P/S 4gScenario Analysis 4hDividend Discount Model 4iBook Value Analysis 4jInsider Activity 4fCash Flow Quality 4gDebt Maturity Risk 4hMacro Environment 4iSector Intelligence 4jRevenue Confidence 4kSensitivity Analysis 4lSector Demand Cycle 5AI Investigation 5bThesis Evaluation 6Valuation Synthesis
computed not applicable 18 computed · 6 not applicable
Risk : Reward — upside vs downside from this company's own quarters
Computed 2026-09-06 19:32
-0.8 : 1 +1σ upside vs −1σ downside, from this company's own quarterly history
A +1σ run of quarters pays -60%; a −1σ run costs 77%. Ratio -0.8:1 (μ 4.6%, σ 6.5% , 9 pairs).
Older method (repeat-worst-quarter): -0.7 : 1
CaseGrowthMarginFair valuevs price ($275.94)
Bull — recovery +7% 21.3% $130.55 -53%
Base — stabilizes +5% 18.5% $106.85 -61%
Bear — keeps slipping +2% 15.7% $85.85 -69%
Stress — last quarter repeats +3% 12.7% $73.17 -73%
Upside — a +1σ run of quarters (v2) +11% 15.2% $110.07 -60%
Stress — a −1σ run of quarters (v2) -2% 13.0% $63.65 -77%
The next quarters keep the trajectory of the worst recent matched quarter (ending 2025-12-31) — growth stays at 3.2% and margins bend by the same profit-vs-revenue ratio (×0.92). Stress is a trajectory, not a prediction — it answers "what if the ship's current heading simply continues," which history says is the case to respect.
Why this is appearing: this company files quarterly, so its recent trajectory could be measured rather than assumed — the engine matched Mar 2026 against the same quarter one year earlier and found revenue +7.4% · operating income +17.2% · net income +28.4% year-over-year. That measured heading is what the stress case extends forward. Of those, the stress case extends the worst matched quarter — the one ending Dec 31, 2025 (revenue +3.2%, operating income -5.5% YoY) — not the average. Data measured through Mar 31, 2026 — this card recalculates automatically when the next quarterly filing is ingested. Companies without quarterly filings (many foreign listings) never show this card: with no measured trajectory, there is nothing honest to repeat.
Narrative Economics
The story the market is telling about this stock — the intangible X-factor (founder mythology, cult dynamics, TAM-of-imagination) that moves price beyond what cash flows alone explain. After Shiller, Narrative Economics.
No narrative profile yet for VMC — it's generated by the pipeline (market-narrative step).
Growth Outlook
Analyzed 2026-08-25 06:47

The question every valuation on this page silently assumes: is this company likely to grow? Judged forward — the business, its category, the world — against what's already printed.

Growing Aggregates pricing power plus bolt-on M&A keep Vulcan growing earnings at a mid-to-high-single-digit revenue clip while its category is flat-to-shrinking — real share gain, but nowhere near the growth the price is underwriting. conf 7/10
Share gain Category shrinking · Vulcan grew revenue ~7.1-7.4% YoY while the building-materials industry printed -5.9% YoY against a 2.0% long-term CAGR and the category median ran +0.6% — a roughly +13pp gap, driven by aggregates pricing, public-works mix and bolt-on reserve acquisitions rather than by end-market volume.
Next 2 quarters
Growing
Pricing already in place carries into the next two prints, public-works shipments are backlog-supported, and unit-cost programs continue to convert flat tons into higher gross profit per ton. Expect continued revenue growth in the mid-single digits with earnings growing faster, subject to weather/timing noise that has repeatedly swung quarterly EPS.
≈ inline with expectations
Year 1
Growing
Full-year setup is price-plus-cost, not volume: mid-single-digit aggregates price realization, cash gross profit per ton expansion, and acquired tons annualizing. Volume guidance risk is real given private construction softness, but the earnings path does not require volume growth to be positive.
≈ inline with expectations
Years 2–3
Growing
Structurally the earnings power grows: irreplaceable reserve positions, consistent pricing above inflation, self-funded bolt-ons, and an aggregates-weighted mix that keeps margins ratcheting. But the category is flat-to-shrinking and the long-run revenue CAGR is ~1%, so the durable shape is mid-single-digit revenue with high-single to low-double-digit earnings growth — Growing, not Accelerating.
↓ below expectations
The creme: each rung's call measured against what's already printed (vs analyst estimates · vs guidance / FY consensus · vs price-implied growth) — expectations in print are already in the price, so only the variant margin can pay. Hover a rung's chip for the margin read.
Growth drivers
78 Aggregates unit pricing power — Crushed stone is non-substitutable, freight-bound and permit-constrained; Vulcan can push price mid-single-digits annually largely independent of volume. That mechanism is what produced +7.4% revenue on a category running +0.6%, and +17.2% operating income on that revenue — price flows through with minimal incremental cost.
69 Unit-profitability / margin self-help — Operating income growing ~2.3x revenue and net income +28.4% YoY, against industry-wide operating margin expansion of +4.2pp over three years. Cash gross profit per ton improvement is a structural, controllable lever that keeps earnings growing even in flat-volume years — evidenced by 7.4% earnings CAGR on a 1.0% revenue CAGR.
53 Public infrastructure demand as volume ballast — Highway and public works backlogs funded by federal/state programs are the least rate-sensitive end market and the most aggregates-intensive per dollar. This is what offsets private construction softness and makes Vulcan's volume floor higher than the broader building-materials category's.
36 Bolt-on acquisition of local reserve positions — Buying adjacent quarries adds revenue and immediately inherits Vulcan's pricing/cost playbook — a repeatable, self-funded (FCF CAGR ~31%) growth channel that explains part of the +13pp share gap versus a shrinking industry.
Growth risks
64 Rate-driven private construction drag — 10y at 4.74 with macro headwinds flagged; private non-residential and residential starts are the volume swing factor. Volumes can fall while price rises, capping revenue growth to low single digits — exactly the pattern in the 1.0% five-year revenue CAGR.
51 Decelerating trend beneath a strong print — Revenue confidence is Low, annual volatility 5.9%, quarterly trend labelled decelerating, and not all years positive. The strong matched-quarter YoY may reflect favorable weather/comps and shipment timing rather than a durable step-up.
46 Category is slowing, not growing — Sector phase 'slowdown', demand score -1, industry recent YoY -5.9% versus a 2.0% long-term CAGR. A winner inside a contracting category eventually meets the category — share gain buys time, not immunity.
39 Cyclical volume gearing — Fixed-cost quarry base means a genuine downcycle in tons hits operating income multiplicatively; the same leverage now producing +17% OI growth reverses hard. No company-specific hedge exists beyond price discipline.
The world is short of hard, permitted rock near growing metros and long of financing cost. That combination is unusually kind to Vulcan: reserve scarcity and freight economics hand it durable local pricing while high rates suppress the private construction volumes that would otherwise invite capacity additions. Public infrastructure spending, reshoring-driven industrial builds and data-center/power construction are aggregates-intensive and relatively rate-insensitive, providing a demand floor. But nothing in the macro set-up produces a volume boom: 10y at 4.74, a flagged sector slowdown and a mature industry mean growth must come from price, mix and cost — levers that compound at high-single to low-double-digit earnings rates, not at anything resembling a step-change.
Growth position composite +20
ShrinkingStallingHoldingGrowingAccelerating
70Next 2 quarters · Growing
70Year 1 · Growing
70Years 2–3 · Growing
+20Composite (−100…+100)
A research prediction, not advice. Forward-graded: each rung is scored against the prints that follow it. Not an input to the GEM designation — track record first.
Claude Reading
Independent analyst synthesis · claude-opus-4-7 · generated 2026-08-25 06:38:50
Verdict Overvalued but the synthesis $137 target is wrong — fair value $220-240 (25-27x normalized earnings); trim above $270, accumulate below $215.

Reading the raw tape first: VMC did $7.94B in 2025 revenue vs $7.42B in 2024 (+7%) with net income $1.08B vs $912M (+18%). But the quarterly trajectory is the tell — Q1 2026 rev $1.76B with 9.4% margin is a step-down from Q3 2025's $2.29B/16.4%. Aggregates are seasonal (Q1 is always the trough), so YoY is the honest comp: Q1 2026 $1.76B vs Q1 2025 $1.63B = +8% revenue, and net income $165.5M vs $128.9M = +28%. That's actually accelerating on margin, not decelerating. The "Low Revenue Confidence — decelerating" flag looks like it's tripping on seasonality, which is a model artifact, not a fundamental signal.

On valuation: EV/EBITDA of 17.1x and P/E of 34x are objectively rich for a rock-crushing business. Historical VMC trades 20-25x P/E; 34x is a real premium. But the synthesis verdict of $137 fair value (-50%) is absurd on its face — that would imply a P/E of ~17x and EV/EBITDA of ~9x on a business with 20% operating margins, a genuine geographic moat (aggregates don't ship economically beyond ~50 miles), and FCF that grew at 30.7% CAGR. Peers MLM and Eagle Materials trade in similar 25-30x P/E territory; the entire aggregates complex is expensive because permitting a new quarry near a metro is functionally impossible. The DCF model is anchored on trailing cash flows and missing the reserve-scarcity option value. I'd put fair value closer to $220-240 (roughly 25-27x forward earnings assuming ~$10 EPS run-rate), not $137. So the synthesis is directionally right (overvalued) but the magnitude is wrong by half.

The narrative layer nails the setup: this IS a platform-monopoly-lite story where the "platform" is irreplaceable reserve footprint. The bull case (IIJA infrastructure dollars finally hitting, housing supply gap, reshoring capex) has real substance — federal highway obligations are up materially and state DOT lettings remain elevated into 2026. The bear case that matters isn't recession (VMC survived 2008-2011 with volumes down 40% and came out fine) — it's that 27% gross margins and 20% operating margins may already reflect peak pricing power. Aggregates pricing rose ~12% in 2023 and ~10% in 2024; a reversion to 3-5% price growth with flat volumes crushes the earnings algorithm the market is capitalizing at 34x. The insider activity (option exercises + F-InKind tax withholdings, no open-market buys or sells) is genuinely neutral — don't overread it.

Contrarian angle the models miss: debt is $4.36B against $183M cash — net debt/EBITDA of ~2x is manageable but not fortress, and VMC has been an active acquirer (US Concrete, Wake Stone). If a large tuck-in comes, leverage steps up right as we're potentially at cycle peak margins. ROIC of 9.9% is below WACC-plus for a business trading at 4.3x book — the market is paying for future ROIC expansion, not current returns. That's a fragile setup. My verdict: overvalued, but not catastrophically so. The synthesis $137 target is wrong; the "premium to a durable moat" framing from the narrative layer is closer to reality. I'd be a buyer at $200-215 (25x normalized ~$8.50 EPS), a holder in the $220-250 range, and I'd trim above $270. At $276 with Q1 already showing seasonal weakness and infrastructure comps getting harder in H2 2026, risk/reward is skewed negative but this is not a short — the moat is too real and the reserve scarcity too structural. Partial agreement with the synthesis direction, strong dissent on the magnitude.

GPT Reading
Independent reading · gpt-5.4 · generated 2026-08-25 06:39:05
Verdict Overvalued at $275.94 — excellent aggregates franchise, but fair value looks closer to $200-$220 unless revenue growth and $1.3B+ sustainable FCF arrive soon.

Vulcan is a very good business priced like an exceptional one. What jumps out in the raw numbers is not fragility of operations, but the mismatch between steady-but-not-explosive fundamentals and a valuation assuming a long runway of above-cycle economics. Revenue rose from $7.42B in 2024 to $7.94B in 2025, up 7%, while net income increased from $911.9M to $1.08B, up 18%. That is real improvement, and margins are clearly better than they were in 2022, when $7.32B of revenue produced only $575.6M of net income. But it is still a cyclical building materials company growing low-to-mid single digits over time: 2023 revenue was actually higher than 2024, and the stated revenue CAGR is just 1%. Against that, the market is paying 34x earnings, 17.1x EBITDA, 4.6x sales, and over 4.2x book. For a business with ROIC around 9.9% and ROE 12.6%, those are rich, even after giving full credit for reserve scarcity and pricing power.

The quarterly pattern reinforces that this is a quality cyclical, not a secular compounder. The latest quarter, 2026-03-31, showed revenue of $1.76B versus $1.63B a year earlier, and net income of $165.5M versus $128.9M, so the year-on-year trend is healthy. But sequentially, the business still swings with seasonality and project timing: margins ranged from 7.9% in 2025’s first quarter to 16.4% in the third quarter, then back to 9.4% in 2026’s first quarter. That volatility is normal for the industry; the problem is the multiple is not normal for the industry. Even if I annualize something close to 2025 earnings power, the stock at $275.94 capitalizes the company at $35.76B for about $1.08B of net income and $1.14B of free cash flow. That is roughly a 3.2% FCF yield before asking whether 2025 represented favorable pricing, mix, and infrastructure tailwinds. With only $183M of cash against $4.36B of debt, the balance sheet is fine, not distressed, but also not a hidden source of upside.

What I do like is the operating quality. Gross margin improved to 27.4% in 2025 from 26.9% in 2024 and 21.3% in 2022; operating margin reached 20.4%, a very strong level for this industry. Operating cash flow of $1.81B on $1.08B of earnings is a sign the profits are real, and capex of $678M still left $1.14B of free cash flow. The company also appears to enjoy genuine structural advantages: scarce permitted reserves near demand centers and the ability to push price over time. That supports a premium to commodity producers and probably a premium to the average building materials peer. But the current valuation seems to price in not merely a premium, but persistence of near-peak margins and sustained growth that the revenue history does not yet justify. If this were a 22x-25x earnings stock, I could make the scarcity case comfortably; at 34x, the market is paying today for several years of tomorrow’s good news.

The best argument against my view is that Vulcan is not just another cyclical producer and should not be valued on old-cycle frameworks. A smart bull would point to the leap in annual net income from $575.6M in 2022 to $1.08B in 2025, the 30.7% FCF CAGR, and the recent quarter’s 18.1% earnings growth. They would say public infrastructure, reshoring-related construction, and the housing shortage can keep aggregates demand firmer for longer, while the permitting moat limits supply response and makes price increases sticky. On that view, 17x EBITDA is not crazy because replacement cost and reserve scarcity matter more than near-term EPS. I take that seriously, and it is why I would not call the business broken or the equity obviously dangerous. But even strong assets can be overowned at the wrong price. When a company with 1% revenue CAGR and sub-10% ROIC trades at a level implying durable scarcity rents far into the future, the burden of proof shifts to continued acceleration.

What would change my mind is simple: I would need to see growth catch up to the multiple. If Vulcan can sustain quarterly revenue growth in the high single digits while holding net margins above 14%-15%, and convert that into annual free cash flow materially above $1.3B-$1.5B without leverage creeping up, then a premium valuation becomes easier to defend. Likewise, if annual revenue can move convincingly through $8.5B with operating income compounding faster than sales, I would revisit the bearish valuation stance. Absent that, I think fair value is materially below the current quote; this is a very solid operator, but at $275.94 investors are paying for a best-case cycle and a monopoly-like endurance that the numbers have not fully earned.

Grok Reading
Independent reading · grok-4.5 · generated 2026-08-25 06:39:39
Verdict Overvalued at $276; fundamentals support roughly $180–210 even on generous mid-cycle assumptions

Vulcan’s numbers describe a high-quality mature aggregates franchise that has already harvested most of the easy margin expansion the market is still paying for. Full-year 2025 revenue of $7.94B sits only modestly above 2023’s $7.78B and 2024’s $7.42B; the revenue CAGR is roughly 1 percent and the latest quarterly trend is decelerating. What moved was profitability: net income climbed from $576M in 2022 to $1.08B in 2025, operating margin reached 20.4 percent, and free cash flow hit $1.14B on $1.81B of operating cash flow against $678M of capex. That is real operating leverage and pricing power in a tight local-market oligopoly. But at $275.94 the stock trades at 34x trailing earnings, 17.1x EV/EBITDA, 4.6x sales and a free-cash-flow yield of only about 3.2 percent. For a business whose top line barely grows through the cycle, those multiples embed a multi-year volume and pricing boom that the income statement has not yet delivered. Seasonality remains intact—Q1 2026 revenue of $1.76B and a 9.4 percent net margin look like the normal winter trough, not a new run-rate—so the annual numbers still have to carry the valuation.

Balance-sheet quality is adequate rather than fortress: $4.36B of debt against $183M of cash and $8.55B of equity produces a 0.51 debt-to-equity ratio and a comfortable 2.7 current ratio, while ROIC of 9.9 percent and ROE of 12.6 percent are respectable for heavy materials but hardly extraordinary at a 34x multiple. Insider activity is noise—option exercises and tax withholdings, no open-market conviction buys or sells. The quantitative models’ composite fair value near $137–148 is directionally correct even if mechanically harsh; a more generous 22–25x on roughly $8.30 of trailing EPS still lands in the $180–210 zone, 25–35 percent below the current quote. The market is paying a scarcity and infrastructure-narrative premium that has already been partially realized in the margin structure.

The strongest counter-argument is that aggregates near population centers are genuinely non-replicable: permitting timelines stretch a decade, freight costs create local monopolies, and Vulcan’s land bank plus pricing discipline have already lifted gross margin to 27.4 percent. If the infrastructure and public-works cycle sustains high utilization for another three to five years, earnings could compound mid-teens while the multiple only modestly compresses, producing acceptable total returns from here. FCF CAGR of 30.7 percent and the recent 18 percent earnings jump show the operating model can still surprise. A smart bull also notes that replacement-cost and reserve-value math can justify premiums that simple DCF multiples miss. I weigh that less heavily because the same pricing power is already in the trailing numbers; further upside requires volume growth the company has not demonstrated on a multi-year basis, and a construction slowdown would compress both earnings and the 34x multiple simultaneously.

I would reverse to neutral or constructive only if trailing twelve-month revenue growth sustains above 8 percent for three consecutive quarters while net margins hold above 13 percent through a weaker housing or public-spending print, or if the shares re-rate toward the mid-20x PE range without a collapse in earnings power.

Big-3 Panel — where each AI stands
Each AI above independently stated a direction (undervalued, fairly valued, or overvalued) and how strongly it believes it (conviction, 0–5). We combine those into a Bull-Bear Index on a 0–10 scale: 5 is neutral, 10 is maximum bullish (undervalued at full conviction), 0 is maximum bearish. We compute the score ourselves with the same arithmetic for every seat — the models never grade their own bullishness — so the three are directly comparable. Δ shows how far each seat sits from the panel average of 1.3; a large Δ marks the dissenting voice, usually the one worth reading.
Claude claude-opus-4-7 2.0
overvalued · conviction 3/5 · Δ +0.7 vs panel · self: 4.0
GPT gpt-5.4 1.0
overvalued · conviction 4/5 · Δ -0.3 vs panel · self: 3.0
Grok grok-4.5 1.0
overvalued · conviction 4/5 · Δ -0.3 vs panel · self: 3.0
Advanced Analysis Forensic deep-dive · separate lenses
Separate reads — Company Quality (is it a great business?), Valuation (is it mispriced?), and General Sentiment (how macro + narrative are pushing it), kept deliberately apart · 2026-08-25 06:48:53
Delvantic - Cairn AI
Quality - wait for a dip 8/10
Excellent aggregates franchise trading at roughly 40% above any defensible fair value - a pass at $276, a real name on a proper drawdown.
The cruxWhether you're willing to pay a peak-cycle multiple on peak margins for a genuinely irreplaceable asset base, or wait for the cyclical air-pocket that historically re-rates this name.
Forensic checks Derived mechanically from VMC's filed financials — not from the AI lenses
Liquidity & RunwaySelf-Funding
DilutionStable Share Count
Earnings QualityHigh Earnings Quality
The four lensesswitch a tab for its full read — score + evidence
Company Quality
+69
Strong
edge √Σ 134 · risk √Σ 49 · conf 8/10

Vulcan Materials shows the hallmarks of a durable, well-run cyclical: revenue grew from $7.32B (2022) to $7.94B (2025) while gross margin expanded from 21.3% to 27.4% and operating margin from 13% to 20.4%. Net income rose from $575.6M to $1.08B and FCF doubled from $535.6M to $1.14B over the same span - clear evidence of pricing power and operating leverage in the aggregates business. OCF/NI of 1.68x and negative accruals (-3.6% of assets) indicate earnings are backed by cash, and Altman Z of 4.01 places the balance sheet in the safe zone despite leverage. Capital discipline is intact: diluted share count actually shrank slightly (133.5M to 132.7M), SBC is only 0.8% of revenue, and buybacks run 2.76x SBC - per-share value is being protected, not diluted. Insider tape is unremarkable (routine option exercises with in-kind tax withholding; a single small $570K sale). The main constraint is $4.18B net debt against only $183M liquid cash - not a survival issue given $1.14B annual FCF (roughly 3.7x coverage of net debt by FCF over a few years), but it means the balance sheet is a working tool rather than a fortress cushion. This is a mature earner executing well within a structurally advantaged industry.

Strengths 4
m78
Margin expansion with operating leverage
Gross margin expanded 610 bps (21.3% to 27.4%) and operating margin 740 bps (13% to 20.4%) from 2022 to 2025 on modest revenue growth - classic aggregates pricing power flowing through.
m72
Cash-backed earnings
OCF/NI at 1.68x, accruals -3.6% of assets, FCF of $1.14B exceeds net income of $1.08B in 2025. Earnings quality checks are clean.
m60
Per-share discipline
Diluted shares -0.2% CAGR, SBC just 0.8% of revenue, buybacks 2.76x SBC. Management is not diluting owners.
m55
FCF doubling
FCF grew from $535.6M (2022) to $1.14B (2025), a 2.1x expansion, providing ample coverage of debt service, capex, and buybacks.
Concerns 2
m45
Net debt of $4.18B
Only $183M liquid cash against $4.18B net debt (cash/mktcap 0.5%). Serviceable at ~3.7x FCF but leaves less cushion for a cyclical downturn than the operating quality would suggest.
m20
Cyclical end-market exposure
Construction aggregates demand is tied to infrastructure, non-res, and residential cycles; current margin peaks may not be trough-tested.
This is a genuinely strong business - the kind of boring compounder that quietly widens moats through pricing power in a permits-limited industry. The margin trajectory is real, the cash conversion is clean, and management isn't leaking value through dilution. My only meaningful reservation is the leverage: $4.18B net debt against $183M cash means a serious construction downturn would compress optionality even if it wouldn't threaten solvency. Not a fortress, but a high-quality operating franchise with a working balance sheet. I'd land it comfortably in the upper-Strong band.
Verify before trusting this (5)
  • Debt maturity ladder and weighted average interest rate on the $4.18B net debt
  • Aggregates pricing vs volume mix in the recent margin expansion (pricing-led is more durable than mix)
  • Acquisition pipeline and integration cadence - VMC has been an active roll-up buyer
  • Segment breakdown between Aggregates and Asphalt/Concrete/Calcium for margin quality
  • Any pension or environmental remediation liabilities not captured in headline debt
Valuation / Mispricing
-78
Rich
edge √Σ 22 · risk √Σ 126 · conf 7/10
Price $275.94 vs deserved ~$150-175 (quality-adjusted); roughly 40-45% overvalued, no margin of safety. attractive below $170.00

The e2e composite pegs deserved value at $147.74 and the signal-adjusted FV at $137.38, implying roughly -50% downside from the $275.94 price. Two of three methods (DCF $94.53, EPV floor $85.06) point to a business worth well under half of today's quote; only the anchored-PE at $316.83 supports the price, and that method essentially capitalizes peak multiples on peak margins - exactly what you'd expect to break in a cyclical aggregates name. Even generously blending in the anchored-PE, a fair mid-point sits around $165-$180, still 35-40% below spot. The Company-Quality lens (score 69, Strong) legitimately raises deserved value above pure DCF/EPV floors - pricing power in a permits-limited industry deserves a premium multiple - but not to 3x EPV. What's priced in: multi-year mid-single-digit volume growth, continued pricing gains above cost inflation, and expanding EBITDA margins through a full cycle. That's a heroic stack for a cyclical commodity business carrying $4.18B net debt. The bear case (cyclical demand air-pocket, multiple compression) is not remotely reflected at 30x+ earnings. This is a great business at a full-to-rich price - the mispricing edge here is negative.

Cheap signals 1
m22
Genuine franchise quality deserves a premium
Quality score 69, clean cash conversion, disciplined share count, and irreplaceable reserves argue deserved value sits above raw DCF/EPV - lifting fair value toward $150-180, but not to $275.
Rich / priced-in 5
m72
Price ~2x composite FV
$275.94 vs composite $147.74 and signal-adj $137.38 - implied downside near -50%. Even with a quality premium, the gap is too wide to hand-wave.
m68
DCF and EPV floor both far below price
DCF $94.53 and EPV $85.06 suggest the cash-generating core of the business is worth roughly one-third of the quote. The rest is growth/cycle optionality investors are paying full freight for.
m55
Anchored-PE is the only support and it's circular
Anchored-PE of $316.83 above price simply reflects that VMC currently trades at premium multiples on premium margins; it doesn't independently validate the price, it echoes it.
m45
Priced for perfection on a cyclical
Narrative bull case (infrastructure super-cycle, sustained pricing, housing rebound) must all deliver to justify today's multiple; a normal cyclical drawdown compresses both earnings and multiple simultaneously.
m30
Leverage amplifies downside
$4.18B net debt vs $183M cash means a demand air-pocket hits equity harder; the current multiple gives no credit to this asymmetry.
I can't get comfortable here. The business is genuinely excellent - I don't dispute the quality lens - but I'm being asked to pay 2x what the cash flows justify and 1.5x what a quality-adjusted deserved value would be. The only method supporting today's price is one that essentially reflects today's multiples back at me. I'd want a $170s handle before this becomes interesting, and closer to $140 before it's a table-pounder. At $276 I pass; if I owned it I'd trim.
Verify before trusting this (4)
  • Forward volume and pricing guidance in latest 10-Q/transcript - is mid-single-digit price still landing?
  • Segment margin trajectory and whether cost inflation is being fully passed through
  • IIJA/infrastructure backlog conversion timing and any softening in residential end-markets
  • Any large M&A that would reset the deserved-value math (VMC has been acquisitive)
General Sentiment
+4
Balanced
tail √Σ 68 · head √Σ 64 · conf 6/10

Vulcan sits under a strong, durable platform-monopoly narrative tied to infrastructure spend, housing supply, and irreplaceable aggregates reserves. That story is doing real work here: it justifies a rich multiple and keeps the stock bid on any macro reassurance. But the story is also mature and priced-in, so incremental narrative fuel is scarce. Analyst tone is only somewhat bullish and the stock has lagged the broader tape over the past year, meaning sentiment is supportive but not euphoric.

Tailwinds 2
m55
Durable infrastructure-monopoly narrative
Aggregates quasi-monopoly + IIJA/housing supply story is strong and durable, giving the stock a structural sentiment floor even when the tape wobbles.
m40
Constructive near-term momentum
Recent 7% move vs 1% long-term trend shows buyers are engaged; a beta of 1.06 in a mildly risk-on tape helps rather than hurts.
Headwinds 3
m45
Story already fully priced
Narrative-vs-fundamentals gap is wide (premium to DCF), so any crack in infrastructure/housing headlines could de-rate quickly; sentiment upside is asymmetric to the downside.
m35
Lukewarm analyst tone and relative laggard
Coverage described as only somewhat bullish and VMC has lagged the S&P over the past year, signaling sentiment is not a strong tailwind despite the story.
m30
Rates and stretched market PE
10y at 4.74% and market PE 25.8 pressure long-duration, capex-linked cyclicals like aggregates producers, mildly compressing the multiple this narrative depends on.
Net-net I read this as roughly balanced with a slight tilt to tailwind. The platform-monopoly story is genuinely working and durable, which is why VMC keeps a premium multiple, but the story is old news and analysts and price action show the market is not adding fresh conviction. In a neutral tape with sticky rates, that leaves sentiment as a mild support rather than a driver - enough to hold the stock up, not enough to push it decisively higher.
Verify before trusting this (4)
  • Any cracks in infrastructure/housing headline flow (IIJA outlays, single-family starts)
  • Broker target revisions or downgrades citing multiple concerns
  • Cyclical rotation out of building materials into defensives if VIX pushes higher
  • Rate direction - a break lower in the 10y would meaningfully help sentiment
The market-wide tape + this name's exposure to it (beta / sector / narrative durability). Context on the non-fundamental pressure — not a call on the business or the price. processId: detail-general-sentiment
Growth Outlook
+20
Growing
edge √Σ 122 · risk √Σ 102 · conf 7/10

The world is short of hard, permitted rock near growing metros and long of financing cost. That combination is unusually kind to Vulcan: reserve scarcity and freight economics hand it durable local pricing while high rates suppress the private construction volumes that would otherwise invite capacity additions. Public infrastructure spending, reshoring-driven industrial builds and data-center/power construction are aggregates-intensive and relatively rate-insensitive, providing a demand floor. But nothing in the macro set-up produces a volume boom: 10y at 4.74, a flagged sector slowdown and a mature industry mean growth must come from price, mix and cost — levers that compound at high-single to low-double-digit earnings rates, not at anything resembling a step-change.

Growth drivers 4
m78
Aggregates unit pricing power
Crushed stone is non-substitutable, freight-bound and permit-constrained; Vulcan can push price mid-single-digits annually largely independent of volume. That mechanism is what produced +7.4% revenue on a category running +0.6%, and +17.2% operating income on that revenue — price flows through with minimal incremental cost.
m69
Unit-profitability / margin self-help
Operating income growing ~2.3x revenue and net income +28.4% YoY, against industry-wide operating margin expansion of +4.2pp over three years. Cash gross profit per ton improvement is a structural, controllable lever that keeps earnings growing even in flat-volume years — evidenced by 7.4% earnings CAGR on a 1.0% revenue CAGR.
m53
Public infrastructure demand as volume ballast
Highway and public works backlogs funded by federal/state programs are the least rate-sensitive end market and the most aggregates-intensive per dollar. This is what offsets private construction softness and makes Vulcan's volume floor higher than the broader building-materials category's.
m36
Bolt-on acquisition of local reserve positions
Buying adjacent quarries adds revenue and immediately inherits Vulcan's pricing/cost playbook — a repeatable, self-funded (FCF CAGR ~31%) growth channel that explains part of the +13pp share gap versus a shrinking industry.
Growth risks 4
m64
Rate-driven private construction drag
10y at 4.74 with macro headwinds flagged; private non-residential and residential starts are the volume swing factor. Volumes can fall while price rises, capping revenue growth to low single digits — exactly the pattern in the 1.0% five-year revenue CAGR.
m51
Decelerating trend beneath a strong print
Revenue confidence is Low, annual volatility 5.9%, quarterly trend labelled decelerating, and not all years positive. The strong matched-quarter YoY may reflect favorable weather/comps and shipment timing rather than a durable step-up.
m46
Category is slowing, not growing
Sector phase 'slowdown', demand score -1, industry recent YoY -5.9% versus a 2.0% long-term CAGR. A winner inside a contracting category eventually meets the category — share gain buys time, not immunity.
m39
Cyclical volume gearing
Fixed-cost quarry base means a genuine downcycle in tons hits operating income multiplicatively; the same leverage now producing +17% OI growth reverses hard. No company-specific hedge exists beyond price discipline.
vs expectations: ~6m inline · 1y inline · 2-3y below
The forward growth verdict — is the business itself likely to grow (next 2 quarters / year 1 / years 2–3), judged against its category and against printed expectations. The full horizon ladder + creme renders on the Growth Outlook card above. Not a call on the price (Valuation owns that) or the tape (Sentiment owns that).
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Lenses kept deliberately separate — Company Quality (price-agnostic), Valuation (price-conditional), General Sentiment (non-fundamental macro/narrative pressure), and Growth Outlook (the forward growth verdict). The scores are not blended. Filing-level items (convertibles, lock-ups, customer concentration) are v2 — see each lens's "verify."
Price Prediction
Lower -9.0% v0.6.0 View full prediction →

When we made this prediction on Aug 25, 2026, VMC was $274.64. We expect it to be $250.00 by Feb 2027, and we consider it great value under $170.00. This is an early model (v0.6.0) — the direction is more reliable than the exact price. Made Aug 25, 2026.

Price when predicted$274.64
Our estimate for Feb 2027$250.00-9.0%
Great value below$170.00
Price history shown (6 Months)

Blue is our prediction, starting the day we made it. Grey is a slower route to the same place — the same destination, taking longer. Black is the actual price, so you can see how we are doing.

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My Notes personal — only you see this
v1.1.760 · f4b58a28 · 2026-10-07 20:07:48