VMC Stock Analysis — Vulcan Materials Company
Sector: Industrials
AI Verdict
Vulcan trades at 30.5x next year’s earnings while EPS is expected to grow 12.6%—you’re paying a premium the numbers don’t yet support, but the local quarry moat makes that growth more credible than most.
Competitive Moat
Vulcan Materials dominates the U.S. aggregates market, supplying essential crushed stone, sand, and gravel for infrastructure and construction projects. Its moat comes from hard-to-replicate quarry assets near major metro areas, making local competitors unlikely and transport costs a barrier to entry.
Summary
Vulcan’s pricing power in aggregates is its key lever as infrastructure spending ramps up.
Where It Stands
Vulcan returned 7.64% over the past year, trades at 30.5x forward earnings versus the industrials median of 20x, and its RSI of 47.3 signals a neutral, cooling-off phase.
Key Metrics
- RSI: 47.3 — Neutral
- Trailing P/E: 34.4x
- Forward P/E: 30.5x
- PEG Ratio: 2.55
- Earnings Growth: +0.1%
- Revenue Growth: +0.1%
- Market Cap: $37.5B
- Dividend Yield: 0.01%
- 1-Year Return: 7.64%
- 52-Week High: $331.09
- 52-Week Low: $252.35
Analyst Consensus
19 Buy · 8 Hold · 1 Sell (28 analysts)
Bull Case
Analysts expect 12.6% EPS growth next year, and the 30.5x forward P/E reflects the market’s willingness to pay up for steady infrastructure-linked demand.
Bear Case
With a trailing PEG of 2.55 and a forward P/E 50% above the sector median, any disappointment in earnings could trigger a sharp de-rating.
Catalyst to Watch
Watch for federal infrastructure bill project awards or state-level spending updates, as these directly impact aggregate demand and earnings visibility.