NYSE:VMC
$42.14
(2/9 1:07PM)
-3.1%
| Open | $42.98 |
Mkt Cap | $5.5 Billion |
| High | $44.01 |
52Wk High | $62.00 |
| Low | $41.8 |
52Wk Low | $34.30 |
| Volume | 2.1 Million |
Avg Vol 10D | 1.3 Million |
Ockham's Rating/Recommendation Summary
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VMC Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at VMC through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 2.83x and 1.64x respectively.
Utilizing this range we can see that VMC’s current Price to Sales per share ratio of 1.89x is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $43.66, VMC is 16% below where we would expect to see it. This will beneficially factor into our final analysis of VMC as it is not often that this stock sinks to these levels.
VMC Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. VMC is significantly above its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for VMC to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 23.10 and a 12.22 low over the same period.
Therefore, at the current price of $43.66 and a Price to Cash Earnings ratio of 24.67, VMC is significantly overvalued. This diminishes the attractiveness of VMC until we see either a significant increase in cash earnings or a decline in price. A decline of the Price to Cash Earnings ratio of 39% is needed just to return to the historical cash earnings multiple.
VMC Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for VMC to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.
The estimated annual dividend for VMC is $1.00 producing a current dividend yield of 2.29%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from VMC against the historic high and low levels over all available dividend history. Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from VMC over previous years was 5.71% while the lowest dividend yield was 1.43%. It is never a good sign for a company to pay significantly lower dividends, in this case 35.85% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.
VMC Profits on the Mind of Mad Money
Earnings or profits are the most key fundamental factor that an investor to be aware of for any stock. We noticed Mad Money discussed earnings on VMC.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; VMC has received less coverage from the financial media in business television and blogs.
“… VULCAN MATERIALS and electronic arts and coke, disney, l-1, sprint, discovery communication, tree house, fleur systems, panera, cheesecake factory and chipotle. …”
First VMC News on Mad Money in More Than a Month
It's been at least a month since we noticed any major news coverage of VMC, so the story in Mad Money may get the ball rolling.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. As of this week's report, we have an Overvalued valuation on VMC because the price has gotten too high to be justified by the fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Vulcan Materials Company has actually sunk a bit in comparison to the others.
“… It's called VULCAN MATERIALS. It's a purveyor of rocks, aggregate, cement and you need vulcan to build roads and the company has told us over and over again that you will start ... …”
Vulcan Materials Company Was Talked About by Mad Money
The latest news on Mad Money in regards to VMC come through on RazorWire recently.
Saw on saturday. We saw the peak in pelosi power. She can't hurt us anymore. Nodding my head like yeah. We know that VULCAN MATERIALS, the big stone in aggregate companies, the stock came out like at 11:30 at night, like I have nug else to do in the world. Said the stimulus is here at last. Vulcan's business is all about building things, building roads, and there hasn't been much from the stimulus yet until q4. How about this? We know from federal realty a
“… . Said the stimulus is here at last. Vulcan's business is all about building things, building roads, and there hasn't been much from the stimulus yet until q4. How about this? We know from federal realty a …”
Vulcan Materials Company (VMC) Discussed on CNBC's Fast Money
Vulcan Materials Company is in the news. Find out how this impacts VMC trading on Ockham Research.
Popping up on your radar? >> when I looked at the worst 20 performing names, I saw a theme in two names. VULCAN MATERIALS and suntrust bank. These have been impacted by whether or not we hit a bottom or we are going to see some stability, the fact of the names. Vulcan had a bad acquisition, bad timing in terms of florida rock. What you try to do is watch the action during the month of october and realize these will be relative outperformers because these closet indexes are going to continue to chase the relative gain. >> when do they have to do that? What is the window you are looking to take the other side of that trade? >> many mutual funds, they are taking tax losses now. There is nothing worse than being the owner of a mutual fund having recognized, you want to get as many recognized losses as you can before the end of the what you want to do is you want to see where there's going to be retail demand to average into if you look at relative performance the first couple of weeks of october, I suggest you
“… names. Vulcan had a bad acquisition, bad timing in terms of florida rock. What you try to do is watch the action during the month of october and realize these will be relative outperformers because these closet indexes are going to continue to chase the relative gain. >> when do they have to do that? What is the window you are looking to take the other side of that trade? >> many mutual funds, they are taking tax losses now. There is nothing worse than being the owner of a mutual fund having recognized, you want to get as many recognized losses as you can before the end of the what you want to do is you want to see where there's going to be retail demand to average into if you look at relative performance the first couple of weeks of october, I suggest you …”
Vulcan Materials Company (VMC) Discussed on CNBC's Mad Money
Vulcan Materials Company is in the news. Find out how this impacts VMC trading on Ockham Research.
The leadership has now expanded to include the building blocks. This is new. The pvc, where you want to own ppg, the corrugated boxes. That's international paper in temple, illinois. The bricks I mentioned martin please do not forget VULCAN MATERIALS. Estate. Boy, no one believes in that. Which many people thought would be the next crisis. That's going to be joining the bullish pattern. People hate this call, short sellers were all over me saying I don't know what I was talking do you know that's the first time anyone's told me I didn't know what I was talking about in treasury department's alouth real estate people to massage the tax code to their advantage. The real estate investment trusts are doing well. The commercial real estate market is going to roar back. That's why I have been saying
“… ate. Boy, no one believes in that. Which many people thought would be the next crisis. That's going to be joining the bullish pattern. People hate this call, short sellers were all over me saying I don't know what I was talking do you know that's the first time anyone's told me I didn't know what I was talking about in treasury department's alouth real estate people to massage the tax code to their advantage. The real estate investment trusts are doing well. The commercial real estate market is going to roar back. That's why I have been saying …”
Vulcan Materials Company (VMC) Discussed on Fox Business's Fox Business
Vulcan Materials Company is in the news. Find out how this impacts VMC trading on Ockham Research.
The trough. We expect earns to rise faster than pe eso it makes stock value. We have a cyclical recovery on. Though the market may look overbought, you have to be select I with names. Look at VULCAN MATERIALS, which is gravel and advocates for road spending. And infrastructure plays going strong for six months, they're breaking out about $55. >> a lot of people are looking at the dollar and frankly, it's getting that is one reason that gold is popping today. Do you look at foreign exchanges when you look at the u.S. Dollar killed as much as it is? All u.S. Assets if they're attacked to the dollar will be hit.
“… ng. And infrastructure plays going strong for six months, they're breaking out about $55. >> a lot of people are looking at the dollar and frankly, it's getting that is one reason that gold is popping today. Do you look at foreign exchanges when you look at the u.S. Dollar killed as much as it is? All u.S. Assets if they're attacked to the dollar will be hit. …”
Vulcan Materials Company (VMC) Discussed on Fox Business's Happy Hour
Vulcan Materials Company is in the news. Find out how this impacts VMC trading on Ockham Research.
Do you agree or disagree with that? >> well, I don't know if I agree or disagree but it is not going to get pulled back. Focusing how we will make money, we have $60 billion worth of shovel ready projects fueled by the stimulus. Cemex, VULCAN MATERIALS, aztec industry which makes these companies are going to do well. I might want to add, am I only person here with a tie? Rebecca, what do you think of this? Cody: a little bit gangster. "reservoir dogs.". >> yellow with the black. Cody: james altature as always, thanks for coming. I think you might be a little early on the early cycle. >> that is okay too. Cody: that's what make as on tap, as one czar leaves another comes in. Will a secret from ron bloom's past means yet another extreme socialist in our midst? "happy hour" regular erin klein joins us here, with
“… ztec industry which makes these companies are going to do well. I might want to add, am I only person here with a tie? Rebecca, what do you think of this? Cody: a little bit gangster. "reservoir dogs.". >> yellow with the black. Cody: james altature as always, thanks for coming. I think you might be a little early on the early cycle. >> that is okay too. Cody: that's what make as on tap, as one czar leaves another comes in. Will a secret from ron bloom's past means yet another extreme socialist in our midst? "happy hour" regular erin klein joins us here, with …”
Vulcan Materials Company (VMC) Discussed on Fox Business's Happy Hour
Vulcan Materials Company is in the news. Find out how this impacts VMC trading on Ockham Research.
Early cycle will last for years. For us to get in on these financial, technology, and material stocks that you're now. >> everything is run up but it is going to continue to run up because is only the beginning. VULCAN MATERIALS or cemex on cement side. >> on financial side, ago. They insure all the municipalities. Six months ago we thought every municipality would go they didn't. That stock is $18 stock potentially earn five dollars next year. Very cheap. Cody: potentially earn five bucks that stock moved what would have been below one was at $3 just a month ago. You want to chase it early it is already up 600%. >> already run up enough. That arguement is not working in the stock market. Lows. The market collapsed. It shouldn't have collapsed
“… > on financial side, ago. They insure all the municipalities. Six months ago we thought every municipality would go they didn't. That stock is $18 stock potentially earn five dollars next year. Very cheap. Cody: potentially earn five bucks that stock moved what would have been below one was at $3 just a month ago. You want to chase it early it is already up 600%. >> already run up enough. That arguement is not working in the stock market. Lows. The market collapsed. It shouldn't have collapsed …”
Vulcan Materials Company (VMC) Discussed on Fox Business's Happy Hour
Vulcan Materials Company is in the news. Find out how this impacts VMC trading on Ockham Research.
>> spend the money they have allocated already, meaning they had all these shovel supposed to be a go but they haven't been a go yet. We haven't seen dollar one of new highways or bridges or tunnels going to get built. We'll see a boom in stocks like VULCAN MATERIALS or astec industries that make asphalt and concrete and cody: james al at that tour, two most important words in the english language, be cool. That man's advice. Rebecca: james will join us later for our tantalizing "hit or miss" segment. >>> on tap next on "happy hour" though, don't mess with this guy, folks at least when it comes to comics. He is the "dark knight"'s boss and here to talk about disney's deal with marvel that and more when "happy hour" comes right back.
“… AN MATERIALS or astec industries that make asphalt and concrete and cody: james al at that tour, two most important words in the english language, be cool. That man's advice. Rebecca: james will join us later for our tantalizing "hit or miss" segment. >>> on tap next on "happy hour" though, don't mess with this guy, folks at least when it comes to comics. He is the "dark knight"'s boss and here to talk about disney's deal with marvel that and more when "happy hour" comes right back. …”
Vulcan Materials Company (VMC) Discussed on CNBC's Fast Money
Vulcan Materials Company is in the news. Find out how this impacts VMC trading on Ockham Research.
Horton added to goldman sachs conviction buy list. The home builders have been on fire of late. So there's some belief that perhaps a bottom is in for the >> other even resource space like VULCAN MATERIALS. 6 I think there's been a big you don't have to go straight for the builders. These guys that are related to building materials and building blocks literally are the guys you want to own. >> cement, copper, you go all you start to see that momentum pick up even more, right now copper is moving off china. It has nothing to do with us when you see copper move in a different manner affecting the >> the problem is in the marketplace right now, everything is trending higher, so even though i'm still bullish, you have to be careful
“… o straight for the builders. These guys that are related to building materials and building blocks literally are the guys you want to own. >> cement, copper, you go all you start to see that momentum pick up even more, right now copper is moving off china. It has nothing to do with us when you see copper move in a different manner affecting the >> the problem is in the marketplace right now, everything is trending higher, so even though i'm still bullish, you have to be careful …”