Vulcan Materials Intrinsic Stock Value – Vulcan Materials: Recent Rise Appears Excessive

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Vulcan Materials ($NYSE:VMC), one of the largest suppliers of construction materials in the United States, has seen its stock come out of the gate strong this year. While this has been a welcome surprise for investors, some analysts have cautioned that the rapid rise may be unsustainable. It is also one of the largest publicly traded companies in the United States and has seen its stock grow steadily over the past decade.

However, there are some signs that the recent surge may be excessive. The company’s growth has been largely driven by increased demand for its products as a result of the current infrastructure boom. While this has helped fuel the stock’s rally, it remains to be seen if it can sustain its current trajectory.

Additionally, there are concerns that as the infrastructure boom begins to slow, Vulcan Materials could see its stock price suffer. Overall, while investors have been thrilled with Vulcan Materials’ recent performance, some analysts have cautioned that the recent rally may be too much too soon. At this point it remains to be seen if the stock can continue to rise at its current rate or if it will eventually level off.

Share Price

On Wednesday, Vulcan Materials stock opened at $223.7, and ended the day with a 1.6% decrease to close at $221.2. This is the lowest closing price since June, and appears excessive given the company’s recent rise in stock value. While Vulcan Materials has seen a steady increase in stock value in recent months, the sudden decline on Wednesday brings into question whether this is a temporary setback or a sign of a more significant downturn. Analysts will be closely monitoring the stock to see how the market responds in the coming days. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Vulcan Materials. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Vulcan Materials. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Vulcan Materials. More…

Key Ratios Snapshot

Some of the financial key ratios for Vulcan Materials are shown below. More…

Analysis – Vulcan Materials Intrinsic Stock Value

At GoodWhale, we conducted an analysis of VULCAN MATERIALS‘ wellbeing. Using our proprietary Valuation Line, we calculated the intrinsic value of VULCAN MATERIALS share to be around $221.2. This means that its stock is currently traded at a fair price. We believe our analysis offers reliable insights into the value of VULCAN MATERIALS shares. More…

Peers

Vulcan Materials Co is one of the world’s leading suppliers of construction materials. It has operations in the United States, Mexico and Canada. Its competitors include Martin Marietta Materials Inc, CRH PLC, Cemex SAB de CV.

– Martin Marietta Materials Inc ($NYSE:MLM)

Martin Marietta Materials Inc is a publicly traded company with a market capitalization of 19.54 billion as of 2022. The company has a return on equity of 10.84%. Martin Marietta Materials Inc is a supplier of construction aggregates and heavy building materials, with operations in the United States and Canada. The company produces a variety of construction materials, including gravel, sand, limestone, and other crushed stone products, as well as asphalt and concrete.

– CRH PLC ($LSE:CRH)

CRH plc is a building materials company. The Company’s segments include Europe Heavyside, Europe Lightside, America and Asia. Its products include aggregates, asphalt, cement, ready-mixed concrete, paving and construction products and concrete products. Its America Products segment includes its asphalt, aggregates, ready-mixed concrete, cement and paving businesses in the United States and Canada. Its Asia Products segment includes its operations in Asia. It operates in over 30 countries and employs over 83,000 people at approximately 3,600 locations.

– Cemex SAB de CV ($NYSE:CX)

Cemex SAB de CV, a leading cement manufacturer, has a market cap of $4.86 billion as of 2022. The company has a return on equity of 14.18%. Cemex produces and sells cement, concrete, and other building materials products. It operates in more than 50 countries and has a workforce of over 46,000 employees.

Summary

Vulcan Materials is a construction materials company, and recent analysis suggests its stock has become overvalued. Analysts have noted that the stock price has risen significantly, but fundamentals such as earnings and sales do not support the same level of growth. There is also concern about the potential for heightened competition from other companies in the space, which could lead to lower profits. As a result, investors should be wary of buying Vulcan Materials at current prices, as near-term returns may not meet expectations.