A Detailed Analysis of Vulcan Materials' Intrinsic Value Using a Two-Stage DCF Model
ByAinvest
Thursday, Sep 11, 2025 9:09 am ET1min read
VMC--
The company's financial performance in the second quarter of 2025 indicates a strong operational foundation. Despite missing analysts' consensus estimates for earnings per share (EPS) at $2.45, Vulcan Materials reported revenues of $2.10 billion, up 4.4% compared to the same quarter last year [2]. The company also announced a quarterly dividend of $0.49 per share, representing an annualized payout of $1.96 and a dividend yield of 0.7% [2].
Analysts have shown varying levels of optimism towards Vulcan Materials. While JPMorgan raised their price target from $285 to $330, the consensus price target stands at $308.36 [2]. Notably, the company's intrinsic value estimate, calculated using a two-stage free cash flow to equity model, is $336, indicating that it is trading at similar levels to its fair value estimate. This estimate is 11% higher than the analyst price target of $304 [1].
Vulcan Materials' stock has experienced a mixed performance in recent months. After trading down $6.61 to $292.30 on Tuesday, September 7, 2025, the stock has since recovered to trade around its 50-day moving average of $280.13 [2]. The company's debt-to-equity ratio of 0.52, current ratio of 1.67, and quick ratio of 1.13 suggest a strong balance sheet, while its market cap of $38.62 billion and P/E ratio of 40.82 indicate a solid market position [2].
In conclusion, Vulcan Materials Company's recent financial performance and increased institutional investment highlight its potential for growth. With an intrinsic value estimate of $336 and a fair value estimate of $304, the company appears to be trading at attractive levels. However, investors should closely monitor the company's earnings and revenue growth, as well as the broader market conditions, to make informed investment decisions.
Vulcan Materials' intrinsic value estimate is US$336, according to a two-stage free cash flow to equity model. The company's current share price of US$294 indicates it is trading at similar levels to its fair value estimate. Our estimate is 11% higher than Vulcan Materials' analyst price target of US$304.
Vulcan Materials Company (NYSE: VMC) has recently seen a surge in institutional investment and positive analyst sentiment. According to its latest 13F filing, Trexquant Investment LP acquired a new stake in Vulcan Materials, valued at approximately $546,000, during the first quarter of 2025 [1]. This acquisition follows a trend of increased interest from other institutional investors, including Golden State Wealth Management LLC, Wealth Enhancement Advisory Services LLC, Exchange Traded Concepts LLC, GAMMA Investing LLC, and Wellington Management Group LLP, who have also significantly increased their holdings in the company [1].The company's financial performance in the second quarter of 2025 indicates a strong operational foundation. Despite missing analysts' consensus estimates for earnings per share (EPS) at $2.45, Vulcan Materials reported revenues of $2.10 billion, up 4.4% compared to the same quarter last year [2]. The company also announced a quarterly dividend of $0.49 per share, representing an annualized payout of $1.96 and a dividend yield of 0.7% [2].
Analysts have shown varying levels of optimism towards Vulcan Materials. While JPMorgan raised their price target from $285 to $330, the consensus price target stands at $308.36 [2]. Notably, the company's intrinsic value estimate, calculated using a two-stage free cash flow to equity model, is $336, indicating that it is trading at similar levels to its fair value estimate. This estimate is 11% higher than the analyst price target of $304 [1].
Vulcan Materials' stock has experienced a mixed performance in recent months. After trading down $6.61 to $292.30 on Tuesday, September 7, 2025, the stock has since recovered to trade around its 50-day moving average of $280.13 [2]. The company's debt-to-equity ratio of 0.52, current ratio of 1.67, and quick ratio of 1.13 suggest a strong balance sheet, while its market cap of $38.62 billion and P/E ratio of 40.82 indicate a solid market position [2].
In conclusion, Vulcan Materials Company's recent financial performance and increased institutional investment highlight its potential for growth. With an intrinsic value estimate of $336 and a fair value estimate of $304, the company appears to be trading at attractive levels. However, investors should closely monitor the company's earnings and revenue growth, as well as the broader market conditions, to make informed investment decisions.
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