Cracking The Code: Understanding Analyst Reviews For Vulcan Materials

Throughout the last three months, 5 analysts have evaluated Vulcan Materials VMC, offering a diverse set of opinions from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $301.6, a high estimate of $322.00, and a low estimate of $272.00. Surpassing the previous average price target of $287.00, the current average has increased by 5.09%.

Decoding Analyst Ratings: A Detailed Look

The analysis of recent analyst actions sheds light on the perception of Vulcan Materials by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Vulcan Materials. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Vulcan Materials compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Vulcan Materials's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into Vulcan Materials's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Vulcan Materials analyst ratings.

Unveiling the Story Behind Vulcan Materials

Vulcan Materials is the United States' largest producer of construction aggregates (crushed stone, sand, and gravel). Its largest markets include Texas, California, Virginia, Tennessee, Georgia, Florida, North Carolina, and Alabama. In 2023, Vulcan sold 234.3 million tons of aggregates, 13.4 million tons of asphalt mix, and 7.5 million cubic yards of ready-mix. As of Dec. 31, 2022, the company had nearly 16 billion tons of aggregates reserves.

Breaking Down Vulcan Materials's Financial Performance

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Negative Revenue Trend: Examining Vulcan Materials's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -6.26% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Materials sector.

Net Margin: Vulcan Materials's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 6.64%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Vulcan Materials's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.37%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Vulcan Materials's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.72%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Vulcan Materials's debt-to-equity ratio is below the industry average at 0.51, reflecting a lower dependency on debt financing and a more conservative financial approach.

What Are Analyst Ratings?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.