VMC

Vulcan Materials Co

Industrial/Transportation


Presented:05/19/2022
Price:$160.31
Cap:$21.30B
Current Price:$252.79
Cap:$33.38B

Presented

Date05/19/2022
Price$160.31
Market Cap$21.30B
Ent Value$29.18B
P/E Ratio35.56x
Book Value$49.48
Div Yield0.94%
Shares O/S132.90M
Ave Daily Vol824,511
Short Int1.31%

Current

Price$252.79
Market Cap$33.38B
Vulcan Materials Co. engages in the provision of basic materials and supply for the infrastructure and construction industries. It operates through the following business segments: Aggregates, Asphalt, Concrete, and Calcium. The Aggregates segment produces and sells asphalt mix and ready-mixed concrete primarily in its mid-Atlantic, Georgia, Southwestern, Tennessee, and Western markets. The Asphalt segment produces and sells asphalt mix in Arizona, California, New Mexico, Tennessee, and Texas. The Concrete segment produces and sells ready-mixed concrete in California, Georgia, Maryland, New Mexico, Texas, Virginia, Washington D.C., and the Bahamas. The Calcium segment produces calcium products for the animal feed, plastics, and water treatment industries with calcium carbonate material mined at the Brooksville quarry. The company was founded in 1909 and is headquartered in Birmingham, AL.

Publicly traded companies mentioned herein: Martin Marietta Materials Inc (MLM), Vulcan Materials Co (VMC) 

Highlights

The presenter is long shares of Vulcan Materials Co (VMC), the nation's largest producer of construction aggregates. He considers this a unique opportunity to purchase one of the highest quality industrial businesses with strong pricing power at a discounted price. The company is in a position to grow revenue 10%, EBITDA mid-teen%, and EPS 20% per year for the next 5 - 7 years with meaningful FCF support to the current stock price. He models 70% upside over the next 12 months using the 10-year average valuation of 16x EBITDA on his 2023 EBITDA estimate that is 10% above the Street consensus.

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Idea Discussion

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