Vulcan Materials CO

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 2✗ 26▾

  No clean pass — all 13 investors flag at least one valuation criterion

  Price / 3-yr avg EPS38.1x

  ✗Graham<= 15x

  Price-to-Book Ratio4.3x

  ✗Graham<= 1.5x

  P/E x P/B162.60

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)2.63

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value4.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=4.1%, ROC=17.4%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS34.4x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)20.1x

  ✗Dreman< 8x

  Price / Book Value per Share4.3x

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=34.4x, OE Yield=3.2%

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=34.4x, FCF Yield=3.2%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=34.4x, P/B=4.3x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-154.0% (IV=$109.70 vs Price=$278.63)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share32.1x

  ✗Ackman<= 25

  Price vs. Trailing Low119% of trailing low ($233.30)

  ✓Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization+3.08%; #2344/6340 (top 37.0%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+0.2351; #4004/6449 (top 62.1%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS34.4x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E0.40

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share11.18x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+43.5%

  ✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.2240; #3664/5247 (top 69.8%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+2.18%; #2225/4519 (top 49.2%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-5.70%; #3172/6202 (top 51.1%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models0% pass✗ 11▾

  VMC overvalued: all 11 models price fair value below $278.63 (median $109.14)

  Graham fair value$109.14

  ✗Graham-155.3% margin vs $278.63

  Buffett fair value$175.67

  ✗Buffett-58.6% margin vs $278.63

  Lynch fair value$105.92

  ✗Lynch-163.1% margin vs $278.63

  Greenblatt fair value$88.95

  ✗Greenblatt-213.2% margin vs $278.63

  Dreman fair value$109.70

  ✗Dreman-154.0% margin vs $278.63

  Munger fair value$122.35

  ✗Munger-127.7% margin vs $278.63

  Pabrai fair value$126.97

  ✗Pabrai-119.4% margin vs $278.63

  Akre fair value$93.01

  ✗Akre-199.6% margin vs $278.63

  Marks fair value$77.53

  ✗Marks-259.4% margin vs $278.63

  Ackman fair value$164.18

  ✗Ackman-69.7% margin vs $278.63

  Templeton fair value$93.81

  ✗Templeton-197.0% margin vs $278.63
• Efficiency13% pass✓ 2✗ 9▾

  7 of 8 flag VMC's efficiency — Graham, Buffett, Greenblatt +4 more

  Current Ratio1.43

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)8.8%

  ✗Buffett> 10%

  ROIC - WACC-1.2%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)17.4%

  ✗Greenblatt> 25%

  Current Ratio Change YoY1.83 -> 2.69

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.43x -> 0.48x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities1.43

  ✗Dreman> 1.5

  Return on Invested Capital10.0%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=9.9%; FY2024: ROIC=8.0%; FY2025: ROIC=9.9%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC7.6% (RR=76% x ROIC=10.0%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest 9.9%)

  ✗SleepROIC > 12% in a majority of years
• Verdicts23% pass✓ 3✗ 10▾

  Split decision: 9 FAIL · 4 NEUTRAL · 2 PASS · 1 BUY

  Overall verdict

  ✗GrahamFAIL (2/9)✗BuffettFAIL (2/9)✗LynchFAIL (2/7)✗GreenblattRank #1381✓PiotroskiBUY (F-Score 9)✓DremanPASS (5/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (3/5)•AckmanNEUTRAL (6/9)•TempletonNEUTRAL (6/8)✓SleepPASS (3/6)✗AsnessFAIL (Rank #1286/2370 (Top 54.3%))•NeffNEUTRAL (4/6)•SchlossNEUTRAL (4/7)✗OshaughnessyFAIL (Rank #821/963 (Top 85.3%))
• Profitability31% pass✓ 17✗ 18▾

  11 of 16 flag VMC's profitability — Graham, Buffett, Lynch +8 more

  Positive EPS (10 years)17/23 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)20/23 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)11.0%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)20.4% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy$1.1B

  ✓BuffettPositive and growing

  Earnings Variance (10-yr CoV)0.90

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)2.63

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR13.1%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  ROE13.1%

  ✗Lynch> 15%

  EBIT / Enterprise Value4.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=4.1%, ROC=17.4%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets6.45%

  ✓PiotroskiROA > 0

  ROA Change YoY5.33% -> 6.45% (delta: +1.12%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=10.86%, ROA=6.45%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY27.0% -> 27.4%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue17.6%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity13.1%

  ✓Dreman> 12%

  Margin of SafetyP/E=34.4x, P/B=4.3x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity12.1% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-154.0% (IV=$109.70 vs Price=$278.63)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency20/23 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue20.3%

  ✓Ackman>= 15%

  Net Income / Shareholders Equity13.1%

  ✗Ackman>= 15%

  5-Year EPS CAGR13.1% CAGR over 5 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend18.3% (2023) -> 20.4% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 25.0% -> 27.4%, operating margin 18.3% -> 20.4%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization+3.08%; #2344/6340 (top 37.0%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets+13.18%; #2555/3702 (top 69.0%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+13.12%; #1361/5226 (top 26.0%)

  ✓AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0092; #769/5884 (top 13.1%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR13.1% over 5 years

  ✓Neff7%-20% annualized

  Positive Diluted-EPS Years10/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Debt & Leverage33% pass✓ 6✗ 9▾

  8 of 12 flag VMC's debt & leverage — Graham, Buffett, Lynch +5 more

  LT Debt vs Net Current AssetsLT Debt $4.0B vs NCA $623.4M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.52, IC: 7.2x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity0.52

  ✗Lynch< 0.33

  Cash - Long-term Debt$-3.9B

  ✗LynchPositive preferred

  LT Debt / Total Assets Change28.69% -> 26.12%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.43

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity0.52

  ✓Dreman< 0.8✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓SchlossD/E < 1.00x

  Debt Levels0.52

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=7.2x, D/EBITDA=1.9x

  ✓MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity0.52

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.5193; #2503/4210 (top 59.5%)

  ✗AsnessTop 30% of eligible cross-section
• Cash Flow50% pass✓ 6✗ 6▾

  5 of 10 pass — Lynch, Dreman, Pabrai +2 more object

  Free Cash Flow Proxy$1.1B

  ✓BuffettPositive and growing

  FCF Positive and Growing$781.2M

  ✗LynchPositive and growing

  Operating Cash Flow$1.8B

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=10.86%, ROA=6.45%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)20.1x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=34.4x, FCF Yield=3.2%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive20/20 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap2.1%

  ✗Ackman>= 4%

  Price / FCF per Share32.1x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency20/20 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$781.2M

  ✓Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization+2.18%; #2225/4519 (top 49.2%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth50% pass✓ 9✗ 4▾

  4 of 8 pass — Graham, Lynch, Dreman +1 more object

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)2.63

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR13.1%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: -0.7% vs Rev: 1.6%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction$4.99 (2006) -> $8.11 (2025)

  ✓DremanPositive over recent years

  EPS CAGR2.6% CAGR over 19 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency20/23 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth6.4%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency3/5 years with positive EPS growth

  ✓AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR13.1% CAGR over 5 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 25.0% -> 27.4%, operating margin 18.3% -> 20.4%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR10.3%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR13.1% over 5 years

  ✓Neff7%-20% annualized