VMC - Vulcan Materials: Strong Pricing Momentum But Lack Margin Of Safety
2024-03-07 19:49:21 ET
Summary
- VMC is the largest supplier of construction aggregates in the US. Historical revenue growth was strong, but margins came under pressure due to inflation.
- In 2023, revenue continued to grow, and margins expanded year-over-year, driven by strong aggregate pricing momentum and lower COGS.
- The outlook for aggregate pricing is positive, but overall demand is mixed due to weak private demand offsetting strong public demand.
- With no upside potential, I am recommending a hold rating for VMC.
Synopsis ...
Vulcan Materials: Strong Pricing Momentum But Lack Margin Of Safety