VMC
ConstructionValuation Breakdown
Construction and industrial firms have characteristics of both cyclical businesses (lumpy project-based revenue) and growth companies (expanding order books). This model blends two approaches 50/50: EV/EBITDA valuation (captures current earning power relative to peers) and FCF-based DCF (captures future cash generation potential). If EV/EBITDA produces a negative value (debt exceeds enterprise value), only DCF is used.
Valuation Track Record
Retroactive intrinsic value vs actual close price — VMC
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
VMC's Beneish M-Score of -2.7337 indicates a lower likelihood of earnings manipulation, as it is below the threshold of -1.78. However, the earnings quality metrics reveal significant weaknesses, particularly in receivables and revenue recognition, which could pose risks to financial integrity.
- Earnings Quality Score of 55.5/100 indicates moderate concerns, especially with eq_receivables at 0.0/100, suggesting potential issues in revenue collection.
- SGI at 0.7307 shows declining sales growth, which may raise concerns about future revenue sustainability.
- The cash conversion rate is perfect at 100.0/100, indicating strong cash flow relative to earnings.
- Beneish M-Score of -2.7337 suggests a lower likelihood of earnings manipulation, which is a positive signal for investors.
The top three individual shareholders control a combined 46.8% of VMC, indicating a concentrated ownership structure that could lead to governance risks and potential conflicts of interest.
Investors should closely monitor VMC's revenue recognition practices and receivables management. Given the elevated risk level, a cautious approach is advised until improvements in earnings quality metrics are observed.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for VMC — hover nodes for intel, click to navigate