Vulcan Materials CoVMC -0.52%91 Operating Margin % is 15.13% as of Mar. 2026, which is 14% below its 10-year median of 17.52. GuruFocus rates VMC with a GF Score™ of 91/100 and a GF Value™ of $277.27 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 404 Building Materials companies, Vulcan Materials Co ranks better than 85.15% on this metric.
Vulcan Materials Co (NYSE:VMC) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Vulcan Materials Co Operating Margin % Related Terms
Vulcan Materials Co Operating Margin % Historical Data
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The historical data trend for Vulcan Materials Co's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
VMC vs MLM, JHX, EXP: Operating Margin % Comparison
For the Building Materials subindustry, Vulcan Materials Co's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Vulcan Materials Co Operating Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Vulcan Materials Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Vulcan Materials Co's Operating Margin % falls into.
Vulcan Materials Co Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Vulcan Materials Co's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Vulcan Materials Co (VMC) has a Operating Margin % of 15.13% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Vulcan Materials Co and its competitors. This is 14% below median its historical median of 17.52. Over the past decade, Vulcan Materials Co's Operating Margin % has ranged from 13.79 to 20.02. According to the industry distribution chart, Vulcan Materials Co ranks #60 out of 404 companies in the Building Materials industry, placing it in the top 14.9%.
Is Vulcan Materials Co's Operating Margin % too high?
Vulcan Materials Co's current Operating Margin % of 15.13% is 14% below median its 10-year median of 17.52. Over the past 10 years, this metric has ranged from a low of 13.79 to a high of 20.02. The Building Materials industry median Operating Margin % is 7.65. Vulcan Materials Co's value of 15.13% is 97.8% above this industry median. Based on the distribution chart, Vulcan Materials Co ranks #60 out of 404 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Vulcan Materials Co has a GF Score™ of 91/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vulcan Materials Co's Operating Margin % compare to MLM and JHX?
According to the Building Materials industry distribution chart, Vulcan Materials Co ranks #60 out of 404 companies for Operating Margin %. This places Vulcan Materials Co in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.65. Vulcan Materials Co's value of 15.13% is 97.8% above this benchmark. Historically, Vulcan Materials Co's own Operating Margin % has ranged from 13.79 to 20.02 over the past decade. While the company's 10-year median is 17.52 vs. the industry median of 7.65, Vulcan Materials Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Building Materials company?
The median Operating Margin % among Building Materials companies is 7.65, based on 404 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Vulcan Materials Co's current Operating Margin % of 15.13% is 97.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Vulcan Materials Co and its competitors. For the Building Materials industry, the median Operating Margin % is 7.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vulcan Materials Co's current Operating Margin % is 15.13%, which is 14% below median its own 10-year median of 17.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vulcan Materials Co stock overvalued right now?
Based on GuruFocus' analysis, Vulcan Materials Co (VMC) is currently considered Modestly Overvalued. The stock's GF Value™ is $277.27, compared to a current price of $311.35 — trading 12.3% above its estimated fair value. The current Operating Margin % is 15.13%, which is 14% below median its 10-year median of 17.52 and 97.8% above the Building Materials industry median of 7.65. Vulcan Materials Co's overall GF Score™ is 91/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Vulcan Materials Co (VMC), the current Operating Margin % is 15.13% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Vulcan Materials Co (VMC) Overvalued in 2026?
Based on GuruFocus' analysis, Vulcan Materials Co stock appears to be overvalued.
The current stock price of $311.35 is trading 12.3% above its estimated GF Value™ of $277.27.
GuruFocus considers Vulcan Materials Co to be Modestly Overvalued.
Key valuation signals for VMC:
Operating Margin %: 15.13% (14% below median its 10-year median of 17.52)
GF Value™: $277.27 vs. price of $311.35 (12.3% above fair value)
Industry Position: 97.8% above the Building Materials median (#60 of 404)
No single metric tells the full story. See the VMC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 2024, Vulcan sold 219.9 million tons of aggregates, 13.6 million tons of asphalt mix, and 3.6 million cubic yards of ready-mix. As of Dec. 31, 2024, the company had 16.5 billion tons of aggregate reserves.
91GF Score
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