VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VMI - US9202531011 - Common Stock
420.24 USD
-1.01 (-0.24%)
420.24 USD
0 (0%)
Overall VMI gets a fundamental rating of 7 out of 10. We evaluated VMI against 54 industry peers in the Construction & Engineering industry. VMI gets an excellent profitability rating and is at the same time showing great financial health properties. VMI is not valued too expensively and it also shows a decent growth rate. With these ratings, VMI could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
VMI had positive earnings in the past year.
VMI had a positive operating cash flow in the past year.
Each year in the past 5 years VMI has been profitable.
In the past 5 years VMI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of VMI (6.94%) is better than 70.37% of its industry peers.
VMI has a Return On Equity (14.64%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 13.73%, VMI is doing good in the industry, outperforming 79.63% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VMI is below the industry average of 15.99%.
The 3 year average ROIC (12.19%) for VMI is below the current ROIC(13.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 14.64% | ||
| ROIC | 13.73% |
ROA(3y)7.28%
ROA(5y)6.46%
ROE(3y)16.53%
ROE(5y)15.12%
ROIC(3y)12.19%
ROIC(5y)10.33%
1.3 Margins
VMI has a better Profit Margin (5.70%) than 64.81% of its industry peers.
In the last couple of years the Profit Margin of VMI has grown nicely.
VMI's Operating Margin of 12.68% is amongst the best of the industry. VMI outperforms 83.33% of its industry peers.
VMI's Operating Margin has improved in the last couple of years.
VMI's Gross Margin of 30.33% is amongst the best of the industry. VMI outperforms 81.48% of its industry peers.
In the last couple of years the Gross Margin of VMI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.68% | ||
| PM (TTM) | 5.7% | ||
| GM | 30.33% |
OM growth 3Y15.4%
OM growth 5Y9.34%
PM growth 3Y15.22%
PM growth 5Y10.06%
GM growth 3Y6.46%
GM growth 5Y4.3%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VMI is creating some value.
Compared to 1 year ago, VMI has less shares outstanding
Compared to 5 years ago, VMI has less shares outstanding
Compared to 1 year ago, VMI has an improved debt to assets ratio.
2.2 Solvency
VMI has an Altman-Z score of 6.15. This indicates that VMI is financially healthy and has little risk of bankruptcy at the moment.
VMI has a Altman-Z score of 6.15. This is amongst the best in the industry. VMI outperforms 83.33% of its industry peers.
VMI has a debt to FCF ratio of 1.79. This is a very positive value and a sign of high solvency as it would only need 1.79 years to pay back of all of its debts.
VMI has a Debt to FCF ratio of 1.79. This is in the better half of the industry: VMI outperforms 79.63% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that VMI is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.46, VMI is doing good in the industry, outperforming 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 6.15 |
ROIC/WACC1.34
WACC10.28%
2.3 Liquidity
A Current Ratio of 2.26 indicates that VMI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.26, VMI belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
VMI has a Quick Ratio of 1.50. This is a normal value and indicates that VMI is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of VMI (1.50) is better than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
VMI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.08%, which is quite good.
Measured over the past years, VMI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.77% on average per year.
The Revenue has been growing slightly by 1.23% in the past year.
VMI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.05% yearly.
EPS 1Y (TTM)9.08%
EPS 3Y16.27%
EPS 5Y18.77%
EPS Q2Q%21.17%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y5.19%
Revenue growth 5Y8.05%
Sales Q2Q%2.53%
3.2 Future
The Earnings Per Share is expected to grow by 10.82% on average over the next years. This is quite good.
VMI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.53% yearly.
EPS Next Y12.56%
EPS Next 2Y11.96%
EPS Next 3Y12.02%
EPS Next 5Y10.82%
Revenue Next Year1.44%
Revenue Next 2Y2.75%
Revenue Next 3Y3.36%
Revenue Next 5Y3.53%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
VMI is valuated rather expensively with a Price/Earnings ratio of 23.32.
Compared to the rest of the industry, the Price/Earnings ratio of VMI indicates a somewhat cheap valuation: VMI is cheaper than 77.78% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.00, VMI is valued at the same level.
The Price/Forward Earnings ratio is 19.51, which indicates a rather expensive current valuation of VMI.
83.33% of the companies in the same industry are more expensive than VMI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.70. VMI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.32 | ||
| Fwd PE | 19.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VMI is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VMI is valued a bit cheaper than 75.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.25 | ||
| EV/EBITDA | 14.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VMI has an outstanding profitability rating, which may justify a higher PE ratio.
VMI's earnings are expected to grow with 12.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.86
PEG (5Y)1.24
EPS Next 2Y11.96%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
VMI has a yearly dividend return of 0.68%, which is pretty low.
VMI's Dividend Yield is rather good when compared to the industry average which is at 0.42. VMI pays more dividend than 90.74% of the companies in the same industry.
With a Dividend Yield of 0.68, VMI pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
On average, the dividend of VMI grows each year by 9.85%, which is quite nice.
VMI has paid a dividend for at least 10 years, which is a reliable track record.
VMI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.85%
Div Incr Years0
Div Non Decr Years22
5.3 Sustainability
21.87% of the earnings are spent on dividend by VMI. This is a low number and sustainable payout ratio.
VMI's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP21.87%
EPS Next 2Y11.96%
EPS Next 3Y12.02%
420.24
-1.01 (-0.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners95.6%
Inst Owner Change0%
Ins Owners1.34%
Ins Owner Change0.05%
Market Cap8.28B
Revenue(TTM)4.10B
Net Income(TTM)233.68M
Analysts80
Price Target432.14 (2.83%)
Short Float %1.57%
Short Ratio1.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend2.4
Dividend Growth(5Y)9.85%
DP21.87%
Div Incr Years0
Div Non Decr Years22
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.64%
Min EPS beat(2)2.54%
Max EPS beat(2)6.73%
EPS beat(4)3
Avg EPS beat(4)3.09%
Min EPS beat(4)-1.82%
Max EPS beat(4)6.73%
EPS beat(8)7
Avg EPS beat(8)8.23%
EPS beat(12)10
Avg EPS beat(12)7.25%
EPS beat(16)14
Avg EPS beat(16)7.8%
Revenue beat(2)2
Avg Revenue beat(2)0.85%
Min Revenue beat(2)0.19%
Max Revenue beat(2)1.5%
Revenue beat(4)3
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)1.5%
Revenue beat(8)3
Avg Revenue beat(8)-0.7%
Revenue beat(12)5
Avg Revenue beat(12)-1.37%
Revenue beat(16)9
Avg Revenue beat(16)1.23%
PT rev (1m)1.27%
PT rev (3m)9.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.68%
EPS NY rev (1m)0%
EPS NY rev (3m)2.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.32 | ||
| Fwd PE | 19.51 | ||
| P/S | 2.02 | ||
| P/FCF | 20.25 | ||
| P/OCF | 15.37 | ||
| P/B | 5.19 | ||
| P/tB | 9.17 | ||
| EV/EBITDA | 14.42 |
EPS(TTM)18.02
EY4.29%
EPS(NY)21.54
Fwd EY5.12%
FCF(TTM)20.75
FCFY4.94%
OCF(TTM)27.34
OCFY6.51%
SpS208.28
BVpS81
TBVpS45.81
PEG (NY)1.86
PEG (5Y)1.24
Graham Number181.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 14.64% | ||
| ROCE | 20.09% | ||
| ROIC | 13.73% | ||
| ROICexc | 15.05% | ||
| ROICexgc | 21.29% | ||
| OM | 12.68% | ||
| PM (TTM) | 5.7% | ||
| GM | 30.33% | ||
| FCFM | 9.96% |
ROA(3y)7.28%
ROA(5y)6.46%
ROE(3y)16.53%
ROE(5y)15.12%
ROIC(3y)12.19%
ROIC(5y)10.33%
ROICexc(3y)13.08%
ROICexc(5y)11.29%
ROICexgc(3y)19.45%
ROICexgc(5y)16.82%
ROCE(3y)17.85%
ROCE(5y)15.17%
ROICexgc growth 3Y22.29%
ROICexgc growth 5Y14.35%
ROICexc growth 3Y24.1%
ROICexc growth 5Y13.9%
OM growth 3Y15.4%
OM growth 5Y9.34%
PM growth 3Y15.22%
PM growth 5Y10.06%
GM growth 3Y6.46%
GM growth 5Y4.3%
F-Score7
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.79 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 143.82% | ||
| Cap/Sales | 3.16% | ||
| Interest Coverage | 12.55 | ||
| Cash Conversion | 88.24% | ||
| Profit Quality | 174.94% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 6.15 |
F-Score7
WACC10.28%
ROIC/WACC1.34
Cap/Depr(3y)92.44%
Cap/Depr(5y)104.5%
Cap/Sales(3y)2.14%
Cap/Sales(5y)2.64%
Profit Quality(3y)124.57%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.08%
EPS 3Y16.27%
EPS 5Y18.77%
EPS Q2Q%21.17%
EPS Next Y12.56%
EPS Next 2Y11.96%
EPS Next 3Y12.02%
EPS Next 5Y10.82%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y5.19%
Revenue growth 5Y8.05%
Sales Q2Q%2.53%
Revenue Next Year1.44%
Revenue Next 2Y2.75%
Revenue Next 3Y3.36%
Revenue Next 5Y3.53%
EBIT growth 1Y11.11%
EBIT growth 3Y21.39%
EBIT growth 5Y18.14%
EBIT Next Year17.64%
EBIT Next 3Y14.31%
EBIT Next 5Y11.75%
FCF growth 1Y73.22%
FCF growth 3YN/A
FCF growth 5Y18.6%
OCF growth 1Y61.56%
OCF growth 3Y105.55%
OCF growth 5Y13.24%
VALMONT INDUSTRIES / VMI FAQ
What is the ChartMill fundamental rating of VALMONT INDUSTRIES (VMI) stock?
ChartMill assigns a fundamental rating of 7 / 10 to VMI.
What is the valuation status for VMI stock?
ChartMill assigns a valuation rating of 5 / 10 to VALMONT INDUSTRIES (VMI). This can be considered as Fairly Valued.
How profitable is VALMONT INDUSTRIES (VMI) stock?
VALMONT INDUSTRIES (VMI) has a profitability rating of 8 / 10.
What is the valuation of VALMONT INDUSTRIES based on its PE and PB ratios?
The Price/Earnings (PE) ratio for VALMONT INDUSTRIES (VMI) is 23.32 and the Price/Book (PB) ratio is 5.19.
Can you provide the expected EPS growth for VMI stock?
The Earnings per Share (EPS) of VALMONT INDUSTRIES (VMI) is expected to grow by 12.56% in the next year.