VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
USA - NYSE:VMI - US9202531011 - Common Stock
414.55 USD
-0.52 (-0.13%)
Taking everything into account, VMI scores 6 out of 10 in our fundamental rating. VMI was compared to 55 industry peers in the Construction & Engineering industry. VMI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. VMI has a correct valuation and a medium growth rate. These ratings would make VMI suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year VMI was profitable.
VMI had a positive operating cash flow in the past year.
Each year in the past 5 years VMI has been profitable.
VMI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VMI has a Return On Assets of 6.94%. This is in the better half of the industry: VMI outperforms 72.73% of its industry peers.
Looking at the Return On Equity, with a value of 14.64%, VMI is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
VMI has a better Return On Invested Capital (13.47%) than 78.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VMI is significantly below the industry average of 17.12%.
The 3 year average ROIC (11.89%) for VMI is below the current ROIC(13.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 14.64% | ||
| ROIC | 13.47% |
ROA(3y)7.28%
ROA(5y)6.46%
ROE(3y)16.53%
ROE(5y)15.12%
ROIC(3y)11.89%
ROIC(5y)10.15%
1.3 Margins
VMI has a Profit Margin of 5.70%. This is in the better half of the industry: VMI outperforms 70.91% of its industry peers.
VMI's Profit Margin has improved in the last couple of years.
VMI has a Operating Margin of 12.44%. This is amongst the best in the industry. VMI outperforms 85.45% of its industry peers.
In the last couple of years the Operating Margin of VMI has grown nicely.
With an excellent Gross Margin value of 30.31%, VMI belongs to the best of the industry, outperforming 83.64% of the companies in the same industry.
In the last couple of years the Gross Margin of VMI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.44% | ||
| PM (TTM) | 5.7% | ||
| GM | 30.31% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VMI is still creating some value.
VMI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for VMI has been reduced compared to 5 years ago.
The debt/assets ratio for VMI has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of VMI is 1.79, which is an excellent value as it means it would take VMI, only 1.79 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.79, VMI is in the better half of the industry, outperforming 76.36% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that VMI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.46, VMI is in the better half of the industry, outperforming 61.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | N/A |
ROIC/WACC1.29
WACC10.46%
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 92.73% of the companies in the same industry.
A Quick Ratio of 1.50 indicates that VMI should not have too much problems paying its short term obligations.
VMI's Quick ratio of 1.50 is fine compared to the rest of the industry. VMI outperforms 76.36% 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.
VMI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.77% yearly.
Looking at the last year, VMI shows a small growth in Revenue. The Revenue has grown by 1.23% in the last year.
The Revenue has been growing by 8.05% on average over the past years. This is quite good.
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
Based on estimates for the next years, VMI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.14% on average per year.
The Revenue is expected to grow by 3.30% on average over the next years.
EPS Next Y9.94%
EPS Next 2Y10.8%
EPS Next 3Y10.74%
EPS Next 5Y10.14%
Revenue Next Year1.37%
Revenue Next 2Y3.27%
Revenue Next 3Y3.42%
Revenue Next 5Y3.3%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.00, VMI is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of VMI indicates a somewhat cheap valuation: VMI is cheaper than 78.18% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of VMI to the average of the S&P500 Index (27.08), we can say VMI is valued inline with the index average.
With a Price/Forward Earnings ratio of 19.65, VMI is valued on the expensive side.
Based on the Price/Forward Earnings ratio, VMI is valued cheaper than 83.64% of the companies in the same industry.
VMI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23 | ||
| Fwd PE | 19.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VMI is valued a bit cheaper than the industry average as 78.18% of the companies are valued more expensively.
76.36% of the companies in the same industry are more expensive than VMI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.02 | ||
| EV/EBITDA | 14.48 |
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.
PEG (NY)2.31
PEG (5Y)1.23
EPS Next 2Y10.8%
EPS Next 3Y10.74%
5. Dividend
5.1 Amount
VMI has a yearly dividend return of 0.65%, which is pretty low.
Compared to an average industry Dividend Yield of 1.69, VMI pays a better dividend. On top of this VMI pays more dividend than 90.91% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, VMI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
On average, the dividend of VMI grows each year by 9.85%, which is quite nice.
VMI has been paying a dividend for at least 10 years, so it has 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 2Y10.8%
EPS Next 3Y10.74%
NYSE:VMI (10/28/2025, 10:59:41 AM)
414.55
-0.52 (-0.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.26%
Inst Owner Change0.42%
Ins Owners1.37%
Ins Owner Change0.54%
Market Cap8.18B
Revenue(TTM)4.10B
Net Income(TTM)233.68M
Analysts80
Price Target396.1 (-4.45%)
Short Float %1.54%
Short Ratio1.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend2.4
Dividend Growth(5Y)9.85%
DP21.87%
Div Incr Years0
Div Non Decr Years22
Ex-Date
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)0%
PT rev (3m)12.56%
EPS NQ rev (1m)0.86%
EPS NQ rev (3m)2.56%
EPS NY rev (1m)0.34%
EPS NY rev (3m)3.09%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23 | ||
| Fwd PE | 19.65 | ||
| P/S | 1.99 | ||
| P/FCF | 20.02 | ||
| P/OCF | 15.19 | ||
| P/B | 5.13 | ||
| P/tB | 5.13 | ||
| EV/EBITDA | 14.48 |
EPS(TTM)18.02
EY4.35%
EPS(NY)21.09
Fwd EY5.09%
FCF(TTM)20.71
FCFY5%
OCF(TTM)27.29
OCFY6.58%
SpS207.86
BVpS80.84
TBVpS80.84
PEG (NY)2.31
PEG (5Y)1.23
Graham Number181.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 14.64% | ||
| ROCE | 19.71% | ||
| ROIC | 13.47% | ||
| ROICexc | 14.76% | ||
| ROICexgc | 14.76% | ||
| OM | 12.44% | ||
| PM (TTM) | 5.7% | ||
| GM | 30.31% | ||
| FCFM | 9.96% |
ROA(3y)7.28%
ROA(5y)6.46%
ROE(3y)16.53%
ROE(5y)15.12%
ROIC(3y)11.89%
ROIC(5y)10.15%
ROICexc(3y)12.77%
ROICexc(5y)11.1%
ROICexgc(3y)19%
ROICexgc(5y)16.55%
ROCE(3y)17.42%
ROCE(5y)14.91%
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 | 1.22 | ||
| Cap/Depr | 143.82% | ||
| Cap/Sales | 3.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.68% | ||
| Profit Quality | 174.94% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | N/A |
F-Score7
WACC10.46%
ROIC/WACC1.29
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 Y9.94%
EPS Next 2Y10.8%
EPS Next 3Y10.74%
EPS Next 5Y10.14%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y5.19%
Revenue growth 5Y8.05%
Sales Q2Q%2.53%
Revenue Next Year1.37%
Revenue Next 2Y3.27%
Revenue Next 3Y3.42%
Revenue Next 5Y3.3%
EBIT growth 1Y9.02%
EBIT growth 3Y21.39%
EBIT growth 5Y18.14%
EBIT Next Year16.72%
EBIT Next 3Y13.14%
EBIT Next 5Y10.73%
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 6 / 10 to VMI.
Can you provide the valuation status for VALMONT INDUSTRIES?
ChartMill assigns a valuation rating of 4 / 10 to VALMONT INDUSTRIES (VMI). This can be considered as Fairly Valued.
Can you provide the profitability details for VALMONT INDUSTRIES?
VALMONT INDUSTRIES (VMI) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for VMI stock?
The Price/Earnings (PE) ratio for VALMONT INDUSTRIES (VMI) is 23 and the Price/Book (PB) ratio is 5.13.
What is the earnings growth outlook for VALMONT INDUSTRIES?
The Earnings per Share (EPS) of VALMONT INDUSTRIES (VMI) is expected to grow by 9.94% in the next year.