VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
NYSE:VMI - New York Stock Exchange, Inc. - US9202531011 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to VMI. VMI was compared to 52 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year VMI was profitable.
VMI had a positive operating cash flow in the past year.
In the past 5 years VMI has always been profitable.
Each year in the past 5 years VMI had a positive operating cash flow.
1.2 Ratios
VMI has a Return On Assets of 10.30%. This is amongst the best in the industry. VMI outperforms 80.77% of its industry peers.
With a decent Return On Equity value of 21.27%, VMI is doing good in the industry, outperforming 76.92% of the companies in the same industry.
VMI has a Return On Invested Capital of 13.63%. This is amongst the best in the industry. VMI outperforms 80.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VMI is below the industry average of 16.60%.
The last Return On Invested Capital (13.63%) for VMI is above the 3 year average (11.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 21.27% | ||
| ROIC | 13.63% |
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 better Profit Margin (8.55%) than 86.54% of its industry peers.
In the last couple of years the Profit Margin of VMI has grown nicely.
VMI has a better Operating Margin (12.82%) than 90.38% of its industry peers.
In the last couple of years the Operating Margin of VMI has grown nicely.
The Gross Margin of VMI (30.15%) is better than 82.69% of its industry peers.
VMI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.82% | ||
| PM (TTM) | 8.55% | ||
| GM | 30.15% |
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.
VMI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, VMI has less shares outstanding
VMI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.55 indicates that VMI is not in any danger for bankruptcy at the moment.
VMI has a better Altman-Z score (5.55) than 76.92% of its industry peers.
The Debt to FCF ratio of VMI is 1.41, which is an excellent value as it means it would take VMI, only 1.41 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.41, VMI is doing good in the industry, outperforming 76.92% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that VMI is not too dependend on debt financing.
The Debt to Equity ratio of VMI (0.45) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 5.55 |
ROIC/WACC1.37
WACC9.92%
2.3 Liquidity
VMI has a Current Ratio of 2.26. This indicates that VMI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of VMI (2.26) is better than 94.23% of its industry peers.
A Quick Ratio of 1.50 indicates that VMI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.50, VMI is in the better half of the industry, outperforming 78.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
VMI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.44%.
The Earnings Per Share has been growing by 18.77% on average over the past years. This is quite good.
The Revenue has decreased by -0.57% in the past year.
Measured over the past years, VMI shows a quite strong growth in Revenue. The Revenue has been growing by 8.05% on average per year.
EPS 1Y (TTM)7.44%
EPS 3Y16.27%
EPS 5Y18.77%
EPS Q2Q%0%
Revenue 1Y (TTM)-0.57%
Revenue growth 3Y5.19%
Revenue growth 5Y8.05%
Sales Q2Q%-0.87%
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 9.78% on average per year.
VMI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.15% yearly.
EPS Next Y6.64%
EPS Next 2Y8.03%
EPS Next 3Y9.46%
EPS Next 5Y9.78%
Revenue Next Year0.71%
Revenue Next 2Y2.8%
Revenue Next 3Y2.7%
Revenue Next 5Y3.15%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 18.98, the valuation of VMI can be described as rather expensive.
Based on the Price/Earnings ratio, VMI is valued cheaply inside the industry as 86.54% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.91. VMI is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.26, the valuation of VMI can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VMI indicates a rather cheap valuation: VMI is cheaper than 80.77% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of VMI to the average of the S&P500 Index (21.46), we can say VMI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.98 | ||
| Fwd PE | 16.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VMI indicates a rather cheap valuation: VMI is cheaper than 84.62% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VMI is valued cheaper than 90.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.59 | ||
| EV/EBITDA | 11.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of VMI may justify a higher PE ratio.
PEG (NY)2.86
PEG (5Y)1.01
EPS Next 2Y8.03%
EPS Next 3Y9.46%
5. Dividend
5.1 Amount
With a yearly dividend of 0.85%, VMI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.85, VMI pays a better dividend. On top of this VMI pays more dividend than 94.23% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, VMI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
The dividend of VMI is nicely growing with an annual growth rate of 9.85%!
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
13.88% of the earnings are spent on dividend by VMI. This is a low number and sustainable payout ratio.
VMI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP13.88%
EPS Next 2Y8.03%
EPS Next 3Y9.46%
NYSE:VMI (6/25/2025, 3:46:11 PM)
326.03
+0.93 (+0.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners90.91%
Inst Owner Change0.45%
Ins Owners1.36%
Ins Owner Change1.7%
Market Cap6.54B
Analysts80
Price Target351.9 (7.93%)
Short Float %1.2%
Short Ratio1.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Yearly Dividend2.4
Dividend Growth(5Y)9.85%
DP13.88%
Div Incr Years0
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.53%
Min EPS beat(2)-1.82%
Max EPS beat(2)4.89%
EPS beat(4)3
Avg EPS beat(4)6%
Min EPS beat(4)-1.82%
Max EPS beat(4)19.15%
EPS beat(8)7
Avg EPS beat(8)8.94%
EPS beat(12)10
Avg EPS beat(12)7.4%
EPS beat(16)14
Avg EPS beat(16)8.74%
Revenue beat(2)1
Avg Revenue beat(2)-0.14%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)1.4%
Revenue beat(4)1
Avg Revenue beat(4)-0.6%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)1.4%
Revenue beat(8)1
Avg Revenue beat(8)-3.13%
Revenue beat(12)5
Avg Revenue beat(12)-0.12%
Revenue beat(16)8
Avg Revenue beat(16)1.65%
PT rev (1m)-1.92%
PT rev (3m)-15.13%
EPS NQ rev (1m)0.72%
EPS NQ rev (3m)-1.65%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.98 | ||
| Fwd PE | 16.26 | ||
| P/S | 1.61 | ||
| P/FCF | 12.59 | ||
| P/OCF | 10.65 | ||
| P/B | 4 | ||
| P/tB | 7.49 | ||
| EV/EBITDA | 11.5 |
EPS(TTM)17.18
EY5.27%
EPS(NY)20.05
Fwd EY6.15%
FCF(TTM)25.9
FCFY7.94%
OCF(TTM)30.62
OCFY9.39%
SpS202.62
BVpS81.46
TBVpS43.56
PEG (NY)2.86
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 21.27% | ||
| ROCE | 19.94% | ||
| ROIC | 13.63% | ||
| ROICexc | 14.66% | ||
| ROICexgc | 21.35% | ||
| OM | 12.82% | ||
| PM (TTM) | 8.55% | ||
| GM | 30.15% | ||
| FCFM | 12.78% |
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%
ROICexcg growth 3Y22.29%
ROICexcg 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 Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 1.41 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 101.48% | ||
| Cap/Sales | 2.33% | ||
| Interest Coverage | 10.09 | ||
| Cash Conversion | 99.96% | ||
| Profit Quality | 149.47% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 5.55 |
F-Score7
WACC9.92%
ROIC/WACC1.37
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)7.44%
EPS 3Y16.27%
EPS 5Y18.77%
EPS Q2Q%0%
EPS Next Y6.64%
EPS Next 2Y8.03%
EPS Next 3Y9.46%
EPS Next 5Y9.78%
Revenue 1Y (TTM)-0.57%
Revenue growth 3Y5.19%
Revenue growth 5Y8.05%
Sales Q2Q%-0.87%
Revenue Next Year0.71%
Revenue Next 2Y2.8%
Revenue Next 3Y2.7%
Revenue Next 5Y3.15%
EBIT growth 1Y17.03%
EBIT growth 3Y21.39%
EBIT growth 5Y18.14%
EBIT Next Year23.14%
EBIT Next 3Y11.1%
EBIT Next 5Y10.25%
FCF growth 1Y102.85%
FCF growth 3YN/A
FCF growth 5Y18.6%
OCF growth 1Y78.23%
OCF growth 3Y105.55%
OCF growth 5Y13.24%