VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:VMI • US9202531011
445.56 USD
-2.4 (-0.54%)
At close: Jan 30, 2026
445.56 USD
0 (0%)
After Hours: 1/30/2026, 8:23:27 PM
VMI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 56 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. This makes VMI very considerable 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.
- In the past 5 years VMI has always been profitable.
- VMI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- VMI's Return On Assets of 6.94% is fine compared to the rest of the industry. VMI outperforms 71.43% of its industry peers.
- The Return On Equity of VMI (14.64%) is comparable to the rest of the industry.
- The Return On Invested Capital of VMI (13.73%) is better than 80.36% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for VMI is below the industry average of 15.97%.
- The last Return On Invested Capital (13.73%) for VMI is above the 3 year average (12.19%), which is a sign of increasing profitability.
| 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
- Looking at the Profit Margin, with a value of 5.70%, VMI is in the better half of the industry, outperforming 66.07% of the companies in the same industry.
- VMI's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 12.68%, VMI belongs to the best of the industry, outperforming 83.93% of the companies in the same industry.
- VMI's Operating Margin has improved in the last couple of years.
- VMI has a better Gross Margin (30.33%) than 82.14% of its industry peers.
- VMI's Gross Margin has improved in the last couple of years.
| 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
- VMI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for VMI has been reduced compared to 1 year ago.
- The number of shares outstanding for VMI has been reduced compared to 5 years ago.
- Compared to 1 year ago, VMI has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 6.31 indicates that VMI is not in any danger for bankruptcy at the moment.
- VMI has a better Altman-Z score (6.31) than 83.93% of its industry peers.
- 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.
- The Debt to FCF ratio of VMI (1.79) is better than 80.36% of its industry peers.
- A Debt/Equity ratio of 0.46 indicates that VMI is not too dependend on debt financing.
- VMI has a better Debt to Equity ratio (0.46) than 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 6.31 |
ROIC/WACC1.33
WACC10.31%
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.
- VMI has a Current ratio of 2.26. This is amongst the best in the industry. VMI outperforms 92.86% of its industry peers.
- 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.
- VMI's Quick ratio of 1.50 is fine compared to the rest of the industry. VMI outperforms 78.57% 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.
- VMI shows a small growth in Revenue. In the last year, the Revenue has grown by 1.23%.
- 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
- The Earnings Per Share is expected to grow by 10.83% 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 5Y10.83%
Revenue Next Year1.47%
Revenue Next 2Y2.76%
Revenue Next 3Y3.37%
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
- Based on the Price/Earnings ratio of 24.73, the valuation of VMI can be described as rather expensive.
- Based on the Price/Earnings ratio, VMI is valued cheaply inside the industry as 80.36% of the companies are valued more expensively.
- VMI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 20.69, the valuation of VMI can be described as rather expensive.
- VMI's Price/Forward Earnings ratio is rather cheap when compared to the industry. VMI is cheaper than 83.93% of the companies in the same industry.
- VMI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.73 | ||
| Fwd PE | 20.69 |
4.2 Price Multiples
- 69.64% of the companies in the same industry are more expensive than VMI, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, VMI is valued a bit cheaper than 76.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.47 | ||
| EV/EBITDA | 15.21 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VMI does not grow enough to justify the current Price/Earnings ratio.
- 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)1.97
PEG (5Y)1.32
EPS Next 2Y11.96%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
- VMI has a yearly dividend return of 0.61%, which is pretty low.
- VMI's Dividend Yield is rather good when compared to the industry average which is at 0.13. VMI pays more dividend than 92.86% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, VMI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
- The dividend of VMI is nicely growing with an annual growth rate of 9.85%!
- 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
- VMI pays out 21.87% of its income as dividend. This is a sustainable payout ratio.
- The dividend of VMI is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP21.87%
EPS Next 2Y11.96%
EPS Next 3Y12.02%
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 24.73 and the Price/Book (PB) ratio is 5.5.
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.