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 51 industry peers in the Construction & Engineering industry. VMI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. VMI has a correct valuation and a medium growth rate.
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.
In the past 5 years VMI always reported a positive cash flow from operatings.
1.2 Ratios
VMI has a better Return On Assets (10.30%) than 82.35% of its industry peers.
VMI has a Return On Equity of 21.27%. This is in the better half of the industry: VMI outperforms 76.47% of its industry peers.
VMI's Return On Invested Capital of 13.63% is amongst the best of the industry. VMI outperforms 80.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VMI is significantly below the industry average of 16.97%.
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
Looking at the Profit Margin, with a value of 8.55%, VMI belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
In the last couple of years the Profit Margin of VMI has grown nicely.
VMI's Operating Margin of 12.82% is amongst the best of the industry. VMI outperforms 92.16% of its industry peers.
In the last couple of years the Operating Margin of VMI has grown nicely.
Looking at the Gross Margin, with a value of 30.15%, VMI belongs to the top of the industry, outperforming 82.35% 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 | 12.82% | ||
| 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
VMI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, VMI has less shares outstanding
VMI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, VMI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.50 indicates that VMI is not in any danger for bankruptcy at the moment.
VMI has a Altman-Z score of 5.50. This is amongst the best in the industry. VMI outperforms 82.35% of its industry peers.
VMI has a debt to FCF ratio of 1.41. This is a very positive value and a sign of high solvency as it would only need 1.41 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.41, VMI is doing good in the industry, outperforming 74.51% of the companies in the same industry.
VMI has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
VMI has a Debt to Equity ratio (0.45) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 5.5 |
ROIC/WACC1.34
WACC10.14%
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 94.12% of its industry peers.
A Quick Ratio of 1.50 indicates that VMI should not have too much problems paying its short term obligations.
VMI has a better Quick ratio (1.50) than 78.43% of its industry peers.
| 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%.
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.
Looking at the last year, VMI shows a decrease in Revenue. The Revenue has decreased by -0.57% in the last 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
The Earnings Per Share is expected to grow by 9.80% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.69% on average over the next years.
EPS Next Y6.71%
EPS Next 2Y7.83%
EPS Next 3Y9.46%
EPS Next 5Y9.8%
Revenue Next Year0.68%
Revenue Next 2Y2.71%
Revenue Next 3Y2.7%
Revenue Next 5Y3.69%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 18.51.
Based on the Price/Earnings ratio, VMI is valued cheaply inside the industry as 84.31% of the companies are valued more expensively.
VMI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.25.
With a Price/Forward Earnings ratio of 15.92, VMI is valued correctly.
Based on the Price/Forward Earnings ratio, VMI is valued a bit cheaper than 76.47% of the companies in the same industry.
VMI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.51 | ||
| Fwd PE | 15.92 |
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 84.31% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VMI indicates a rather cheap valuation: VMI is cheaper than 88.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.28 | ||
| EV/EBITDA | 11.25 |
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)2.76
PEG (5Y)0.99
EPS Next 2Y7.83%
EPS Next 3Y9.46%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, VMI is not a good candidate for dividend investing.
VMI's Dividend Yield is rather good when compared to the industry average which is at 1.77. VMI pays more dividend than 92.16% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, VMI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.85%
Div Incr Years4
Div Non Decr Years22
5.3 Sustainability
VMI pays out 13.88% of its income as dividend. This is a sustainable payout ratio.
The dividend of VMI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP13.88%
EPS Next 2Y7.83%
EPS Next 3Y9.46%
318.04
+0.71 (+0.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners92.01%
Inst Owner Change0.44%
Ins Owners1.3%
Ins Owner Change0.01%
Market Cap6.38B
Analysts80
Price Target358.79 (12.81%)
Short Float %1.54%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend2.4
Dividend Growth(5Y)9.85%
DP13.88%
Div Incr Years4
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)0%
PT rev (3m)-4.61%
EPS NQ rev (1m)-2.36%
EPS NQ rev (3m)-4.47%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)-1.34%
Revenue NQ rev (3m)-4.44%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.51 | ||
| Fwd PE | 15.92 | ||
| P/S | 1.57 | ||
| P/FCF | 12.28 | ||
| P/OCF | 10.39 | ||
| P/B | 3.9 | ||
| P/tB | 7.3 | ||
| EV/EBITDA | 11.25 |
EPS(TTM)17.18
EY5.4%
EPS(NY)19.98
Fwd EY6.28%
FCF(TTM)25.9
FCFY8.14%
OCF(TTM)30.62
OCFY9.63%
SpS202.62
BVpS81.46
TBVpS43.56
PEG (NY)2.76
PEG (5Y)0.99
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 | 5.5 |
F-Score7
WACC10.14%
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)7.44%
EPS 3Y16.27%
EPS 5Y18.77%
EPS Q2Q%0%
EPS Next Y6.71%
EPS Next 2Y7.83%
EPS Next 3Y9.46%
EPS Next 5Y9.8%
Revenue 1Y (TTM)-0.57%
Revenue growth 3Y5.19%
Revenue growth 5Y8.05%
Sales Q2Q%-0.87%
Revenue Next Year0.68%
Revenue Next 2Y2.71%
Revenue Next 3Y2.7%
Revenue Next 5Y3.69%
EBIT growth 1Y17.03%
EBIT growth 3Y21.39%
EBIT growth 5Y18.14%
EBIT Next Year23.14%
EBIT Next 3Y11.1%
EBIT Next 5Y11.86%
FCF growth 1Y102.85%
FCF growth 3YN/A
FCF growth 5Y18.6%
OCF growth 1Y78.23%
OCF growth 3Y105.55%
OCF growth 5Y13.24%