VALMONT INDUSTRIES (VMI)
US9202531011 - Common Stock
Overall VMI gets a fundamental rating of 6 out of 10. We evaluated VMI against 43 industry peers in the Construction & Engineering industry. While VMI has a great profitability rating, there are some minor concerns on its financial health. VMI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
VMI had positive earnings in the past year.
In the past year VMI had a positive cash flow from operations.
Each year in the past 5 years VMI has 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 4.74%. This is in the better half of the industry: VMI outperforms 73.81% of its industry peers.
VMI has a Return On Equity of 11.65%. This is in the better half of the industry: VMI outperforms 69.05% of its industry peers.
With an excellent Return On Invested Capital value of 10.53%, VMI belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
VMI had an Average Return On Invested Capital over the past 3 years of 9.30%. This is in line with the industry average of 8.29%.
The last Return On Invested Capital (10.53%) for VMI is above the 3 year average (9.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 11.65% | ||
| ROIC | 10.53% |
ROA(3y)5.69%
ROA(5y)5.41%
ROE(3y)13.7%
ROE(5y)13.16%
ROIC(3y)9.3%
ROIC(5y)8.36%
1.3 Margins
VMI has a Profit Margin (4.01%) which is comparable to the rest of the industry.
VMI's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 10.89%, VMI belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Operating Margin of VMI has grown nicely.
With an excellent Gross Margin value of 30.16%, VMI belongs to the best of the industry, outperforming 83.33% 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 | 10.89% | ||
| PM (TTM) | 4.01% | ||
| GM | 30.16% |
OM growth 3Y5%
OM growth 5Y5.54%
PM growth 3Y-9.4%
PM growth 5Y1.08%
GM growth 3Y3.85%
GM growth 5Y4.4%
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
Compared to 1 year ago, VMI has a worse debt to assets ratio.
2.2 Solvency
VMI has a debt to FCF ratio of 5.06. This is a neutral value as VMI would need 5.06 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.06, VMI is doing good in the industry, outperforming 69.05% of the companies in the same industry.
VMI has a Debt/Equity ratio of 0.79. This is a neutral value indicating VMI is somewhat dependend on debt financing.
VMI has a Debt to Equity ratio of 0.79. This is comparable to the rest of the industry: VMI outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 5.06 | ||
| Altman-Z | N/A |
ROIC/WACC1.14
WACC9.21%
2.3 Liquidity
VMI has a Current Ratio of 2.64. This indicates that VMI is financially healthy and has no problem in meeting its short term obligations.
VMI's Current ratio of 2.64 is amongst the best of the industry. VMI outperforms 90.48% of its industry peers.
A Quick Ratio of 1.65 indicates that VMI should not have too much problems paying its short term obligations.
VMI has a Quick ratio of 1.65. This is amongst the best in the industry. VMI outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.27% over the past year.
Measured over the past years, VMI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.17% on average per year.
VMI shows a decrease in Revenue. In the last year, the revenue decreased by -7.61%.
Measured over the past years, VMI shows a quite strong growth in Revenue. The Revenue has been growing by 8.65% on average per year.
EPS 1Y (TTM)11.27%
EPS 3Y23.16%
EPS 5Y15.17%
EPS growth Q2Q19.67%
Revenue 1Y (TTM)-7.61%
Revenue growth 3Y12.97%
Revenue growth 5Y8.65%
Revenue growth Q2Q-7.97%
3.2 Future
VMI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.49% yearly.
Based on estimates for the next years, VMI will show a small growth in Revenue. The Revenue will grow by 2.56% on average per year.
EPS Next Y-2.39%
EPS Next 2Y3.69%
EPS Next 3Y5.71%
EPS Next 5Y8.49%
Revenue Next Year-2.64%
Revenue Next 2Y1.13%
Revenue Next 3Y2.54%
Revenue Next 5Y2.56%
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.
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
The Price/Earnings ratio is 16.26, which indicates a correct valuation of VMI.
90.48% of the companies in the same industry are more expensive than VMI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.91. VMI is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.82, the valuation of VMI can be described as correct.
Based on the Price/Forward Earnings ratio, VMI is valued a bit cheaper than the industry average as 73.81% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.51. VMI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.26 | ||
| Fwd PE | 15.82 |
4.2 Price Multiples
VMI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VMI is cheaper than 78.57% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VMI indicates a somewhat cheap valuation: VMI is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.9 | ||
| EV/EBITDA | 11.39 |
4.3 Compensation for Growth
VMI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.07
EPS Next 2Y3.69%
EPS Next 3Y5.71%
5. Dividend
5.1 Amount
VMI has a yearly dividend return of 0.94%, which is pretty low.
Compared to an average industry Dividend Yield of 0.78, VMI pays a better dividend. On top of this VMI pays more dividend than 92.86% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, VMI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
On average, the dividend of VMI grows each year by 9.54%, which is quite nice.
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)9.54%
Div Incr Years4
Div Non Decr Years19
5.3 Sustainability
VMI pays out 30.40% of its income as dividend. This is a sustainable payout ratio.
VMI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.4%
EPS Next 2Y3.69%
EPS Next 3Y5.71%
VALMONT INDUSTRIES
NYSE:VMI (5/16/2024, 10:58:51 AM)
259.945
-0.06 (-0.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.25B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.26 | ||
| Fwd PE | 15.82 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 11.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.89% | ||
| PM (TTM) | 4.01% | ||
| GM | 30.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)11.27%
EPS 3Y23.16%
EPS 5Y
EPS growth Q2Q
EPS Next Y-2.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.61%
Revenue growth 3Y12.97%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y