VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
USA - NYSE:VMI - US9202531011 - Common Stock
418 USD
+6.7 (+1.63%)
418 USD
0 (0%)
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 decent growth rate and is not valued too expensively. 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.
Each year in the past 5 years VMI had a positive operating cash flow.
1.2 Ratios
VMI's Return On Assets of 6.94% is fine compared to the rest 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.
With a decent Return On Invested Capital value of 13.47%, VMI is doing good in the industry, outperforming 78.18% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VMI is significantly below the industry average of 17.10%.
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
With a decent Profit Margin value of 5.70%, VMI is doing good in the industry, outperforming 70.91% of the companies in the same industry.
In the last couple of years the Profit Margin of VMI has grown nicely.
Looking at the Operating Margin, with a value of 12.44%, VMI belongs to the top of the industry, outperforming 85.45% of the companies in the same industry.
In the last couple of years the Operating Margin of VMI has grown nicely.
VMI has a Gross Margin of 30.31%. This is amongst the best in the industry. VMI outperforms 83.64% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VMI is creating some value.
The number of shares outstanding for VMI has been reduced compared to 1 year ago.
Compared to 5 years ago, VMI has less shares outstanding
Compared to 1 year ago, VMI has an improved debt to assets ratio.
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.
VMI has a Debt to FCF ratio of 1.79. This is in the better half of the industry: VMI outperforms 76.36% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that VMI is not too dependend on debt financing.
VMI has a Debt to Equity ratio of 0.46. This is in the better half of the industry: VMI outperforms 61.82% of its industry peers.
| 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.
The Current ratio of VMI (2.26) is better than 92.73% 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 has a better Quick ratio (1.50) than 76.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.08% over the past year.
The Earnings Per Share has been growing by 18.77% on average over the past years. This is quite good.
Looking at the last year, VMI shows a small growth in Revenue. The Revenue has grown by 1.23% 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)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 10.14% on average over the next years. This is quite good.
Based on estimates for the next years, VMI will show a small growth in Revenue. The Revenue will grow by 3.30% on average per year.
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 23.20, VMI is valued on the expensive side.
Based on the Price/Earnings ratio, VMI is valued a bit cheaper than the industry average as 78.18% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VMI to the average of the S&P500 Index (26.89), we can say VMI is valued inline with the index average.
VMI is valuated rather expensively with a Price/Forward Earnings ratio of 19.82.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VMI indicates a rather cheap valuation: VMI is cheaper than 83.64% of the companies listed in the same industry.
VMI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.2 | ||
| Fwd PE | 19.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VMI indicates a somewhat cheap valuation: VMI is cheaper than 78.18% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VMI is valued a bit cheaper than the industry average as 76.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.18 | ||
| EV/EBITDA | 14.58 |
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)2.33
PEG (5Y)1.24
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 2.31, VMI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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 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%
418
+6.7 (+1.63%)
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 Cap8.25B
Revenue(TTM)4.10B
Net Income(TTM)233.68M
Analysts80
Price Target396.1 (-5.24%)
Short Float %1.49%
Short Ratio1.56
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 | 23.2 | ||
| Fwd PE | 19.82 | ||
| P/S | 2.01 | ||
| P/FCF | 20.18 | ||
| P/OCF | 15.32 | ||
| P/B | 5.17 | ||
| P/tB | 5.17 | ||
| EV/EBITDA | 14.58 |
EPS(TTM)18.02
EY4.31%
EPS(NY)21.09
Fwd EY5.05%
FCF(TTM)20.71
FCFY4.95%
OCF(TTM)27.29
OCFY6.53%
SpS207.86
BVpS80.84
TBVpS80.84
PEG (NY)2.33
PEG (5Y)1.24
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 23.2 and the Price/Book (PB) ratio is 5.17.
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.