VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
NYSE:VMI - New York Stock Exchange, Inc. - US9202531011 - Common Stock - Currency: USD
Overall VMI gets a fundamental rating of 7 out of 10. We evaluated VMI against 51 industry peers in the Construction & Engineering industry. Both the health and profitability get an excellent rating, making VMI a very profitable company, without any liquidiy or solvency issues. VMI is not valued too expensively and it also shows a decent 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.
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
With an excellent Return On Assets value of 10.30%, VMI belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.27%, VMI is in the better half of the industry, outperforming 76.47% 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 80.39% 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
With an excellent Profit Margin value of 8.55%, VMI belongs to the best 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.
Looking at the Operating Margin, with a value of 12.82%, VMI belongs to the top of the industry, outperforming 92.16% of the companies in the same industry.
In the last couple of years the Operating Margin of VMI has grown nicely.
VMI has a better Gross Margin (30.15%) than 82.35% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VMI is still creating some value.
VMI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, VMI has less shares outstanding
The debt/assets ratio for VMI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.46 indicates that VMI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.46, VMI belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.41, VMI is in the better half of the industry, outperforming 74.51% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that VMI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.45, VMI is in line with its industry, outperforming 58.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 5.46 |
ROIC/WACC1.34
WACC10.19%
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.
Looking at the Current ratio, with a value of 2.26, VMI belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
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 78.43% 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.
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
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
With a Price/Earnings ratio of 18.65, VMI is valued on the expensive side.
VMI's Price/Earnings ratio is rather cheap when compared to the industry. VMI is cheaper than 84.31% of the companies in the same industry.
VMI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.35.
VMI is valuated correctly with a Price/Forward Earnings ratio of 16.04.
Based on the Price/Forward Earnings ratio, VMI is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
VMI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.65 | ||
| Fwd PE | 16.04 |
4.2 Price Multiples
82.35% 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 cheaply inside the industry as 88.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.38 | ||
| EV/EBITDA | 11.09 |
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.
PEG (NY)2.78
PEG (5Y)0.99
EPS Next 2Y7.83%
EPS Next 3Y9.46%
5. Dividend
5.1 Amount
VMI has a yearly dividend return of 0.87%, which is pretty low.
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 | 0.87% |
5.2 History
On average, the dividend of VMI grows each year by 9.85%, which is quite nice.
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 Years4
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.
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%
320.48
+8.02 (+2.57%)
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 Cap6.43B
Analysts80
Price Target358.79 (11.95%)
Short Float %1.54%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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 | 18.65 | ||
| Fwd PE | 16.04 | ||
| P/S | 1.58 | ||
| P/FCF | 12.38 | ||
| P/OCF | 10.47 | ||
| P/B | 3.93 | ||
| P/tB | 7.36 | ||
| EV/EBITDA | 11.09 |
EPS(TTM)17.18
EY5.36%
EPS(NY)19.98
Fwd EY6.23%
FCF(TTM)25.9
FCFY8.08%
OCF(TTM)30.62
OCFY9.55%
SpS202.62
BVpS81.46
TBVpS43.56
PEG (NY)2.78
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 | 5.46 |
F-Score7
WACC10.19%
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%