VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
USA - NYSE:VMI - US9202531011 - Common Stock
373.62 USD
-13.08 (-3.38%)
373.62 USD
0 (0%)
VMI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 52 industry peers in the Construction & Engineering industry. VMI gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
Each year in the past 5 years VMI had a positive operating cash flow.
1.2 Ratios
VMI has a better Return On Assets (6.51%) than 73.08% of its industry peers.
VMI has a better Return On Equity (14.24%) than 63.46% of its industry peers.
With a decent Return On Invested Capital value of 13.33%, VMI is doing good in the industry, outperforming 76.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VMI is significantly below the industry average of 17.22%.
The 3 year average ROIC (11.89%) for VMI is below the current ROIC(13.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.51% | ||
| ROE | 14.24% | ||
| ROIC | 13.33% |
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
VMI has a better Profit Margin (5.34%) than 69.23% of its industry peers.
VMI's Profit Margin has improved in the last couple of years.
VMI's Operating Margin of 12.13% is amongst the best of the industry. VMI outperforms 84.62% of its industry peers.
VMI's Operating Margin has improved in the last couple of years.
VMI has a Gross Margin of 30.09%. This is amongst the best in the industry. VMI outperforms 82.69% of its industry peers.
In the last couple of years the Gross Margin of VMI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.13% | ||
| PM (TTM) | 5.34% | ||
| GM | 30.09% |
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.
VMI has less shares outstanding than it did 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 5.72 indicates that VMI is not in any danger for bankruptcy at the moment.
VMI has a better Altman-Z score (5.72) than 80.77% of its industry peers.
VMI has a debt to FCF ratio of 1.35. This is a very positive value and a sign of high solvency as it would only need 1.35 years to pay back of all of its debts.
VMI has a Debt to FCF ratio of 1.35. This is in the better half of the industry: VMI outperforms 76.92% of its industry peers.
VMI has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
VMI has a Debt to Equity ratio (0.48) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 5.72 |
ROIC/WACC1.35
WACC9.91%
2.3 Liquidity
A Current Ratio of 2.15 indicates that VMI has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.15, VMI belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
A Quick Ratio of 1.44 indicates that VMI should not have too much problems paying its short term obligations.
VMI's Quick ratio of 1.44 is fine compared to the rest of the industry. VMI outperforms 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.75% over the past year.
VMI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.77% yearly.
The Revenue has decreased by -0.15% in the past year.
The Revenue has been growing by 8.05% on average over the past years. This is quite good.
EPS 1Y (TTM)3.75%
EPS 3Y16.27%
EPS 5Y18.77%
EPS Q2Q%-0.61%
Revenue 1Y (TTM)-0.15%
Revenue growth 3Y5.19%
Revenue growth 5Y8.05%
Sales Q2Q%1.04%
3.2 Future
The Earnings Per Share is expected to grow by 10.14% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.30% on average over the next years.
EPS Next Y9.56%
EPS Next 2Y10.28%
EPS Next 3Y10.92%
EPS Next 5Y10.14%
Revenue Next Year1.27%
Revenue Next 2Y3.16%
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 21.79, VMI is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of VMI indicates a somewhat cheap valuation: VMI is cheaper than 78.85% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. VMI is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 17.88 indicates a rather expensive valuation of VMI.
Based on the Price/Forward Earnings ratio, VMI is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.73. VMI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.79 | ||
| Fwd PE | 17.88 |
4.2 Price Multiples
80.77% of the companies in the same industry are more expensive than VMI, based on the Enterprise Value to EBITDA ratio.
82.69% of the companies in the same industry are more expensive than VMI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.59 | ||
| EV/EBITDA | 13.45 |
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.
The excellent profitability rating of VMI may justify a higher PE ratio.
PEG (NY)2.28
PEG (5Y)1.16
EPS Next 2Y10.28%
EPS Next 3Y10.92%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, VMI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.58, VMI pays a better dividend. On top of this VMI pays more dividend than 90.38% of the companies listed in the same industry.
With a Dividend Yield of 0.70, VMI pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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 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
22.87% 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.
DP22.87%
EPS Next 2Y10.28%
EPS Next 3Y10.92%
373.62
-13.08 (-3.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners90.89%
Inst Owner Change1.31%
Ins Owners1.36%
Ins Owner Change0.45%
Market Cap7.38B
Analysts80
Price Target396.1 (6.02%)
Short Float %1.55%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend2.4
Dividend Growth(5Y)9.85%
DP22.87%
Div Incr Years0
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.36%
Min EPS beat(2)-1.82%
Max EPS beat(2)2.54%
EPS beat(4)3
Avg EPS beat(4)1.85%
Min EPS beat(4)-1.82%
Max EPS beat(4)4.89%
EPS beat(8)7
Avg EPS beat(8)8.58%
EPS beat(12)10
Avg EPS beat(12)6.81%
EPS beat(16)14
Avg EPS beat(16)7.57%
Revenue beat(2)1
Avg Revenue beat(2)-0.09%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)1.5%
Revenue beat(4)2
Avg Revenue beat(4)0.04%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)1.5%
Revenue beat(8)2
Avg Revenue beat(8)-1.58%
Revenue beat(12)5
Avg Revenue beat(12)-1.04%
Revenue beat(16)8
Avg Revenue beat(16)1.2%
PT rev (1m)0%
PT rev (3m)12.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.55%
EPS NY rev (1m)2.74%
EPS NY rev (3m)2.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.79 | ||
| Fwd PE | 17.88 | ||
| P/S | 1.81 | ||
| P/FCF | 13.59 | ||
| P/OCF | 11.32 | ||
| P/B | 4.82 | ||
| P/tB | 8.88 | ||
| EV/EBITDA | 13.45 |
EPS(TTM)17.15
EY4.59%
EPS(NY)20.89
Fwd EY5.59%
FCF(TTM)27.5
FCFY7.36%
OCF(TTM)32.99
OCFY8.83%
SpS206.55
BVpS77.45
TBVpS42.08
PEG (NY)2.28
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.51% | ||
| ROE | 14.24% | ||
| ROCE | 19.51% | ||
| ROIC | 13.33% | ||
| ROICexc | 14.53% | ||
| ROICexgc | 20.76% | ||
| OM | 12.13% | ||
| PM (TTM) | 5.34% | ||
| GM | 30.09% | ||
| FCFM | 13.31% |
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-Score8
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.35 | ||
| Debt/EBITDA | 1.24 | ||
| Cap/Depr | 117.03% | ||
| Cap/Sales | 2.66% | ||
| Interest Coverage | 10.8 | ||
| Cash Conversion | 110.89% | ||
| Profit Quality | 249.33% | ||
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 5.72 |
F-Score8
WACC9.91%
ROIC/WACC1.35
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)3.75%
EPS 3Y16.27%
EPS 5Y18.77%
EPS Q2Q%-0.61%
EPS Next Y9.56%
EPS Next 2Y10.28%
EPS Next 3Y10.92%
EPS Next 5Y10.14%
Revenue 1Y (TTM)-0.15%
Revenue growth 3Y5.19%
Revenue growth 5Y8.05%
Sales Q2Q%1.04%
Revenue Next Year1.27%
Revenue Next 2Y3.16%
Revenue Next 3Y3.42%
Revenue Next 5Y3.3%
EBIT growth 1Y7.75%
EBIT growth 3Y21.39%
EBIT growth 5Y18.14%
EBIT Next Year16.72%
EBIT Next 3Y13.14%
EBIT Next 5Y10.73%
FCF growth 1Y94.72%
FCF growth 3YN/A
FCF growth 5Y18.6%
OCF growth 1Y77.08%
OCF growth 3Y105.55%
OCF growth 5Y13.24%