VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
USA - NYSE:VMI - US9202531011 - Common Stock
412.95 USD
-6.28 (-1.5%)
414 USD
+1.05 (+0.25%)
Overall VMI gets a fundamental rating of 6 out of 10. We evaluated VMI against 55 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 decent growth rate and is not valued too expensively. These ratings could make VMI a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
VMI had positive earnings in the past year.
VMI had a positive operating cash flow in the past year.
VMI had positive earnings in each of the past 5 years.
VMI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.94%, VMI is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
VMI has a Return On Equity of 14.64%. This is in the better half of the industry: VMI outperforms 63.64% of its industry peers.
The Return On Invested Capital of VMI (13.47%) is better than 78.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VMI is significantly below the industry average of 17.12%.
The last Return On Invested Capital (13.47%) for VMI is above the 3 year average (11.89%), which is a sign of increasing profitability.
| 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
VMI's Profit Margin of 5.70% is fine compared to the rest of the industry. VMI outperforms 70.91% of its industry peers.
VMI's Profit Margin has improved in the last couple of years.
VMI has a Operating Margin of 12.44%. This is amongst the best in the industry. VMI outperforms 85.45% of its industry peers.
VMI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 30.31%, VMI belongs to the top of the industry, outperforming 83.64% 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 | 12.44% | ||
| 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.
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
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.
The Debt to FCF ratio of VMI (1.79) is better than 76.36% of its industry peers.
VMI has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.46, VMI is in the better half of the industry, outperforming 61.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | N/A |
ROIC/WACC1.28
WACC10.51%
2.3 Liquidity
A Current Ratio of 2.26 indicates that VMI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.26, VMI belongs to the top of the industry, outperforming 92.73% 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.
With a decent Quick ratio value of 1.50, VMI is doing good in the industry, outperforming 76.36% of the companies in the same industry.
| 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.
The Revenue has been growing slightly by 1.23% in the past 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
VMI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.14% yearly.
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.
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
The Price/Earnings ratio is 22.92, which indicates a rather expensive current valuation of VMI.
VMI's Price/Earnings ratio is a bit cheaper when compared to the industry. VMI is cheaper than 80.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.19, VMI is valued at the same level.
Based on the Price/Forward Earnings ratio of 19.58, the valuation of VMI can be described as rather expensive.
VMI's Price/Forward Earnings ratio is rather cheap when compared to the industry. VMI is cheaper than 83.64% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.50, VMI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.92 | ||
| Fwd PE | 19.58 |
4.2 Price Multiples
78.18% 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 a bit cheaper than the industry average as 78.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.94 | ||
| EV/EBITDA | 14.41 |
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)2.31
PEG (5Y)1.22
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 2.33, 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 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
VMI pays out 21.87% of its income as dividend. This is a sustainable payout ratio.
The dividend of VMI is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP21.87%
EPS Next 2Y10.8%
EPS Next 3Y10.74%
412.95
-6.28 (-1.5%)
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 Cap8.15B
Revenue(TTM)4.10B
Net Income(TTM)233.68M
Analysts80
Price Target426.7 (3.33%)
Short Float %1.54%
Short Ratio1.61
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 | 22.92 | ||
| Fwd PE | 19.58 | ||
| P/S | 1.99 | ||
| P/FCF | 19.94 | ||
| P/OCF | 15.13 | ||
| P/B | 5.11 | ||
| P/tB | 5.11 | ||
| EV/EBITDA | 14.41 |
EPS(TTM)18.02
EY4.36%
EPS(NY)21.09
Fwd EY5.11%
FCF(TTM)20.71
FCFY5.02%
OCF(TTM)27.29
OCFY6.61%
SpS207.86
BVpS80.84
TBVpS80.84
PEG (NY)2.31
PEG (5Y)1.22
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
WACC10.51%
ROIC/WACC1.28
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 22.92 and the Price/Book (PB) ratio is 5.11.
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.