VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
USA - NYSE:VMI - US9202531011 - Common Stock
394.62 USD
+1.75 (+0.45%)
394.62 USD
0 (0%)
Taking everything into account, VMI scores 7 out of 10 in our fundamental rating. VMI was compared to 53 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 decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years VMI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of VMI (6.51%) is better than 73.58% of its industry peers.
With a decent Return On Equity value of 14.24%, VMI is doing good in the industry, outperforming 64.15% of the companies in the same industry.
VMI has a better Return On Invested Capital (13.33%) than 77.36% of its industry peers.
VMI had an Average Return On Invested Capital over the past 3 years of 11.89%. This 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 69.81% 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 83.02% of its industry peers.
VMI's Operating Margin has improved in the last couple of years.
The Gross Margin of VMI (30.09%) is better than 83.02% of its industry peers.
VMI's Gross Margin has improved in the last couple of years.
| 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
VMI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 5.85 indicates that VMI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.85, VMI is in the better half of the industry, outperforming 79.25% of the companies in the same industry.
The Debt to FCF ratio of VMI is 1.35, which is an excellent value as it means it would take VMI, only 1.35 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.35, VMI is in the better half of the industry, outperforming 79.25% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that VMI is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.48, VMI perfoms like the industry average, outperforming 58.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 5.85 |
ROIC/WACC1.34
WACC9.96%
2.3 Liquidity
VMI has a Current Ratio of 2.15. 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 2.15, VMI belongs to the top of the industry, outperforming 90.57% 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 73.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
VMI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.75%.
The Earnings Per Share has been growing by 18.77% on average over the past years. This is quite good.
VMI shows a decrease in Revenue. In the last year, the revenue decreased by -0.15%.
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
Based on estimates for the next years, VMI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.14% on average per year.
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 Y9.56%
EPS Next 2Y10.28%
EPS Next 3Y10.92%
EPS Next 5Y10.14%
Revenue Next Year1.37%
Revenue Next 2Y3.27%
Revenue Next 3Y3.42%
Revenue Next 5Y3.3%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
VMI is valuated rather expensively with a Price/Earnings ratio of 23.01.
Compared to the rest of the industry, the Price/Earnings ratio of VMI indicates a somewhat cheap valuation: VMI is cheaper than 77.36% of the companies listed in the same industry.
VMI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.86.
The Price/Forward Earnings ratio is 18.89, which indicates a rather expensive current valuation of VMI.
Based on the Price/Forward Earnings ratio, VMI is valued cheaply inside the industry as 84.91% of the companies are valued more expensively.
VMI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.01 | ||
| Fwd PE | 18.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VMI is valued a bit cheaper than 79.25% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VMI is valued cheaply inside the industry as 84.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.35 | ||
| EV/EBITDA | 14.15 |
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)2.41
PEG (5Y)1.23
EPS Next 2Y10.28%
EPS Next 3Y10.92%
5. Dividend
5.1 Amount
VMI has a yearly dividend return of 0.69%, which is pretty low.
VMI's Dividend Yield is rather good when compared to the industry average which is at 1.57. VMI pays more dividend than 90.57% of the companies in the same industry.
With a Dividend Yield of 0.69, VMI pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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 Years0
Div Non Decr Years22
5.3 Sustainability
VMI pays out 22.87% 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.
DP22.87%
EPS Next 2Y10.28%
EPS Next 3Y10.92%
394.62
+1.75 (+0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.26%
Inst Owner Change1.33%
Ins Owners1.37%
Ins Owner Change0.46%
Market Cap7.79B
Analysts80
Price Target396.1 (0.38%)
Short Float %1.69%
Short Ratio1.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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)0.57%
EPS NQ rev (3m)1.12%
EPS NY rev (1m)0%
EPS NY rev (3m)2.74%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.01 | ||
| Fwd PE | 18.89 | ||
| P/S | 1.91 | ||
| P/FCF | 14.35 | ||
| P/OCF | 11.96 | ||
| P/B | 5.09 | ||
| P/tB | 9.38 | ||
| EV/EBITDA | 14.15 |
EPS(TTM)17.15
EY4.35%
EPS(NY)20.89
Fwd EY5.29%
FCF(TTM)27.5
FCFY6.97%
OCF(TTM)32.99
OCFY8.36%
SpS206.55
BVpS77.45
TBVpS42.08
PEG (NY)2.41
PEG (5Y)1.23
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 | 5.85 |
F-Score8
WACC9.96%
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)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 Year1.37%
Revenue Next 2Y3.27%
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%