VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
NYSE:VMI - US9202531011 - Common Stock
375.35 USD
+11.51 (+3.16%)
375.35 USD
0 (0%)
Overall VMI gets a fundamental rating of 7 out of 10. We evaluated VMI against 49 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 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.
In the past 5 years VMI has always been profitable.
VMI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VMI has a Return On Assets of 6.51%. This is in the better half of the industry: VMI outperforms 75.51% of its industry peers.
With a decent Return On Equity value of 14.24%, VMI is doing good in the industry, outperforming 63.27% of the companies in the same industry.
The Return On Invested Capital of VMI (13.33%) is better than 79.59% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VMI is below the industry average of 16.83%.
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
Looking at the Profit Margin, with a value of 5.34%, VMI is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
VMI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 12.13%, VMI belongs to the best of the industry, outperforming 87.76% of the companies in the same industry.
In the last couple of years the Operating Margin of VMI has grown nicely.
The Gross Margin of VMI (30.09%) is better than 81.63% 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.
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
An Altman-Z score of 5.73 indicates that VMI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.73, VMI belongs to the best of the industry, outperforming 81.63% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.35, VMI is in the better half of the industry, outperforming 79.59% of the companies in the same industry.
VMI has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
VMI's Debt to Equity ratio of 0.48 is fine compared to the rest of the industry. VMI outperforms 61.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 5.73 |
ROIC/WACC1.23
WACC10.85%
2.3 Liquidity
A Current Ratio of 2.15 indicates that VMI has no problem at all paying its short term obligations.
The Current ratio of VMI (2.15) is better than 93.88% of its industry peers.
A Quick Ratio of 1.44 indicates that VMI should not have too much problems paying its short term obligations.
VMI has a Quick ratio of 1.44. This is in the better half of the industry: VMI outperforms 71.43% 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.
The Earnings Per Share has been growing by 18.77% on average over the past years. This is quite good.
The Revenue has decreased by -0.15% 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)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.
VMI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.30% yearly.
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 21.89, VMI is valued on the expensive side.
VMI's Price/Earnings ratio is a bit cheaper when compared to the industry. VMI is cheaper than 77.55% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. VMI is around the same levels.
With a Price/Forward Earnings ratio of 17.97, VMI is valued on the expensive side.
VMI's Price/Forward Earnings ratio is rather cheap when compared to the industry. VMI is cheaper than 83.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, VMI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.89 | ||
| Fwd PE | 17.97 |
4.2 Price Multiples
77.55% of the companies in the same industry are more expensive than VMI, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VMI indicates a rather cheap valuation: VMI is cheaper than 83.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.65 | ||
| EV/EBITDA | 13.51 |
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)2.29
PEG (5Y)1.17
EPS Next 2Y10.28%
EPS Next 3Y10.92%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, VMI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.55, VMI pays a better dividend. On top of this VMI pays more dividend than 93.88% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, VMI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
On average, the dividend of VMI grows each year by 9.85%, which is quite nice.
VMI has been paying a dividend for at least 10 years, so it has 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
22.87% of the earnings are spent on dividend by VMI. This is a low number and 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%
375.35
+11.51 (+3.16%)
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 Change0.41%
Market Cap7.41B
Analysts80
Price Target396.1 (5.53%)
Short Float %1.45%
Short Ratio1.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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)12.56%
PT rev (3m)10.4%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)1.58%
EPS NY rev (1m)2.74%
EPS NY rev (3m)2.67%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.89 | ||
| Fwd PE | 17.97 | ||
| P/S | 1.82 | ||
| P/FCF | 13.65 | ||
| P/OCF | 11.38 | ||
| P/B | 4.85 | ||
| P/tB | 8.92 | ||
| EV/EBITDA | 13.51 |
EPS(TTM)17.15
EY4.57%
EPS(NY)20.89
Fwd EY5.57%
FCF(TTM)27.5
FCFY7.33%
OCF(TTM)32.99
OCFY8.79%
SpS206.55
BVpS77.45
TBVpS42.08
PEG (NY)2.29
PEG (5Y)1.17
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 | 5.73 |
F-Score8
WACC10.85%
ROIC/WACC1.23
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%