Evaluating VALMONT INDUSTRIES (NYSE:VMI) using Peter Lynch’s legendary strategy

Known for his philosophy of investing in what you know, Peter Lynch looked for companies with consistent earnings growth, low debt, and a competitive edge. Does VALMONT INDUSTRIES (NYSE:VMI) meet these key criteria? Let’s find out.

How does VALMONT INDUSTRIES (NYSE:VMI) stack up against Peter Lynch’s investment principles?

• VMI showcases a robust Return on Equity (ROE) of 22.58%, indicating its ability to generate favorable returns for shareholders. This metric underscores the company's efficiency in utilizing its equity capital to generate profits.
• VMI maintains a healthy Debt-to-Equity ratio of 0.47. This indicates the company's conservative capital structure and signifies its ability to effectively manage debt obligations while maintaining a strong equity position.
• VMI has experienced 18.77 growth in EPS over a 5-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• With a PEG ratio of 0.93, VMI is valued very reasonably for the growth it experiences.
• With a Current Ratio of 2.07, VMI appears well-positioned to meet its near-term financial obligations.

A complete fundamental analysis of VMI

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Overall VMI gets a fundamental rating of 7 out of 10. We evaluated VMI against 48 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.

Check the latest full fundamental report of VMI for a complete fundamental analysis.

More Affordable Growth stocks can be found in our Peter Lynch screener.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.