VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
USA - NYSE:VMI - US9202531011 - Common Stock
375.11 USD
-3.84 (-1.01%)
375.11 USD
0 (0%)
Overall VMI gets a fundamental rating of 7 out of 10. We evaluated VMI against 52 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 correct valuation and a medium growth rate.
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 73.08% of its industry peers.
With a decent Return On Equity value of 14.24%, VMI is doing good in the industry, outperforming 63.46% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.33%, VMI is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VMI is significantly below the industry average of 17.22%.
The last Return On Invested Capital (13.33%) for VMI is above the 3 year average (11.89%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 5.34%, VMI is doing good in the industry, outperforming 69.23% of the companies in the same industry.
In the last couple of years the Profit Margin of VMI has grown nicely.
VMI has a better Operating Margin (12.13%) than 84.62% of its industry peers.
In the last couple of years the Operating Margin of VMI has grown nicely.
VMI has a better Gross Margin (30.09%) than 82.69% 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.
VMI has a better debt/assets ratio than last year.
2.2 Solvency
VMI has an Altman-Z score of 5.75. This indicates that VMI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of VMI (5.75) is better than 80.77% of its industry peers.
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 76.92% 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 in line compared to the rest of the industry. VMI outperforms 59.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 5.75 |
ROIC/WACC1.35
WACC9.88%
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.
VMI has a better Current ratio (2.15) than 92.31% of its industry peers.
VMI has a Quick Ratio of 1.44. This is a normal value and indicates that VMI is financially healthy and should not expect problems in meeting its short term obligations.
VMI has a better Quick ratio (1.44) than 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.
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.
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.
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
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.
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
A Price/Earnings ratio of 21.87 indicates a rather expensive valuation of VMI.
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.
VMI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
A Price/Forward Earnings ratio of 17.95 indicates a rather expensive valuation of VMI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VMI indicates a rather cheap valuation: VMI is cheaper than 84.62% of the companies listed in the same industry.
VMI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.87 | ||
| Fwd PE | 17.95 |
4.2 Price Multiples
VMI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VMI is cheaper than 82.69% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VMI is valued cheaply inside the industry as 82.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.64 | ||
| EV/EBITDA | 13.63 |
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 0.72%, VMI is not a good candidate for dividend investing.
VMI's Dividend Yield is rather good when compared to the industry average which is at 1.57. VMI pays more dividend than 90.38% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, VMI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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%
375.11
-3.84 (-1.01%)
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 Cap7.40B
Analysts80
Price Target396.1 (5.6%)
Short Float %1.55%
Short Ratio1.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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 | 21.87 | ||
| Fwd PE | 17.95 | ||
| P/S | 1.82 | ||
| P/FCF | 13.64 | ||
| P/OCF | 11.37 | ||
| P/B | 4.84 | ||
| P/tB | 8.91 | ||
| EV/EBITDA | 13.63 |
EPS(TTM)17.15
EY4.57%
EPS(NY)20.89
Fwd EY5.57%
FCF(TTM)27.5
FCFY7.33%
OCF(TTM)32.99
OCFY8.8%
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 | 5.75 |
F-Score8
WACC9.88%
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%