VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VMI - US9202531011 - Common Stock
401 USD
+1.9 (+0.48%)
Overall VMI gets a fundamental rating of 7 out of 10. We evaluated VMI against 55 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. With these ratings, VMI could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year VMI was profitable.
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
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 (14.64%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 13.73%, VMI is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
VMI had an Average Return On Invested Capital over the past 3 years of 12.19%. This is significantly below the industry average of 17.27%.
The last Return On Invested Capital (13.73%) for VMI is above the 3 year average (12.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 14.64% | ||
| ROIC | 13.73% |
ROA(3y)7.28%
ROA(5y)6.46%
ROE(3y)16.53%
ROE(5y)15.12%
ROIC(3y)12.19%
ROIC(5y)10.33%
1.3 Margins
Looking at the Profit Margin, with a value of 5.70%, VMI is in the better half of the industry, outperforming 69.09% of the companies in the same industry.
In the last couple of years the Profit Margin of VMI has grown nicely.
Looking at the Operating Margin, with a value of 12.68%, VMI belongs to the top of the industry, outperforming 85.45% 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 (30.33%) is better than 83.64% of its industry peers.
VMI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.68% | ||
| PM (TTM) | 5.7% | ||
| GM | 30.33% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VMI is still creating some value.
The number of shares outstanding for VMI has been reduced compared to 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 6.01 indicates that VMI is not in any danger for bankruptcy at the moment.
VMI's Altman-Z score of 6.01 is amongst the best of the industry. VMI outperforms 81.82% of its industry peers.
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.
VMI has a better Debt to FCF ratio (1.79) than 80.00% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that VMI is not too dependend on debt financing.
VMI has a better Debt to Equity ratio (0.46) than 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 6.01 |
ROIC/WACC1.34
WACC10.21%
2.3 Liquidity
A Current Ratio of 2.26 indicates that VMI has no problem at all paying its short term obligations.
VMI has a Current ratio of 2.26. This is amongst the best in the industry. VMI outperforms 92.73% of its industry peers.
VMI has a Quick Ratio of 1.50. This is a normal value and indicates that VMI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.50, VMI is in the better half of the industry, outperforming 78.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
VMI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.08%, which is quite good.
Measured over the past years, VMI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.77% on average per year.
Looking at the last year, VMI shows a small growth in Revenue. The Revenue has grown by 1.23% in the last year.
VMI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.05% yearly.
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 10.82% yearly.
The Revenue is expected to grow by 3.53% on average over the next years.
EPS Next Y12.51%
EPS Next 2Y11.79%
EPS Next 3Y12.02%
EPS Next 5Y10.82%
Revenue Next Year1.39%
Revenue Next 2Y2.7%
Revenue Next 3Y3.36%
Revenue Next 5Y3.53%
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
With a Price/Earnings ratio of 22.25, 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 76.36% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.65, VMI is valued at the same level.
With a Price/Forward Earnings ratio of 18.68, VMI is valued on the expensive side.
Based on the Price/Forward Earnings ratio, VMI is valued a bit cheaper than the industry average as 78.18% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.45, VMI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.25 | ||
| Fwd PE | 18.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VMI indicates a somewhat cheap valuation: VMI is cheaper than 72.73% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VMI is valued a bit cheaper than 78.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.36 | ||
| EV/EBITDA | 13.73 |
4.3 Compensation for Growth
VMI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of VMI may justify a higher PE ratio.
A more expensive valuation may be justified as VMI's earnings are expected to grow with 12.02% in the coming years.
PEG (NY)1.78
PEG (5Y)1.19
EPS Next 2Y11.79%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, VMI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.73, VMI pays a better dividend. On top of this VMI pays more dividend than 90.91% of the companies listed in the same industry.
With a Dividend Yield of 0.66, VMI pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
The dividend of VMI is nicely growing with an annual growth rate of 9.85%!
VMI has been paying a dividend for at least 10 years, so it has 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
21.87% 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.
DP21.87%
EPS Next 2Y11.79%
EPS Next 3Y12.02%
NYSE:VMI (11/25/2025, 10:14:22 AM)
401
+1.9 (+0.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.26%
Inst Owner Change0.21%
Ins Owners1.37%
Ins Owner Change-0.57%
Market Cap7.92B
Revenue(TTM)4.10B
Net Income(TTM)233.68M
Analysts80
Price Target426.7 (6.41%)
Short Float %1.42%
Short Ratio1.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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)7.73%
PT rev (3m)7.73%
EPS NQ rev (1m)1.58%
EPS NQ rev (3m)2.46%
EPS NY rev (1m)2.33%
EPS NY rev (3m)2.68%
Revenue NQ rev (1m)-1.03%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.25 | ||
| Fwd PE | 18.68 | ||
| P/S | 1.93 | ||
| P/FCF | 19.36 | ||
| P/OCF | 14.7 | ||
| P/B | 4.96 | ||
| P/tB | 8.77 | ||
| EV/EBITDA | 13.73 |
EPS(TTM)18.02
EY4.49%
EPS(NY)21.47
Fwd EY5.35%
FCF(TTM)20.71
FCFY5.16%
OCF(TTM)27.29
OCFY6.8%
SpS207.86
BVpS80.84
TBVpS45.71
PEG (NY)1.78
PEG (5Y)1.19
Graham Number181.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 14.64% | ||
| ROCE | 20.09% | ||
| ROIC | 13.73% | ||
| ROICexc | 15.05% | ||
| ROICexgc | 21.29% | ||
| OM | 12.68% | ||
| PM (TTM) | 5.7% | ||
| GM | 30.33% | ||
| FCFM | 9.96% |
ROA(3y)7.28%
ROA(5y)6.46%
ROE(3y)16.53%
ROE(5y)15.12%
ROIC(3y)12.19%
ROIC(5y)10.33%
ROICexc(3y)13.08%
ROICexc(5y)11.29%
ROICexgc(3y)19.45%
ROICexgc(5y)16.82%
ROCE(3y)17.85%
ROCE(5y)15.17%
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 | 1.2 | ||
| Cap/Depr | 143.82% | ||
| Cap/Sales | 3.16% | ||
| Interest Coverage | 12.55 | ||
| Cash Conversion | 88.24% | ||
| Profit Quality | 174.94% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 6.01 |
F-Score7
WACC10.21%
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)9.08%
EPS 3Y16.27%
EPS 5Y18.77%
EPS Q2Q%21.17%
EPS Next Y12.51%
EPS Next 2Y11.79%
EPS Next 3Y12.02%
EPS Next 5Y10.82%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y5.19%
Revenue growth 5Y8.05%
Sales Q2Q%2.53%
Revenue Next Year1.39%
Revenue Next 2Y2.7%
Revenue Next 3Y3.36%
Revenue Next 5Y3.53%
EBIT growth 1Y11.11%
EBIT growth 3Y21.39%
EBIT growth 5Y18.14%
EBIT Next Year16.72%
EBIT Next 3Y13.14%
EBIT Next 5Y11.75%
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 7 / 10 to VMI.
Can you provide the valuation status for VALMONT INDUSTRIES?
ChartMill assigns a valuation rating of 5 / 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 22.25 and the Price/Book (PB) ratio is 4.96.
What is the earnings growth outlook for VALMONT INDUSTRIES?
The Earnings per Share (EPS) of VALMONT INDUSTRIES (VMI) is expected to grow by 12.51% in the next year.