VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VMI - US9202531011 - Common Stock
440.03 USD
+11.89 (+2.78%)
440.03 USD
0 (0%)
VMI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 54 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. 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.
- In the past year VMI had a positive cash flow from operations.
- Each year in the past 5 years VMI has been profitable.
- Each year in the past 5 years VMI had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of VMI (6.94%) is better than 70.37% of its industry peers.
- VMI's Return On Equity of 14.64% is in line compared to the rest of the industry. VMI outperforms 57.41% of its industry peers.
- With a decent Return On Invested Capital value of 13.73%, VMI is doing good in the industry, outperforming 79.63% 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 below the industry average of 15.99%.
- 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
- The Profit Margin of VMI (5.70%) is better than 64.81% of its industry peers.
- In the last couple of years the Profit Margin of VMI has grown nicely.
- The Operating Margin of VMI (12.68%) is better than 83.33% of its industry peers.
- VMI's Operating Margin has improved in the last couple of years.
- VMI has a Gross Margin of 30.33%. This is amongst the best in the industry. VMI outperforms 81.48% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VMI is 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.
- The debt/assets ratio for VMI has been reduced compared to a year ago.
2.2 Solvency
- VMI has an Altman-Z score of 6.28. This indicates that VMI is financially healthy and has little risk of bankruptcy at the moment.
- VMI has a better Altman-Z score (6.28) than 83.33% 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 Debt to FCF ratio of 1.79. This is in the better half of the industry: VMI outperforms 79.63% of its industry peers.
- VMI has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of VMI (0.46) is better than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 6.28 |
ROIC/WACC1.36
WACC10.06%
2.3 Liquidity
- A Current Ratio of 2.26 indicates that VMI has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 2.26, VMI belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
- A Quick Ratio of 1.50 indicates that VMI should not have too much problems paying its short term obligations.
- VMI's Quick ratio of 1.50 is fine compared to the rest of the industry. VMI outperforms 77.78% of its industry peers.
| 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.
- VMI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.77% yearly.
- Looking at the last year, VMI shows a small growth in Revenue. The Revenue has grown by 1.23% in the last year.
- The Revenue has been growing by 8.05% on average over the past years. This is quite good.
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
- Based on estimates for the next years, VMI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.83% on average per year.
- VMI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.53% yearly.
EPS Next Y12.56%
EPS Next 2Y11.96%
EPS Next 3Y12.02%
EPS Next 5Y10.83%
Revenue Next Year1.44%
Revenue Next 2Y2.75%
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
- A Price/Earnings ratio of 24.42 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 79.63% 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 27.54.
- Based on the Price/Forward Earnings ratio of 20.43, the valuation of VMI can be described as rather expensive.
- 85.19% of the companies in the same industry are more expensive than VMI, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.31, VMI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.42 | ||
| Fwd PE | 20.43 |
4.2 Price Multiples
- 74.07% of the companies in the same industry are more expensive than VMI, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, VMI is valued a bit cheaper than the industry average as 75.93% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.2 | ||
| EV/EBITDA | 15.03 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- VMI has an outstanding profitability rating, which 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)1.94
PEG (5Y)1.3
EPS Next 2Y11.96%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.65%, VMI is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.42, VMI pays a better dividend. On top of this VMI pays more dividend than 90.74% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.92, VMI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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 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 21.87% of its income as dividend. This is a 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.
DP21.87%
EPS Next 2Y11.96%
EPS Next 3Y12.02%
440.03
+11.89 (+2.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)10-21 2025-10-21/bmo
Earnings (Next)02-16 2026-02-16/amc
Inst Owners95.6%
Inst Owner Change0.52%
Ins Owners1.34%
Ins Owner Change0.05%
Market Cap8.67B
Revenue(TTM)4.10B
Net Income(TTM)233.68M
Analysts80
Price Target432.14 (-1.79%)
Short Float %1.57%
Short Ratio1.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend2.4
Dividend Growth(5Y)9.85%
DP21.87%
Div Incr Years0
Div Non Decr Years22
Ex-DateN/A
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)1.27%
PT rev (3m)9.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.68%
EPS NY rev (1m)0%
EPS NY rev (3m)2.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.42 | ||
| Fwd PE | 20.43 | ||
| P/S | 2.11 | ||
| P/FCF | 21.2 | ||
| P/OCF | 16.09 | ||
| P/B | 5.43 | ||
| P/tB | 9.61 | ||
| EV/EBITDA | 15.03 |
EPS(TTM)18.02
EY4.1%
EPS(NY)21.54
Fwd EY4.89%
FCF(TTM)20.75
FCFY4.72%
OCF(TTM)27.34
OCFY6.21%
SpS208.28
BVpS81
TBVpS45.81
PEG (NY)1.94
PEG (5Y)1.3
Graham Number181.23
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 | 6.28 |
F-Score7
WACC10.06%
ROIC/WACC1.36
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 Y12.56%
EPS Next 2Y11.96%
EPS Next 3Y12.02%
EPS Next 5Y10.83%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y5.19%
Revenue growth 5Y8.05%
Sales Q2Q%2.53%
Revenue Next Year1.44%
Revenue Next 2Y2.75%
Revenue Next 3Y3.36%
Revenue Next 5Y3.53%
EBIT growth 1Y11.11%
EBIT growth 3Y21.39%
EBIT growth 5Y18.14%
EBIT Next Year17.64%
EBIT Next 3Y14.31%
EBIT Next 5Y11.66%
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.
What is the valuation status for VMI stock?
ChartMill assigns a valuation rating of 5 / 10 to VALMONT INDUSTRIES (VMI). This can be considered as Fairly Valued.
How profitable is VALMONT INDUSTRIES (VMI) stock?
VALMONT INDUSTRIES (VMI) has a profitability rating of 8 / 10.
What is the valuation of VALMONT INDUSTRIES based on its PE and PB ratios?
The Price/Earnings (PE) ratio for VALMONT INDUSTRIES (VMI) is 24.42 and the Price/Book (PB) ratio is 5.43.
Can you provide the expected EPS growth for VMI stock?
The Earnings per Share (EPS) of VALMONT INDUSTRIES (VMI) is expected to grow by 12.56% in the next year.