VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VMI - US9202531011 - Common Stock
433.64 USD
-9.94 (-2.24%)
432.96 USD
-0.68 (-0.16%)
VMI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 55 industry peers in the Construction & Engineering industry. VMI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. VMI has a decent growth rate and is not valued too expensively. These ratings would make VMI suitable 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.
- 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
- VMI has a better Return On Assets (6.94%) than 70.91% of its industry peers.
- VMI has a Return On Equity of 14.64%. This is comparable to the rest of the industry: VMI outperforms 58.18% of its industry peers.
- VMI's Return On Invested Capital of 13.73% is fine compared to the rest of the industry. VMI outperforms 80.00% of its industry peers.
- VMI had an Average Return On Invested Capital over the past 3 years of 12.19%. This is below the industry average of 15.97%.
- 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
- With a decent Profit Margin value of 5.70%, VMI is doing good in the industry, outperforming 65.45% of the companies in the same industry.
- VMI's Profit Margin has improved in the last couple of years.
- The Operating Margin of VMI (12.68%) is better than 83.64% of its industry peers.
- In the last couple of years the Operating Margin of VMI has grown nicely.
- VMI has a Gross Margin of 30.33%. This is amongst the best in the industry. VMI outperforms 81.82% 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.
- Compared to 1 year ago, VMI has less shares outstanding
- Compared to 5 years ago, VMI has less shares outstanding
- The debt/assets ratio for VMI has been reduced compared to a year ago.
2.2 Solvency
- VMI has an Altman-Z score of 6.23. This indicates that VMI is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of VMI (6.23) is better than 83.64% of its industry peers.
- VMI has a debt to FCF ratio of 1.79. This is a very positive value and a sign of high solvency as it would only need 1.79 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 1.79, VMI is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.46 indicates that VMI is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.46, VMI is doing good in the industry, outperforming 61.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 6.23 |
ROIC/WACC1.39
WACC9.91%
2.3 Liquidity
- VMI has a Current Ratio of 2.26. This indicates that VMI is financially healthy and has no problem in meeting its short term obligations.
- VMI has a better Current ratio (2.26) than 92.73% of its industry peers.
- A Quick Ratio of 1.50 indicates that VMI should not have too much problems paying its short term obligations.
- VMI has a better Quick ratio (1.50) than 78.18% 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.
- 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
- The Earnings Per Share is expected to grow by 10.83% on average over the next years. This is quite good.
- Based on estimates for the next years, VMI will show a small growth in Revenue. The Revenue will grow by 3.53% on average per year.
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
- 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
- VMI is valuated rather expensively with a Price/Earnings ratio of 24.06.
- Based on the Price/Earnings ratio, VMI is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- VMI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.94, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 20.14 indicates a rather expensive valuation of VMI.
- Based on the Price/Forward Earnings ratio, VMI is valued cheaper than 85.45% of the companies in the same industry.
- VMI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.06 | ||
| Fwd PE | 20.14 |
4.2 Price Multiples
- 76.36% of the companies in the same industry are more expensive than VMI, based on the Enterprise Value to EBITDA ratio.
- 76.36% of the companies in the same industry are more expensive than VMI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.9 | ||
| EV/EBITDA | 14.82 |
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.
- 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)1.92
PEG (5Y)1.28
EPS Next 2Y11.96%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
- VMI has a yearly dividend return of 0.62%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.43, VMI pays a better dividend. On top of this VMI pays more dividend than 90.91% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, VMI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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.
- 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%
433.64
-9.94 (-2.24%)
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 Change0.51%
Ins Owners1.34%
Ins Owner Change0.05%
Market Cap8.54B
Revenue(TTM)4.10B
Net Income(TTM)233.68M
Analysts80
Price Target432.14 (-0.35%)
Short Float %1.46%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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 | 24.06 | ||
| Fwd PE | 20.14 | ||
| P/S | 2.08 | ||
| P/FCF | 20.9 | ||
| P/OCF | 15.86 | ||
| P/B | 5.35 | ||
| P/tB | 9.47 | ||
| EV/EBITDA | 14.82 |
EPS(TTM)18.02
EY4.16%
EPS(NY)21.54
Fwd EY4.97%
FCF(TTM)20.75
FCFY4.79%
OCF(TTM)27.34
OCFY6.31%
SpS208.28
BVpS81
TBVpS45.81
PEG (NY)1.92
PEG (5Y)1.28
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 | 6.23 |
F-Score7
WACC9.91%
ROIC/WACC1.39
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 24.06 and the Price/Book (PB) ratio is 5.35.
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.