VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
NYSE:VMI - New York Stock Exchange, Inc. - US9202531011 - Common Stock - Currency: USD
VMI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 51 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.
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.
VMI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 10.46%, VMI belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
Looking at the Return On Equity, with a value of 22.58%, VMI is in the better half of the industry, outperforming 78.43% of the companies in the same industry.
The Return On Invested Capital of VMI (14.23%) is better than 84.31% of its industry peers.
VMI had an Average Return On Invested Capital over the past 3 years of 11.89%. This is in line with the industry average of 12.16%.
The 3 year average ROIC (11.89%) for VMI is below the current ROIC(14.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.46% | ||
| ROE | 22.58% | ||
| ROIC | 14.23% |
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
VMI has a Profit Margin of 8.55%. This is amongst the best in the industry. VMI outperforms 88.24% of its industry peers.
VMI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.87%, VMI belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
VMI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 30.46%, VMI belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
VMI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.87% | ||
| PM (TTM) | 8.55% | ||
| GM | 30.46% |
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.
VMI has less shares outstanding than it did 1 year ago.
VMI has less shares outstanding than it did 5 years ago.
VMI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.17 indicates that VMI is not in any danger for bankruptcy at the moment.
VMI has a Altman-Z score of 5.17. This is amongst the best in the industry. VMI outperforms 86.27% of its industry peers.
The Debt to FCF ratio of VMI is 1.48, which is an excellent value as it means it would take VMI, only 1.48 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.48, VMI is doing good in the industry, outperforming 78.43% of the companies in the same industry.
VMI has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
VMI has a Debt to Equity ratio (0.47) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 5.17 |
ROIC/WACC1.61
WACC8.84%
2.3 Liquidity
A Current Ratio of 2.07 indicates that VMI has no problem at all paying its short term obligations.
VMI's Current ratio of 2.07 is amongst the best of the industry. VMI outperforms 90.20% of its industry peers.
VMI has a Quick Ratio of 1.35. 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 (1.35) than 60.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.43% over the past year.
VMI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.77% yearly.
VMI shows a decrease in Revenue. In the last year, the revenue decreased by -2.38%.
Measured over the past years, VMI shows a quite strong growth in Revenue. The Revenue has been growing by 8.05% on average per year.
EPS 1Y (TTM)12.43%
EPS 3Y16.27%
EPS 5Y18.77%
EPS Q2Q%20.75%
Revenue 1Y (TTM)-2.38%
Revenue growth 3Y5.19%
Revenue growth 5Y8.05%
Sales Q2Q%2.14%
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 9.80% on average per year.
Based on estimates for the next years, VMI will show a small growth in Revenue. The Revenue will grow by 3.69% on average per year.
EPS Next Y6.95%
EPS Next 2Y8.28%
EPS Next 3Y9.71%
EPS Next 5Y9.8%
Revenue Next Year1.34%
Revenue Next 2Y3.13%
Revenue Next 3Y3.41%
Revenue Next 5Y3.69%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
VMI is valuated correctly with a Price/Earnings ratio of 16.17.
Compared to the rest of the industry, the Price/Earnings ratio of VMI indicates a rather cheap valuation: VMI is cheaper than 82.35% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of VMI to the average of the S&P500 Index (28.29), we can say VMI is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.12, VMI is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VMI indicates a somewhat cheap valuation: VMI is cheaper than 76.47% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of VMI to the average of the S&P500 Index (21.08), we can say VMI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.17 | ||
| Fwd PE | 15.12 |
4.2 Price Multiples
VMI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VMI is cheaper than 80.39% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VMI indicates a rather cheap valuation: VMI is cheaper than 82.35% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.31 | ||
| EV/EBITDA | 9.91 |
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.
PEG (NY)2.33
PEG (5Y)0.86
EPS Next 2Y8.28%
EPS Next 3Y9.71%
5. Dividend
5.1 Amount
VMI has a yearly dividend return of 0.98%, which is pretty low.
Compared to an average industry Dividend Yield of 2.15, VMI pays a better dividend. On top of this VMI pays more dividend than 90.20% of the companies listed in the same industry.
With a Dividend Yield of 0.98, VMI pays less dividend than the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.85%
Div Incr Years4
Div Non Decr Years22
5.3 Sustainability
13.89% of the earnings are spent on dividend by VMI. This is a low number and sustainable payout ratio.
VMI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP13.89%
EPS Next 2Y8.28%
EPS Next 3Y9.71%
277.83
-3.28 (-1.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners92.01%
Inst Owner Change0.01%
Ins Owners1.3%
Ins Owner Change-3.46%
Market Cap5.58B
Analysts76
Price Target414.63 (49.24%)
Short Float %2.24%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend2.4
Dividend Growth(5Y)9.85%
DP13.89%
Div Incr Years4
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.33%
Min EPS beat(2)1.78%
Max EPS beat(2)4.89%
EPS beat(4)4
Avg EPS beat(4)13.75%
Min EPS beat(4)1.78%
Max EPS beat(4)29.2%
EPS beat(8)8
Avg EPS beat(8)10.07%
EPS beat(12)11
Avg EPS beat(12)9.62%
EPS beat(16)15
Avg EPS beat(16)10.11%
Revenue beat(2)1
Avg Revenue beat(2)0.17%
Min Revenue beat(2)-1.05%
Max Revenue beat(2)1.4%
Revenue beat(4)1
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-1.91%
Max Revenue beat(4)1.4%
Revenue beat(8)2
Avg Revenue beat(8)-2.78%
Revenue beat(12)6
Avg Revenue beat(12)0.8%
Revenue beat(16)9
Avg Revenue beat(16)1.85%
PT rev (1m)0%
PT rev (3m)10.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.38%
EPS NY rev (1m)0.81%
EPS NY rev (3m)1.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.17 | ||
| Fwd PE | 15.12 | ||
| P/S | 1.37 | ||
| P/FCF | 11.31 | ||
| P/OCF | 9.74 | ||
| P/B | 3.62 | ||
| P/tB | 7.11 | ||
| EV/EBITDA | 9.91 |
EPS(TTM)17.18
EY6.18%
EPS(NY)18.37
Fwd EY6.61%
FCF(TTM)24.58
FCFY8.85%
OCF(TTM)28.53
OCFY10.27%
SpS203.04
BVpS76.84
TBVpS39.07
PEG (NY)2.33
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.46% | ||
| ROE | 22.58% | ||
| ROCE | 20.83% | ||
| ROIC | 14.23% | ||
| ROICexc | 15.22% | ||
| ROICexgc | 22.44% | ||
| OM | 12.87% | ||
| PM (TTM) | 8.55% | ||
| GM | 30.46% | ||
| FCFM | 12.1% |
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 | 0.47 | ||
| Debt/FCF | 1.48 | ||
| Debt/EBITDA | 1.18 | ||
| Cap/Depr | 83.29% | ||
| Cap/Sales | 1.95% | ||
| Interest Coverage | 9.09 | ||
| Cash Conversion | 92.37% | ||
| Profit Quality | 141.63% | ||
| Current Ratio | 2.07 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 5.17 |
F-Score8
WACC8.84%
ROIC/WACC1.61
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)12.43%
EPS 3Y16.27%
EPS 5Y18.77%
EPS Q2Q%20.75%
EPS Next Y6.95%
EPS Next 2Y8.28%
EPS Next 3Y9.71%
EPS Next 5Y9.8%
Revenue 1Y (TTM)-2.38%
Revenue growth 3Y5.19%
Revenue growth 5Y8.05%
Sales Q2Q%2.14%
Revenue Next Year1.34%
Revenue Next 2Y3.13%
Revenue Next 3Y3.41%
Revenue Next 5Y3.69%
EBIT growth 1Y21.32%
EBIT growth 3Y21.39%
EBIT growth 5Y18.14%
EBIT Next Year26.47%
EBIT Next 3Y13.4%
EBIT Next 5Y11.86%
FCF growth 1Y134.87%
FCF growth 3YN/A
FCF growth 5Y18.6%
OCF growth 1Y86.68%
OCF growth 3Y105.55%
OCF growth 5Y13.24%