VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VMI - US9202531011 - Common Stock
412.97 USD
+3.07 (+0.75%)
412.97 USD
0 (0%)
VMI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 55 industry peers in the Construction & Engineering industry. Both the health and profitability get an excellent rating, making VMI a very profitable company, without any liquidiy or solvency issues. VMI has a correct valuation and a medium growth rate. These ratings could make VMI a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
VMI had positive earnings in the past year.
In the past year VMI had a positive cash flow from operations.
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
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.
The Return On Invested Capital of VMI (13.73%) is better than 80.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VMI is significantly below the industry average of 17.30%.
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
VMI's Profit Margin of 5.70% is fine compared to the rest of the industry. VMI outperforms 67.27% of its industry peers.
In the last couple of years the Profit Margin of VMI has grown nicely.
VMI has a better Operating Margin (12.68%) than 85.45% of its industry peers.
In the last couple of years the Operating Margin of VMI has grown nicely.
Looking at the Gross Margin, with a value of 30.33%, VMI belongs to the top of the industry, outperforming 83.64% of the companies in the same industry.
VMI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.68% | ||
| 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
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
An Altman-Z score of 6.08 indicates that VMI is not in any danger for bankruptcy at the moment.
VMI has a Altman-Z score of 6.08. This is amongst the best in the industry. VMI outperforms 81.82% 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.
VMI's Debt to FCF ratio of 1.79 is fine compared to the rest of the industry. VMI outperforms 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 | 6.08 |
ROIC/WACC1.33
WACC10.29%
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.
With an excellent Current ratio value of 2.26, VMI belongs to the best of the industry, outperforming 92.73% of the companies in the same industry.
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
The Earnings Per Share has grown by an nice 9.08% 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.
The Revenue has been growing slightly by 1.23% in the past 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 10.82% on average over the next years. This is quite good.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
The Price/Earnings ratio is 22.92, which indicates a rather expensive current valuation of VMI.
Based on the Price/Earnings ratio, VMI is valued a bit cheaper than the industry average as 78.18% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.31. VMI is around the same levels.
With a Price/Forward Earnings ratio of 19.23, VMI is valued on the expensive side.
Based on the Price/Forward Earnings ratio, VMI is valued a bit cheaper than 80.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.59. VMI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.92 | ||
| Fwd PE | 19.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VMI is valued a bit cheaper than the industry average as 74.55% of the companies are valued more expensively.
78.18% 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 | 19.94 | ||
| EV/EBITDA | 14.08 |
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.
VMI's earnings are expected to grow with 12.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.83
PEG (5Y)1.22
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.
VMI's Dividend Yield is rather good when compared to the industry average which is at 1.73. VMI pays more dividend than 90.91% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, VMI's dividend is way lower than the S&P500 average.
| 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 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
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%
412.97
+3.07 (+0.75%)
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 Cap8.15B
Revenue(TTM)4.10B
Net Income(TTM)233.68M
Analysts80
Price Target426.7 (3.32%)
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 | 22.92 | ||
| Fwd PE | 19.23 | ||
| P/S | 1.99 | ||
| P/FCF | 19.94 | ||
| P/OCF | 15.13 | ||
| P/B | 5.11 | ||
| P/tB | 9.03 | ||
| EV/EBITDA | 14.08 |
EPS(TTM)18.02
EY4.36%
EPS(NY)21.47
Fwd EY5.2%
FCF(TTM)20.71
FCFY5.01%
OCF(TTM)27.29
OCFY6.61%
SpS207.86
BVpS80.84
TBVpS45.71
PEG (NY)1.83
PEG (5Y)1.22
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 | 6.08 |
F-Score7
WACC10.29%
ROIC/WACC1.33
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 22.92 and the Price/Book (PB) ratio is 5.11.
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.