VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
NYSE:VMI - New York Stock Exchange, Inc. - US9202531011 - Common Stock - Currency: USD
Taking everything into account, VMI scores 6 out of 10 in our fundamental rating. VMI was compared to 49 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
VMI had positive earnings in the past year.
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's Return On Assets of 10.46% is amongst the best of the industry. VMI outperforms 86.96% of its industry peers.
Looking at the Return On Equity, with a value of 22.58%, VMI belongs to the top of the industry, outperforming 84.78% of the companies in the same industry.
VMI has a Return On Invested Capital of 14.23%. This is amongst the best in the industry. VMI outperforms 82.61% 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 11.92%.
The last Return On Invested Capital (14.23%) for VMI is above the 3 year average (11.89%), which is a sign of increasing profitability.
| 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 95.65% of its industry peers.
VMI's Profit Margin has improved in the last couple of years.
VMI has a Operating Margin of 12.87%. This is amongst the best in the industry. VMI outperforms 95.65% of its industry peers.
VMI's Operating Margin has improved in the last couple of years.
VMI has a Gross Margin of 30.46%. This is amongst the best in the industry. VMI outperforms 80.43% of its industry peers.
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.
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.
VMI has a better debt/assets ratio than last year.
2.2 Solvency
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.
Looking at the Debt to FCF ratio, with a value of 1.48, VMI belongs to the top of the industry, outperforming 82.61% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | N/A |
ROIC/WACC1.46
WACC9.76%
2.3 Liquidity
A Current Ratio of 2.07 indicates that VMI has no problem at all paying its short term obligations.
VMI has a Current ratio of 2.07. This is amongst the best in the industry. VMI outperforms 84.78% of its industry peers.
A Quick Ratio of 1.35 indicates that VMI should not have too much problems paying its short term obligations.
VMI has a Quick ratio (1.35) which is comparable to the rest of the industry.
| 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.
The Revenue has decreased by -2.38% in the past year.
The Revenue has been growing by 8.05% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 7.04% on average over the next years.
The Revenue is expected to grow by 3.00% on average over the next years.
EPS Next Y6.1%
EPS Next 2Y9.28%
EPS Next 3Y9.71%
EPS Next 5Y7.04%
Revenue Next Year2.44%
Revenue Next 2Y3.53%
Revenue Next 3Y2.91%
Revenue Next 5Y3%
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 rather expensively with a Price/Earnings ratio of 20.32.
Based on the Price/Earnings ratio, VMI is valued a bit cheaper than the industry average as 71.74% of the companies are valued more expensively.
VMI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 19.15, which indicates a rather expensive current valuation of VMI.
63.04% of the companies in the same industry are more expensive than VMI, based on the Price/Forward Earnings ratio.
VMI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.32 | ||
| Fwd PE | 19.15 |
4.2 Price Multiples
VMI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VMI is cheaper than 69.57% of the companies in the same industry.
VMI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VMI is cheaper than 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.18 | ||
| EV/EBITDA | 12.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of VMI may justify a higher PE ratio.
PEG (NY)3.33
PEG (5Y)1.08
EPS Next 2Y9.28%
EPS Next 3Y9.71%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, VMI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.87, VMI pays a better dividend. On top of this VMI pays more dividend than 89.13% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, VMI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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 2Y9.28%
EPS Next 3Y9.71%
349.08
-13.83 (-3.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners92.01%
Inst Owner Change-0.75%
Ins Owners1.3%
Ins Owner Change-4.51%
Market Cap7.00B
Analysts82
Price Target376.13 (7.75%)
Short Float %1.58%
Short Ratio2.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend2.4
Dividend Growth(5Y)9.85%
DP13.89%
Div Incr Years4
Div Non Decr Years22
Ex-DateN/A
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)0.34%
PT rev (3m)10.07%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)-0.23%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.32 | ||
| Fwd PE | 19.15 | ||
| P/S | 1.72 | ||
| P/FCF | 14.18 | ||
| P/OCF | 12.22 | ||
| P/B | 4.54 | ||
| P/tB | 4.54 | ||
| EV/EBITDA | 12.64 |
EPS(TTM)17.18
EY4.92%
EPS(NY)18.23
Fwd EY5.22%
FCF(TTM)24.61
FCFY7.05%
OCF(TTM)28.58
OCFY8.19%
SpS203.35
BVpS76.95
TBVpS76.95
PEG (NY)3.33
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.46% | ||
| ROE | 22.58% | ||
| ROCE | 20.83% | ||
| ROIC | 14.23% | ||
| ROICexc | 15.22% | ||
| ROICexgc | 15.22% | ||
| 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)16.6%
ROICexgc(5y)15.1%
ROCE(3y)17.42%
ROCE(5y)14.91%
ROICexcg growth 3Y7.44%
ROICexcg growth 5Y5.8%
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 | 250 | ||
| Cash Conversion | 92.37% | ||
| Profit Quality | 141.63% | ||
| Current Ratio | 2.07 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | N/A |
F-Score8
WACC9.76%
ROIC/WACC1.46
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 Y6.1%
EPS Next 2Y9.28%
EPS Next 3Y9.71%
EPS Next 5Y7.04%
Revenue 1Y (TTM)-2.38%
Revenue growth 3Y5.19%
Revenue growth 5Y8.05%
Sales Q2Q%2.14%
Revenue Next Year2.44%
Revenue Next 2Y3.53%
Revenue Next 3Y2.91%
Revenue Next 5Y3%
EBIT growth 1Y21.32%
EBIT growth 3Y21.39%
EBIT growth 5Y18.14%
EBIT Next Year24.13%
EBIT Next 3Y11.59%
EBIT Next 5Y10.16%
FCF growth 1Y134.87%
FCF growth 3YN/A
FCF growth 5Y18.6%
OCF growth 1Y86.68%
OCF growth 3Y105.55%
OCF growth 5Y13.24%