VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VMI - US9202531011 - Common Stock
414.89 USD
+1.05 (+0.25%)
414.89 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. VMI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. VMI is not valued too expensively and it also shows a decent growth rate. These ratings could make VMI a good candidate 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.
In the past 5 years VMI always reported a positive cash flow from operatings.
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 (14.64%) which is comparable to the rest of the industry.
The Return On Invested Capital of VMI (13.73%) is better than 78.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VMI is significantly below the industry average of 17.90%.
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 65.45% of its industry peers.
VMI's Profit Margin has improved in the last couple of years.
VMI has a Operating Margin of 12.68%. This is amongst the best in the industry. VMI outperforms 83.64% of its industry peers.
In the last couple of years the Operating Margin of VMI has grown nicely.
With an excellent Gross Margin value of 30.33%, VMI belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
In the last couple of years the Gross Margin of VMI has grown nicely.
| 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.
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
VMI has an Altman-Z score of 6.11. This indicates that VMI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of VMI (6.11) 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.
Looking at the Debt to FCF ratio, with a value of 1.79, VMI is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
VMI has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
VMI has a Debt to Equity ratio of 0.46. This is in the better half of the industry: VMI outperforms 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 6.11 |
ROIC/WACC1.43
WACC9.63%
2.3 Liquidity
A Current Ratio of 2.26 indicates that VMI has no problem at all paying its short term obligations.
VMI's Current ratio of 2.26 is amongst the best of the industry. VMI outperforms 90.91% of its industry peers.
A Quick Ratio of 1.50 indicates that VMI should not have too much problems paying 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 76.36% of the companies in the same industry.
| 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.
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
VMI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.82% yearly.
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 2Y11.95%
EPS Next 3Y12.02%
EPS Next 5Y10.82%
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
The Price/Earnings ratio is 23.02, which indicates a rather expensive current valuation of VMI.
Based on the Price/Earnings ratio, VMI is valued a bit cheaper than 78.18% of the companies in the same industry.
VMI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.49.
The Price/Forward Earnings ratio is 19.27, which indicates a rather expensive current valuation of VMI.
VMI's Price/Forward Earnings ratio is rather cheap when compared to the industry. VMI is cheaper than 81.82% of the companies in the same industry.
VMI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.02 | ||
| Fwd PE | 19.27 |
4.2 Price Multiples
70.91% of the companies in the same industry are more expensive than VMI, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VMI indicates a somewhat cheap valuation: VMI is cheaper than 76.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.99 | ||
| EV/EBITDA | 14.22 |
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.
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)1.23
EPS Next 2Y11.95%
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.
Compared to an average industry Dividend Yield of 1.65, VMI pays a better dividend. On top of this VMI pays more dividend than 90.91% of the companies listed in the same industry.
With a Dividend Yield of 0.66, VMI pays less dividend than the S&P500 average, which is at 2.31.
| 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 been paying a dividend for at least 10 years, so it has 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 Years0
Div Non Decr Years22
5.3 Sustainability
VMI pays out 21.87% of its income as dividend. This is a 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 2Y11.95%
EPS Next 3Y12.02%
414.89
+1.05 (+0.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners95.35%
Inst Owner Change0.22%
Ins Owners1.32%
Ins Owner Change-0.57%
Market Cap8.17B
Revenue(TTM)4.10B
Net Income(TTM)233.68M
Analysts80
Price Target426.7 (2.85%)
Short Float %1.43%
Short Ratio1.74
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)0%
PT rev (3m)7.73%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)2.6%
EPS NY rev (1m)0.05%
EPS NY rev (3m)2.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.02 | ||
| Fwd PE | 19.27 | ||
| P/S | 1.99 | ||
| P/FCF | 19.99 | ||
| P/OCF | 15.17 | ||
| P/B | 5.12 | ||
| P/tB | 9.06 | ||
| EV/EBITDA | 14.22 |
EPS(TTM)18.02
EY4.34%
EPS(NY)21.53
Fwd EY5.19%
FCF(TTM)20.75
FCFY5%
OCF(TTM)27.34
OCFY6.59%
SpS208.28
BVpS81
TBVpS45.81
PEG (NY)1.83
PEG (5Y)1.23
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 | 6.11 |
F-Score7
WACC9.63%
ROIC/WACC1.43
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 2Y11.95%
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 Year1.44%
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 5Y11.75%
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 23.02 and the Price/Book (PB) ratio is 5.12.
What is the earnings growth outlook for VALMONT INDUSTRIES?
The Earnings per Share (EPS) of VALMONT INDUSTRIES (VMI) is expected to grow by 12.56% in the next year.