VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VMI - US9202531011 - Common Stock
427.27 USD
+3.32 (+0.78%)
427.27 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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
VMI had a positive operating cash flow in the past year.
VMI had positive earnings in each of the past 5 years.
In the past 5 years VMI always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.94%, VMI is doing good in the industry, outperforming 70.91% of the companies in the same industry.
VMI has a Return On Equity (14.64%) which is in line with its industry peers.
The Return On Invested Capital of VMI (13.73%) is better than 78.18% of its industry peers.
VMI had an Average Return On Invested Capital over the past 3 years of 12.19%. This is significantly below the industry average of 17.87%.
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 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.
VMI's Gross Margin of 30.33% is amongst the best of 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VMI is 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 6.17 indicates that VMI is not in any danger for bankruptcy at the moment.
VMI has a Altman-Z score of 6.17. This is amongst the best in the industry. VMI outperforms 81.82% of its industry peers.
The Debt to FCF ratio of VMI is 1.79, which is an excellent value as it means it would take VMI, only 1.79 years of fcf income to pay off 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.
VMI has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.46, VMI is in the better half of 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 | 6.17 |
ROIC/WACC1.38
WACC9.94%
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 90.91% of the companies in the same industry.
A Quick Ratio of 1.50 indicates that VMI should not have too much problems paying its short term obligations.
The Quick ratio of VMI (1.50) is better than 76.36% 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.
Measured over the past years, VMI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.77% on average per year.
The Revenue has been growing slightly by 1.23% in the past year.
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)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.
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
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 23.71, which indicates a rather expensive current valuation of VMI.
VMI's Price/Earnings ratio is a bit cheaper when compared to the industry. VMI is cheaper than 76.36% of the companies in the same industry.
When comparing the Price/Earnings ratio of VMI to the average of the S&P500 Index (26.76), we can say VMI is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 19.84, the valuation of VMI can be described as rather expensive.
Based on the Price/Forward Earnings ratio, VMI is valued cheaper than 81.82% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.96. VMI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.71 | ||
| Fwd PE | 19.84 |
4.2 Price Multiples
VMI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VMI is cheaper than 72.73% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VMI is valued a bit cheaper than the industry average as 74.55% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.59 | ||
| EV/EBITDA | 14.51 |
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.
A more expensive valuation may be justified as VMI's earnings are expected to grow with 12.02% in the coming years.
PEG (NY)1.89
PEG (5Y)1.26
EPS Next 2Y11.95%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
VMI has a yearly dividend return of 0.66%, which is pretty low.
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 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
VMI pays out 21.87% of its income as dividend. This is a 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 2Y11.95%
EPS Next 3Y12.02%
427.27
+3.32 (+0.78%)
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 Cap8.42B
Revenue(TTM)4.10B
Net Income(TTM)233.68M
Analysts80
Price Target426.7 (-0.13%)
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 | 23.71 | ||
| Fwd PE | 19.84 | ||
| P/S | 2.05 | ||
| P/FCF | 20.59 | ||
| P/OCF | 15.63 | ||
| P/B | 5.27 | ||
| P/tB | 9.33 | ||
| EV/EBITDA | 14.51 |
EPS(TTM)18.02
EY4.22%
EPS(NY)21.53
Fwd EY5.04%
FCF(TTM)20.75
FCFY4.86%
OCF(TTM)27.34
OCFY6.4%
SpS208.28
BVpS81
TBVpS45.81
PEG (NY)1.89
PEG (5Y)1.26
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 | 6.17 |
F-Score7
WACC9.94%
ROIC/WACC1.38
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 23.71 and the Price/Book (PB) ratio is 5.27.
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.