VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
USA - NYSE:VMI - US9202531011 - Common Stock
400 USD
+1.84 (+0.46%)
Overall VMI gets a fundamental rating of 7 out of 10. We evaluated VMI 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 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.
In the past 5 years VMI has always been profitable.
VMI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VMI's Return On Assets of 6.94% is fine compared to the rest of the industry. VMI outperforms 72.73% of its industry peers.
VMI has a Return On Equity (14.64%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 13.73%, VMI is doing good in the industry, outperforming 80.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VMI is below the industry average of 16.81%.
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 69.09% of its industry peers.
VMI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 12.68%, VMI belongs to the best of the industry, outperforming 85.45% of the companies in the same industry.
VMI's Operating Margin has improved in the last couple of years.
VMI's Gross Margin of 30.33% is amongst the best of the industry. VMI outperforms 83.64% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VMI is creating some value.
The number of shares outstanding for VMI has been reduced compared to 1 year ago.
Compared to 5 years ago, VMI has less shares outstanding
The debt/assets ratio for VMI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.00 indicates that VMI is not in any danger for bankruptcy at the moment.
VMI's Altman-Z score of 6.00 is amongst the best of 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 has a better Debt to FCF ratio (1.79) than 78.18% of its industry peers.
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 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 |
ROIC/WACC1.38
WACC9.94%
2.3 Liquidity
A Current Ratio of 2.26 indicates that VMI has no problem at all paying 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.
A Quick Ratio of 1.50 indicates that VMI should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.50, VMI is doing good in 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.
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
Based on estimates for the next years, VMI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.82% on average per year.
VMI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.53% yearly.
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
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.20, 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 80.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of VMI to the average of the S&P500 Index (25.91), we can say VMI is valued inline with the index average.
VMI is valuated rather expensively with a Price/Forward Earnings ratio of 18.63.
Based on the Price/Forward Earnings ratio, VMI is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.57, VMI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.2 | ||
| Fwd PE | 18.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VMI is valued a bit cheaper than the industry average as 78.18% 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 | 19.31 | ||
| EV/EBITDA | 13.7 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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)1.78
PEG (5Y)1.18
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.
Compared to an average industry Dividend Yield of 1.78, VMI pays a better dividend. On top of this VMI pays more dividend than 92.73% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
On average, the dividend of VMI grows each year by 9.85%, which is quite nice.
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 2Y11.79%
EPS Next 3Y12.02%
NYSE:VMI (11/14/2025, 9:47:52 AM)
400
+1.84 (+0.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.26%
Inst Owner Change-0.65%
Ins Owners1.37%
Ins Owner Change-0.57%
Market Cap7.90B
Revenue(TTM)4.10B
Net Income(TTM)233.68M
Analysts80
Price Target426.7 (6.67%)
Short Float %1.54%
Short Ratio1.61
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)1.44%
EPS NQ rev (3m)2.35%
EPS NY rev (1m)2.68%
EPS NY rev (3m)5.49%
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 | 22.2 | ||
| Fwd PE | 18.63 | ||
| P/S | 1.92 | ||
| P/FCF | 19.31 | ||
| P/OCF | 14.66 | ||
| P/B | 4.95 | ||
| P/tB | 8.75 | ||
| EV/EBITDA | 13.7 |
EPS(TTM)18.02
EY4.51%
EPS(NY)21.47
Fwd EY5.37%
FCF(TTM)20.71
FCFY5.18%
OCF(TTM)27.29
OCFY6.82%
SpS207.86
BVpS80.84
TBVpS45.71
PEG (NY)1.78
PEG (5Y)1.18
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 |
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 Y12.51%
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 22.2 and the Price/Book (PB) ratio is 4.95.
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.