VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
NYSE:VMI - New York Stock Exchange, Inc. - US9202531011 - Common Stock - Currency: USD
Overall VMI gets a fundamental rating of 7 out of 10. We evaluated VMI against 52 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 decent growth rate and is not valued too expensively.
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.
VMI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VMI's Return On Assets of 10.30% is amongst the best of the industry. VMI outperforms 80.77% of its industry peers.
VMI has a better Return On Equity (21.27%) than 76.92% of its industry peers.
With an excellent Return On Invested Capital value of 13.63%, VMI belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VMI is below the industry average of 16.67%.
The last Return On Invested Capital (13.63%) for VMI is above the 3 year average (11.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 21.27% | ||
| ROIC | 13.63% |
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's Profit Margin of 8.55% is amongst the best of the industry. VMI outperforms 86.54% of its industry peers.
VMI's Profit Margin has improved in the last couple of years.
VMI's Operating Margin of 12.82% is amongst the best of the industry. VMI outperforms 90.38% of its industry peers.
In the last couple of years the Operating Margin of VMI has grown nicely.
VMI has a Gross Margin of 30.15%. This is amongst the best in the industry. VMI outperforms 82.69% of its industry peers.
In the last couple of years the Gross Margin of VMI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.82% | ||
| PM (TTM) | 8.55% | ||
| GM | 30.15% |
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.
Compared to 1 year ago, VMI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.62 indicates that VMI is not in any danger for bankruptcy at the moment.
VMI has a better Altman-Z score (5.62) than 78.85% of its industry peers.
The Debt to FCF ratio of VMI is 1.41, which is an excellent value as it means it would take VMI, only 1.41 years of fcf income to pay off all of its debts.
VMI's Debt to FCF ratio of 1.41 is fine compared to the rest of the industry. VMI outperforms 78.85% of its industry peers.
VMI has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
VMI has a better Debt to Equity ratio (0.45) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 5.62 |
ROIC/WACC1.38
WACC9.89%
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 94.23% of its industry peers.
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.
VMI has a Quick ratio of 1.50. This is in the better half of the industry: VMI outperforms 78.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.44% over the past year.
The Earnings Per Share has been growing by 18.77% on average over the past years. This is quite good.
VMI shows a decrease in Revenue. In the last year, the revenue decreased by -0.57%.
The Revenue has been growing by 8.05% on average over the past years. This is quite good.
EPS 1Y (TTM)7.44%
EPS 3Y16.27%
EPS 5Y18.77%
EPS Q2Q%0%
Revenue 1Y (TTM)-0.57%
Revenue growth 3Y5.19%
Revenue growth 5Y8.05%
Sales Q2Q%-0.87%
3.2 Future
The Earnings Per Share is expected to grow by 9.78% 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 3.15% on average per year.
EPS Next Y6.64%
EPS Next 2Y8.03%
EPS Next 3Y9.46%
EPS Next 5Y9.78%
Revenue Next Year0.71%
Revenue Next 2Y2.8%
Revenue Next 3Y2.7%
Revenue Next 5Y3.15%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
VMI is valuated rather expensively with a Price/Earnings ratio of 19.86.
Based on the Price/Earnings ratio, VMI is valued cheaper than 80.77% of the companies in the same industry.
VMI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.28.
The Price/Forward Earnings ratio is 17.02, which indicates a rather expensive current valuation of VMI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VMI indicates a somewhat cheap valuation: VMI is cheaper than 78.85% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, VMI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.86 | ||
| Fwd PE | 17.02 |
4.2 Price Multiples
84.62% 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 rather cheap valuation: VMI is cheaper than 90.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.18 | ||
| EV/EBITDA | 11.83 |
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.
PEG (NY)2.99
PEG (5Y)1.06
EPS Next 2Y8.03%
EPS Next 3Y9.46%
5. Dividend
5.1 Amount
VMI has a yearly dividend return of 0.82%, which is pretty low.
VMI's Dividend Yield is rather good when compared to the industry average which is at 1.75. VMI pays more dividend than 94.23% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, VMI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
On average, the dividend of VMI grows each year by 9.85%, which is quite nice.
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
VMI pays out 13.88% of its income as dividend. This is a sustainable payout ratio.
The dividend of VMI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP13.88%
EPS Next 2Y8.03%
EPS Next 3Y9.46%
341.26
+6.07 (+1.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners90.91%
Inst Owner Change0.45%
Ins Owners1.36%
Ins Owner Change1.7%
Market Cap6.85B
Analysts80
Price Target351.9 (3.12%)
Short Float %1.16%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend2.4
Dividend Growth(5Y)9.85%
DP13.88%
Div Incr Years0
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.53%
Min EPS beat(2)-1.82%
Max EPS beat(2)4.89%
EPS beat(4)3
Avg EPS beat(4)6%
Min EPS beat(4)-1.82%
Max EPS beat(4)19.15%
EPS beat(8)7
Avg EPS beat(8)8.94%
EPS beat(12)10
Avg EPS beat(12)7.4%
EPS beat(16)14
Avg EPS beat(16)8.74%
Revenue beat(2)1
Avg Revenue beat(2)-0.14%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)1.4%
Revenue beat(4)1
Avg Revenue beat(4)-0.6%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)1.4%
Revenue beat(8)1
Avg Revenue beat(8)-3.13%
Revenue beat(12)5
Avg Revenue beat(12)-0.12%
Revenue beat(16)8
Avg Revenue beat(16)1.65%
PT rev (1m)-1.92%
PT rev (3m)-15.13%
EPS NQ rev (1m)0.72%
EPS NQ rev (3m)-1.65%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.86 | ||
| Fwd PE | 17.02 | ||
| P/S | 1.68 | ||
| P/FCF | 13.18 | ||
| P/OCF | 11.15 | ||
| P/B | 4.19 | ||
| P/tB | 7.83 | ||
| EV/EBITDA | 11.83 |
EPS(TTM)17.18
EY5.03%
EPS(NY)20.05
Fwd EY5.88%
FCF(TTM)25.9
FCFY7.59%
OCF(TTM)30.62
OCFY8.97%
SpS202.62
BVpS81.46
TBVpS43.56
PEG (NY)2.99
PEG (5Y)1.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 21.27% | ||
| ROCE | 19.94% | ||
| ROIC | 13.63% | ||
| ROICexc | 14.66% | ||
| ROICexgc | 21.35% | ||
| OM | 12.82% | ||
| PM (TTM) | 8.55% | ||
| GM | 30.15% | ||
| FCFM | 12.78% |
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)19%
ROICexgc(5y)16.55%
ROCE(3y)17.42%
ROCE(5y)14.91%
ROICexcg growth 3Y22.29%
ROICexcg 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 Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 1.41 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 101.48% | ||
| Cap/Sales | 2.33% | ||
| Interest Coverage | 10.09 | ||
| Cash Conversion | 99.96% | ||
| Profit Quality | 149.47% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 5.62 |
F-Score7
WACC9.89%
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)7.44%
EPS 3Y16.27%
EPS 5Y18.77%
EPS Q2Q%0%
EPS Next Y6.64%
EPS Next 2Y8.03%
EPS Next 3Y9.46%
EPS Next 5Y9.78%
Revenue 1Y (TTM)-0.57%
Revenue growth 3Y5.19%
Revenue growth 5Y8.05%
Sales Q2Q%-0.87%
Revenue Next Year0.71%
Revenue Next 2Y2.8%
Revenue Next 3Y2.7%
Revenue Next 5Y3.15%
EBIT growth 1Y17.03%
EBIT growth 3Y21.39%
EBIT growth 5Y18.14%
EBIT Next Year23.14%
EBIT Next 3Y11.1%
EBIT Next 5Y10.25%
FCF growth 1Y102.85%
FCF growth 3YN/A
FCF growth 5Y18.6%
OCF growth 1Y78.23%
OCF growth 3Y105.55%
OCF growth 5Y13.24%