VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VMI - US9202531011 - Common Stock
393.28 USD
+14.07 (+3.71%)
393.28 USD
0 (0%)
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 would make VMI suitable for quality investing!
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
With a decent Return On Assets value of 6.94%, VMI is doing good in the industry, outperforming 72.73% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.64%, VMI is in line with its industry, outperforming 60.00% of the companies in the same 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 16.87%.
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
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.
Looking at the Operating Margin, with a value of 12.68%, VMI belongs to the top of the industry, outperforming 85.45% of the companies in the same industry.
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 83.64% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VMI is still creating some value.
Compared to 1 year ago, VMI has less shares outstanding
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 5.97 indicates that VMI is not in any danger for bankruptcy at the moment.
VMI has a Altman-Z score of 5.97. This is amongst the best in 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 Debt to FCF ratio of 1.79. This is in the better half of the industry: VMI outperforms 80.00% 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 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 | 5.97 |
ROIC/WACC1.38
WACC9.93%
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.
VMI has a Quick ratio of 1.50. This is in the better half of the industry: VMI outperforms 78.18% 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.
The Earnings Per Share has been growing by 18.77% on average over the past years. This is quite good.
The Revenue has been growing slightly by 1.23% 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)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 Y12.51%
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
VMI is valuated rather expensively with a Price/Earnings ratio of 21.82.
Based on the Price/Earnings ratio, VMI is valued a bit cheaper than 78.18% of the companies in the same industry.
VMI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.32, the valuation of VMI can be described as rather expensive.
VMI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VMI is cheaper than 78.18% of the companies in the same industry.
VMI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.82 | ||
| Fwd PE | 18.32 |
4.2 Price Multiples
72.73% of the companies in the same industry are more expensive than VMI, based on the Enterprise Value to EBITDA ratio.
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 | 18.99 | ||
| EV/EBITDA | 13.54 |
4.3 Compensation for Growth
VMI's 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)1.75
PEG (5Y)1.16
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.
VMI's Dividend Yield is rather good when compared to the industry average which is at 1.73. VMI pays more dividend than 90.91% 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 | 0.66% |
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 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 2Y11.79%
EPS Next 3Y12.02%
393.28
+14.07 (+3.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.26%
Inst Owner Change-83.85%
Ins Owners1.37%
Ins Owner Change-0.57%
Market Cap7.76B
Revenue(TTM)4.10B
Net Income(TTM)233.68M
Analysts80
Price Target426.7 (8.5%)
Short Float %1.42%
Short Ratio1.69
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)1.58%
EPS NQ rev (3m)2.46%
EPS NY rev (1m)2.33%
EPS NY rev (3m)2.68%
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 | 21.82 | ||
| Fwd PE | 18.32 | ||
| P/S | 1.89 | ||
| P/FCF | 18.99 | ||
| P/OCF | 14.41 | ||
| P/B | 4.87 | ||
| P/tB | 8.6 | ||
| EV/EBITDA | 13.54 |
EPS(TTM)18.02
EY4.58%
EPS(NY)21.47
Fwd EY5.46%
FCF(TTM)20.71
FCFY5.27%
OCF(TTM)27.29
OCFY6.94%
SpS207.86
BVpS80.84
TBVpS45.71
PEG (NY)1.75
PEG (5Y)1.16
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 | 5.97 |
F-Score7
WACC9.93%
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 21.82 and the Price/Book (PB) ratio is 4.87.
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.