VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
USA - NYSE:VMI - US9202531011 - Common Stock
391.19 USD
+4.37 (+1.13%)
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 is not valued too expensively and it also shows a decent growth rate. These ratings would make VMI suitable 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.
Each year in the past 5 years VMI has been profitable.
Each year in the past 5 years VMI had a positive operating cash flow.
1.2 Ratios
VMI has a Return On Assets of 6.94%. This is in the better half of the industry: VMI outperforms 72.73% of its industry peers.
VMI's Return On Equity of 14.64% is in line compared to the rest of the industry. VMI outperforms 60.00% of its industry peers.
The Return On Invested Capital of VMI (13.73%) is better than 80.00% of its industry peers.
VMI had an Average Return On Invested Capital over the past 3 years of 12.19%. This 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
VMI has a Profit Margin of 5.70%. This is in the better half of the industry: VMI outperforms 69.09% of its industry peers.
VMI's Profit Margin has improved in the last couple of years.
VMI has a better Operating Margin (12.68%) than 85.45% of its industry peers.
In the last couple of years the Operating Margin of VMI has grown nicely.
VMI has a Gross Margin of 30.33%. This is amongst the best in the industry. VMI outperforms 83.64% 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
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.
Compared to 5 years ago, VMI has less shares outstanding
VMI has a better debt/assets ratio than last year.
2.2 Solvency
VMI has an Altman-Z score of 5.96. This indicates that VMI is financially healthy and has little risk of bankruptcy at the moment.
VMI has a better Altman-Z score (5.96) than 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.
A Debt/Equity ratio of 0.46 indicates that VMI is not too dependend on debt financing.
VMI's Debt to Equity ratio of 0.46 is fine compared to the rest 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 | 5.96 |
ROIC/WACC1.37
WACC10.01%
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 92.73% of the companies in the same industry.
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's Quick ratio of 1.50 is fine compared to the rest of the industry. VMI outperforms 76.36% 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 grown by an nice 9.08% over the past year.
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.
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
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.
The Revenue is expected to grow by 3.53% on average over the next years.
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.
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
Based on the Price/Earnings ratio of 21.71, the valuation of VMI can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of VMI indicates a somewhat cheap valuation: VMI is cheaper than 78.18% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of VMI to the average of the S&P500 Index (25.47), we can say VMI is valued inline with the index average.
A Price/Forward Earnings ratio of 18.22 indicates a rather expensive valuation of VMI.
Based on the Price/Forward Earnings ratio, VMI is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VMI to the average of the S&P500 Index (35.42), we can say VMI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.71 | ||
| Fwd PE | 18.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VMI indicates a somewhat cheap valuation: VMI is cheaper than 72.73% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VMI is valued a bit cheaper than 76.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.89 | ||
| EV/EBITDA | 13.48 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
VMI has an outstanding profitability rating, which 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)1.74
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.
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.
Compared to an average S&P500 Dividend Yield of 2.44, 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 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
21.87% of the earnings are spent on dividend by VMI. This is a low number and 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 (11/19/2025, 2:57:45 PM)
391.19
+4.37 (+1.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.26%
Inst Owner Change0.64%
Ins Owners1.37%
Ins Owner Change-1.02%
Market Cap7.72B
Revenue(TTM)4.10B
Net Income(TTM)233.68M
Analysts80
Price Target426.7 (9.08%)
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)1.44%
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 | 21.71 | ||
| Fwd PE | 18.22 | ||
| P/S | 1.88 | ||
| P/FCF | 18.89 | ||
| P/OCF | 14.34 | ||
| P/B | 4.84 | ||
| P/tB | 8.56 | ||
| EV/EBITDA | 13.48 |
EPS(TTM)18.02
EY4.61%
EPS(NY)21.47
Fwd EY5.49%
FCF(TTM)20.71
FCFY5.29%
OCF(TTM)27.29
OCFY6.98%
SpS207.86
BVpS80.84
TBVpS45.71
PEG (NY)1.74
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 | 5.96 |
F-Score7
WACC10.01%
ROIC/WACC1.37
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 21.71 and the Price/Book (PB) ratio is 4.84.
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.