VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VMI - US9202531011 - Common Stock
414.13 USD
+7.4 (+1.82%)
414.13 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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. VMI has a correct valuation and a medium growth rate. With these ratings, VMI could be worth investigating further 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.
Each year in the past 5 years VMI has been profitable.
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 72.73% of the companies in the same industry.
VMI has a Return On Equity of 14.64%. This is comparable to the rest of the industry: VMI outperforms 60.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.73%, VMI is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VMI is significantly below the industry average of 17.30%.
The 3 year average ROIC (12.19%) for VMI is below the current ROIC(13.73%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 5.70%, VMI is in the better half of the industry, outperforming 67.27% of the companies in the same industry.
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.
VMI's Operating Margin has improved in the last couple of years.
VMI has a better Gross Margin (30.33%) than 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
VMI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
VMI has less shares outstanding than it did 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
VMI has an Altman-Z score of 6.05. This indicates that VMI is financially healthy and has little risk of bankruptcy at the moment.
VMI's Altman-Z score of 6.05 is fine compared to the rest of the industry. VMI outperforms 80.00% 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.
The Debt to FCF ratio of VMI (1.79) is better than 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'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 | 6.05 |
ROIC/WACC1.43
WACC9.58%
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.
VMI's Current ratio of 2.26 is amongst the best of the industry. VMI outperforms 92.73% of its industry peers.
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.
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.
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.
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
With a Price/Earnings ratio of 22.98, VMI is valued on the expensive side.
78.18% of the companies in the same industry are more expensive than VMI, based on the Price/Earnings ratio.
VMI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.15.
VMI is valuated rather expensively with a Price/Forward Earnings ratio of 19.29.
VMI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VMI is cheaper than 80.00% 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 36.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 19.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VMI is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VMI indicates a somewhat cheap valuation: VMI is cheaper than 78.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.96 | ||
| EV/EBITDA | 13.95 |
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.
VMI's earnings are expected to grow with 12.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.84
PEG (5Y)1.22
EPS Next 2Y11.79%
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 1.67, VMI pays a better dividend. On top of this VMI pays more dividend than 90.91% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, VMI's dividend is way lower than the S&P500 average.
| 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 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 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%
414.13
+7.4 (+1.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.26%
Inst Owner Change0.21%
Ins Owners1.37%
Ins Owner Change-0.57%
Market Cap8.16B
Revenue(TTM)4.10B
Net Income(TTM)233.68M
Analysts80
Price Target426.7 (3.04%)
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)0.64%
EPS NQ rev (3m)2.6%
EPS NY rev (1m)2.33%
EPS NY rev (3m)2.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 19.29 | ||
| P/S | 1.99 | ||
| P/FCF | 19.96 | ||
| P/OCF | 15.15 | ||
| P/B | 5.11 | ||
| P/tB | 9.04 | ||
| EV/EBITDA | 13.95 |
EPS(TTM)18.02
EY4.35%
EPS(NY)21.47
Fwd EY5.18%
FCF(TTM)20.75
FCFY5.01%
OCF(TTM)27.34
OCFY6.6%
SpS208.28
BVpS81
TBVpS45.81
PEG (NY)1.84
PEG (5Y)1.22
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 | 6.05 |
F-Score7
WACC9.58%
ROIC/WACC1.43
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 22.98 and the Price/Book (PB) ratio is 5.11.
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.