VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
USA - NYSE:VMI - US9202531011 - Common Stock
407.78 USD
-0.3 (-0.07%)
407.78 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to VMI. VMI was compared to 55 industry peers in the Construction & Engineering industry. Both the health and profitability get an excellent rating, making VMI a very profitable company, without any liquidiy or solvency issues. VMI has a decent growth rate and is not valued too expensively. With these ratings, VMI could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year VMI was profitable.
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
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's Return On Equity of 14.64% is fine compared to the rest of the industry. VMI outperforms 61.82% of its industry peers.
VMI's Return On Invested Capital of 13.47% is fine compared to the rest of the industry. VMI outperforms 78.18% of its industry peers.
VMI had an Average Return On Invested Capital over the past 3 years of 11.89%. This is significantly below the industry average of 17.19%.
The last Return On Invested Capital (13.47%) for VMI is above the 3 year average (11.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 14.64% | ||
| ROIC | 13.47% |
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 5.70% is fine compared to the rest of the industry. VMI outperforms 70.91% of its industry peers.
In the last couple of years the Profit Margin of VMI has grown nicely.
The Operating Margin of VMI (12.44%) is better than 85.45% of its industry peers.
In the last couple of years the Operating Margin of VMI has grown nicely.
VMI's Gross Margin of 30.31% 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 | 12.44% | ||
| PM (TTM) | 5.7% | ||
| GM | 30.31% |
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.
Compared to 1 year ago, VMI has less shares outstanding
VMI has less shares outstanding than it did 5 years ago.
VMI has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of VMI is 1.79, which is an excellent value as it means it would take VMI, only 1.79 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VMI (1.79) is better than 76.36% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that VMI is not too dependend on debt financing.
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 | N/A |
ROIC/WACC1.32
WACC10.18%
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.
Looking at the Current ratio, with a value of 2.26, VMI belongs to the top 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 76.36% 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.
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 10.14% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.30% on average over the next years.
EPS Next Y9.94%
EPS Next 2Y10.8%
EPS Next 3Y10.74%
EPS Next 5Y10.14%
Revenue Next Year1.37%
Revenue Next 2Y3.27%
Revenue Next 3Y3.42%
Revenue Next 5Y3.3%
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
The Price/Earnings ratio is 22.63, which indicates a rather expensive current valuation of VMI.
80.00% of the companies in the same industry are more expensive than VMI, based on the Price/Earnings ratio.
VMI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.33, which indicates a rather expensive current valuation of VMI.
VMI's Price/Forward Earnings ratio is rather cheap when compared to the industry. VMI is cheaper than 81.82% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, VMI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.63 | ||
| Fwd PE | 19.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VMI is valued a bit cheaper than 78.18% of the companies 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 | 19.69 | ||
| EV/EBITDA | 14.25 |
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)2.28
PEG (5Y)1.21
EPS Next 2Y10.8%
EPS Next 3Y10.74%
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 1.73, 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 2.39, 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 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.
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 2Y10.8%
EPS Next 3Y10.74%
407.78
-0.3 (-0.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.26%
Inst Owner Change-0.08%
Ins Owners1.37%
Ins Owner Change-0.19%
Market Cap8.05B
Revenue(TTM)4.10B
Net Income(TTM)233.68M
Analysts80
Price Target426.7 (4.64%)
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)21.26%
EPS NQ rev (1m)1.03%
EPS NQ rev (3m)1.94%
EPS NY rev (1m)0.34%
EPS NY rev (3m)3.09%
Revenue NQ rev (1m)-1.03%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.63 | ||
| Fwd PE | 19.33 | ||
| P/S | 1.96 | ||
| P/FCF | 19.69 | ||
| P/OCF | 14.94 | ||
| P/B | 5.04 | ||
| P/tB | 5.04 | ||
| EV/EBITDA | 14.25 |
EPS(TTM)18.02
EY4.42%
EPS(NY)21.09
Fwd EY5.17%
FCF(TTM)20.71
FCFY5.08%
OCF(TTM)27.29
OCFY6.69%
SpS207.86
BVpS80.84
TBVpS80.84
PEG (NY)2.28
PEG (5Y)1.21
Graham Number181.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 14.64% | ||
| ROCE | 19.71% | ||
| ROIC | 13.47% | ||
| ROICexc | 14.76% | ||
| ROICexgc | 14.76% | ||
| OM | 12.44% | ||
| PM (TTM) | 5.7% | ||
| GM | 30.31% | ||
| FCFM | 9.96% |
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%
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 | 1.22 | ||
| Cap/Depr | 143.82% | ||
| Cap/Sales | 3.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.68% | ||
| Profit Quality | 174.94% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | N/A |
F-Score7
WACC10.18%
ROIC/WACC1.32
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 Y9.94%
EPS Next 2Y10.8%
EPS Next 3Y10.74%
EPS Next 5Y10.14%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y5.19%
Revenue growth 5Y8.05%
Sales Q2Q%2.53%
Revenue Next Year1.37%
Revenue Next 2Y3.27%
Revenue Next 3Y3.42%
Revenue Next 5Y3.3%
EBIT growth 1Y9.02%
EBIT growth 3Y21.39%
EBIT growth 5Y18.14%
EBIT Next Year16.72%
EBIT Next 3Y13.14%
EBIT Next 5Y10.73%
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 22.63 and the Price/Book (PB) ratio is 5.04.
What is the earnings growth outlook for VALMONT INDUSTRIES?
The Earnings per Share (EPS) of VALMONT INDUSTRIES (VMI) is expected to grow by 9.94% in the next year.