VALMONT INDUSTRIES (VMI) Stock Fundamental Analysis
USA - NYSE:VMI - US9202531011 - Common Stock
386.82 USD
-3.87 (-0.99%)
386.82 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 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. This makes VMI very considerable 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.
VMI had positive earnings in each of the past 5 years.
VMI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.94%, VMI is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
VMI has a Return On Equity (14.64%) which is comparable to the rest of the industry.
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 below the industry average of 16.87%.
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
VMI has a better Profit Margin (5.70%) than 69.09% of its industry peers.
In the last couple of years the Profit Margin of VMI has grown nicely.
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.
Looking at the Gross Margin, with a value of 30.33%, VMI belongs to the top of the industry, outperforming 83.64% of the companies in the same industry.
In the last couple of years the Gross Margin of VMI has grown nicely.
| 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.
The number of shares outstanding for VMI has been reduced compared to 1 year ago.
The number of shares outstanding for VMI has been reduced compared to 5 years ago.
VMI has a better debt/assets ratio than last year.
2.2 Solvency
VMI has an Altman-Z score of 5.93. This indicates that VMI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.93, VMI belongs to the top of the industry, outperforming 83.64% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.79, VMI is in the better half of the industry, outperforming 78.18% of the companies in the same industry.
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 | 5.93 |
ROIC/WACC1.37
WACC10.01%
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'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
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.
VMI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.77% yearly.
VMI shows a small growth in Revenue. In the last year, the Revenue has grown by 1.23%.
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
Based on estimates for the next years, VMI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.82% on average per year.
VMI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.53% yearly.
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
Based on the Price/Earnings ratio of 21.47, the valuation of VMI can be described as rather expensive.
80.00% 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 25.51.
VMI is valuated rather expensively with a Price/Forward Earnings ratio of 18.02.
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 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.47 | ||
| Fwd PE | 18.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VMI is valued a bit cheaper than 76.36% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VMI is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.68 | ||
| EV/EBITDA | 13.34 |
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)1.72
PEG (5Y)1.14
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 1.76. VMI pays more dividend than 92.73% of the companies 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
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%
386.82
-3.87 (-0.99%)
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 Cap7.64B
Revenue(TTM)4.10B
Net Income(TTM)233.68M
Analysts80
Price Target426.7 (10.31%)
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 | 21.47 | ||
| Fwd PE | 18.02 | ||
| P/S | 1.86 | ||
| P/FCF | 18.68 | ||
| P/OCF | 14.18 | ||
| P/B | 4.79 | ||
| P/tB | 8.46 | ||
| EV/EBITDA | 13.34 |
EPS(TTM)18.02
EY4.66%
EPS(NY)21.47
Fwd EY5.55%
FCF(TTM)20.71
FCFY5.35%
OCF(TTM)27.29
OCFY7.05%
SpS207.86
BVpS80.84
TBVpS45.71
PEG (NY)1.72
PEG (5Y)1.14
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 | 5.93 |
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 21.47 and the Price/Book (PB) ratio is 4.79.
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.