Valmont Industries, Inc.
Valmont Industries, Inc. Fundamental Analysis
Valmont Industries, Inc. (VMI) shows weak financial fundamentals with a PE ratio of 131.70, profit margin of 2.20%, and ROE of 3.36%. The company generates $3.1B in annual revenue with weak year-over-year growth of 0.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VMI's fundamental strength across five key dimensions:
Efficiency Score
WeakVMI struggles to generate sufficient returns from assets.
Valuation Score
ModerateVMI shows balanced valuation metrics.
Growth Score
WeakVMI faces weak or negative growth trends.
Financial Health Score
ExcellentVMI maintains a strong and stable balance sheet.
Profitability Score
WeakVMI struggles to sustain strong margins.
Key Financial Metrics
Is VMI Expensive or Cheap?
P/E Ratio
VMI trades at 131.70 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, VMI's PEG of -1.67 indicates potential undervaluation.
Price to Book
The market values Valmont Industries, Inc. at 2.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 38.06 times EBITDA. This signals the market has high growth expectations.
How Well Does VMI Make Money?
Net Profit Margin
For every $100 in sales, Valmont Industries, Inc. keeps $2.20 as profit after all expenses.
Operating Margin
Core operations generate 5.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.36 in profit for every $100 of shareholder equity.
ROA
Valmont Industries, Inc. generates $2.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Valmont Industries, Inc. produces operating cash flow of $490.71M, showing steady but balanced cash generation.
Free Cash Flow
Valmont Industries, Inc. generates strong free cash flow of $415.96M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $21.28 in free cash annually.
FCF Yield
VMI converts 4.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
131.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How VMI Stacks Against Its Sector Peers
| Metric | VMI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 131.70 | 26.77 | Worse (Expensive) |
| ROE | 3.36% | 1268.00% | Weak |
| Net Margin | 2.20% | -41739.00% (disorted) | Weak |
| Debt/Equity | 0.27 | 0.72 | Strong (Low Leverage) |
| Current Ratio | 2.38 | 10.12 | Strong Liquidity |
| ROA | 2.00% | -1511190.00% (disorted) | Weak |
VMI outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Valmont Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
52.63%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
168.08%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
55.40%
Industry Style: Cyclical, Value, Infrastructure
High Growth