Valmont Industries, Inc. Fundamental Analysis (NYSE: VMI)
Valmont Industries, Inc. (NYSE: VMI) shows moderate financial fundamentals with a PE ratio of 19.74, profit margin of 11.70%, and ROE of 29.84%. The company generates $4.2B 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 69.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze VMI's fundamental strength across five key dimensions:
Efficiency Score
ExcellentVMI demonstrates superior asset utilization.
Valuation Score
ExcellentVMI trades at attractive valuation levels.
Growth Score
WeakVMI faces weak or negative growth trends.
Financial Health Score
ExcellentVMI maintains a strong and stable balance sheet.
Profitability Score
ModerateVMI maintains healthy but balanced margins.
Key Financial Metrics
Is VMI Expensive or Cheap?
P/E Ratio
VMI trades at 19.74 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, VMI's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values Valmont Industries, Inc. at 5.61 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.20 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 $11.70 as profit after all expenses.
Operating Margin
Core operations generate 13.85 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.84 in profit for every $100 of shareholder equity.
ROA
Valmont Industries, Inc. generates $14.28 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 $473.78M, showing steady but balanced cash generation.
Free Cash Flow
Valmont Industries, Inc. produces free cash flow of $321.05M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $16.63 in free cash annually.
FCF Yield
VMI converts 3.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.50
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.30
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How VMI Stacks Against Its Sector Peers
| Metric | VMI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.74 | 31.41 | Better (Cheaper) |
| ROE | 29.84% | 1114.00% | Weak |
| Net Margin | 11.70% | -21308.00% (disorted) | Strong |
| Debt/Equity | 0.50 | 0.49 | Neutral |
| Current Ratio | 2.35 | 21.99 | Strong Liquidity |
| ROA | 14.28% | -1339931.00% (disorted) | Strong |
VMI outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
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