Valmont Industries (NYSE:VMI) - Share price, News & Analysis

VMI fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	2/6
Past Performance	5/6
Financial Health	4/6
Dividends	3/6

VMI Stock Overview

Valmont Industries, Inc. produces and sells fabricated metal products in the United States, Australia, Brazil, Denmark, and internationally.

Rewards

Trading at 13.9% below our estimate of its fair value

Earnings are forecast to grow 18.99% per year

Earnings grew by 32.9% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Significant insider selling over the past 3 months

Valmont Industries Competitors

AECOM

NYSE:ACM

US$9.7b

Enovis

NYSE:ENOV

US$3.4b

Lindsay

NYSE:LNN

US$1.4b

Jain Irrigation Systems

BSE:500219

₹21.4b

Price History & Performance

Summary of all time highs, changes and price drops for Valmont Industries
Historical stock prices
Current Share Price	US$256.58
52 Week High	US$277.00
52 Week Low	US$203.31
Beta	1.06
1 Month Change	-2.66%
3 Month Change	19.43%
1 Year Change	3.29%
3 Year Change	121.29%
5 Year Change	75.26%
Change since IPO	2,636.85%

Recent News & Updates

May 23

Return Trends At Valmont Industries (NYSE:VMI) Aren't Appealing

There are a few key trends to look for if we want to identify the next multi-bagger. Ideally, a business will show two...

May 11

Estimating The Intrinsic Value Of Valmont Industries, Inc. (NYSE:VMI)

How far off is Valmont Industries, Inc. ( NYSE:VMI ) from its intrinsic value? Using the most recent financial data...

Shareholder Returns

	VMI	US Construction	US Market
7D	3.2%	4.2%	1.0%
1Y	3.3%	-1.1%	-15.1%

Return vs Industry: VMI exceeded the US Construction industry which returned -1.7% over the past year.

Return vs Market: VMI exceeded the US Market which returned -13.2% over the past year.

Price Volatility

Is VMI's price volatile compared to industry and market?
VMI volatility
VMI Average Weekly Movement	4.3%
Construction Industry Average Movement	5.6%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: VMI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: VMI's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1946	11,041	Steve Kaniewski	https://www.valmont.com

Valmont Industries, Inc. produces and sells fabricated metal products in the United States, Australia, Brazil, Denmark, and internationally. The company operates through four segments: Engineered Support Structures, Utility Support Structures, Coatings, and Irrigation. The Engineered Support Structures segment manufactures and distributes engineered metal, steel, wood, aluminum, and composite poles, towers, and components for lighting, traffic, and wireless communication markets; engineered access systems; integrated structure solutions for smart cities; and highway safety products.

Valmont Industries Fundamentals Summary

How do Valmont Industries's earnings and revenue compare to its market cap?
VMI fundamental statistics
Market Cap	US$5.47b
Earnings (TTM)	US$202.93m
Revenue (TTM)	US$3.71b

26.9x

P/E Ratio

1.5x

P/S Ratio

Is VMI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
VMI income statement (TTM)
Revenue	US$3.71b
Cost of Revenue	US$2.76b
Gross Profit	US$949.94m
Other Expenses	US$747.01m
Earnings	US$202.93m

Last Reported Earnings

Mar 26, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	9.52
Gross Margin	25.62%
Net Profit Margin	5.47%
Debt/Equity Ratio	64.9%

How did VMI perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

21%

Payout Ratio

Does VMI pay a reliable dividends?

See VMI dividend history and benchmarks

When do you need to buy VMI by to receive an upcoming dividend?
Valmont Industries dividend dates
Ex Dividend Date	Jun 23 2022
Dividend Pay Date	Jul 15 2022
Days until Ex dividend	27 days
Days until Dividend pay date	49 days

Does VMI pay a reliable dividends?

See VMI dividend history and benchmarks

Valuation

Is Valmont Industries undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

13.9%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: VMI ($256.58) is trading below our estimate of fair value ($298.17)

Significantly Below Fair Value: VMI is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: VMI is poor value based on its Price-To-Earnings Ratio (26.9x) compared to the US Construction industry average (26.1x).

PE vs Market: VMI is poor value based on its Price-To-Earnings Ratio (26.9x) compared to the US market (14.9x).

Price to Earnings Growth Ratio

PEG Ratio: VMI is poor value based on its PEG Ratio (1.4x)

Price to Book Ratio

PB vs Industry: VMI is overvalued based on its Price-To-Book Ratio (3.7x) compared to the US Construction industry average (1.8x).

Future Growth

How is Valmont Industries forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

19.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: VMI's forecast earnings growth (19% per year) is above the savings rate (1.9%).

Earnings vs Market: VMI's earnings (19% per year) are forecast to grow faster than the US market (12.1% per year).

High Growth Earnings: VMI's earnings are forecast to grow, but not significantly.

Revenue vs Market: VMI's revenue (6.2% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: VMI's revenue (6.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if VMI's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Valmont Industries performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

7.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VMI has high quality earnings.

Growing Profit Margin: VMI's current net profit margins (5.5%) are higher than last year (5.1%).

Past Earnings Growth Analysis

Earnings Trend: VMI's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: VMI's earnings growth over the past year (32.9%) exceeds its 5-year average (7% per year).

Earnings vs Industry: VMI earnings growth over the past year (32.9%) exceeded the Construction industry 26.3%.

Return on Equity

High ROE: VMI's Return on Equity (13.7%) is considered low.

Financial Health

How is Valmont Industries's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: VMI's short term assets ($1.8B) exceed its short term liabilities ($818.7M).

Long Term Liabilities: VMI's short term assets ($1.8B) exceed its long term liabilities ($1.3B).

Debt to Equity History and Analysis

Debt Level: VMI's net debt to equity ratio (54.9%) is considered high.

Reducing Debt: VMI's debt to equity ratio has reduced from 72.9% to 64.9% over the past 5 years.

Debt Coverage: VMI's debt is not well covered by operating cash flow (3.6%).

Interest Coverage: VMI's interest payments on its debt are well covered by EBIT (8.1x coverage).

Balance Sheet

Dividend

What is Valmont Industries's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.86%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: VMI's dividend (0.86%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: VMI's dividend (0.86%) is low compared to the top 25% of dividend payers in the US market (4.06%).

Stability and Growth of Payments

Stable Dividend: VMI's dividends per share have been stable in the past 10 years.

Growing Dividend: VMI's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (21.4%), VMI's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: VMI is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure

CEO

Steve Kaniewski (49 yo)

5.58yrs

Tenure

US$7,337,975

Compensation

Mr. Stephen G. Kaniewski, also known as Steve, has been Chief Executive Officer at Valmont Industries, Inc. since December 31, 2017 and President since October 2016. Mr. Kaniewski served as Chief Operating...

CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD7.34M) is about average for companies of similar size in the US market ($USD8.23M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: VMI's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: VMI's board of directors are seasoned and experienced ( 10.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: VMI insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/26
Annual Earnings	2021/12/25