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Valmont Industries

NYSE:VMI
Snowflake Description

Average dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VMI
NYSE
$3B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Valmont Industries, Inc. produces and sells fabricated metal products in the United States and internationally. The last earnings update was 18 days ago. More info.


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VMI Share Price and Events
7 Day Returns
0.7%
NYSE:VMI
-1.9%
US Construction
-0.7%
US Market
1 Year Returns
-18%
NYSE:VMI
-8.7%
US Construction
3%
US Market
VMI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Valmont Industries (VMI) 0.7% -8.3% -12.4% -18% -8.3% -24%
US Construction -1.9% -4.8% 1.7% -8.7% 18.4% 0.6%
US Market -0.7% -2% 2.4% 3% 39.2% 42%
1 Year Return vs Industry and Market
  • VMI underperformed the Construction industry which returned -8.7% over the past year.
  • VMI underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
VMI
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Valmont Industries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Valmont Industries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Valmont Industries.

NYSE:VMI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:VMI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Construction Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.06 (1 + (1- 21%) (32.83%))
1.224
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.22
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.224 * 5.96%)
10.03%

Discounted Cash Flow Calculation for NYSE:VMI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Valmont Industries is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:VMI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.03%)
2019 189.60 Analyst x1 172.32
2020 228.45 Analyst x2 188.71
2021 235.40 Analyst x1 176.73
2022 252.20 Analyst x1 172.09
2023 266.44 Est @ 5.65% 165.24
2024 279.15 Est @ 4.77% 157.35
2025 290.76 Est @ 4.16% 148.96
2026 301.61 Est @ 3.73% 140.43
2027 311.95 Est @ 3.43% 132.01
2028 322.00 Est @ 3.22% 123.85
Present value of next 10 years cash flows $1,577.70
NYSE:VMI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $322.00 × (1 + 2.73%) ÷ (10.03% – 2.73%)
$4,533.71
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,533.71 ÷ (1 + 10.03%)10
$1,743.79
NYSE:VMI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,577.70 + $1,743.79
$3,321.49
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,321.49 / 21.86
$151.97
NYSE:VMI Discount to Share Price
Calculation Result
Value per share (USD) From above. $151.97
Current discount Discount to share price of $120.67
= -1 x ($120.67 - $151.97) / $151.97
20.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Valmont Industries is available for.
Intrinsic value
21%
Share price is $120.67 vs Future cash flow value of $151.97
Current Discount Checks
For Valmont Industries to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Valmont Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Valmont Industries's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Valmont Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Valmont Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:VMI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-30) in USD $4.14
NYSE:VMI Share Price ** NYSE (2019-05-17) in USD $120.67
United States of America Construction Industry PE Ratio Median Figure of 27 Publicly-Listed Construction Companies 16.1x
United States of America Market PE Ratio Median Figure of 3,088 Publicly-Listed Companies 17.89x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Valmont Industries.

NYSE:VMI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:VMI Share Price ÷ EPS (both in USD)

= 120.67 ÷ 4.14

29.16x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Valmont Industries is overvalued based on earnings compared to the US Construction industry average.
  • Valmont Industries is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Valmont Industries's expected growth come at a high price?
Raw Data
NYSE:VMI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.16x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
30.1%per year
United States of America Construction Industry PEG Ratio Median Figure of 23 Publicly-Listed Construction Companies 1.12x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NYSE:VMI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 29.16x ÷ 30.1%

0.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Valmont Industries is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Valmont Industries's assets?
Raw Data
NYSE:VMI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-30) in USD $49.33
NYSE:VMI Share Price * NYSE (2019-05-17) in USD $120.67
United States of America Construction Industry PB Ratio Median Figure of 34 Publicly-Listed Construction Companies 1.79x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NYSE:VMI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:VMI Share Price ÷ Book Value per Share (both in USD)

= 120.67 ÷ 49.33

2.45x

* Primary Listing of Valmont Industries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Valmont Industries is overvalued based on assets compared to the US Construction industry average.
X
Value checks
We assess Valmont Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check)
  5. Valmont Industries has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Valmont Industries expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
30.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Valmont Industries expected to grow at an attractive rate?
  • Valmont Industries's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Valmont Industries's earnings growth is expected to exceed the United States of America market average.
  • Valmont Industries's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:VMI Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:VMI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 30.1%
NYSE:VMI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 4.3%
United States of America Construction Industry Earnings Growth Rate Market Cap Weighted Average 25.4%
United States of America Construction Industry Revenue Growth Rate Market Cap Weighted Average 4.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:VMI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:VMI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 3,297 335 1
2021-12-31 3,172 315 1
2020-12-31 3,082 308 209 5
2019-12-31 2,942 278 189 6
NYSE:VMI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-30 2,751 128 92
2018-12-29 2,757 153 94
2018-09-29 2,775 92 73
2018-06-30 2,777 144 104
2018-03-31 2,807 143 117
2017-12-30 2,746 133 116
2017-09-30 2,706 214 190
2017-07-01 2,635 195 183
2017-04-01 2,563 162 179
2016-12-31 2,522 233 173
2016-09-24 2,481 217 73
2016-06-25 2,503 234 57

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Valmont Industries's earnings are expected to grow significantly at over 20% yearly.
  • Valmont Industries's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:VMI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Valmont Industries Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:VMI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 9.42 10.00 8.80 4.00
2019-12-31 8.54 8.63 8.30 5.00
NYSE:VMI Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-30 4.14
2018-12-29 4.23
2018-09-29 3.25
2018-06-30 4.61
2018-03-31 5.17
2017-12-30 5.16
2017-09-30 8.44
2017-07-01 8.13
2017-04-01 7.96
2016-12-31 7.68
2016-09-24 3.20
2016-06-25 2.48

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Valmont Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Valmont Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Valmont Industries has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Valmont Industries performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Valmont Industries's growth in the last year to its industry (Construction).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Valmont Industries's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Valmont Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Valmont Industries's 1-year earnings growth is negative, it can't be compared to the US Construction industry average.
Earnings and Revenue History
Valmont Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Valmont Industries Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:VMI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-30 2,750.60 91.55 418.27 11.50
2018-12-29 2,757.14 94.35 411.47 11.50
2018-09-29 2,774.76 73.08 413.47 11.60
2018-06-30 2,776.85 103.84 413.58 11.60
2018-03-31 2,807.18 116.54 409.61 11.60
2017-12-30 2,745.97 116.24 406.34 11.60
2017-09-30 2,705.56 189.92 405.91 8.30
2017-07-01 2,635.03 182.88 403.71 8.30
2017-04-01 2,562.54 179.24 402.19 8.30
2016-12-31 2,521.68 173.23 400.85 8.30
2016-09-24 2,480.93 72.61 391.36 11.60
2016-06-25 2,503.26 56.50 383.52 11.60
2016-03-26 2,545.13 42.35 395.76 11.60
2015-12-26 2,618.92 40.12 417.62 11.60
2015-09-26 2,748.23 111.14 418.23 13.90
2015-06-27 2,881.33 122.63 435.99 13.90
2015-03-28 3,041.80 158.74 436.14 13.90
2014-12-27 3,123.14 183.98 436.50 13.90
2014-09-27 3,187.90 198.38 447.44 10.20
2014-06-28 3,200.26 231.31 451.41 10.20
2014-03-29 3,236.32 256.90 452.91 10.20
2013-12-28 3,304.21 278.49 461.96 10.20
2013-09-28 3,291.36 288.66 455.55 7.10
2013-06-29 3,243.17 288.90 442.51 7.10
2013-03-30 3,131.82 259.32 428.74 7.10
2012-12-29 3,029.54 234.07 415.06 7.10
2012-09-29 2,967.23 283.77 417.17 6.20
2012-06-30 2,909.59 269.18 409.91 6.20

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Valmont Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Valmont Industries used its assets less efficiently than the US Construction industry average last year based on Return on Assets.
  • Valmont Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Valmont Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Valmont Industries has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Valmont Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Valmont Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Valmont Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Valmont Industries's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Valmont Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Valmont Industries Company Filings, last reported 1 month ago.

NYSE:VMI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-30 1,131.22 865.85 211.24
2018-12-29 1,135.52 753.28 313.21
2018-09-29 1,133.75 743.06 295.62
2018-06-30 1,149.82 989.65 722.59
2018-03-31 1,185.36 754.98 479.66
2017-12-30 1,151.80 755.02 492.81
2017-09-30 1,152.60 755.35 493.49
2017-07-01 1,102.45 755.73 448.22
2017-04-01 1,041.28 756.34 425.22
2016-12-31 982.59 756.39 399.95
2016-09-24 1,002.30 757.33 349.38
2016-06-25 994.17 761.17 344.35
2016-03-26 980.15 760.39 387.71
2015-12-26 965.21 758.97 349.07
2015-09-26 1,065.78 767.42 312.85
2015-06-27 1,140.59 774.28 317.52
2015-03-28 1,143.86 781.29 318.37
2014-12-27 1,250.41 781.79 371.58
2014-09-27 1,358.69 786.66 452.22
2014-06-28 1,615.09 496.17 455.93
2014-03-29 1,619.80 494.19 488.20
2013-12-28 1,544.85 490.13 613.71
2013-09-28 1,575.79 488.69 543.37
2013-06-29 1,498.36 488.12 490.48
2013-03-30 1,463.93 485.76 420.00
2012-12-29 1,407.01 486.19 414.13
2012-09-29 1,387.89 489.18 427.08
2012-06-30 1,307.84 491.21 328.38
  • Valmont Industries's level of debt (76.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (30.5% vs 76.5% today).
  • Debt is not well covered by operating cash flow (14.8%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.2x coverage).
X
Financial health checks
We assess Valmont Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Valmont Industries has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.24%
Current annual income from Valmont Industries dividends. Estimated to be 1.24% next year.
If you bought $2,000 of Valmont Industries shares you are expected to receive $25 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Valmont Industries's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Valmont Industries's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:VMI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Construction Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 1.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2000 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:VMI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 1.50 1.00
2021-12-31 1.50 1.00
2020-12-31 1.50 3.00
2019-12-31 1.50 3.00
NYSE:VMI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-04 1.500 1.147
2018-12-03 1.500 1.227
2018-09-04 1.500 1.140
2018-06-05 1.500 1.039
2018-03-06 1.500 1.036
2017-12-05 1.500 0.930
2017-09-06 1.500 0.943
2017-06-06 1.500 1.003
2017-03-07 1.500 0.992
2016-12-07 1.500 1.024
2016-09-07 1.500 1.125
2016-06-07 1.500 1.127
2016-03-08 1.500 1.168
2015-12-08 1.500 1.407
2015-09-09 1.500 1.408
2015-06-09 1.500 1.314
2015-03-10 1.500 1.216
2014-12-09 1.500 1.210
2014-09-09 1.500 1.107
2014-05-13 1.500 0.999
2014-03-11 1.000 0.672
2013-12-10 1.000 0.679
2013-09-10 1.000 0.710
2013-04-30 1.000 0.691
2013-03-12 0.900 0.598
2012-12-05 0.900 0.619
2012-09-11 0.900 0.676
2012-04-24 0.900 0.738
2012-03-12 0.720 0.613
2011-12-07 0.720 0.723
2011-09-07 0.720 0.851
2011-04-26 0.720 0.756
2011-03-14 0.660 0.652
2010-12-07 0.660 0.710
2010-09-08 0.660 0.861
2010-04-27 0.660 0.881
2010-03-12 0.600 0.714
2009-12-18 0.600 0.804
2009-09-09 0.600 0.748

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Valmont Industries's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (7x coverage).
X
Income/ dividend checks
We assess Valmont Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Valmont Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Valmont Industries has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Valmont Industries's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Steve Kaniewski
COMPENSATION $4,428,908
AGE 46
TENURE AS CEO 1.4 years
CEO Bio

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 Officer since October 2016 until December 2017. Mr. Kaniewski served as Group President of Global Utility at Valmont Industries, Inc. since August 30, 2015 until October 1, 2016 and served as its Vice President, Global Operations for the Irrigation Segment. Mr. Kaniewski served as Vice President of Information Technology at Valmont Industries, Inc. since August 2010. Mr. Kaniewski served as Vice President of Global IT Applications from September 2007 until August 2010 and Vice President of Operations (Specialty Division) from November 1999 until September 2007 at Belden, Inc. He serves as the Chairman of the Board of the AIM Institute in Omaha, a not-for-profit organization dedicated to promoting vibrant communities through technology. He has been a Director of Valmont Industries, Inc. since January 1, 2018. He is a graduate of Santa Clara University with a BS in Sociology.

CEO Compensation
  • Steve's compensation has been consistent with company performance over the past year.
  • Steve's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Valmont Industries management team in years:

3
Average Tenure
47
Average Age
  • The tenure for the Valmont Industries management team is about average.
Management Team

Steve Kaniewski

TITLE
President
COMPENSATION
$4M
AGE
46
TENURE
1.4 yrs

Mark Jaksich

TITLE
Executive VP
COMPENSATION
$2M
AGE
60
TENURE
5.3 yrs

Tim Francis

TITLE
Senior VP & Corporate Controller
COMPENSATION
$868K
AGE
41
TENURE
4.9 yrs

Renee Campbell

TITLE
Director of Investor Relations & Corporate Communications

Andy Massey

TITLE
VP of Legal & Compliance Officer
AGE
48
TENURE
3 yrs

Tom Sanderson

TITLE
VP of Sales & Marketing

Matt Ondrejko

TITLE
Vice President of Global Marketing

Thomas Parnell

TITLE
Senior Vice President of Human Resources
TENURE
0.3 yrs

Viswanath Devarajan

TITLE
Managing Director of India

David Wong

TITLE
Managing Director of Asia
Board of Directors Tenure

Average tenure and age of the Valmont Industries board of directors in years:

8.8
Average Tenure
67
Average Age
  • The tenure for the Valmont Industries board of directors is about average.
Board of Directors

Mogens Bay

TITLE
Non-Executive Chairman
COMPENSATION
$957K
AGE
69
TENURE
22.3 yrs

Steve Kaniewski

TITLE
President
COMPENSATION
$4M
AGE
46
TENURE
1.3 yrs

Walter Scott

TITLE
Independent Director
COMPENSATION
$235K
AGE
87
TENURE
38.1 yrs

Dan Neary

TITLE
Director
COMPENSATION
$247K
AGE
66
TENURE
13.4 yrs

Sandy Randt

TITLE
Director
COMPENSATION
$235K
AGE
72
TENURE
10.3 yrs

Cathy Paglia

TITLE
Lead Director
COMPENSATION
$255K
AGE
66
TENURE
1.1 yrs

Kaj den Daas

TITLE
Independent Director
COMPENSATION
$229K
AGE
68
TENURE
14.6 yrs

James Milliken

TITLE
Director
COMPENSATION
$223K
AGE
61
TENURE
7.4 yrs

Theo Freye

TITLE
Director
COMPENSATION
$223K
AGE
69
TENURE
3.9 yrs

Donna Milrod

TITLE
Director
COMPENSATION
$134K
AGE
51
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Valmont Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Valmont Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Good Is Valmont Industries, Inc. (NYSE:VMI), When It Comes To ROE?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Valmont Industries: 8.6% = US$92m ÷ US$1.1b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Valmont Industries Have A Good Return On Equity? … One simple way to determine if a company has a good return on equity is to compare it to the average for its industry.

Simply Wall St -

Is Valmont Industries, Inc.'s (NYSE:VMI) Balance Sheet A Threat To Its Future?

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Valmont Industries, Inc. … Don’t forget that this is a general and concentrated examination of Valmont Industries’s financial health, so you should conduct further analysis. … View our latest analysis for Valmont Industries

Simply Wall St -

Why Valmont Industries, Inc. (NYSE:VMI) Is An Attractive Investment To Consider

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … that has been able to sustain great financial health over the past

Simply Wall St -

Is Valmont Industries, Inc. (NYSE:VMI) A Financially Sound Company?

Investors are always looking for growth in small-cap stocks like Valmont Industries, Inc. … However, an important fact which most ignore is: how financially healthy is the business? … The following basic checks can help you get a picture of the company's balance sheet strength.

Simply Wall St -

Does Valmont Industries's (NYSE:VMI) Share Price Gain of 11% Match Its Business Performance?

(NYSE:VMI) share price is up 11% in the last three years, that falls short of the market return. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Valmont Industries was able to grow its EPS at 35% per year over three years, sending the share price higher.

Simply Wall St -

Valmont Industries, Inc. (NYSE:VMI): Does The Earnings Decline Make It An Underperformer?

After looking at Valmont Industries, Inc.'s (NYSE:VMI) latest earnings update (29 December 2018), I found it helpful to revisit the company's performance in the past couple of years and compare this against the latest numbers. … VMI's trailing twelve-month earnings (from 29 December 2018) of US$94m has. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of -17%, indicating the rate at which VMI is growing has slowed down

Simply Wall St -

Is There Now An Opportunity In Valmont Industries, Inc. (NYSE:VMI)?

(NYSE:VMI), which is in the construction business, and is based in United States,. … As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at Valmont Industries’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Simply Wall St -

Is Valmont Industries, Inc. (NYSE:VMI) A Financially Sound Company?

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Valmont Industries, Inc. … While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories. … Check out our latest analysis for Valmont Industries.

Simply Wall St -

Should Valmont Industries, Inc. (NYSE:VMI) Focus On Improving This Fundamental Metric?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Valmont Industries has a return on equity of 7.1% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Who Has Been Selling Valmont Industries, Inc. (NYSE:VMI) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Valmont Industries, Inc. … Valmont Industries Insider Transactions Over The Last Year. … Over the last year, we can see that the biggest insider sale was by Independent Director Karel den Daas for US$159k worth of shares, at about US$159 per share.

Simply Wall St -

Company Info

Description

Valmont Industries, Inc. produces and sells fabricated metal products in the United States 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, 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. The Utility Support Structures segment manufactures engineered steel and concrete pole structures for the utility generation, transmission, and distribution applications; renewable energy generation equipment; and inspection services. The Coatings segment provides hot-dipped galvanizing, anodizing, powder coating, and e-coating services. The Irrigation segment manufactures agricultural irrigation equipment, and related parts and services under the Valley brand name for the agricultural industry; and tubular products for industrial customers. This segment also provides water management solutions for large-scale production agriculture; and technology for precision agriculture. The company serves municipalities and government entities, commercial lighting fixtures manufacturing companies, contractors, telecommunication and utility companies, and large farms, as well as the general manufacturing sector. Valmont Industries, Inc. was founded in 1946 and is headquartered in Omaha, Nebraska.

Details
Name: Valmont Industries, Inc.
VMI
Exchange: NYSE
Founded: 1946
$2,637,437,490
21,856,613
Website: http://www.valmont.com
Address: Valmont Industries, Inc.
One Valmont Plaza,
Omaha,
Nebraska, 68154,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE VMI Common Stock New York Stock Exchange US USD 02. Jan 1980
DB VI1 Common Stock Deutsche Boerse AG DE EUR 02. Jan 1980
Number of employees
Current staff
Staff numbers
10,328
Valmont Industries employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 01:45
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/04/25
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/30
Last annual earnings reported: 2018/12/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.