NYSE:VMI

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Proven track record with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Valmont Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VMI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.4%

VMI

-0.6%

US Construction

-4.1%

US Market


1 Year Return

-19.1%

VMI

-25.9%

US Construction

-14.9%

US Market

Return vs Industry: VMI exceeded the US Construction industry which returned -23.1% over the past year.

Return vs Market: VMI underperformed the US Market which returned -13.6% over the past year.


Shareholder returns

VMIIndustryMarket
7 Day10.4%-0.6%-4.1%
30 Day-9.9%-25.6%-19.1%
90 Day-28.0%-30.3%-23.4%
1 Year-18.0%-19.1%-25.3%-25.9%-13.2%-14.9%
3 Year-27.1%-29.6%-24.8%-26.5%10.7%3.5%
5 Year-5.7%-11.1%-7.4%-10.8%28.5%14.5%

Price Volatility Vs. Market

How volatile is Valmont Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

33.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VMI ($107.57) is trading below our estimate of fair value ($162.2)

Significantly Below Fair Value: VMI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VMI is poor value based on its PE Ratio (15.2x) compared to the Construction industry average (11.5x).

PE vs Market: VMI is poor value based on its PE Ratio (15.2x) compared to the US market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: VMI is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: VMI is overvalued based on its PB Ratio (2.1x) compared to the US Construction industry average (1.3x).


Next Steps

Future Growth

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

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VMI's forecast earnings growth (8% per year) is above the savings rate (1.7%).

Earnings vs Market: VMI's earnings (8% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: VMI's revenue (2.3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: VMI's revenue (2.3% 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


Next Steps

Past Performance

How has Valmont Industries performed over the past 5 years?

-0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VMI has high quality earnings.

Growing Profit Margin: VMI's current net profit margins (5.6%) are higher than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: VMI's earnings have declined by -0.5% per year over the past 5 years.

Accelerating Growth: VMI's earnings growth over the past year (63.4%) exceeds its 5-year average (-0.5% per year).

Earnings vs Industry: VMI earnings growth over the past year (63.4%) exceeded the Construction industry 23.5%.


Return on Equity

High ROE: VMI's Return on Equity (13.8%) is considered low.


Next Steps

Financial Health

How is Valmont Industries's financial position?


Financial Position Analysis

Short Term Liabilities: VMI's short term assets ($1.4B) exceed its short term liabilities ($513.8M).

Long Term Liabilities: VMI's short term assets ($1.4B) exceed its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: VMI's debt to equity ratio (68.1%) is considered high.

Reducing Debt: VMI's debt to equity ratio has increased from 62.6% to 68.1% over the past 5 years.

Debt Coverage: VMI's debt is well covered by operating cash flow (39.1%).

Interest Coverage: VMI's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet

Inventory Level: VMI has a high level of physical assets or inventory.

Debt Coverage by Assets: VMI's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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

1.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VMI's dividend (1.67%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2%).

High Dividend: VMI's dividend (1.67%) is low compared to the top 25% of dividend payers in the US market (5.56%).


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.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.1%), VMI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VMI's dividends in 3 years are forecast to be well covered by earnings (22.3% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Steve Kaniewski (47yo)

2.33s

Tenure

US$4,872,938

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 ($USD4.87M) is about average for companies of similar size in the US market ($USD4.60M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Kaniewski
President2.33yrsUS$4.87m0.042% $961.3k
Claudio Laterreur
Senior VP of Information Technology & Chief Information Officer0.92yrUS$822.17k0.0025% $57.4k
Thomas Parnell
Senior Vice President of Human Resources1.25yrsUS$890.03k0.0035% $81.0k
Timothy Francis
Senior VP & Corporate Controller5.83yrsUS$787.67k0.0096% $223.2k
Avner Applbaum
Executive VP & CFO0.083yrno datano data
Renee Campbell
Vice President of Investor Relations & Corporate Communicationsno datano datano data
R. Massey
VP, Chief Legal & Compliance Officer14.25yrsno data0.021% $482.3k
Thomas Sanderson
VP of Sales & Marketingno datano datano data
Matthew Ondrejko
Vice President of Global Marketingno datano datano data
Viswanath Devarajan
Managing Director of Indiano datano datano data

1.8yrs

Average Tenure

48yo

Average Age

Experienced Management: VMI's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stephen Kaniewski
President2.33yrsUS$4.87m0.042% $961.3k
Mogens Bay
Non-Executive Chairman23.25yrsUS$305.00k1.13% $26.3m
Walter Scott
Independent Director39yrsUS$238.50k0.63% $14.6m
Catherine Paglia
Lead Director2yrsUS$265.50k0.026% $604.8k
Daniel Neary
Independent Director14.33yrsUS$245.50k0.091% $2.1m
Karel den Daas
Independent Director15.5yrsUS$228.50k0.050% $1.2m
Theo Freye
Independent Director4.83yrsUS$222.00k0.016% $374.9k
Clark Randt
Independent Director11.17yrsUS$234.50k0.031% $707.3k
Donna Milrod
Independent Director2.25yrsUS$227.00k0.0013% $30.3k
James Milliken
Independent Director8.33yrsUS$221.00k0.027% $624.9k

9.8yrs

Average Tenure

68yo

Average Age

Experienced Board: VMI's board of directors are considered experienced (9.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: VMI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Valmont Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Valmont Industries, Inc.
  • Ticker: VMI
  • Exchange: NYSE
  • Founded: 1946
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$2.315b
  • Shares outstanding: 21.52m
  • Website: https://www.valmont.com

Number of Employees


Location

  • Valmont Industries, Inc.
  • One Valmont Plaza
  • Omaha
  • Nebraska
  • 68154-5215
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VMINYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1980
VI1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980
VI1BRSE (Berne Stock Exchange)YesCommon StockCHCHFJan 1980

Biography

Valmont Industries, Inc. produces and sells fabricated metal products in the United States, Australia, 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, 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 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 and distributes mechanical 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, telecommunications 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 00:58
End of Day Share Price2020/04/02 00:00
Earnings2019/12/28
Annual Earnings2019/12/28


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.