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Valmont Industries (VMI)
:VMI
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Valmont
(NYSE:VMI)80Outperform
Valmont (VMI) vs. S&P 500 (SPY)
Market Cap
$6.80B
Dividend Yield0.71%
Average Volume (3M)129.05K
Price to Earnings (P/E)19.7
Beta (1Y)1.04
Revenue Growth-2.38%
EPS Growth141.60%
CountryUS
Employees11,125
SectorIndustrials
Sector Strength66
IndustryIndustrial Conglomerates
Share Statistics
EPS (TTM)17.18
Shares Outstanding20,045,510
10 Day Avg. Volume158,028
30 Day Avg. Volume129,046
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)N/A
Price to Sales (P/S)1.63
Price to Cash Flow (P/CF)8.60
P/FCF Ratio8.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$402.50Price Target Upside21.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Valmont Business Overview & Revenue Model
Company DescriptionValmont Industries, Inc. (VMI) is a diversified global producer of fabricated metal products and a leading provider of infrastructure solutions. The company operates in various sectors including infrastructure, agriculture, and coatings. Valmont is well-known for its wide range of products such as engineered support structures for lighting and traffic, wireless communication, and utility markets, as well as mechanized irrigation equipment for agriculture and protective coatings services.
How the Company Makes MoneyValmont Industries generates revenue through multiple streams. A significant portion comes from its infrastructure segment, where it sells engineered metal products used in utility, lighting, and wireless communication structures. The company also earns substantial income from its agriculture segment, primarily through the sale of mechanized irrigation systems which are essential for efficient water use in farming. Additionally, Valmont's coatings business provides protective services to extend the life and performance of metal products, contributing to its earnings. Strategic partnerships and contracts with government bodies and private sector clients further bolster its revenue, as do its operations in international markets, which provide a diversified income base.
Valmont Financial Statement Overview
Summary
Valmont's financial statements reflect strong financial health, with improved profitability, solid financial stability, and robust cash generation. While there is a past revenue decline, the company's current financial metrics mitigate these concerns.Income Statement
Valmont has demonstrated strong financial performance with a steady increase in gross profit margin, rising to 30.46% in the latest year. Despite a slight decline in total revenue from the previous year, net profit margin improved significantly to 8.55%, indicating enhanced cost management. EBIT and EBITDA margins also reflect robust operational efficiency, contributing positively to the company's profitability.78
Positive
Balance Sheet
The balance sheet shows a solid equity position with an equity ratio of 46.30%, indicating financial stability. The debt-to-equity ratio has improved significantly, showcasing effective debt management. Return on equity increased to 22.58%, highlighting efficient use of shareholders' equity to generate profits.72
Positive
Cash Flow
The robust free cash flow growth rate of 134.92% and substantial operating cash flow to net income ratio of 1.64 demonstrate strong cash generation capabilities. The company effectively converts its earnings into cash, supporting its financial health and providing flexibility for future investments.81
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.08B | 4.17B | 4.35B | 3.50B | 2.90B | Gross Profit |
| 1.24B | 1.24B | 1.13B | 883.89M | 765.51M | EBIT |
| 524.58M | 291.56M | 433.25M | 286.79M | 225.95M | EBITDA |
| 524.58M | 393.72M | 540.50M | 421.84M | 355.94M | Net Income Common Stockholders |
| 348.26M | 150.85M | 250.86M | 195.63M | 140.69M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 164.31M | 203.04M | 185.41M | 177.23M | 400.73M | Total Assets |
| 3.33B | 3.48B | 3.56B | 3.45B | 2.96B | Total Debt |
| 136.90M | 1.27B | 1.03B | 1.11B | 766.33M | Net Debt |
| -27.42M | 1.07B | 848.04M | 935.92M | 365.60M | Total Liabilities |
| 1.74B | 2.06B | 1.92B | 2.03B | 1.75B | Stockholders Equity |
| 1.54B | 1.35B | 1.64B | 1.41B | 1.21B |
| Cash Flow | Free Cash Flow | |||
| 493.23M | 210.00M | 232.98M | -41.85M | 209.59M | Operating Cash Flow |
| 572.68M | 306.77M | 326.26M | 65.94M | 316.29M | Investing Cash Flow |
| -78.88M | -115.28M | -132.08M | -417.31M | -104.03M | Financing Cash Flow |
| -522.56M | -176.41M | -181.91M | 133.50M | -173.76M |
Valmont Technical Analysis
Negative
330.36
Price Trends
328.71
Negative
328.51
Negative
301.63
Positive
Market Momentum
0.83
Positive
44.59
Neutral
22.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VMI, the sentiment is Negative. The current price of 330.36 is below the 20-day moving average (MA) of 339.96, above the 50-day MA of 328.71, and above the 200-day MA of 301.63, indicating a neutral trend. The MACD of 0.83 indicates Positive momentum. The RSI at 44.59 is Neutral, neither overbought nor oversold. The STOCH value of 22.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VMI.
Valmont Risk Analysis
Valmont disclosed 18 risk factors in its most recent earnings report. Valmont reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Valmont Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $6.80B | 19.72 | 24.05% | 0.71% | -2.38% | 141.60% | |
74 Outperform | $126.89B | 20.72 | 27.91% | 1.29% | -20.93% | -34.33% | |
73 Outperform | $12.04B | 26.94 | 16.15% | 1.38% | 0.78% | -8.42% | |
70 Outperform | $1.41B | 20.85 | 14.32% | 1.10% | -7.17% | -0.53% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
55 Neutral | $523.28M | ― | -1.15% | ― | 1.32% | -104.92% | |
53 Neutral | $6.83B | 46.40 | -10.11% | 1.27% | -19.08% | -136.41% |
* Industrials Sector Average
Performance Comparison
VMI
Valmont
327.97
113.80
53.14%
AGCO
Agco
102.70
-8.07
-7.29%
DE
Deere
499.62
130.14
35.22%
LNN
Lindsay
132.01
17.29
15.07%
NDSN
Nordson
215.31
-45.49
-17.44%
TWI
Titan International
8.98
-3.57
-28.45%
Valmont Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: 2.98% | Next Earnings Date: Apr 17, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance and strategic growth initiatives, including record earnings per share and substantial telecommunications sector recovery. However, challenges in the agriculture market and declines in the solar segment were noted, offsetting some of the positive momentum.Highlights
Strong Fourth Quarter Financial Performance
Fourth quarter net sales of $1.0 billion increased 2.1%. Operating income increased nearly 20% to $120 million, and earnings per share of $3.84 grew nearly 21%.
Record Full Year Earnings
Full year earnings per share of $17.19, a record for Valmont, improved nearly 15%, driven by improved operating income and share repurchases.
Utility Segment Growth
Utility sales increased nearly 6% in the fourth quarter due to higher average selling prices for utility products.
Telecommunications Sector Recovery
Telecommunications business saw strong sales growth of nearly 31% as carrier spending returned to more normalized levels.
Strong Operating Cash Flows
Delivered strong fourth quarter operating cash flows of $193 million, bringing the full year total to $573 million.
Capital Allocation Strategy
Board approved a new $700 million buyback authorization and a 13% increase to the quarterly dividend.
Successful Project Secured
Secured a new $45 million project in the Middle East, expected to be completed in 2025.
Lowlights
Agriculture Market Challenges
Full year net sales decreased 2.4% to $4.1 billion, with continued market softness in agriculture due to projected declines in cash receipts for corn and soybeans.
Solar Segment Decline
Solar sales declined by approximately 35% in the fourth quarter, largely due to the strategic exit from lower margin projects.
International Market Pressures
International agriculture sales faced $6.3 million of unfavorable foreign currency impacts, with farm income in Brazil remaining pressured due to lower soybean prices.
Company Guidance
During the Valmont Industries, Inc. fourth quarter and full-year 2024 earnings call, several key metrics and guidance for 2025 were provided. The company reported a 2.1% increase in fourth-quarter net sales, reaching $1.0 billion, and a significant 20% increase in operating income to $120 million. The operating margin rose by 170 basis points, reaching 11.6% of net sales. Earnings per share (EPS) grew by nearly 21% to $3.84. For the full year, net sales decreased by 2.4% to $4.1 billion, but operating income increased by 10.9% to $525 million. Operating margins improved by 160 basis points to 12.9% of net sales. The company expects 2025 net sales to be between $4.0 to $4.2 billion, with EPS projected to be in the range of $17.20 to $18.80. Valmont plans to allocate 50% of operating cash flows toward growth investments and 50% to shareholder returns, with an annual CapEx increase to approximately $150 million focused primarily on infrastructure growth. The company also announced a new $700 million share buyback authorization and a 13% increase in the quarterly dividend.Valmont Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Valmont Expands Board with Experienced Executive Appointment
Positive
Oct 28, 2024
Valmont Industries, Inc., a leader in infrastructure and agricultural productivity, has appointed Deborah Caplan to its Board of Directors, expanding the board to eleven members. Caplan, a seasoned executive with extensive experience from NextEra Energy and General Electric, is expected to enhance Valmont’s leadership and governance. Her expertise in talent development and operational excellence aligns with Valmont’s strategic goals of market expansion and innovation, promising long-term value for the company’s shareholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.