Valmont (VMI) AI Stock Analysis

• Market Cap: $6.48B
• Dividend Yield: 0.84%
• Average Volume (3M): 129.16K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 1.01
• Revenue Growth: -0.57%
• EPS Growth: 116.12%
• Country: US
• Employees: 10,986
• Sector: Industrials
• Sector Strength: 85
• Industry: Conglomerates
• EPS (TTM): 4.32
• Shares Outstanding: 20,070,978
• 10 Day Avg. Volume: 182,330
• 30 Day Avg. Volume: 129,158
• PEG Ratio: 1.02
• Price to Book (P/B): 4.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.25
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 6.44
• Enterprise Value/Ebitda: 3.45
• 1Y Price Target: $345.00
• Price Target Upside: 7.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: $370.00 ▲(15.37%Upside)

Valmont Industries' overall stock score reflects a strong financial position with effective cost management and strategic growth initiatives, particularly in infrastructure and telecommunications. The company's technical indicators show bullish momentum, supported by a fair valuation and positive corporate events, which enhance shareholder value and strategic positioning.

Positive Factors

International Market Growth

Valmont has seen positive trends in the company’s international markets, with Brazil’s volume returning to growth and the $45 million project in the Middle East remaining on track.

Operational Initiatives

Notable internal operational initiatives under new management have enhanced margins and driven more consistent financial performance.

Sustainable Infrastructure

Valmont's focus on sustainable infrastructure solutions positions the company well in markets with increasing demand for environmental resilience.

Negative Factors

Agriculture Sector Challenges

Prevailing headwinds in Agriculture could limit share price growth over the near term.

Economic Uncertainty

Economic uncertainties pose potential risks to Valmont's market performance.

Tariff Impact

Valmont management is increasingly cautious regarding the impact tariffs could have on earnings.

Valmont Business Overview & Revenue Model

Company Description

Valmont Industries, Inc. produces and sells fabricated metal products in the United States, Australia, Brazil, Denmark, and internationally. It operates through two segments: Infrastructure and Agriculture. The company 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. It also offers engineered steel and concrete pole structures for utility transmission, distribution, substations, and renewable energy generation equipment; and inspection services. In addition, the company provides hot-dipped galvanizing, anodizing, and powder coating services to preserve and protect metal products; and water management solutions and technology for precision agriculture. Further, it 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. 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.

How the Company Makes Money

Valmont makes money through the sale of its engineered products and services across its two main segments: Infrastructure and Agriculture. In the Infrastructure segment, revenue is generated from manufacturing and selling structures such as utility support structures, lighting and traffic structures, and wireless communications structures. This segment benefits from infrastructure development and maintenance projects globally. In the Agriculture segment, Valmont earns revenue by providing mechanized irrigation equipment and technology solutions that help optimize water use and improve crop yields. Key revenue streams in this segment include sales of center pivots, linear irrigation systems, and related components and technology solutions. Additionally, Valmont's earnings are supported by strategic partnerships and long-term contracts with governments, municipalities, and private sector clients, which ensure a steady demand for its products and services.

Valmont Financial Statement Overview

Summary

Valmont demonstrates a solid financial standing with competitive profit margins and a healthy balance sheet characterized by low leverage and strong equity. Despite a slight revenue decline, operational efficiency and cash flow generation remain strengths, positioning the company well for sustainable growth and resilience against potential market fluctuations.

Income Statement

Valmont displays a stable financial performance with a strong gross profit margin of 30.14% as of the TTM, indicating effective cost management. However, the net profit margin of 8.55% reflects moderate profitability, partly due to fluctuating revenues and net income. The revenue growth rate saw a decline of 3.11% compared to the previous year, signaling potential challenges in sales growth. EBIT and EBITDA margins at 12.79% and 14.57% respectively, suggest a solid core operating performance.

Balance Sheet

The company maintains a strong balance sheet with a debt-to-equity ratio of 0.04, indicating low leverage and minimal financial risk. The return on equity stands at 10.30%, demonstrating efficient use of equity to generate profits. The equity ratio is 100%, showcasing a robust capital structure with equity fully supporting total assets, further enhancing its financial stability.

Cash Flow

Valmont exhibits a strong cash flow performance with a free cash flow growth rate of 5.37%, indicating healthy cash generation. The operating cash flow to net income ratio of 1.77 suggests efficient cash conversion from earnings. Moreover, the free cash flow to net income ratio of 1.49 highlights effective cash management, supporting future investments and shareholder returns.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.07B	4.08B	4.17B	4.35B	3.50B	2.90B
	Gross Profit
1.23B	1.24B	1.24B	1.13B	883.89M	765.51M
	EBIT
520.16M	524.58M	291.56M	433.25M	286.79M	225.95M
	EBITDA
614.56M	524.58M	393.72M	540.50M	421.84M	355.94M
	Net Income Common Stockholders
347.70M	348.26M	150.85M	250.86M	195.63M	140.69M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
184.40M	164.31M	203.04M	185.41M	177.23M	400.73M
	Total Assets
3.38B	3.33B	3.48B	3.56B	3.45B	2.96B
	Total Debt
862.79M	866.84M	1.27B	1.03B	1.11B	766.33M
	Net Debt
678.39M	702.52M	1.07B	848.04M	935.92M	365.60M
	Total Liabilities
1.68B	1.74B	2.06B	1.92B	2.03B	1.75B
	Stockholders Equity
1.64B	1.54B	1.35B	1.64B	1.41B	1.21B
Cash Flow		Free Cash Flow
519.72M	493.23M	210.00M	232.98M	-41.85M	209.59M
	Operating Cash Flow
614.48M	572.68M	306.77M	326.26M	65.94M	316.29M
	Investing Cash Flow
-90.43M	-78.88M	-115.28M	-132.08M	-417.31M	-104.03M
	Financing Cash Flow
-504.72M	-522.56M	-176.41M	-181.91M	133.50M	-173.76M

Valmont Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 320.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VMI, the sentiment is Positive. The current price of 320.7 is above the 20-day moving average (MA) of 320.46, above the 50-day MA of 306.74, and above the 200-day MA of 312.98, indicating a bullish trend. The MACD of 3.66 indicates Positive momentum. The RSI at 53.05 is Neutral, neither overbought nor oversold. The STOCH value of 43.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VMI.

Valmont Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMI	80 Outperform	$6.48B	18.79	22.84%	0.84%	-0.57%	116.12%
HON	80 Outperform	$144.02B	25.74	33.56%	2.02%	6.30%	0.81%
MDU	68 Neutral	$3.31B	12.65	9.63%	3.21%	-25.50%	-45.13%
GFF	66 Neutral	$3.22B	14.18	110.90%	1.05%	-3.38%	26.22%
Sector *	66 Neutral	$4.49B	12.22	5.40%	3.71%	4.17%	-11.97%
MMM	57 Neutral	$78.07B	18.33	94.75%	2.05%	-24.93%	―
SEB	54 Neutral	$2.64B	26.95	2.09%	0.33%	-0.31%	-58.07%

Valmont Corporate Events

Valmont Highlights Growth Strategy at Blair Conference

On June 4, 2025, Valmont Industries participated in the William Blair & Company 45th Annual Growth Stock Conference in Chicago. The company highlighted its strategic focus on capitalizing on infrastructure opportunities and positioning agriculture for growth. Valmont is investing in new capabilities to meet growing demand, enhancing operational efficiencies, and aligning capital allocation with strategic growth plans. The company is also committed to increasing shareholder returns through balanced capital allocation, including a new $700 million share repurchase authorization and a 13% dividend increase announced in February 2025.

The most recent analyst rating on (VMI) stock is a Buy with a $285.00 price target. To see the full list of analyst forecasts on Valmont stock, see the VMI Stock Forecast page.

Valmont Announces Executive Position Eliminations and Transitions

On May 14, 2025, Valmont Industries, Inc. announced separation agreements with John T. Donahue and Diane M. Larkin, following the elimination of their executive positions on April 29, 2025. Both transitioned to non-executive advisor roles and will remain employed until December 27, 2025, receiving their base salary, health benefits, and participating in existing incentive plans. They will receive severance payments and continue to vest in previously awarded stock units and options, but are not eligible for new incentives. This orderly transition reflects Valmont’s strategic personnel adjustments, impacting its operational dynamics and stakeholder relations.

The most recent analyst rating on (VMI) stock is a Buy with a $285.00 price target. To see the full list of analyst forecasts on Valmont stock, see the VMI Stock Forecast page.