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Valmont
(NYSE:VMI)
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Rating:69Neutral
Price Target:
$592.00
â–²(43.47% Upside)
Action:Downgraded
Date:06/17/26
The score is driven primarily by strong cash flow generation, improving leverage, and a positive earnings call with raised 2026 guidance and strong Infrastructure/Utility momentum. Offsetting factors are the sharp TTM revenue decline and a relatively expensive valuation (high P/E with a low dividend yield).
Positive Factors
Cash generation
High and improving free cash flow (~$419M TTM, +8.8%) with strong conversion versus reported profits provides durable internal funding for capex, debt paydown, dividends and buybacks. Reliable cash conversion reduces refinancing need and supports strategic investments across cycles.
Negative Factors
Sharp recent revenue contraction
A ~23.8% TTM revenue decline is a material top-line deterioration that raises earnings durability risk. If demand softness or lost projects persist, margins and cash generation could be pressured despite recent improvements, constraining reinvestment and returns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
High and improving free cash flow (~$419M TTM, +8.8%) with strong conversion versus reported profits provides durable internal funding for capex, debt paydown, dividends and buybacks. Reliable cash conversion reduces refinancing need and supports strategic investments across cycles.
Read all positive factors
Valmont Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down sales by region so investors can assess growth opportunities and risks tied to local markets, currency swings, or regional demand trends — important for understanding where Valmont is most exposed or gaining traction.
Breaks down sales by region so investors can assess growth opportunities and risks tied to local markets, currency swings, or regional demand trends — important for understanding where Valmont is most exposed or gaining traction.
Data provided by:
The Fly
The FlyValmont (VMI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.07B
Dividend Yield0.63%
Average Volume (3M)235.56K
Price to Earnings (P/E)32.2
Beta (1Y)0.96
Revenue Growth2.40%
EPS Growth4.95%
CountryUS
Employees10,986
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)17.62
Shares Outstanding19,413,650
10 Day Avg. Volume282,114
30 Day Avg. Volume235,561
Financial Highlights & Ratios
PEG Ratio10.34
Price to Book (P/B)5.00
Price to Sales (P/S)1.99
P/FCF Ratio26.20
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue2.82
Enterprise Value/Gross Profit9.27
Enterprise Value/Ebitda21.12
Forecast
1Y Price Target
$615.00Price Target Upside49.05% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)22.84
Revenue Forecast (FY)$4.31B
Valmont Business Overview & Revenue Model
Company Description
Valmont Industries, Inc. is a global enterprise specializing in engineered products, conducting operations across the United States, Australia, Brazil, Denmark, and other international markets. The company's business is organized into two primary ...
How the Company Makes Money
Valmont makes money primarily by manufacturing and selling engineered steel (and other material) products and systems used in critical infrastructure and agriculture, with revenue generally recognized upon shipment or delivery of products and, whe...
Valmont Earnings Call Summary
Earnings Call Date:Apr 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 21, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive tone driven by strong first-quarter financial results, robust Infrastructure demand (notably North America Utility), record EPS, improved margins, healthy cash generation, and an increased full-year outlook. Key concerns remain around the Agriculture business (sales down 15.1%), regional disruptions in the Middle East (including a paused Dubai facility), segment-specific softness in Lighting/Telecom, and exposure to recent tariff changes—issues management is addressing through capacity shifts, pricing, cost management and supply-chain adjustments. On balance, the positive operational momentum and upgraded guidance outweigh the headwinds.Positive Updates
Strong Overall Financial Performance
Net sales of $1.03 billion, up 6.2% year-over-year; operating income of $155.6 million with operating margin of 15.1%, up 190 basis points; diluted EPS of $5.51, up 27.5% year-over-year and a record first-quarter EPS.
Negative Updates
Agriculture Sales Decline and Near-Term Market Pressure
Agriculture sales declined 15.1% year-over-year to $227 million, driven by lower international sales; management expects near-term pressure in agriculture and has tightened selectivity in the pipeline, contributing to a lower agriculture sales outlook for 2026.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Overall Financial Performance
Net sales of $1.03 billion, up 6.2% year-over-year; operating income of $155.6 million with operating margin of 15.1%, up 190 basis points; diluted EPS of $5.51, up 27.5% year-over-year and a record first-quarter EPS.
Read all positive updates
Company Guidance
The company raised its 2026 outlook to net sales of $4.2–4.4 billion (infrastructure $3.3–3.45 billion; agriculture $0.9–0.95 billion) and diluted EPS of $21.50–$23.50 (midpoint representing roughly 4.8% revenue growth and 17.9% adjusted EPS growth), saying North America Utility pricing and volumes should remain elevated and are the primary driver; the guidance incorporates the April 6 Section 232 tariff changes (management expects to limit incremental tariff exposure to about 10% on Mexico‑sourced product by maximizing U.S. melt/pour steel), and the company plans $170–200 million of 2026 CapEx (majority to Utility); quarter‑to‑date metrics referenced alongside the outlook included Q1 net sales of $1.03 billion, Q1 diluted EPS $5.51, operating income $155.6 million (15.1% margin), Q1 operating cash flow $103.5 million, cash $160.2 million, net leverage ≈1x, Q1 CapEx $35 million, and $71 million returned to shareholders in the quarter.Valmont Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
64
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.16B | 4.10B | 4.08B | 4.17B | 4.35B | 3.50B |
| Gross Profit | 1.27B | 1.24B | 1.24B | 1.24B | 1.13B | 883.89M |
| EBITDA | 555.57M | 506.60M | 622.80M | 391.97M | 508.59M | 395.27M |
| Net Income | 344.80M | 350.27M | 348.26M | 143.47M | 250.86M | 195.63M |
Balance Sheet | ||||||
| Total Assets | 3.44B | 3.37B | 3.33B | 3.48B | 3.56B | 3.45B |
| Cash, Cash Equivalents and Short-Term Investments | 160.19M | 187.14M | 164.31M | 203.04M | 185.41M | 177.23M |
| Total Debt | 921.30M | 925.67M | 866.84M | 1.27B | 1.03B | 1.11B |
| Total Liabilities | 1.75B | 1.73B | 1.74B | 2.06B | 1.92B | 2.03B |
| Stockholders Equity | 1.68B | 1.63B | 1.54B | 1.35B | 1.58B | 1.39B |
Cash Flow | ||||||
| Free Cash Flow | 345.54M | 311.45M | 493.23M | 210.00M | 232.98M | -41.85M |
| Operating Cash Flow | 494.83M | 456.48M | 572.68M | 306.77M | 326.26M | 65.94M |
| Investing Cash Flow | -257.39M | -244.51M | -78.88M | -115.28M | -132.08M | -417.31M |
| Financing Cash Flow | -267.56M | -197.09M | -522.56M | -176.41M | -181.91M | 133.50M |
Valmont Technical Analysis
Positive
412.62
Price Trends
526.04
Positive
477.64
Positive
443.31
Positive
Market Momentum
15.43
Positive
54.44
Neutral
55.89
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 412.62 is below the 20-day moving average (MA) of 554.05, below the 50-day MA of 526.04, and below the 200-day MA of 443.31, indicating a bullish trend. The MACD of 15.43 indicates Positive momentum. The RSI at 54.44 is Neutral, neither overbought nor oversold. The STOCH value of 55.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VMI.
Valmont Risk Analysis
Valmont disclosed 24 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
UnderperformOutperform
Sector (63)
VMI
Valmont
559.02
220.06
64.92%
MMM
3M
159.96
8.82
5.83%
HON
Honeywell International
221.75
-9.50
-4.11%
Valmont Corporate Events
Business Operations and Strategy
Valmont to Host Investor Day Outlining Growth Strategy
Positive
Jun 16, 2026
Valmont Industries plans to host an Investor Day in New York City on June 16, 2026, with a live webcast, where senior leadership will outline its growth strategy, capital allocation priorities and detailed 2026–2029 financial and market oppo...
Executive/Board Changes
Valmont Finalizes CFO Transition and Retirement Arrangements
Neutral
Jun 1, 2026
Valmont Industries Inc. has previously appointed John Schwietz as Executive Vice President, Chief Financial Officer and Corporate Secretary, effective April 8, 2026, succeeding outgoing CFO Thomas Liguori. On May 26, 2026, the company formalized L...
Executive/Board Changes
Valmont Details Performance-Focused Compensation for New CFO
Positive
Apr 15, 2026
Valmont Industries, Inc. has detailed the compensation package for newly appointed Executive Vice President, Chief Financial Officer and Corporate Secretary John Schwietz, following its earlier announcement of his promotion. The package includes a...
Executive/Board Changes
Valmont Names John Schwietz as New Chief Financial Officer
Positive
Apr 9, 2026
Valmont Industries, Inc. appointed longtime executive John Schwietz as Executive Vice President, Chief Financial Officer and Corporate Secretary, effective April 8, 2026, succeeding Thomas Liguori. Schwietz, who joined Valmont in 2009, has held se...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.