Valmont (VMI) AI Stock Analysis

• Market Cap: $7.43B
• Dividend Yield: 0.68%
• Average Volume (3M): 188.71K
• Price to Earnings (P/E): 35.0
• Beta (1Y): 1.11
• Revenue Growth: -0.15%
• EPS Growth: 24.55%
• Country: US
• Employees: 10,986
• Sector: Industrials
• Sector Strength: 76
• Industry: Conglomerates
• EPS (TTM): 4.88
• Shares Outstanding: 19,738,495
• 10 Day Avg. Volume: 220,145
• 30 Day Avg. Volume: 188,712
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 1.80
• Enterprise Value/Gross Profit: 5.99
• Enterprise Value/Ebitda: 15.54
• 1Y Price Target: $400.00
• Price Target Upside: 6.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 77 Outperform
• Price Target: $410.00 ▲(9.53% Upside)

Valmont Industries demonstrates a strong overall position, driven by a robust financial structure and positive earnings call insights. The company's strategic initiatives and recent corporate developments support future growth. However, valuation concerns and technical indicators suggest caution due to potential overvaluation and market volatility.

Positive Factors

Earnings

Valmont reported a solid quarter with both adjusted EPS and sales above consensus expectations.

International Projects

Valmont won another $20 million irrigation project in Africa, a sign of continued momentum in the region.

Telecom Growth

Valmont’s telecom business grew 40% year-over-year in the second quarter, driven by 5G investment and including an uptick in small-cell activity.

Negative Factors

Economic Risks

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

Tariff Impact

Tariffs creating uncertainty for Valmont Industries.

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 generates revenue primarily through the sale of its products and services across its three segments. The Utility Support Structures segment contributes significantly by providing engineered structures for utility applications, including transmission and distribution of electricity, as well as communications infrastructure. The Coatings segment earns revenue by offering protective coatings that extend the life of metal products, catering to various industries such as infrastructure and agriculture. The Irrigation segment derives income from selling advanced irrigation systems and services, which are increasingly in demand due to the global need for efficient water use in agriculture. Additionally, Valmont has established strategic partnerships with various utility companies and agricultural enterprises, enhancing its market reach and driving consistent revenue growth. The company's ongoing investments in innovation and sustainability also play a crucial role in maintaining its competitive edge and expanding its customer base.

Valmont Financial Statement Overview

Summary

Valmont demonstrates a stable financial position with strong margins and effective cash flow management. The robust balance sheet, coupled with effective debt management, reflects a solid financial standing. However, stagnant revenue growth and potential improvements in profitability margins indicate areas for enhancement.

Income Statement

Valmont's TTM (Trailing-Twelve-Months) shows a stable gross profit margin of 30.08% and a net profit margin of 5.98%, indicating efficient cost management. However, the revenue growth has been stagnant with slight declines over recent periods, reflecting challenges in expanding market share or pricing power. EBIT and EBITDA margins are at 9.89% and 11.60% respectively, demonstrating solid operating efficiency but potential room for improvement in profitability.

Balance Sheet

The company's balance sheet is robust with a high equity ratio of 100% in the TTM, indicating a completely equity-funded asset base. The debt-to-equity ratio has improved significantly from previous years, showing effective debt management. Return on Equity (ROE) stands at 7.29%, which is reasonable but reflects potential for increased profitability.

Cash Flow

Valmont exhibits strong cash flow management with a positive free cash flow growth rate of 10.07% in TTM. The operating cash flow to net income ratio is healthy at 2.67, indicating strong cash generation relative to profit. The free cash flow to net income ratio of 2.23 underscores effective capital expenditure control and liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.08B	4.08B	4.17B	4.35B	3.50B	2.90B
Gross Profit	1.23B	1.24B	1.24B	1.13B	883.89M	765.51M
EBITDA	472.97M	524.58M	393.72M	540.50M	421.84M	355.94M
Net Income	243.96M	348.26M	150.85M	250.86M	195.63M	140.69M
Balance Sheet
Total Assets	3.35B	3.33B	3.48B	3.56B	3.45B	2.96B
Cash, Cash Equivalents and Short-Term Investments	208.53M	164.31M	203.04M	185.41M	177.23M	400.73M
Total Debt	131.05M	889.28M	1.27B	1.03B	1.11B	766.33M
Total Liabilities	1.73B	1.74B	2.06B	1.92B	2.03B	1.75B
Stockholders Equity	3.35B	1.54B	1.35B	1.64B	1.41B	1.21B
Cash Flow
Free Cash Flow	542.85M	493.23M	210.00M	232.98M	-41.85M	209.59M
Operating Cash Flow	651.27M	572.68M	306.77M	326.26M	65.94M	316.29M
Investing Cash Flow	-106.46M	-78.88M	-115.28M	-132.08M	-417.31M	-104.03M
Financing Cash Flow	-503.14M	-522.56M	-176.41M	-181.91M	133.50M	-173.76M

Valmont Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 374.33
• 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 374.33 is above the 20-day moving average (MA) of 370.75, above the 50-day MA of 351.29, and above the 200-day MA of 326.72, indicating a bullish trend. The MACD of 6.29 indicates Positive momentum. The RSI at 59.62 is Neutral, neither overbought nor oversold. The STOCH value of 67.66 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	77 Outperform	$7.43B	35.02	14.51%	0.68%	-0.15%	24.55%
HON	75 Outperform	$141.30B	25.08	34.60%	2.04%	7.16%	0.21%
SEB	72 Outperform	$3.56B	25.75	2.92%	0.24%	4.70%	-44.60%
GFF	65 Neutral	$3.60B	56.54	48.69%	0.88%	-3.37%	-61.83%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%
MMM	58 Neutral	$83.39B	21.68	96.00%	1.85%	-19.56%	325.26%
MDU	54 Neutral	$3.34B	15.53	7.98%	2.83%	-40.60%	-47.10%

Valmont Corporate Events

Valmont Secures $800 Million Credit Agreement

On July 10, 2025, Valmont Industries, Inc. and its subsidiaries entered into a Third Amended and Restated Credit Agreement with JPMorgan Chase Bank, providing a five-year, $800 million unsecured revolving credit facility. The agreement extends the maturity date to July 10, 2030, and introduces changes such as an increased uncommitted accordion feature, elimination of a credit spread adjustment, and reduced commitment fees, while allowing future sustainability pricing adjustments.

The most recent analyst rating on (VMI) stock is a Buy with a $382.00 price target. To see the full list of analyst forecasts on Valmont stock, see the VMI Stock Forecast page.

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.