Valmont (VMI) AI Stock Analysis

• Market Cap: $7.46B
• Dividend Yield: 0.68%
• Average Volume (3M): 211.03K
• Price to Earnings (P/E): 35.2
• Beta (1Y): 1.09
• Revenue Growth: -0.15%
• EPS Growth: 24.55%
• Country: US
• Employees: 10,986
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 4.88
• Shares Outstanding: 19,738,495
• 10 Day Avg. Volume: 214,242
• 30 Day Avg. Volume: 211,028
• PEG Ratio: 0.12
• Price to Book (P/B): 4.00
• Price to Sales (P/S): 1.51
• P/FCF Ratio: 12.51
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 1.80
• Enterprise Value/Gross Profit: 5.99
• Enterprise Value/Ebitda: 14.85
• 1Y Price Target: $400.00
• Price Target Upside: 7.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 78 Outperform
• Price Target: $418.00 ▲(12.20% Upside)

Valmont Industries scores well due to its stable financial performance and strategic corporate actions. While technical indicators show moderate momentum, the valuation suggests the stock is relatively expensive. The earnings call provided a balanced view of strengths and challenges, with a positive long-term outlook.

Positive Factors

Strong Cash Flow Management

Valmont's strong cash flow and liquidity position provide a solid foundation for future investments and operational flexibility, enhancing long-term stability.

Strategic Growth Initiatives

These initiatives reflect Valmont's commitment to enhancing shareholder value and positioning itself for long-term growth in key sectors.

Utility and Telecom Sector Growth

Strong performance in utility and telecom sectors indicates Valmont's effective market positioning and ability to capitalize on infrastructure trends.

Negative Factors

Stagnant Revenue Growth

Stagnant revenue growth suggests challenges in expanding market share or pricing power, potentially limiting future top-line expansion.

Decline in Solar Sales

Exiting the North American solar market may limit Valmont's diversification and growth opportunities in renewable energy sectors.

Increased SG&A Expenses

Rising SG&A expenses could pressure margins and profitability if revenue growth does not offset these increased costs.

Valmont Business Overview & Revenue Model

Company Description

Valmont Industries, Inc. (VMI) is a global leader in manufacturing and supplying products and services for infrastructure and agriculture. The company operates through three main segments: Utility Support Structures, Coatings, and Irrigation. Valmont's core products include poles and structures for electrical transmission, wireless communication, and lighting, as well as a range of protective coatings for metal products and advanced irrigation systems designed to improve agricultural efficiency.

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. Despite stagnant revenue growth, the company maintains strong profitability and a robust balance sheet with a fully equity-backed asset structure.

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	495.00M	622.80M	391.97M	508.59M	395.27M	316.74M
Net Income	217.72M	348.26M	143.47M	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	861.09M	866.84M	1.27B	1.03B	1.11B	846.53M
Total Liabilities	1.73B	1.74B	2.06B	1.92B	2.03B	1.75B
Stockholders Equity	1.53B	1.54B	1.35B	1.58B	1.39B	1.18B
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: 372.54
• 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 372.54 is below the 20-day moving average (MA) of 373.62, above the 50-day MA of 363.72, and above the 200-day MA of 329.10, indicating a neutral trend. The MACD of 3.23 indicates Positive momentum. The RSI at 50.79 is Neutral, neither overbought nor oversold. The STOCH value of 33.70 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	78 Outperform	$7.46B	35.17	14.51%	0.68%	-0.15%	24.55%
HON	74 Outperform	134.39B	23.98	35.52%	2.14%	7.16%	0.21%
MMM	58 Neutral	82.64B	21.77	91.82%	1.86%	-19.56%	325.26%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.