Valmont (VMI) AI Stock Analysis

• Market Cap: $8.15B
• Dividend Yield: 0.64%
• Average Volume (3M): 155.14K
• Price to Earnings (P/E): 35.6
• Beta (1Y): 1.01
• Revenue Growth: 1.23%
• EPS Growth: -22.77%
• Country: US
• Employees: 10,986
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 4.98
• Shares Outstanding: 19,699,638
• 10 Day Avg. Volume: 110,512
• 30 Day Avg. Volume: 155,143
• 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: 1.02
• Enterprise Value/Revenue: 2.04
• Enterprise Value/Gross Profit: 6.72
• Enterprise Value/Ebitda: 16.47
• 1Y Price Target: $456.67
• Price Target Upside: 7.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $458.00 ▲(8.03% Upside)

Valmont's overall stock score reflects strong earnings performance and positive technical indicators, despite valuation concerns and sector-specific challenges. The company's strategic investments and growth in key segments bolster its outlook, but profitability and cash flow issues need attention.

Positive Factors

Utility and Telecom Segment Growth

The significant growth in utility and telecom segments highlights Valmont's strong market position and ability to capitalize on infrastructure demand, ensuring sustained revenue growth and competitive advantage.

Capital and Capacity Expansion

Strategic investments in capacity expansion enhance Valmont's ability to meet future demand, supporting long-term growth and strengthening its infrastructure segment's market position.

Strong Cash Flow Management

Effective cash flow management provides Valmont with the financial flexibility to invest in growth opportunities and weather economic fluctuations, underpinning its long-term financial stability.

Negative Factors

Agriculture Sales Decline

The decline in agriculture sales indicates challenges in this segment, potentially impacting Valmont's revenue diversification and growth prospects if not addressed.

Operational Challenges in Lighting and Transportation

Continued sales decline in lighting and transportation reflects operational challenges that could hinder segment recovery and overall profitability if persistent.

Bad Debt Expense in Agriculture Segment

The bad debt expense in the agriculture segment due to tighter credit conditions poses a risk to Valmont's financial health and highlights potential vulnerabilities in credit management.

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 through multiple key streams. The primary source of income comes from the sale of engineered steel and aluminum products, which cater to sectors such as telecommunications, energy, and transportation. This includes the production of utility poles, towers, and traffic management systems. Additionally, Valmont's agricultural division contributes significantly to earnings through the sale of irrigation equipment and systems designed to optimize crop yields. The company also earns revenue from its coating services, which involve applying protective coatings to metal structures to prevent corrosion and damage. Strategic partnerships with utility companies, agricultural firms, and municipalities further bolster Valmont's market position and revenue generation capabilities. Overall, Valmont's diversified product offerings and strategic market presence enable it to capitalize on demand across various industries.

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	4.10B	4.08B	4.17B	4.35B	3.50B	2.90B
Gross Profit	1.24B	1.24B	1.24B	1.13B	883.89M	765.51M
EBITDA	507.24M	622.80M	391.97M	508.59M	395.27M	316.74M
Net Income	233.68M	348.26M	143.47M	250.86M	195.63M	140.69M
Balance Sheet
Total Assets	3.37B	3.33B	3.48B	3.56B	3.45B	2.96B
Cash, Cash Equivalents and Short-Term Investments	226.11M	164.31M	203.04M	185.41M	177.23M	400.73M
Total Debt	858.28M	866.84M	1.27B	1.03B	1.11B	846.53M
Total Liabilities	1.70B	1.74B	2.06B	1.92B	2.03B	1.75B
Stockholders Equity	1.60B	1.54B	1.35B	1.58B	1.39B	1.18B
Cash Flow
Free Cash Flow	482.72M	493.23M	210.00M	232.98M	-41.85M	209.59M
Operating Cash Flow	538.66M	572.68M	306.77M	326.26M	65.94M	316.29M
Investing Cash Flow	-142.48M	-78.88M	-115.28M	-132.08M	-417.31M	-104.03M
Financing Cash Flow	-368.46M	-522.56M	-176.41M	-181.91M	133.50M	-173.76M

Valmont Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 423.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 423.95 is above the 20-day moving average (MA) of 404.06, above the 50-day MA of 405.41, and above the 200-day MA of 350.43, indicating a bullish trend. The MACD of 4.20 indicates Negative momentum. The RSI at 63.73 is Neutral, neither overbought nor oversold. The STOCH value of 69.29 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
HON	77 Outperform	$120.74B	20.03	35.85%	2.28%	7.48%	9.55%
VMI	71 Outperform	$8.15B	35.61	14.90%	0.64%	1.23%	-22.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MMM	59 Neutral	$87.10B	26.20	73.38%	1.76%	-13.09%	-20.63%

Valmont Corporate Events

Valmont Appoints New Chief Accounting Officer

On October 20, 2025, Valmont Industries, Inc. appointed William E. Johnson as Chief Accounting Officer. Johnson, who previously held senior roles at Conagra Brands, brings extensive experience from his tenure at KPMG and his academic background in accounting. This leadership change is expected to influence Valmont’s strategic direction, particularly as Timothy P. Francis transitions to focus on the company’s Infrastructure segment.