Valmont (VMI) AI Stock Analysis

• Market Cap: $8.24B
• Dividend Yield: 0.63%
• Average Volume (3M): 159.76K
• Price to Earnings (P/E): 35.9
• Beta (1Y): 1.13
• 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: 19,738,495
• 10 Day Avg. Volume: 167,095
• 30 Day Avg. Volume: 159,763
• 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: 1.01
• Enterprise Value/Revenue: 2.72
• Enterprise Value/Gross Profit: 8.98
• Enterprise Value/Ebitda: 22.91
• 1Y Price Target: $456.67
• Price Target Upside: 9.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: $418.00 ▲(0.15% Upside)

Valmont's strong financial performance and positive earnings call, highlighting growth in key segments and strategic investments, are the primary drivers of the score. Technical indicators support a bullish outlook, though valuation concerns slightly temper the overall score.

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. (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 2019	Dec 2018
Income Statement
Total Revenue	3.07B	4.08B	4.17B	4.35B	2.77B	2.76B
Gross Profit	930.51M	1.24B	1.24B	1.13B	682.68M	658.28M
EBITDA	364.57M	622.80M	391.97M	508.59M	322.27M	270.50M
Net Income	156.03M	348.26M	143.47M	250.86M	146.41M	94.35M
Balance Sheet
Total Assets	3.37B	3.33B	3.48B	3.56B	2.76B	2.53B
Cash, Cash Equivalents and Short-Term Investments	226.11M	164.31M	203.04M	185.41M	353.54M	313.21M
Total Debt	858.28M	866.84M	1.27B	1.03B	873.29M	753.28M
Total Liabilities	1.70B	1.74B	2.06B	1.92B	1.62B	1.39B
Stockholders Equity	1.60B	1.54B	1.35B	1.58B	1.14B	1.14B
Cash Flow
Free Cash Flow	314.92M	493.23M	210.00M	232.98M	210.19M	81.02M
Operating Cash Flow	345.24M	572.68M	306.77M	326.26M	307.61M	153.01M
Investing Cash Flow	-118.70M	-78.88M	-115.28M	-132.08M	-168.15M	-155.44M
Financing Cash Flow	-171.78M	-522.56M	-176.41M	-181.91M	-98.95M	-162.11M

Valmont Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 417.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 417.39 is above the 20-day moving average (MA) of 404.15, above the 50-day MA of 386.09, and above the 200-day MA of 339.40, indicating a bullish trend. The MACD of 8.87 indicates Negative momentum. The RSI at 61.85 is Neutral, neither overbought nor oversold. The STOCH value of 85.70 is Negative, 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	―	$136.13B	22.59	35.85%	2.11%	7.48%	9.55%
VMI	―	$8.24B	35.92	14.90%	0.63%	1.23%	-22.77%
MMM	―	$89.51B	26.93	73.38%	1.73%	-13.09%	-20.63%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.

The most recent analyst rating on (VMI) stock is a Hold with a $415.00 price target. To see the full list of analyst forecasts on Valmont stock, see the VMI Stock Forecast page.

Valmont Industries Reports Strong Q3 2025 Results

Valmont Industries, Inc. is a global leader in providing products and solutions that support vital infrastructure and enhance agricultural productivity. The company operates primarily in the infrastructure and agriculture sectors, focusing on innovation and performance enhancement.

Valmont Industries Reports Strong Earnings Amid Challenges

Valmont Industries’ recent earnings call reflected a generally positive sentiment, highlighting robust financial performance and growth in key segments such as utility, telecom, and infrastructure. The company emphasized strategic capital investments and technological advancements, particularly in aftermarket parts. However, challenges were noted in the agriculture segment, with sales declines and bad debt expenses, alongside operational difficulties in the lighting and transportation segment.