Valmont Industries, Inc. (VMI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Mueller Industries, Inc.

Insteel Industries, Inc.

Valmont Industries, Inc.

RBC Bearings, Inc.

Gibraltar Industries, Inc.

CompX International, Inc.

Xometry, Inc.

Olympic Steel, Inc.

Park-Ohio Holdings Corp.

NL Industries, Inc.

Fathom Digital Manufacturing Corp.

Why is Valmont Industries, Inc. ?

High Management Efficiency with a high ROCE of 18.63%

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Operating profit has grown by an annual rate 14.71%

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at USD 651.27 MM
RAW MATERIAL COST(Y) Fallen by 0.94% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at 42.68 %

With ROCE of 23.87%, it has a expensive valuation with a 4.24 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 29.23%, its profits have risen by 5.8% ; the PEG ratio of the company is 2.5

Market Beating Performance

The stock has generated a return of 29.23% in the last 1 year, much higher than market (S&P 500) returns of 14.11%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Valmont Industries, Inc. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Valmont Industries, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Valmont Industries, Inc.

21.56%

1.71

35.80%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.24%

EBIT Growth (5y)

14.60%

EBIT to Interest (avg)

7.74

Debt to EBITDA (avg)

1.45

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

1.71

Tax Ratio

25.37%

Dividend Payout Ratio

16.20%

Pledged Shares

Institutional Holding

98.94%

ROCE (avg)

18.63%

ROE (avg)

17.72%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.57

EV to EBIT

21.71

EV to EBITDA

19.29

EV to Capital Employed

5.06

EV to Sales

2.76

PEG Ratio

0.70

Dividend Yield

0.51%

ROCE (Latest)

23.29%

ROE (Latest)

27.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.94% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.95 times

DIVIDEND PER SHARE(HY)

Highest at USD 4.83

NET PROFIT(Q)

Highest at USD 173.65 MM

EPS(Q)

Highest at USD 8.51

-3What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 7.99%

OPERATING PROFIT(Q)

Lowest at USD 123.04 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.85 %

Here's what is working for Valmont Industries, Inc.

Net Profit

At USD 173.65 MM has Grown at 219.29%

over average net sales of the previous four periods of USD 54.39 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Profit

Highest at USD 173.65 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 8.51

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Highest at 4.95 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at USD 4.83

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by 1.94% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Valmont Industries, Inc.

Operating Profit

Lowest at USD 123.04 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 11.85 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Dividend Payout Ratio

Lowest at 7.99%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)