Education
About Us
Working with TipRanks
Follow Us
Valmont Industries (VMI)
NYSE:VMI
Top Page
Valmont
(NYSE:VMI)
75Outperform
Positive Factors
International Market Trends
Valmont has seen positive trends in the company’s international markets, with Brazil’s volume returning to growth and the $45 million project in the Middle East remaining on track.
Management Guidance
Management reaffirmed full-year guidance and stated that Valmont should be cost-neutral on tariffs for the full year, despite a $3 million headwind in the first quarter.
Operational Performance
Notable internal operational initiatives under new management have enhanced margins and driven more consistent financial performance.
Negative Factors
Agriculture Sector Challenges
Prevailing headwinds in Agriculture could limit share price growth over the near term.
Earnings Risk
The potential reduction in earnings if structures made with U.S. steel are included is significant.
Tariff Impact
Tariffs creating uncertainty for Valmont Industries.
Valmont (VMI) vs. S&P 500 (SPY)
Market Cap
$6.53B
Dividend Yield0.76%
Average Volume (3M)160.14K
Price to Earnings (P/E)18.9
Beta (1Y)0.99
Revenue Growth-0.57%
EPS Growth116.12%
CountryUS
Employees10,986
SectorIndustrials
Sector Strength91
IndustryConglomerates
Share Statistics
EPS (TTM)4.32
Shares Outstanding20,070,978
10 Day Avg. Volume111,528
30 Day Avg. Volume160,136
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)3.76
Price to Sales (P/S)0.00
P/FCF Ratio11.84
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$345.00Price Target Upside6.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Valmont Business Overview & Revenue Model
Company DescriptionValmont 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 MoneyValmont Industries generates revenue through multiple streams. A significant portion comes from its infrastructure segment, where it sells engineered metal products used in utility, lighting, and wireless communication structures. The company also earns substantial income from its agriculture segment, primarily through the sale of mechanized irrigation systems which are essential for efficient water use in farming. Additionally, Valmont's coatings business provides protective services to extend the life and performance of metal products, contributing to its earnings. Strategic partnerships and contracts with government bodies and private sector clients further bolster its revenue, as do its operations in international markets, which provide a diversified income base.
Valmont Financial Statement Overview
Summary
Valmont demonstrates a solid financial standing with competitive profit margins and a healthy balance sheet characterized by low leverage and strong equity. The company shows strong cash flow performance, although there is a slight revenue decline. Overall, Valmont is well-positioned for growth and resilience.Income Statement
Valmont displays a stable financial performance with a strong gross profit margin of 30.14% as of the TTM, indicating effective cost management. However, the net profit margin of 8.55% reflects moderate profitability, partly due to fluctuating revenues and net income. The revenue growth rate saw a decline of 3.11% compared to the previous year, signaling potential challenges in sales growth. EBIT and EBITDA margins at 12.79% and 14.57% respectively, suggest a solid core operating performance.75
Positive
Balance Sheet
The company maintains a strong balance sheet with a debt-to-equity ratio of 0.04, indicating low leverage and minimal financial risk. The return on equity stands at 10.30%, demonstrating efficient use of equity to generate profits. The equity ratio is 100%, showcasing a robust capital structure with equity fully supporting total assets, further enhancing its financial stability.78
Positive
Cash Flow
Valmont exhibits a strong cash flow performance with a free cash flow growth rate of 5.37%, indicating healthy cash generation. The operating cash flow to net income ratio of 1.77 suggests efficient cash conversion from earnings. Moreover, the free cash flow to net income ratio of 1.49 highlights effective cash management, supporting future investments and shareholder returns.81
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.07B | 4.08B | 4.17B | 4.35B | 3.50B | 2.90B | Gross Profit |
| 1.23B | 1.24B | 1.24B | 1.13B | 883.89M | 765.51M | EBIT |
| 520.16M | 524.58M | 291.56M | 433.25M | 286.79M | 225.95M | EBITDA |
| 614.56M | 524.58M | 393.72M | 540.50M | 421.84M | 355.94M | Net Income Common Stockholders |
| 347.70M | 348.26M | 150.85M | 250.86M | 195.63M | 140.69M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 184.40M | 164.31M | 203.04M | 185.41M | 177.23M | 400.73M | Total Assets |
| 3.38B | 3.33B | 3.48B | 3.56B | 3.45B | 2.96B | Total Debt |
| 862.79M | 866.84M | 1.27B | 1.03B | 1.11B | 766.33M | Net Debt |
| 678.39M | 702.52M | 1.07B | 848.04M | 935.92M | 365.60M | Total Liabilities |
| 1.68B | 1.74B | 2.06B | 1.92B | 2.03B | 1.75B | Stockholders Equity |
| 1.64B | 1.54B | 1.35B | 1.64B | 1.41B | 1.21B |
| Cash Flow | Free Cash Flow | ||||
| 519.72M | 493.23M | 210.00M | 232.98M | -41.85M | 209.59M | Operating Cash Flow |
| 614.48M | 572.68M | 306.77M | 326.26M | 65.94M | 316.29M | Investing Cash Flow |
| -90.43M | -78.88M | -115.28M | -132.08M | -417.31M | -104.03M | Financing Cash Flow |
| -504.72M | -522.56M | -176.41M | -181.91M | 133.50M | -173.76M |
Valmont Technical Analysis
Positive
325.47
Price Trends
299.45
Positive
313.50
Positive
308.73
Positive
Market Momentum
7.59
Negative
66.31
Neutral
81.67
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 325.47 is above the 20-day moving average (MA) of 302.42, above the 50-day MA of 299.45, and above the 200-day MA of 308.73, indicating a bullish trend. The MACD of 7.59 indicates Negative momentum. The RSI at 66.31 is Neutral, neither overbought nor oversold. The STOCH value of 81.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VMI.
Valmont Risk Analysis
Valmont disclosed 19 risk factors in its most recent earnings report. Valmont reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Valmont Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $143.24B | 25.60 | 33.56% | 1.98% | 6.30% | 0.81% | |
75 Outperform | $6.53B | 18.94 | 22.84% | 0.76% | -0.57% | 116.12% | |
73 Outperform | $3.45B | 15.19 | 110.90% | 0.90% | -3.38% | 26.22% | |
71 Outperform | $3.56B | 13.61 | 9.63% | 2.96% | -25.50% | -45.13% | |
66 Neutral | $82.40B | 19.34 | 94.75% | 1.85% | -24.93% | ― | |
64 Neutral | $4.43B | 12.01 | 5.16% | 249.23% | 4.03% | -11.73% | |
55 Neutral | $2.40B | 24.52 | 2.09% | 0.36% | -0.31% | -58.07% |
* Industrials Sector Average
Performance Comparison
VMI
Valmont
325.47
68.43
26.62%
MMM
3M
153.11
50.24
48.84%
GFF
Griffon
73.40
6.62
9.91%
HON
Honeywell International
222.88
22.47
11.21%
MDU
Mdu Resources Group
17.42
3.45
24.70%
SEB
Seaboard
2,474.82
-888.92
-26.43%
Valmont Earnings Call Summary
Earnings Call Date:Apr 22, 2025
(Q1-2025)
| % Change Since: 20.75%|
Next Earnings Date:Jul 16, 2025
Earnings Call Sentiment Positive
Despite some challenges in the solar sector and North American agriculture, Valmont Industries demonstrated a strong performance in telecommunications and utility segments, with effective cost mitigation strategies keeping them on track for a positive year. The company is strategically investing in capacity expansions and expects to be cost-neutral with respect to tariffs, maintaining a strong financial outlook.Q1-2025 Updates
Positive Updates
Strong Backlog and Stable Financial Performance
Valmont reported a growing backlog of $1.5 billion, indicating healthy demand. Despite a slight decrease in consolidated net sales, they increased modestly on a constant currency basis, with operating margins and earnings per share remaining stable.
Telecommunications Segment Growth
Telecom sales saw a strong increase of nearly 30%, driven by favorable carrier spending and ongoing 5G network expansions.
Successful Cost Mitigation Strategies
Valmont expects to be cost-neutral regarding tariffs for the fiscal year due to effective pricing strategies and supply chain adjustments, including increased use of US-sourced steel.
Capacity Expansion and Investment
Valmont invested $30 million in CapEx to increase utility production, with expansions in Brenham, Texas, and equipment upgrades in Florida and Kansas progressing as planned.
Positive Outlook for Brazilian Market
Early signs of market stabilization in Brazil, with a return to volume growth and encouraging order activity.
Negative Updates
Decline in Solar Sales
Solar sales declined by more than 50%, reflecting lower volumes and the strategic decision to exit low-margin projects.
Challenging North American Agriculture Market
Lower crop prices have pressured global agricultural markets, with North American irrigation equipment volumes and selling prices lower due to market softness.
Lower First Quarter Net Sales
First quarter net sales of $969.3 million decreased by 0.9% year over year, primarily due to softer international markets and a strategic shift impacting concrete distribution structures.
Gross Margin Pressure
Gross margin decreased by 130 basis points from the prior year, mainly due to a higher mix of lower-margin international agricultural projects.
Company Guidance
During the Valmont Industries First Quarter 2025 Earnings Conference Call, a range of guidance metrics were provided, highlighting the company's robust performance and strategic initiatives. The company reported a backlog of $1.5 billion, indicating healthy order activity and volume growth. First quarter net sales were $969.3 million, a slight 0.9% decrease year-over-year, although sales increased modestly on a constant currency basis. Valmont's gross margin was reported at 30%, down by 130 basis points from the previous year, primarily due to a higher mix of international projects in the agriculture segment, while diluted earnings per share stood at $4.32, in line with the prior year. The company reaffirmed its full-year expectations with projected net sales between $4.0 and $4.2 billion and diluted earnings per share expected to range from $17.20 to $18.80, with an expectation to land above the midpoint. Additionally, Valmont emphasized its strategic capital investments, including approximately $30 million in CapEx during the first quarter, aimed at expanding utility production and enhancing capacity across its footprint. The company also outlined cost management efforts, projecting that comprehensive plans to mitigate tariffs could lead to a cost-neutral impact for the year. Despite a challenging macroeconomic environment, Valmont Industries remains confident in its ability to deliver strong results, bolstered by strategic growth initiatives and a focus on long-term market trends.Valmont Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Valmont Announces Executive Position Eliminations and Transitions
Neutral
May 16, 2025
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.
Spark’s Take on VMI Stock
According to Spark, TipRanks’ AI Analyst, VMI is a Outperform.
Valmont Industries scores a solid 75.2, driven by its robust financial performance and strategic initiatives highlighted in the earnings call. Despite some technical indicator caution and valuation challenges, the company’s strong backlog, effective cost management, and growth potential in key segments bolster its overall outlook.
To see Spark’s full report on VMI stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.