Financial Analysis: Valmont Industries (VMI) vs. The Competition

Valmont Industries (NYSE: VMI) is one of 24 publicly-traded companies in the “Construction Supplies & Fixtures” industry, but how does it weigh in compared to its rivals? We will compare Valmont Industries to related companies based on the strength of its earnings, analyst recommendations, profitability, dividends, risk, institutional ownership and valuation.

Volatility & Risk

Valmont Industries has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Valmont Industries’ rivals have a beta of 1.46, meaning that their average stock price is 46% more volatile than the S&P 500.

Earnings & Valuation

This table compares Valmont Industries and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Valmont Industries $2.64 billion $344.67 million 19.56
Valmont Industries Competitors $2.61 billion $332.50 million 27.38

Valmont Industries has higher revenue and earnings than its rivals. Valmont Industries is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Valmont Industries and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Valmont Industries 6.94% 14.89% 6.29%
Valmont Industries Competitors -22.33% 906.93% 5.67%

Institutional and Insider Ownership

83.6% of Valmont Industries shares are owned by institutional investors. Comparatively, 85.6% of shares of all “Construction Supplies & Fixtures” companies are owned by institutional investors. 3.3% of Valmont Industries shares are owned by insiders. Comparatively, 6.1% of shares of all “Construction Supplies & Fixtures” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Valmont Industries and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Valmont Industries 0 1 3 0 2.75
Valmont Industries Competitors 59 434 743 15 2.57

Valmont Industries currently has a consensus price target of $165.50, suggesting a potential upside of 4.85%. As a group, “Construction Supplies & Fixtures” companies have a potential upside of 15.07%. Given Valmont Industries’ rivals higher probable upside, analysts plainly believe Valmont Industries has less favorable growth aspects than its rivals.

Dividends

Valmont Industries pays an annual dividend of $1.50 per share and has a dividend yield of 1.0%. Valmont Industries pays out 18.6% of its earnings in the form of a dividend. As a group, “Construction Supplies & Fixtures” companies pay a dividend yield of 1.5% and pay out 31.9% of their earnings in the form of a dividend.

Summary

Valmont Industries rivals beat Valmont Industries on 8 of the 15 factors compared.

Valmont Industries Company Profile

Valmont Industries, Inc. is a producer of fabricated metal products, and steel, aluminum and composite pole, tower and other structures, and mechanized irrigation systems. The Company’s segments are Engineered Support Structures (ESS); Utility Support Structures; Energy and Mining; Coatings; Irrigation, and Other. The ESS segment manufactures steel, aluminum, and composite poles and structures. The Utility Support Structures Segment manufactures steel and concrete pole structures for electrical transmission, substation and distribution applications. The Energy and Mining Segment produces access systems, which are engineered structures and components that allow people to move safely in an industrial, infrastructure or commercial facility. The Coatings Segment consists of galvanizing, anodizing and powder coating services on a global basis. The Irrigation Segment manufactures and distributes mechanical irrigation equipment and related service parts under the Valley brand name.

Receive News & Ratings for Valmont Industries Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Valmont Industries Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply