Valmont Industries, Inc. (VMI)
Industrials · NYQ · US
Fundamentals
Valuation and ratings
Valmont Industries, Inc. trades at USD538.48, which is 29% below the USD696.85 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 52 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 30.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Valmont Industries, Inc.
Valmont Industries, Inc. operates as a manufacturer of products and services for infrastructure and agriculture markets in the United States, Australia, Brazil, and internationally. The company operates in two segments, Infrastructure and Agriculture. It manufactures and distributes steel, pre-stressed concrete, composite structures for electrical transmission, substation, and distribution applications; and designs, engineers, and manufactures metal, steel, wood, aluminum, and composite poles and structures for lighting and transportation applications. The company also offers galvanizing and painting, and powder coating services for paint products; towers, small cell structures, camouflage concealment solutions, passive intermodulation mitigation equipment, and components for wireless communication markets; and solar single-axis tracker product, an integrated system of steel structures, electric motors, and electronic controllers, as well as provides coatings services to protect metal products. In addition, it manufactures center pivot components and linear irrigation equipment for the agricultural markets, such as parts and tubular products for industrial customers; advanced technology solutions for agricultural sector; mechanical irrigation equipment and service parts under the Valley brand name. Valmont Industries, Inc. was founded in 1946 and is headquartered in Omaha, Nebraska.
VMI passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
12 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Impax Asset Management, Impax Asset Management Group plc$90.73M · 0.6% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$82.06M · 0.0% of book
- Joel Greenblatt, Gotham Asset Management, LLC$27.70M · 0.1% of book
- Renaissance Technologies, RENAISSANCE TECHNOLOGIES LLC$20.12M · 0.0% of book
- Steve Cohen, Point72 Asset Management, L.P.$18.94M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Valmont Industries, Inc. (VMI) undervalued?
Against our discounted cash flow estimate of USD696.85, VMI at USD538.48 is 29% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own VMI?
12 of the institutions we track reported a position in VMI in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is VMI's P/E ratio?
VMI trades at 30.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.