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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.58
VMI's Cash to Debt is ranked higher than
62% of the 2027 Companies
in the Global Metal Fabrication industry.

( Industry Median: 0.77 vs. VMI: 0.58 )
VMI' s 10-Year Cash to Debt Range
Min: 0.02   Max: 1.25
Current: 0.58

0.02
1.25
Equity to Asset 0.46
VMI's Equity to Asset is ranked higher than
59% of the 2008 Companies
in the Global Metal Fabrication industry.

( Industry Median: 0.50 vs. VMI: 0.46 )
VMI' s 10-Year Equity to Asset Range
Min: 0.32   Max: 0.6
Current: 0.46

0.32
0.6
Interest Coverage 14.56
VMI's Interest Coverage is ranked higher than
57% of the 1310 Companies
in the Global Metal Fabrication industry.

( Industry Median: 29.41 vs. VMI: 14.56 )
VMI' s 10-Year Interest Coverage Range
Min: 3.81   Max: 16.76
Current: 14.56

3.81
16.76
F-Score: 4
Z-Score: 4.11
M-Score: -2.35
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 12.30
VMI's Operating margin (%) is ranked higher than
87% of the 2025 Companies
in the Global Metal Fabrication industry.

( Industry Median: 6.50 vs. VMI: 12.30 )
VMI' s 10-Year Operating margin (%) Range
Min: 5.72   Max: 14.32
Current: 12.3

5.72
14.32
Net-margin (%) 6.22
VMI's Net-margin (%) is ranked higher than
77% of the 2025 Companies
in the Global Metal Fabrication industry.

( Industry Median: 4.54 vs. VMI: 6.22 )
VMI' s 10-Year Net-margin (%) Range
Min: 2.61   Max: 8.58
Current: 6.22

2.61
8.58
ROE (%) 13.18
VMI's ROE (%) is ranked higher than
87% of the 2010 Companies
in the Global Metal Fabrication industry.

( Industry Median: 7.83 vs. VMI: 13.18 )
VMI' s 10-Year ROE (%) Range
Min: 9.6   Max: 23.34
Current: 13.18

9.6
23.34
ROA (%) 7.02
VMI's ROA (%) is ranked higher than
86% of the 2043 Companies
in the Global Metal Fabrication industry.

( Industry Median: 3.73 vs. VMI: 7.02 )
VMI' s 10-Year ROA (%) Range
Min: 3.73   Max: 11.46
Current: 7.02

3.73
11.46
ROC (Joel Greenblatt) (%) 32.00
VMI's ROC (Joel Greenblatt) (%) is ranked higher than
90% of the 2038 Companies
in the Global Metal Fabrication industry.

( Industry Median: 12.48 vs. VMI: 32.00 )
VMI' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 15.64   Max: 44.23
Current: 32

15.64
44.23
Revenue Growth (%) 18.00
VMI's Revenue Growth (%) is ranked higher than
92% of the 1783 Companies
in the Global Metal Fabrication industry.

( Industry Median: 3.50 vs. VMI: 18.00 )
VMI' s 10-Year Revenue Growth (%) Range
Min: -1.1   Max: 18.5
Current: 18

-1.1
18.5
EBITDA Growth (%) 31.10
VMI's EBITDA Growth (%) is ranked higher than
92% of the 1553 Companies
in the Global Metal Fabrication industry.

( Industry Median: 2.90 vs. VMI: 31.10 )
VMI' s 10-Year EBITDA Growth (%) Range
Min: -3.3   Max: 31.1
Current: 31.1

-3.3
31.1
EPS Growth (%) 44.60
VMI's EPS Growth (%) is ranked higher than
93% of the 1401 Companies
in the Global Metal Fabrication industry.

( Industry Median: 3.50 vs. VMI: 44.60 )
VMI' s 10-Year EPS Growth (%) Range
Min: -6.1   Max: 48.9
Current: 44.6

-6.1
48.9
» VMI's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q4 2013

VMI Guru Trades in Q4 2013

David Tepper 51,500 sh (New)
Chuck Royce 1,561,635 sh (+22.8%)
Joel Greenblatt 129,052 sh (+15.83%)
Murray Stahl 3,500 sh (+2.07%)
Mario Gabelli 10,000 sh (unchged)
Columbia Wanger 458,000 sh (unchged)
John Keeley Sold Out
Steven Cohen Sold Out
Ron Baron 494,105 sh (-0.26%)
Jim Simons 133,800 sh (-45.03%)
Paul Tudor Jones 3,700 sh (-47.14%)
» More
Q1 2014

VMI Guru Trades in Q1 2014

CI Can Am Small Cap 35,800 sh (New)
Steven Cohen 1,800 sh (New)
David Tepper 225,535 sh (+337.93%)
Joel Greenblatt 267,726 sh (+107.46%)
Chuck Royce 1,655,040 sh (+5.98%)
Mario Gabelli 10,000 sh (unchged)
Columbia Wanger 458,000 sh (unchged)
Ron Baron 494,105 sh (unchged)
Murray Stahl 3,400 sh (-2.86%)
Jim Simons 69,016 sh (-48.42%)
Paul Tudor Jones 1,500 sh (-59.46%)
» More
Q2 2014

VMI Guru Trades in Q2 2014

David Dreman 590 sh (New)
Ray Dalio 10,697 sh (New)
Chuck Royce 1,783,055 sh (+7.73%)
Columbia Wanger 458,000 sh (unchged)
Murray Stahl 3,400 sh (unchged)
Mario Gabelli 10,000 sh (unchged)
Paul Tudor Jones Sold Out
David Tepper Sold Out
Jim Simons Sold Out
Ron Baron 489,185 sh (-1%)
Joel Greenblatt 125,757 sh (-53.03%)
» More
Q3 2014

VMI Guru Trades in Q3 2014

Jeremy Grantham 13,205 sh (New)
Paul Tudor Jones 3,800 sh (New)
Donald Yacktman 3,650 sh (New)
Jim Simons 39,500 sh (New)
Joel Greenblatt 211,106 sh (+67.87%)
Murray Stahl 3,500 sh (+2.94%)
Chuck Royce 1,796,935 sh (+0.78%)
Mario Gabelli 10,000 sh (unchged)
Ron Baron 489,185 sh (unchged)
David Dreman Sold Out
Ray Dalio Sold Out
Columbia Wanger 230,000 sh (-49.78%)
» More
» Details

Insider Trades

Latest Guru Trades with VMI

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2014-09-30 Add 67.87%0.11%$133.4 - $154.14 $ 136.42-5%211106
David Dreman 2014-09-30 Sold Out 0.01%$133.4 - $154.14 $ 136.42-5%0
Ray Dalio 2014-09-30 Sold Out 0.01%$133.4 - $154.14 $ 136.42-5%0
Donald Yacktman 2014-09-30 New Buy$133.4 - $154.14 $ 136.42-5%3650
David Tepper 2014-06-30 Sold Out 0.37%$144.29 - $161.11 $ 136.42-11%0
Joel Greenblatt 2014-06-30 Reduce -53.03%0.32%$144.29 - $161.11 $ 136.42-11%125757
Ray Dalio 2014-06-30 New Buy0.01%$144.29 - $161.11 $ 136.42-11%10697
David Dreman 2014-06-30 New Buy0.01%$144.29 - $161.11 $ 136.42-11%590
Joel Greenblatt 2014-03-31 Add 107.46%0.31%$142.27 - $155.46 $ 136.42-8%267726
David Tepper 2014-03-31 Add 337.93%0.29%$142.27 - $155.46 $ 136.42-8%225535
John Keeley 2013-12-31 Sold Out 0.39%$132.08 - $149 $ 136.42-3%0
David Tepper 2013-12-31 New Buy0.1%$132.08 - $149 $ 136.42-3%51500
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
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Guru Investment Theses on Valmont Industries Inc

Ron Baron Comments on Valmont Industries Inc - Jul 28, 2014

I nearly always find something relevant and memorable in management meetings I attend, whether in our office or theirs. A recent visit by Mogens Bay, Chairman and CEO of Valmont (VMI), a diversified industrial company, is a case in point. We have had a modest sized investment in Valmont since 2009. We have since about doubled our money.

We think Valmont’s towers business will benefit from increased spending by utilities on more efficient electricity transmission and is well-positioned to grow. This is because the Federal Energy Regulatory Commission, in order to reduce our country’s energy consumption, has granted utilities significant incentives to invest in transmission.

We believe Valmont’s world leading irrigation business is also exceptionally attractive and poised for growth. With the world’s population expected to increase 30% by 2050, there will be increased demand for food. The world cannot meet its crop requirements without irrigation. This is because irrigated farmland provides better yields. Only 20% of cultivated agriculture worldwide is irrigated. Center pivot irrigation uses the least water, a scarce resource, and produces the best yields. Valmont has a 45% share of center pivot irrigation systems in North America and is increasing its share in the rest of the world. Center pivot irrigation has also been steadily increasing its current 56% share of irrigation.

When Mogens visited us recently to provide an update, he mentioned that he tries to visit all of his firm’s more than 100 worldwide plants regularly. When he does, he always talks to his factory workers. When I asked whether he has prepared remarks or speaks from the heart, he told us it was the latter. He explained that “the culture of a business is what’s important.” He said that he wants his general managers to be entrepreneurs “who are passionate about what we do…make highways safer, protect the environment, don’t cut corners and commit to continuous improvement.” Mogens went on to say “with plants around the world, somewhere someone is doing something wrong.” He finds ‘Can I show you what I do?’ an effective way to communicate and train. “You need to look yourself in the mirror every day and make sure you don’t need to look down. It’s all about how you treat your employees and customers. How you expect people to behave.” Mogens then remarked that “you need to show people that you respect them and care about them.” To make that point, he frequently tells his fellow employees that Valmont “could survive for a long time without its CEO. It couldn’t last through lunchtime without its welders.”

Valmont’s home office is in Omaha, Nebraska. Omaha also happens to be the home of the world’s most prominent investor. When Mogens finished updating us, I remarked that “there must be something in the water” in Omaha. Mogens is an individual I think about when I tell our investors that “we invest in people.” It’s too bad we don’t have a larger investment in his business, I thought. It’s also too bad we didn’t invest earlier. If we had invested in 1993, we would have earned 16.6% compounded annual growth for the past 21 years. The S&P 500 Index earned a compounded annual return over the same period of 9.4% per year.

From Ron Baron (Trades, Portfolio)’s Second Quarter 2014 Shareholder Letter.

Check out Ron Baron latest stock trades

Top Ranked Articles about Valmont Industries Inc

Ron Baron Comments on Valmont Industries Inc
I nearly always find something relevant and memorable in management meetings I attend, whether in our office or theirs. A recent visit by Mogens Bay, Chairman and CEO of Valmont (VMI), a diversified industrial company, is a case in point. We have had a modest sized investment in Valmont since 2009. We have since about doubled our money. Read more...
Ron Baron Second Quarter 2014 Shareholder Letter
“This company could survive for a long time without its CEO. It couldn’t last through lunchtime without its welders.” Mogens Bay. Chairman and CEO. Valmont. May 2014. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 18.50
VMI's P/E(ttm) is ranked higher than
77% of the 2159 Companies
in the Global Metal Fabrication industry.

( Industry Median: 24.60 vs. VMI: 18.50 )
VMI' s 10-Year P/E(ttm) Range
Min: 8.07   Max: 31.7
Current: 18.5

8.07
31.7
P/B 2.70
VMI's P/B is ranked higher than
56% of the 2159 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.93 vs. VMI: 2.70 )
VMI' s 10-Year P/B Range
Min: 1.66   Max: 5.45
Current: 2.7

1.66
5.45
P/S 1.10
VMI's P/S is ranked higher than
65% of the 2159 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.06 vs. VMI: 1.10 )
VMI' s 10-Year P/S Range
Min: 0.49   Max: 1.9
Current: 1.1

0.49
1.9
PFCF 27.40
VMI's PFCF is ranked higher than
80% of the 2159 Companies
in the Global Metal Fabrication industry.

( Industry Median: 9999.00 vs. VMI: 27.40 )
VMI' s 10-Year PFCF Range
Min: 5.99   Max: 1295.2
Current: 27.4

5.99
1295.2
EV-to-EBIT 9.54
VMI's EV-to-EBIT is ranked higher than
87% of the 2159 Companies
in the Global Metal Fabrication industry.

( Industry Median: 17.46 vs. VMI: 9.54 )
VMI' s 10-Year EV-to-EBIT Range
Min: 5.9   Max: 18.8
Current: 9.54

5.9
18.8
PEG 0.87
VMI's PEG is ranked higher than
91% of the 2159 Companies
in the Global Metal Fabrication industry.

( Industry Median: 9999.00 vs. VMI: 0.87 )
VMI' s 10-Year PEG Range
Min: 0.27   Max: 7.99
Current: 0.87

0.27
7.99
Shiller P/E 18.00
VMI's Shiller P/E is ranked higher than
90% of the 2159 Companies
in the Global Metal Fabrication industry.

( Industry Median: 97.51 vs. VMI: 18.00 )
VMI' s 10-Year Shiller P/E Range
Min: 15.7   Max: 54.17
Current: 18

15.7
54.17
Current Ratio 3.61
VMI's Current Ratio is ranked higher than
90% of the 2033 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.84 vs. VMI: 3.61 )
VMI' s 10-Year Current Ratio Range
Min: 1.26   Max: 3.83
Current: 3.61

1.26
3.83
Quick Ratio 2.71
VMI's Quick Ratio is ranked higher than
90% of the 2033 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.27 vs. VMI: 2.71 )
VMI' s 10-Year Quick Ratio Range
Min: 0.74   Max: 2.93
Current: 2.71

0.74
2.93

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.90
VMI's Dividend Yield is ranked lower than
75% of the 1547 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.59 vs. VMI: 0.90 )
VMI' s 10-Year Dividend Yield Range
Min: 0.37   Max: 1.62
Current: 0.9

0.37
1.62
Dividend Payout 0.16
VMI's Dividend Payout is ranked higher than
89% of the 2159 Companies
in the Global Metal Fabrication industry.

( Industry Median: 0.61 vs. VMI: 0.16 )
VMI' s 10-Year Dividend Payout Range
Min: 0.04   Max: 0.67
Current: 0.16

0.04
0.67
Dividend growth (3y) 23.00
VMI's Dividend growth (3y) is ranked higher than
91% of the 991 Companies
in the Global Metal Fabrication industry.

( Industry Median: 6.30 vs. VMI: 23.00 )
VMI' s 10-Year Dividend growth (3y) Range
Min: 1.2   Max: 23
Current: 23

1.2
23
Yield on cost (5-Year) 2.15
VMI's Yield on cost (5-Year) is ranked higher than
58% of the 1576 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.88 vs. VMI: 2.15 )
VMI' s 10-Year Yield on cost (5-Year) Range
Min: 0.88   Max: 3.87
Current: 2.15

0.88
3.87
Share Buyback Rate -0.60
VMI's Share Buyback Rate is ranked higher than
71% of the 1290 Companies
in the Global Metal Fabrication industry.

( Industry Median: -0.50 vs. VMI: -0.60 )
VMI' s 10-Year Share Buyback Rate Range
Min: 5.6   Max: -6.5
Current: -0.6

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 4.80
VMI's Price/Tangible Book is ranked higher than
54% of the 2159 Companies
in the Global Metal Fabrication industry.

( Industry Median: 2.59 vs. VMI: 4.80 )
VMI' s 10-Year Price/Tangible Book Range
Min: 1.55   Max: 7.92
Current: 4.8

1.55
7.92
Price/DCF (Projected) 1.10
VMI's Price/DCF (Projected) is ranked higher than
85% of the 2159 Companies
in the Global Metal Fabrication industry.

( Industry Median: 3.26 vs. VMI: 1.10 )
VMI' s 10-Year Price/DCF (Projected) Range
Min: 0.91   Max: 19.11
Current: 1.1

0.91
19.11
Price/Median PS Value 1.00
VMI's Price/Median PS Value is ranked higher than
77% of the 2159 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.19 vs. VMI: 1.00 )
VMI' s 10-Year Price/Median PS Value Range
Min: 0.34   Max: 1.46
Current: 1

0.34
1.46
Price/Peter Lynch Fair Value 0.90
VMI's Price/Peter Lynch Fair Value is ranked higher than
94% of the 2159 Companies
in the Global Metal Fabrication industry.

( Industry Median: 9999.00 vs. VMI: 0.90 )
VMI' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.38   Max: 4.21
Current: 0.9

0.38
4.21
Price/Graham Number 1.90
VMI's Price/Graham Number is ranked higher than
70% of the 2159 Companies
in the Global Metal Fabrication industry.

( Industry Median: 2.40 vs. VMI: 1.90 )
VMI' s 10-Year Price/Graham Number Range
Min: 0.88   Max: 2.88
Current: 1.9

0.88
2.88
Earnings Yield (Greenblatt) 10.50
VMI's Earnings Yield (Greenblatt) is ranked higher than
86% of the 2011 Companies
in the Global Metal Fabrication industry.

( Industry Median: 6.00 vs. VMI: 10.50 )
VMI' s 10-Year Earnings Yield (Greenblatt) Range
Min: 5.3   Max: 17
Current: 10.5

5.3
17
Forward Rate of Return (Yacktman) 25.19
VMI's Forward Rate of Return (Yacktman) is ranked higher than
93% of the 1571 Companies
in the Global Metal Fabrication industry.

( Industry Median: 3.31 vs. VMI: 25.19 )
VMI' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 8.7   Max: 34.3
Current: 25.19

8.7
34.3

Business Description

Industry: Industrial Products » Metal Fabrication
Compare:RS, STBWY, AZZ, MLI, WOR » details
Traded in other countries:VI1.Germany
Valmont Industries Inc was founded in 1946, and became public in 1968. The Company is a diversified producer of fabricated metal products and a producer of steel and aluminum pole, tower and other structures in its Engineered Infrastructure Products (EIP) segment, steel and concrete pole structures in it Utilities Support Structures (Utility) segment and a producer of mechanized irrigation systems in its Irrigation segment. It also provides metal coating services, including galvanizing, painting and anodizing in its Coatings segment. Its products sold through the EIP segment include outdoor lighting and traffic control structures, wireless communication structures and components and roadway safety and industrial access systems. Its pole structures sold through its Utility segment support electrical transmission and distribution lines and related power distribution equipment. Its Irrigation segment produces mechanized irrigation equipment that delivers water, chemical fertilizers and pesticides to agricultural crops. Customers and end-users of its products include state and federal governments, contractors, utility and telecommunications companies, manufacturers of commercial lighting fixtures and large farms as well as the general manufacturing sector. The Company competes with various companies in each of the markets it serve. Its competitors include companies who provide competing technologies, such as drip irrigation. It competitors include international, national, and local manufacturers. Its facilities and operations are subject to U.S. and foreign laws and regulations.
» More Articles for VMI

Headlines

Articles On GuruFocus.com
Valmont Industries Could Be a Good Long-Term Bet Oct 27 2014 
Why Valmont Industries Looks Like a Stock to Avoid Oct 21 2014 
Does 'Good Friday' Come Twelve Times Each Year? Sep 21 2014 
Ron Baron Comments on Valmont Industries Inc Jul 28 2014 
Ron Baron Second Quarter 2014 Shareholder Letter Jul 28 2014 
The Greatest Growth Stock You've Probably Never Heard Of Apr 18 2014 
Ignore Analysts - Improve Results Nov 04 2013 
Sector Watch: Numerous Gurus Hold Four Industrial Products on 52-week Low Oct 23 2013 
Valmont Industries Inc: Fundamental Stock Research Analysis Aug 12 2013 
Valmont Industries, Inc. - Value Alert May 16 2013 

More From Other Websites
VALMONT INDUSTRIES INC Files SEC form 8-K, Change in Directors or Principal Officers Nov 10 2014
VALMONT INDUSTRIES INC Financials Nov 06 2014
Valmont Announces Third Quarter 2014 Results Nov 06 2014
Valmont Industries, Inc. Third Quarter 2014 Earnings Conference Call Nov 06 2014
10-Q for Valmont Industries, Inc. Nov 01 2014
VALMONT INDUSTRIES INC Files SEC form 10-Q, Quarterly Report Oct 30 2014
Valmont (VMI) Misses Q3 Earnings and Revenue Estimates Oct 27 2014
VALMONT INDUSTRIES INC Files SEC form 8-K, Results of Operations and Financial Condition, Financial... Oct 24 2014
Valmont misses Street 3Q forecasts Oct 23 2014
Valmont misses Street 3Q forecasts Oct 23 2014
Valmont Announces Third Quarter 2014 Results Oct 23 2014
Q3 2014 Valmont Industries Inc Earnings Release - After Market Close Oct 23 2014
VALMONT INDUSTRIES INC Files SEC form 8-K, Entry into a Material Definitive Agreement, Creation of a... Oct 17 2014
Valmont Industries, Inc. Third Quarter 2014 Earnings Conference Call Oct 16 2014
Valmont (VMI) Buys Shakespeare Composite Structures Oct 07 2014
Valmont Acquires Shakespeare, a Leading Manufacturer of Fiberglass Composite Support Structures Oct 06 2014
Valmont (VMI) Slashes FY14 Earnings Outlook, Shares Down Sep 22 2014
Valmont Industries, Inc. Announces Early Results and Pricing of its Previously Announced Cash Tender... Sep 22 2014
VALMONT INDUSTRIES INC Files SEC form 8-K, Entry into a Material Definitive Agreement, Creation of a... Sep 22 2014
[$$] Valmont Industries Done In by Delays Sep 22 2014

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