One-glance verdict
Overvalued
$273.34 our estimate vs market $444.53
Wall Street consensus: $624.50 (128.5% higher than our fair-value estimate)
63% above our estimate, beyond the bull case
Fundamentals snapshot
Valmont Industries, Inc.
VMI · NYQ · Industrials · Conglomerates
Current price
$444.53
52-week range
$378.02 - $585.71
Market cap
$8.58B
Balance sheet
Watch
12.88x Strong cushion
Net debt $740.47M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 3.1% last year.
- Reward Returns 29.8% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 9/10 years.
What this company does
Valmont Industries, Inc.
Valmont Industries makes the large metal structures that are essential for modern life, like the poles for power lines and street lights, as well as the giant irrigation systems that water farm fields. The company earns its money by selling these crucial products for both infrastructure (the basic equipment a society needs to function) and agriculture. This means its business is tied to fundamental, long-term needs like electricity, communication, and food production.
How the company got here
Valmont began in 1946 when its founder, Robert B. Daugherty, started a small farm equipment company in Nebraska. A key turning point came in the 1950s when he acquired the patent for center-pivot irrigation, the giant wheeled sprinklers you see in fields, which transformed farming. To balance the ups and downs of the farm economy, the company expanded into making metal poles for streetlights and traffic signals. Over the years, it grew by adding more large-scale metal products, like the huge poles for electrical power lines and towers for cell phone signals, becoming a major global manufacturer.
What it actually does
Think of Valmont as a company that builds the backbone for modern life and farming. It makes the huge steel poles that hold up power lines and the streetlights that illuminate your roads. It also creates the towers that enable your cell phone to work and provides special coatings to protect steel from rust and weather. For the food you eat, Valmont is a world leader in making large-scale irrigation systems that water crops efficiently, helping farmers grow more with less water.
Infrastructure
This is Valmont's largest business area, making up most of its sales. It manufactures the essential, large metal structures that modern communities rely on, like poles for utility companies to transmit electricity, towers for wireless communication, and poles for lighting and traffic signals. This segment also includes a coatings service, which applies a protective layer of zinc in a process called galvanizing to prevent steel from rusting on all sorts of industrial products. The main customers are utility companies, government agencies, and construction contractors.
Agriculture
This part of the company focuses on helping farmers grow food more efficiently. Its most famous products are the 'Valley' brand center-pivot and linear irrigation systems, which are long, wheeled sprinkler lines that automatically water massive fields. Beyond just the hardware, this segment is increasingly focused on agricultural technology, or 'Ag Tech.' This includes software and sensors that allow farmers to remotely monitor and control their irrigation systems, helping to conserve water and improve crop yields (the amount of crop produced).
What management is betting on now
The company is focusing heavily on growing its infrastructure business, especially by making more structures for the electrical grid as it gets updated and expanded. In its agriculture segment, the strategy is to sell not just irrigation equipment but also high-tech services that help with precision farming. Management is also committed to a balanced use of its cash, planning to spend about half on growing the company and the other half on shareholder returns, which includes dividends (a portion of profits paid to shareholders) and share buybacks (when a company buys its own stock to increase the value of the remaining shares).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$204.62M
FY2024 Q4
$167.80M
FY2025 Q1
$34.81M
FY2025 Q2
$135.62M
FY2025 Q3
$70.58M
FY2025 Q4
$70.44M
FY2026 Q1
$68.91M
FY2026 Q2
$112.17M
Revenue
$1.12B
Net income
$119.92M
Diluted EPS
6.14
Operating cash flow
$148.11M
Free cash flow
$112.17M
Fetching…
Sources
Revenue
$1.03B
Net income
$108.03M
Diluted EPS
5.51
Operating cash flow
$103.47M
Free cash flow
$68.91M
Fetching…
Sources
Revenue
$1.04B
Net income
$168.00M
Diluted EPS
9.02
Operating cash flow
$111.24M
Free cash flow
$70.44M
Fetching…
Sources
Revenue
$1.05B
Net income
$99.03M
Diluted EPS
4.98
Operating cash flow
$112.50M
Free cash flow
$70.58M
Fetching…
Sources
Revenue
$1.05B
Net income
$-4.02M
Diluted EPS
-1.53
Operating cash flow
$167.61M
Free cash flow
$135.62M
Fetching…
Sources
Revenue
$969.31M
Net income
$87.26M
Diluted EPS
4.32
Operating cash flow
$65.13M
Free cash flow
$34.81M
Fetching…
Sources
Revenue
$1.04B
Net income
$77.65M
Diluted EPS
3.85
Operating cash flow
$193.41M
Free cash flow
$167.80M
Fetching…
Sources
Revenue
$1.02B
Net income
$83.07M
Diluted EPS
4.11
Operating cash flow
$225.12M
Free cash flow
$204.62M
Fetching…
Sources
Is it cheap or expensive?
Fair value $273.34 vs current price $444.53
Wall Street consensus is the average analyst price target: $624.50 (128.5% higher than our fair-value estimate).
Our most-likely fair value is $273.34 a share — about 38.5% below today's price of $444.53, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $740.5M. Interest coverage 12.9x.
Net debt
$740.47M
Interest coverage
12.88x
Valmont Industries, Inc.'s profit covers its interest bill about 12.9 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
VMI
BASELINE
Valmont Industries, Inc.
Total debt $879.52M Interest coverage 12.88x This is the baseline the peer rows are being compared against.
Total debt $76.94M Interest coverage 287.17x +2,129% vs VMI Carries about 22.3x more debt cushion than VMI.
Total debt $1.02B Interest coverage 14.85x +15% vs VMI Carries about 1.2x more debt cushion than VMI.
Total debt $2.89B Interest coverage 5.68x -56% vs VMI Carries about 2.3x less debt cushion than VMI.
Total debt $1.10B Interest coverage 8.04x -38% vs VMI Carries about 1.6x less debt cushion than VMI.
Total debt $3.05B Interest coverage 6.39x -50% vs VMI Carries about 2.0x less debt cushion than VMI.
What you should know
The case for and against VMI
3 Rewards
0 Risks
Rewards
-
Revenue grew 3.1% last year.
-
Returns 29.8% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.35x
Forward P/E
17.11x
P/B
4.97x
P/S
2.03x
EV/EBITDA
13.76x
PEG ratio
0.90x
Profitability
How much profit each dollar creates
Gross margin
30.4%
Operating margin
14.8%
Net margin
11.7%
ROE
29.8%
ROA
10.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.51x
Current ratio
2.35x
Quick ratio
1.42x
Total debt
$879.52M
Total cash
$139.05M
Growth
How the business has been compounding
Revenue TTM
$4.23B
Revenue 5Y CAGR
4.0%
EPS TTM
25.62
EPS 5Y CAGR
13.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$475.33M
Free CF TTM
$311.45M
FCF margin
7.4%
Dividend
Shareholder payout
Yield
0.7%
Payout ratio
11.3%
Last ex-div date
2026-09-25