Valmont Industries
VMI
$467.96
-0.36%
Valmont Industries, Inc. is a global manufacturer of products and services for the infrastructure and agriculture markets, operating through two primary segments: Infrastructure and Agriculture. The Infrastructure segment produces engineered metal structures for utility, solar, lighting, transportation, and telecommunications, along with coatings services, while the Agriculture segment provides irrigation equipment and precision agriculture technology. As a market leader in both pole structures and center pivot irrigation, Valmont is recognized for its engineering expertise and global footprint. The current investor narrative centers on the company's raised guidance and strong Infrastructure margins, which signal robust demand, while the stock has experienced a pullback from its highs, prompting debate about its growth sustainability and valuation.…
VMI
Valmont Industries
$467.96
Related headlines
VMI 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Valmont Industries's 12-month outlook, with a consensus price target around $624.50 and implied upside of +33.5% versus the current price.
Average Target
$624.50
0 analysts
Implied Upside
+33.5%
vs. current price
Analyst Count
—
covering this stock
Price Range
$600 - $678
Analyst target range
Valmont has coverage from 4 analysts, with a consensus recommendation of 'Buy' and a mean recommendation score of 1.67 (where 1 is Strong Buy and 5 is Sell). The average target price is $624.50, implying an upside of +31.1% from the current price of $476.28. The target range is $600.00 to $678.00, with a low target of $600.00 and a high target of $678.00. The wide spread of $78.00 indicates moderate uncertainty among analysts. Recent ratings from JP Morgan (Overweight), Stifel (Buy), and DA Davidson (Neutral) show a generally positive sentiment, with no recent downgrades, suggesting analysts remain confident in the company's prospects.
Bulls vs Bears: VMI Investment Factors
Valmont presents a mixed picture: strong analyst conviction, solid profitability, and a healthy balance sheet are countered by stagnant revenue growth, an elevated PEG ratio, and recent price weakness. The bull case is supported by a 31% upside to analyst targets and raised guidance, while the bear case hinges on valuation concerns and cyclical risks. Currently, the evidence slightly favors the bulls due to the strong analyst consensus and improved guidance, but the key tension is whether the company can accelerate revenue growth to justify its premium valuation. If growth remains flat, the stock could face multiple compression, whereas successful execution on guidance could drive it toward the high target.
Bullish
- Strong Analyst Conviction with 31% Upside: The consensus rating is 'Buy' with a mean score of 1.67, and the average target price of $624.50 implies a 31.1% upside from the current price of $476.28. This reflects broad analyst confidence in the company's growth prospects.
- Raised Guidance Signals Robust Demand: Recent news highlights Valmont's raised guidance and strong Infrastructure margins, indicating robust demand in its core markets. This suggests management expects improved performance ahead, supporting the forward PE of 18.33x.
- Solid Profitability with High ROE: Valmont's ROE is 21.45% and net margin is 8.53%, demonstrating efficient capital use and strong profitability. The operating margin of 12.73% further underscores operational efficiency.
- Healthy Balance Sheet with Low Debt: The debt-to-equity ratio is 0.57, and the current ratio is 2.35, indicating a strong liquidity position and manageable leverage. This financial stability supports continued investment and dividend payments.
Bearish
- Elevated PEG Ratio Suggests Overvaluation: The PEG ratio of 10.34x is extremely high, indicating that the stock is overvalued relative to its earnings growth rate. This could limit upside potential and increase downside risk if growth disappoints.
- Revenue Growth Stagnant at 0.09%: Q4 2025 revenue growth was a mere 0.09% YoY, and quarterly revenue has been flat over the past year. This lack of top-line growth may not justify the premium valuation.
- Recent Price Pullback from Highs: The stock is down 8.37% over the past 3 months and has retreated from its 52-week high of $585.71 to $476.28, a decline of 18.7%. This suggests waning momentum and potential further downside.
- High Beta Exposes to Market Volatility: With a beta of 1.351, Valmont is more volatile than the market, amplifying downside moves during market corrections. This adds risk for investors seeking stability.
VMI Technical Analysis
Valmont's stock has been in a strong uptrend over the past year, with a 1-year price change of +27.29%, significantly outperforming the S&P 500's +18.56% over the same period. The current price of $476.28 sits at 81.3% of the 52-week range (between $360.41 low and $585.71 high), indicating the stock is still in the upper portion of its range but has retreated from the highs. This positioning suggests that while the longer-term trend remains bullish, the stock is no longer at its peak, potentially offering a more attractive entry point after the recent pullback.
Beta
1.35
1.35x market volatility
Max Drawdown
-21.8%
Largest decline past year
52-Week Range
$360-$586
Price range past year
Annual Return
+27.5%
Cumulative gain past year
| Period | VMI Return | S&P 500 |
|---|---|---|
| 1m | -2.9% | +2.0% |
| 3m | -14.5% | +1.0% |
| 6m | +7.0% | +11.8% |
| 1y | +27.5% | +18.1% |
| ytd | +13.7% | +11.7% |
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VMI Fundamental Analysis
Valmont's revenue has been relatively stable, with the most recent quarter (Q4 2025) showing revenue of $1,038.26 million, a slight YoY increase of 0.09% from $1,037.29 million in Q4 2024. Over the past year, quarterly revenue has ranged from $969.31 million (Q1 2025) to $1,050.55 million (Q2 2025), indicating a flat to slightly declining trend. The Infrastructure segment is the primary revenue driver, contributing $819.0 million (78.9%) of total revenue, while Agriculture contributed $222.7 million (21.1%). The company's growth has been modest, reflecting mature markets and cyclical demand, but the raised guidance suggests management expects improved performance ahead.
Quarterly Revenue
$1.0B
2025-12
Revenue YoY Growth
+0.1%
YoY Comparison
Gross Margin
29.8%
Latest Quarter
Free Cash Flow
$385360000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is VMI Overvalued?
Given that Valmont is profitable, the PE ratio is the primary valuation metric. The trailing PE is 23.29x, while the forward PE is 18.33x, indicating that the market expects earnings growth. The forward PE is lower than the trailing, which implies that earnings are expected to increase, supporting a positive growth outlook. The PEG ratio of 10.34x is elevated, suggesting that the stock may be overvalued relative to its growth rate, but this could be due to cyclical factors.
PE
23.3x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 12x~25x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
17.6x
Enterprise Value Multiple
Investment Risk Disclosure
Financial and operational risks include stagnant revenue growth, with Q4 2025 revenue up only 0.09% YoY, and a high PEG ratio of 10.34x, which implies the market expects significant growth that may not materialize. The company's net margin of 8.53% is decent, but the Agriculture segment's cyclicality is evident in Q2 2025's net loss of -$30.26 million, highlighting earnings volatility. Debt-to-equity of 0.57 is manageable, but any economic downturn could pressure cash flows and increase leverage concerns.