Valmont Industries Stock Intrinsic Value – VALMONT INDUSTRIES Reports Q2 Earnings Results for FY2023
August 12, 2023
🌥️Earnings Overview
On July 27th 2023, VALMONT INDUSTRIES ($NYSE:VMI) reported their earnings results for the quarter ending June 30th 2023. The total revenue decreased by 7.9%, with a figure of USD 1046.3 million, while net income increased by 17.4% to USD 89.4 million compared to the same period in the prior year.
Price History
At the opening, VALMONT INDUSTRIES stock was trading at $275.0, however, after the closing bell it had dropped by 7.7% to $260.1 from its previous closing price of $281.8. This drop in the price of the stock was in contrast to the rising trend shown by the stock in recent weeks. The report was released to investors and analysts to provide insight into the company’s performance and financial health. Analysts are expecting the company to show a healthy growth in the coming quarters as well. The company’s revenue and earnings for the quarter were lower than expected due to a number of factors. These factors include the increasing competition in the market, higher costs of raw materials, and slow economic growth in some regions. Despite these challenges, analysts are expecting a strong future performance from VALMONT INDUSTRIES as they continue to diversify their products and services. Overall, investors have responded negatively to the results of the Q2 earnings report from VALMONT INDUSTRIES.
However, with the company strongly positioned in their niche market and a strong outlook for future growth, investors are looking forward to better results in the months ahead. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Valmont Industries. More…
| Total Revenues | Net Income | Net Margin |
| 4.34k | 276.36 | 6.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Valmont Industries. More…
| Operations | Investing | Financing |
| 367.79 | -78.31 | -276.63 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Valmont Industries. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.62k | 1.95k | 76.73 |
Key Ratios Snapshot
Some of the financial key ratios for Valmont Industries are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 16.6% | 23.8% | 10.4% |
| FCF Margin | ROE | ROA |
| 6.4% | 17.8% | 7.8% |
Analysis – Valmont Industries Stock Intrinsic Value
At GoodWhale, we have taken an in-depth look at the financials of VALMONT INDUSTRIES. Our proprietary Valuation Line has calculated the fair value of a VALMONT INDUSTRIES share to be around $291.4. However, the current stock price is being traded at $260.1, which appears to be undervalued by 10.7%. For investors hoping to capitalize on the undervaluation, this could be a great time to consider investing in VALMONT INDUSTRIES. More…
Peers
The company operates in three segments: Engineered Support Structures, Utility Support Structures, and Coatings. Valmont has over 60 facilities in the United States, Canada, Europe, Australia, and Asia. The company was founded in 1946 and is a publicly traded company on the New York Stock Exchange under the ticker symbol “VMI”. Valmont’s competitors include Hitachi Ltd, Variman Global Enterprises Ltd, and APi Group Corp.
– Hitachi Ltd ($TSE:6501)
Hitachi Ltd is a Japanese multinational conglomerate company headquartered in Chiyoda, Tokyo, Japan. The company provides industrial, transportation, and construction equipment, electronics, information technology services, power generation, and nuclear engineering. As of 2022, Hitachi Ltd has a market cap of 6.2T and a Return on Equity of 10.87%.
– Variman Global Enterprises Ltd ($BSE:540570)
Variman Global Enterprises Ltd is a publicly traded company with a market capitalization of 4.21 billion as of 2022. The company has a return on equity of 9.96% and is engaged in the business of providing information technology services. Variman Global Enterprises Ltd is headquartered in India and has a presence in more than 50 countries. The company offers a range of services including application development, enterprise resource planning, business process outsourcing, and infrastructure management.
– APi Group Corp ($NYSE:APG)
The company’s market cap is 3.76B as of 2022. The company’s ROE is 3.53%. The company is engaged in the business of providing information technology services.
Summary
Valmont Industries recently released its financial report for the second quarter of FY2023, ending June 30 2023. Total revenue for the period was USD 1046.3 million, representing a 7.9% decrease compared to the same period in the previous year. Despite this, net income increased by 17.4% to USD 89.4 million. In response to the news, the stock price dropped significantly on the day of the announcement.
Overall, this indicates that while Valmont Industries may be having difficulty driving revenue growth, it has been successful in increasing profitability. Therefore, investors may want to stay on top of further updates from the company to better inform their investing decisions.
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