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Is this Large Market Cap Stock target price reasonable for Valmont Industries, Inc. (NYSE:VMI)?

The company in question is, Valmont Industries, Inc. (NYSE:VMI) currently with a stock price of 128.64 (-0.88% today). The market cap for Valmont Industries, Inc. is 2996.62, and is in the sector Industrial Goods, and Metal Fabrication industry. The target price for Valmont Industries, Inc. is 138.5. Currently Valmont Industries, Inc. is trading with a P/E of 52.37, and a forward P/E of 18.56. Average volume for Valmont Industries, Inc. is 114.24 and so far today it is 59429.

Performance in the last year for Valmont Industries, Inc. has been 27.55%. For EPS growth, Valmont Industries, Inc. has seen a growth of -75.80%, and is looking to grow in the next year to 10.37%. More long term stats show that EPS growth has been -13.70% over the last five years and could be 9.87% for the next five years. Valmont Industries, Inc. has seen sales growth quarter over quarter at -6.10%, with EPS growth quarter over quarter at 57.20%. The 20-day simple moving average is -1.27%, with the 200-day simple moving average coming to 3.22%.

Since the IPO date for Valmont Industries, Inc. on the 3/26/1990, Valmont Industries, Inc. has seen performance year to date to be 23.48%. With Valmont Industries, Inc. trading at 128.64, the dividend yield is 1.16%, and the EPS is 2.48.

So could Valmont Industries, Inc., be undervalued? Well as said before P/E is 52.37. The PEG is 5.31, P/S is 1.2 and the P/B is at 3.07. The P/cash is 8.7, with P/free cash flow at 19.64.

Valmont Industries, Inc. ability to deal with debt shows that the current ratio is 3.5, and the quick ratio is 2.5. This is with long term debt/equity at 0.79, and total debt/equity at 0.8.

In terms of margins, Valmont Industries, Inc. has a gross margin of 24.90%, an operating margin of 6.20% and a profit margin of 2.30%.Payout ratio for Valmont Industries, Inc. is 60.00%. Return on assets come to 2.30% with return on investment coming to 5.00%.

Insider ownership for Valmont Industries, Inc., is at 1.10% and institutional ownership comes to 88.90%. Outstanding shares are at 23.09. While shares float is 22.04. The float short is currently 5.35%, and short ratio is 10.32.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Mark Hines

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