Definitive Analysis
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Definitive Analysis

Financial Statements

Periods / Units / Analysis

Ticker

Industry

Sector

Valmont Industries, Inc. (VMI)

Company Dividend Discount ModelIndustry: ConglomeratesSector: Industrials

Valuation Snapshot

Stable Growth$283.59 - $787.47$439.68
Multi-Stage$191.14 - $208.88$199.85
Blended Fair Value$319.76
Current Price$384.87
Upside-16.92%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS8.18%4.07%2.422.472.292.071.841.631.681.691.701.77
YoY Growth---2.34%8.08%10.63%12.14%13.14%-3.21%-0.40%-0.56%-3.69%8.98%
Dividend Yield--0.83%1.08%0.72%0.85%0.76%1.67%1.29%1.16%1.09%1.45%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)233.68
(-) Cash Dividends Paid (M)51.34
(=) Cash Retained (M)182.35
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)46.7429.2117.53
Cash Retained (M)182.35182.35182.35
(-) Cash Required (M)-46.74-29.21-17.53
(=) Excess Retained (M)135.61153.14164.82
(/) Shares Outstanding (M)20.0220.0220.02
(=) Excess Retained per Share6.777.658.23
LTM Dividend per Share2.562.562.56
(+) Excess Retained per Share6.777.658.23
(=) Adjusted Dividend9.3410.2110.80
WACC / Discount Rate8.97%8.97%8.97%
Growth Rate5.50%6.50%7.50%
Fair Value$283.59$439.68$787.47
Upside / Downside-26.32%14.24%104.61%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)233.68248.87265.05282.28300.62320.16329.77
Payout Ratio21.97%35.57%49.18%62.79%76.39%90.00%92.50%
Projected Dividends (M)51.3488.54130.35177.23229.66288.15305.04

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.97%8.97%8.97%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)80.4881.2482.01
Year 2 PV (M)107.72109.77111.84
Year 3 PV (M)133.13136.95140.85
Year 4 PV (M)156.82162.85169.05
Year 5 PV (M)178.86187.50196.47
PV of Terminal Value (M)3,169.493,322.573,481.52
Equity Value (M)3,826.504,000.894,181.74
Shares Outstanding (M)20.0220.0220.02
Fair Value$191.14$199.85$208.88
Upside / Downside-50.34%-48.07%-45.73%

High-Yield Dividend Screener

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