VMI

Valmont Industries Inc.

Industrial/Transportation


Presented:03/21/2014
Price:$147.21
Cap:$3.95B
Current Price:$303.70
Cap:$6.12B

Presented

Date03/21/2014
Price$147.21
Market Cap$3.95B
Ent ValueN/A
P/E Ratio17.66x
Book Value$49.60
Div Yield1.2%
Shares O/S26.83M
Ave Daily Vol270,000
Short Int13.28%

Current

Price$303.70
Market Cap$6.12B
Valmont Industries, Inc. produces and sells fabricated metal products in the United States, Australia, China, France, and internationally. It operates in four segments: Engineered Infrastructure Products, Utility Support Structures, Coatings, and Irrigation. The Engineered Infrastructure Products segment manufactures engineered metal structures and components for the lighting and traffic, wireless communication, roadway safety, and access systems applications. This segment produces steel and aluminum poles, towers, access systems, and other structures. The Utility Support Structures segment manufactures engineered steel and concrete structures for electrical transmission and distribution lines and related power distribution equipment. The Coatings segment provides galvanizing, anodizing, powder coating, and e-coating services. The Irrigation segment produces mechanical irrigation equipment and related service parts under the Valley brand for the agriculture industry. The company also manufactures forged steel grinding media for the mining industry; tubular products for industrial customers; and electrolytic manganese dioxide for disposable batteries, as well as distributes industrial fasteners. It also serves state and federal governments, contractors, utility and telecommunications companies, manufacturers of commercial lighting fixtures, and large farms, as well as the general manufacturing sectors. The company was founded in 1946 and is headquartered in Omaha, Nebraska.

Highlights

The presenter is long shares of Valmont Industries (VMI), a “sleepy, under the radar industrial” that is best known for its industrial sprinklers/ irrigation and utilities infrastructure businesses. At ~$147 per-share, he likes the risk/ reward set up. He sees the potential for the company to grow earnings faster than the Street is expecting, and believes investors’ concern about capex in the irrigation and utility end-markets (part of the reason the short interest is 13-14%) is overblown.

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