$Valmont Industries (VMI.US)$Being a US company, from 2002 t...

The company's main business includes public utility structure support, engineering support structures, irrigation, and coatings. 65% of the market is in the USA, with the rest being more scattered.

The gross margin has been around 25% over the past 5 years, while the return on net assets has fluctuated from 11.3% to 15.2%.

Revenue has been continuously growing over the past 5 years. Operating profit has increased for 4 years except for 2018, with an average growth rate of 3.8%. Net income declined in the first two years and the fourth year, increasing only in 2019 and 2021, with a 5-year average growth rate of 2.2% and a near 3-year average growth rate of 25.6%.

The income statement shows that the company's tax costs are high, reaching 24% to 30% of pre-tax profit. It is not clear if this is due to environmental issues.

Interest income has been declining year by year, while interest costs are relatively stable. In 2021, net interest expense accounted for 14% of operating profit, which the company is able to bear.

In the first two quarters of 2022, revenue increased by 26.8%, operating profit increased by 33.6%, and net income increased by 19%, reaching 0.14 billion. If it reaches 0.3 billion for the whole year, the corresponding PE ratio would be 20.

Currently, the static PE ratio is 31.4, and the PE ratio TTM is 28.3. Looking at the long-term growth rate, the attractiveness is not significant.