Is Valmont Industries (NYSE:VMI) Using Too Much Debt?
Is Valmont Industries (NYSE:VMI) Using Too Much Debt?
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. Importantly, Valmont Industries, Inc. (NYSE:VMI) does carry debt. But the more important question is: how much risk is that debt creating?
沃伦·巴菲特曾经说过:“波动性远非风险的代名词。” 当您在考虑公司的风险时,考虑到负债通常会涉及到业务破产,从而考虑公司的资产负债表是很自然的事情。重要的是,维蒙特工业(NYSE:VMI)的确存在负债的问题。但更重要的问题是:这些债务产生多大的风险?
Why Does Debt Bring Risk?
为什么债务会带来风险?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. If things get really bad, the lenders can take control of the business. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. When we examine debt levels, we first consider both cash and debt levels, together.
一般来说,当公司不能轻松地融资或通过自身的现金流偿还债务时,债务才会成为一个真正的问题。如果情况真的变得很糟糕,贷款人可以接管业务。然而,更频繁但仍然很昂贵的情况是,公司必须以低廉的价格发行股票,永久性稀释股东,仅仅为了支撑其资产负债表。当然,债务可以成为企业重要的工具,特别是在资本密集型企业中。当我们检查债务水平时,首先要考虑的是现金和债务水平的总和。
How Much Debt Does Valmont Industries Carry?
维蒙特工业承载了多少债务?
As you can see below, at the end of March 2024, Valmont Industries had US$1.11b of debt, up from US$998.4m a year ago. Click the image for more detail. However, because it has a cash reserve of US$169.2m, its net debt is less, at about US$942.0m.
正如您可以在下面看到的,在2024年3月底,维蒙特工业拥有11.1亿美元的债务,比一年前的9.984亿美元增加了。点击图片查看更多详情。但是,由于它有1.692亿美元的现金储备,因此其净债务较少,约为9.42亿美元。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240608/0-c72190f48bb67f685b30d842e65edd90-0-4464e68559aeb885ac174b5e332cc55d.png/big)
A Look At Valmont Industries' Liabilities
看一下维蒙特工业的负债
According to the last reported balance sheet, Valmont Industries had liabilities of US$674.8m due within 12 months, and liabilities of US$1.34b due beyond 12 months. On the other hand, it had cash of US$169.2m and US$850.5m worth of receivables due within a year. So its liabilities total US$991.4m more than the combination of its cash and short-term receivables.
根据最近公布的资产负债表,维蒙特工业在12个月内有6.748亿美元的负债,超过12个月的负债有13.4亿美元。另一方面,它有1.692亿美元的现金和8.505亿美元的应收账款。所以其负债总额比现金和短期应收账款的总和多了9.914亿美元。
Since publicly traded Valmont Industries shares are worth a total of US$5.12b, it seems unlikely that this level of liabilities would be a major threat. However, we do think it is worth keeping an eye on its balance sheet strength, as it may change over time.
由于公开交易的维蒙特工业股票总价值为51.2亿美元,因此这种程度的负债似乎不会构成重大威胁。但是,我们认为值得关注其资产负债表的实力,因为它可能会随着时间的推移而发生变化。
We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). The advantage of this approach is that we take into account both the absolute quantum of debt (with net debt to EBITDA) and the actual interest expenses associated with that debt (with its interest cover ratio).
我们使用两个主要比率来分析债务与收益之间的关系。第一个比率是净债务与利息、税、折旧和摊销前利润(EBITDA)的比率,第二个比率是其利润前利润和税(EBIT)覆盖利息支出的次数(或其利息覆盖比率)。这种方法的优点在于我们考虑到了债务的绝对数量(通过净债务与EBITDA的比率),以及与这些债务相关的实际利息支出(通过其利息覆盖比率)。
With a debt to EBITDA ratio of 1.6, Valmont Industries uses debt artfully but responsibly. And the fact that its trailing twelve months of EBIT was 9.2 times its interest expenses harmonizes with that theme. The good news is that Valmont Industries has increased its EBIT by 4.6% over twelve months, which should ease any concerns about debt repayment. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if Valmont Industries can strengthen its balance sheet over time. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
以EBITDA比率为1.6,维蒙特工业巧妙而负责地利用债务。其过去12个月的息税前利润(EBIT)是利息支出的9.2倍,这是好消息。值得一提的是,维蒙特工业过去12个月的EBIT增长了4.6%,这应该可以缓解债务偿还的担忧。在分析债务水平时,资产负债表是一个显而易见的起点。但最终业务的未来盈利能力将决定维蒙特工业长期是否可以加强其资产负债表。如果您关注未来,可以查看这份免费报告,其中显示了分析师的盈利预测。
Finally, a company can only pay off debt with cold hard cash, not accounting profits. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. Looking at the most recent three years, Valmont Industries recorded free cash flow of 31% of its EBIT, which is weaker than we'd expect. That's not great, when it comes to paying down debt.
最后,公司只能用现金来偿还债务,而不是会计利润。因此,我们清楚地需要查看EBIT是否导致相应的自由现金流。观察近三年的数据,维蒙特工业记录了占其EBIT的31%的自由现金流,这比我们所期望的要弱。就偿还债务而言,这并不好。
Our View
我们的观点
On our analysis Valmont Industries's interest cover should signal that it won't have too much trouble with its debt. But the other factors we noted above weren't so encouraging. For instance it seems like it has to struggle a bit to convert EBIT to free cash flow. Considering this range of data points, we think Valmont Industries is in a good position to manage its debt levels. But a word of caution: we think debt levels are high enough to justify ongoing monitoring. When analysing debt levels, the balance sheet is the obvious place to start. However, not all investment risk resides within the balance sheet - far from it. For example, we've discovered 4 warning signs for Valmont Industries that you should be aware of before investing here.
在我们的分析中,维蒙特工业的利息覆盖率应该表明它不会因债务而遇到太大的问题。但我们上面提到的其他因素并不那么令人鼓舞。例如,似乎它必须努力将EBIT转化为自由现金流。考虑到这些数据点,我们认为维蒙特工业可以很好地处理其债务水平。但请注意:我们认为债务水平高到足以证明需要持续监控。在分析债务水平时,资产负债表是一个显而易见的起点。然而,并不是所有的投资风险都存在于资产负债表中-远非如此。例如,我们发现了4个警示符,表明在此投资前,您应该意识到维蒙特工业的一些风险。
When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.
说到底,有时更容易关注那些甚至不需要债务的公司。读者可以免费查看零净债务增长股票列表,立即获得。
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