Industrial • NYSE
According to Zyberno, Valmont Industries, Inc. (VMI) shows a Value Trap signal — GOOD BUSINESS (70/100) with an apparent Margin of Safety of +26.8%, but a Brina Gap of -5.5% reveals the current price still assumes faster growth than the business can deliver.
According to Zyberno's DCF model, Valmont Industries, Inc. (VMI) trades at $476.28 against an estimated intrinsic value per share of $651.06 — a +26.8% Margin of Safety based on Owner Earnings of $405.23M TTM, projected at 37.9% growth for 10 years with a 2.5% terminal growth rate. The Brina Gap of -5.5% weakens the case: based on the company's ROIC (18.5%) and reinvestment rate (19.9%), the business can fundamentally grow at 3.7% — but the current enterprise value implies the market expects 9.2%. This places VMI in the Value Trap quadrant of the Brina Matrix — a value-trap signal where the apparent discount is undermined by overpriced growth expectations. Zyberno's model translates this into a 5-year expected return of 27.7% annually.
Over the trailing twelve months, VMI generated $405.23M in Owner Earnings. Capital was deployed as follows: $57.55M returned via share buybacks, $54.96M paid as dividends, $149.28M invested in capital expenditures. Reinvestment rate: 19.9%. Owner Earnings have grown at 37.9% annually over the trailing five years using log-linear regression.