ALAMO GROUP INC (ALG) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ALG • US0113111076
193.02 USD
+2.12 (+1.11%)
At close: Jan 29, 2026
193.02 USD
0 (0%)
After Hours: 1/29/2026, 8:04:00 PM
Overall ALG gets a fundamental rating of 6 out of 10. We evaluated ALG against 132 industry peers in the Machinery industry. While ALG has a great health rating, its profitability is only average at the moment. ALG has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year ALG was profitable.
- In the past year ALG had a positive cash flow from operations.
- Each year in the past 5 years ALG has been profitable.
- Each year in the past 5 years ALG had a positive operating cash flow.
1.2 Ratios
- ALG has a better Return On Assets (7.30%) than 72.73% of its industry peers.
- The Return On Equity of ALG (10.27%) is better than 62.12% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.24%, ALG is in the better half of the industry, outperforming 67.42% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ALG is in line with the industry average of 10.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.3% | ||
| ROE | 10.27% | ||
| ROIC | 9.24% |
ROA(3y)8.48%
ROA(5y)7.45%
ROE(3y)12.99%
ROE(5y)11.88%
ROIC(3y)11.11%
ROIC(5y)9.98%
1.3 Margins
- ALG has a Profit Margin of 7.20%. This is in the better half of the industry: ALG outperforms 62.12% of its industry peers.
- In the last couple of years the Profit Margin of ALG has grown nicely.
- ALG has a Operating Margin (10.12%) which is comparable to the rest of the industry.
- ALG's Operating Margin has improved in the last couple of years.
- ALG has a Gross Margin of 25.05%. This is in the lower half of the industry: ALG underperforms 64.39% of its industry peers.
- ALG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.12% | ||
| PM (TTM) | 7.2% | ||
| GM | 25.05% |
OM growth 3Y4.92%
OM growth 5Y3.6%
PM growth 3Y5.8%
PM growth 5Y4.77%
GM growth 3Y0.34%
GM growth 5Y0.72%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ALG is creating some value.
- The number of shares outstanding for ALG has been increased compared to 1 year ago.
- Compared to 5 years ago, ALG has more shares outstanding
- The debt/assets ratio for ALG has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 5.86 indicates that ALG is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.86, ALG belongs to the top of the industry, outperforming 82.58% of the companies in the same industry.
- The Debt to FCF ratio of ALG is 1.40, which is an excellent value as it means it would take ALG, only 1.40 years of fcf income to pay off all of its debts.
- ALG has a Debt to FCF ratio of 1.40. This is amongst the best in the industry. ALG outperforms 84.85% of its industry peers.
- ALG has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
- ALG has a better Debt to Equity ratio (0.17) than 71.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 5.86 |
ROIC/WACC0.94
WACC9.79%
2.3 Liquidity
- ALG has a Current Ratio of 4.43. This indicates that ALG is financially healthy and has no problem in meeting its short term obligations.
- ALG has a Current ratio of 4.43. This is amongst the best in the industry. ALG outperforms 90.15% of its industry peers.
- A Quick Ratio of 2.72 indicates that ALG has no problem at all paying its short term obligations.
- ALG's Quick ratio of 2.72 is amongst the best of the industry. ALG outperforms 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.43 | ||
| Quick Ratio | 2.72 |
3. Growth
3.1 Past
- The earnings per share for ALG have decreased by -2.92% in the last year.
- ALG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.26% yearly.
- ALG shows a decrease in Revenue. In the last year, the revenue decreased by -2.73%.
- The Revenue has been growing slightly by 7.79% on average over the past years.
EPS 1Y (TTM)-2.92%
EPS 3Y13.14%
EPS 5Y10.26%
EPS Q2Q%-7.89%
Revenue 1Y (TTM)-2.73%
Revenue growth 3Y6.87%
Revenue growth 5Y7.79%
Sales Q2Q%4.67%
3.2 Future
- The Earnings Per Share is expected to grow by 11.64% on average over the next years. This is quite good.
- ALG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.26% yearly.
EPS Next Y-1.64%
EPS Next 2Y9.94%
EPS Next 3Y11.64%
EPS Next 5YN/A
Revenue Next Year-0.42%
Revenue Next 2Y2.3%
Revenue Next 3Y2.26%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 20.02 indicates a rather expensive valuation of ALG.
- Compared to the rest of the industry, the Price/Earnings ratio of ALG indicates a somewhat cheap valuation: ALG is cheaper than 75.76% of the companies listed in the same industry.
- ALG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.39.
- Based on the Price/Forward Earnings ratio of 16.58, the valuation of ALG can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ALG indicates a somewhat cheap valuation: ALG is cheaper than 78.79% of the companies listed in the same industry.
- ALG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.02 | ||
| Fwd PE | 16.58 |
4.2 Price Multiples
- 79.55% of the companies in the same industry are more expensive than ALG, based on the Enterprise Value to EBITDA ratio.
- ALG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALG is cheaper than 84.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.6 | ||
| EV/EBITDA | 10.55 |
4.3 Compensation for Growth
- The decent profitability rating of ALG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.95
EPS Next 2Y9.94%
EPS Next 3Y11.64%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.71%, ALG is not a good candidate for dividend investing.
- ALG's Dividend Yield is comparable with the industry average which is at 1.01.
- Compared to an average S&P500 Dividend Yield of 1.82, ALG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
5.2 History
- The dividend of ALG is nicely growing with an annual growth rate of 16.84%!
- ALG has paid a dividend for at least 10 years, which is a reliable track record.
- ALG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16.84%
Div Incr Years10
Div Non Decr Years24
5.3 Sustainability
- ALG pays out 11.96% of its income as dividend. This is a sustainable payout ratio.
- The dividend of ALG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP11.96%
EPS Next 2Y9.94%
EPS Next 3Y11.64%
ALAMO GROUP INC / ALG FAQ
What is the ChartMill fundamental rating of ALAMO GROUP INC (ALG) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ALG.
What is the valuation status for ALG stock?
ChartMill assigns a valuation rating of 5 / 10 to ALAMO GROUP INC (ALG). This can be considered as Fairly Valued.
Can you provide the profitability details for ALAMO GROUP INC?
ALAMO GROUP INC (ALG) has a profitability rating of 6 / 10.
What is the financial health of ALAMO GROUP INC (ALG) stock?
The financial health rating of ALAMO GROUP INC (ALG) is 8 / 10.
Can you provide the dividend sustainability for ALG stock?
The dividend rating of ALAMO GROUP INC (ALG) is 5 / 10 and the dividend payout ratio is 11.96%.