ALAMO GROUP INC (ALG)
US0113111076 - Common Stock
Taking everything into account, ALG scores 6 out of 10 in our fundamental rating. ALG was compared to 132 industry peers in the Machinery industry. ALG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ALG has a correct valuation and a medium growth rate. This makes ALG very considerable for quality investing!
1. Profitability
1.1 Basic Checks
ALG had positive earnings in the past year.
ALG had a positive operating cash flow in the past year.
In the past 5 years ALG has always been profitable.
Each year in the past 5 years ALG had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 9.66%, ALG is doing good in the industry, outperforming 75.97% of the companies in the same industry.
With a decent Return On Equity value of 14.59%, ALG is doing good in the industry, outperforming 67.44% of the companies in the same industry.
ALG has a better Return On Invested Capital (12.72%) than 78.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALG is in line with the industry average of 10.74%.
The 3 year average ROIC (10.60%) for ALG is below the current ROIC(12.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.66% | ||
| ROE | 14.59% | ||
| ROIC | 12.72% |
ROA(3y)8.03%
ROA(5y)6.89%
ROE(3y)12.98%
ROE(5y)11.82%
ROIC(3y)10.6%
ROIC(5y)9.26%
1.3 Margins
ALG's Profit Margin of 8.06% is fine compared to the rest of the industry. ALG outperforms 63.57% of its industry peers.
In the last couple of years the Profit Margin of ALG has grown nicely.
With a decent Operating Margin value of 11.72%, ALG is doing good in the industry, outperforming 61.24% of the companies in the same industry.
In the last couple of years the Operating Margin of ALG has grown nicely.
ALG's Gross Margin of 26.85% is in line compared to the rest of the industry. ALG outperforms 45.74% of its industry peers.
ALG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.72% | ||
| PM (TTM) | 8.06% | ||
| GM | 26.85% |
OM growth 3Y12.87%
OM growth 5Y3.17%
PM growth 3Y17.5%
PM growth 5Y2.04%
GM growth 3Y2.08%
GM growth 5Y1.13%
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.
ALG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ALG has been increased compared to 5 years ago.
ALG has a better debt/assets ratio than last year.
2.2 Solvency
ALG has an Altman-Z score of 6.04. This indicates that ALG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.04, ALG belongs to the best of the industry, outperforming 82.17% of the companies in the same industry.
ALG has a debt to FCF ratio of 2.52. This is a good value and a sign of high solvency as ALG would need 2.52 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.52, ALG is in the better half of the industry, outperforming 72.87% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that ALG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.24, ALG is in the better half of the industry, outperforming 68.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.52 | ||
| Altman-Z | 6.04 |
ROIC/WACC1.34
WACC9.49%
2.3 Liquidity
A Current Ratio of 3.76 indicates that ALG has no problem at all paying its short term obligations.
ALG has a better Current ratio (3.76) than 86.05% of its industry peers.
A Quick Ratio of 1.99 indicates that ALG should not have too much problems paying its short term obligations.
ALG has a Quick ratio of 1.99. This is in the better half of the industry: ALG outperforms 78.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.76 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
ALG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.79%, which is quite impressive.
ALG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.92% yearly.
ALG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.63%.
The Revenue has been growing by 10.87% on average over the past years. This is quite good.
EPS 1Y (TTM)31.79%
EPS 3Y31.29%
EPS 5Y13.92%
EPS growth Q2Q7.79%
Revenue 1Y (TTM)11.63%
Revenue growth 3Y13.24%
Revenue growth 5Y10.87%
Revenue growth Q2Q8%
3.2 Future
Based on estimates for the next years, ALG will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.18% on average per year.
The Revenue is expected to grow by 4.61% on average over the next years.
EPS Next Y8.08%
EPS Next 2Y10.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.21%
Revenue Next 2Y4.61%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
Based on the Price/Earnings ratio of 17.48, the valuation of ALG can be described as rather expensive.
Based on the Price/Earnings ratio, ALG is valued a bit cheaper than 69.77% of the companies in the same industry.
ALG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.92.
The Price/Forward Earnings ratio is 16.17, which indicates a correct valuation of ALG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALG indicates a somewhat cheap valuation: ALG is cheaper than 70.54% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, ALG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.48 | ||
| Fwd PE | 16.17 |
4.2 Price Multiples
70.54% 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 in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.61 | ||
| EV/EBITDA | 10.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ALG may justify a higher PE ratio.
PEG (NY)2.16
PEG (5Y)1.26
EPS Next 2Y10.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.52%, ALG is not a good candidate for dividend investing.
ALG's Dividend Yield is comparable with the industry average which is at 1.72.
With a Dividend Yield of 0.52, ALG pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
5.2 History
On average, the dividend of ALG grows each year by 14.85%, which is quite nice.
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)14.85%
Div Incr Years9
Div Non Decr Years19
5.3 Sustainability
7.70% of the earnings are spent on dividend by ALG. This is a low number and sustainable payout ratio.
The dividend of ALG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP7.7%
EPS Next 2Y10.18%
EPS Next 3YN/A
ALAMO GROUP INC
NYSE:ALG (4/26/2024, 7:04:00 PM)
After market: 198.52 0 (0%)198.52
-1.11 (-0.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.39B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.48 | ||
| Fwd PE | 16.17 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.16
PEG (5Y)1.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.66% | ||
| ROE | 14.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.72% | ||
| PM (TTM) | 8.06% | ||
| GM | 26.85% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.76 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)31.79%
EPS 3Y31.29%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.08%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.63%
Revenue growth 3Y13.24%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y