ALAMO GROUP INC (ALG) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:ALG • US0113111076

195 USD
-0.31 (-0.16%)
At close: Feb 2, 2026
195 USD
0 (0%)
After Hours: 2/2/2026, 8:04:00 PM
Fundamental Rating

6

Overall ALG gets a fundamental rating of 6 out of 10. We evaluated ALG against 132 industry peers in the Machinery industry. ALG has an excellent financial health rating, but there are some minor concerns on its profitability. ALG is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • ALG had positive earnings in the past year.
  • 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.
ALG Yearly Net Income VS EBIT VS OCF VS FCFALG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M 200M

1.2 Ratios

  • With a decent Return On Assets value of 7.30%, ALG is doing good in the industry, outperforming 72.73% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 10.27%, ALG is in the better half of the industry, outperforming 62.12% of the companies in the same industry.
  • ALG has a better Return On Invested Capital (9.24%) than 68.18% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ALG is in line with the industry average of 10.37%.
Industry RankSector 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%
ALG Yearly ROA, ROE, ROICALG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10

1.3 Margins

  • The Profit Margin of ALG (7.20%) is better than 62.12% of its industry peers.
  • In the last couple of years the Profit Margin of ALG has grown nicely.
  • With a Operating Margin value of 10.12%, ALG perfoms like the industry average, outperforming 56.06% of the companies in the same industry.
  • ALG's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 25.05%, ALG is doing worse than 64.39% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ALG has remained more or less at the same level.
Industry RankSector 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%
ALG Yearly Profit, Operating, Gross MarginsALG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

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8

2. Health

2.1 Basic Checks

  • ALG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • The number of shares outstanding for ALG has been increased compared to 1 year ago.
  • The number of shares outstanding for ALG has been increased compared to 5 years ago.
  • The debt/assets ratio for ALG has been reduced compared to a year ago.
ALG Yearly Shares OutstandingALG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2M 4M 6M 8M 10M
ALG Yearly Total Debt VS Total AssetsALG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B

2.2 Solvency

  • ALG has an Altman-Z score of 5.90. This indicates that ALG is financially healthy and has little risk of bankruptcy at the moment.
  • ALG's Altman-Z score of 5.90 is amongst the best of the industry. ALG outperforms 82.58% of its industry peers.
  • ALG has a debt to FCF ratio of 1.40. This is a very positive value and a sign of high solvency as it would only need 1.40 years to pay back of 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.
  • A Debt/Equity ratio of 0.17 indicates that ALG is not too dependend on debt financing.
  • ALG has a Debt to Equity ratio of 0.17. This is in the better half of the industry: ALG outperforms 71.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF 1.4
Altman-Z 5.9
ROIC/WACC0.94
WACC9.83%
ALG Yearly LT Debt VS Equity VS FCFALG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • A Current Ratio of 4.43 indicates that ALG has no problem at all paying its short term obligations.
  • ALG has a better Current ratio (4.43) than 90.15% of its industry peers.
  • ALG has a Quick Ratio of 2.72. This indicates that ALG is financially healthy and has no problem in meeting its short term obligations.
  • With an excellent Quick ratio value of 2.72, ALG belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 4.43
Quick Ratio 2.72
ALG Yearly Current Assets VS Current LiabilitesALG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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3

3. Growth

3.1 Past

  • The earnings per share for ALG have decreased by -2.92% in the last year.
  • The Earnings Per Share has been growing by 10.26% on average over the past years. This is quite good.
  • The Revenue has decreased by -2.73% in the past year.
  • ALG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.79% yearly.
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

  • Based on estimates for the next years, ALG will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.64% on average per year.
  • Based on estimates for the next years, ALG will show a small growth in Revenue. The Revenue will grow by 2.26% on average per year.
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

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ALG Yearly Revenue VS EstimatesALG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
ALG Yearly EPS VS EstimatesALG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8 10

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5

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 20.23, the valuation of ALG can be described as rather expensive.
  • Based on the Price/Earnings ratio, ALG is valued a bit cheaper than the industry average as 75.76% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 28.41, ALG is valued a bit cheaper.
  • ALG is valuated correctly with a Price/Forward Earnings ratio of 16.75.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ALG indicates a somewhat cheap valuation: ALG is cheaper than 77.27% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 25.64, ALG is valued a bit cheaper.
Industry RankSector Rank
PE 20.23
Fwd PE 16.75
ALG Price Earnings VS Forward Price EarningsALG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 78.79% of the companies in the same industry are more expensive than ALG, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALG indicates a rather cheap valuation: ALG is cheaper than 84.09% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 15.76
EV/EBITDA 10.68
ALG Per share dataALG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

  • ALG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.97
EPS Next 2Y9.94%
EPS Next 3Y11.64%

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5

5. Dividend

5.1 Amount

  • ALG has a yearly dividend return of 0.70%, which is pretty low.
  • Compared to an average industry Dividend Yield of 1.01, ALG has a dividend in line with its industry peers.
  • With a Dividend Yield of 0.70, ALG pays less dividend than the S&P500 average, which is at 1.83.
Industry RankSector Rank
Dividend Yield 0.7%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)16.84%
Div Incr Years10
Div Non Decr Years24
ALG Yearly Dividends per shareALG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • ALG pays out 11.96% of its income as dividend. This is a sustainable payout ratio.
  • ALG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP11.96%
EPS Next 2Y9.94%
EPS Next 3Y11.64%
ALG Yearly Income VS Free CF VS DividendALG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M
ALG Dividend Payout.ALG Dividend Payout, showing the Payout Ratio.ALG Dividend Payout.PayoutRetained Earnings

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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%.