ALAMO GROUP INC (ALG) Stock Fundamental Analysis
USA - NYSE:ALG - US0113111076 - Common Stock
184.03 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ALG. ALG was compared to 129 industry peers in the Machinery industry. While ALG has a great health rating, its profitability is only average at the moment. ALG has a correct valuation and a medium growth rate.
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.
In the past 5 years ALG always reported a positive cash flow from operatings.
1.2 Ratios
ALG has a Return On Assets of 7.60%. This is in the better half of the industry: ALG outperforms 72.09% of its industry peers.
ALG has a Return On Equity (10.61%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 9.54%, ALG is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
ALG had an Average Return On Invested Capital over the past 3 years of 11.11%. This is in line with the industry average of 10.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.6% | ||
| ROE | 10.61% | ||
| ROIC | 9.54% |
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
Looking at the Profit Margin, with a value of 7.42%, ALG is in the better half of the industry, outperforming 61.24% of the companies in the same industry.
ALG's Profit Margin has improved in the last couple of years.
The Operating Margin of ALG (10.40%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ALG has grown nicely.
ALG has a worse Gross Margin (25.29%) than 65.12% of its industry peers.
In the last couple of years the Gross Margin of ALG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.4% | ||
| PM (TTM) | 7.42% | ||
| GM | 25.29% |
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.
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.
Compared to 1 year ago, ALG has an improved debt to assets ratio.
2.2 Solvency
ALG has an Altman-Z score of 5.88. This indicates that ALG is financially healthy and has little risk of bankruptcy at the moment.
ALG has a Altman-Z score of 5.88. This is amongst the best in the industry. ALG outperforms 85.27% of its industry peers.
ALG has a debt to FCF ratio of 1.15. This is a very positive value and a sign of high solvency as it would only need 1.15 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.15, ALG belongs to the best of the industry, outperforming 88.37% of the companies in the same industry.
ALG has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.18, ALG is in the better half of the industry, outperforming 74.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 5.88 |
ROIC/WACC0.99
WACC9.64%
2.3 Liquidity
A Current Ratio of 4.56 indicates that ALG has no problem at all paying its short term obligations.
ALG has a better Current ratio (4.56) than 91.47% of its industry peers.
ALG has a Quick Ratio of 2.76. This indicates that ALG is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.76, ALG belongs to the best of the industry, outperforming 86.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.56 | ||
| Quick Ratio | 2.76 |
3. Growth
3.1 Past
ALG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.01%.
ALG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.26% yearly.
Looking at the last year, ALG shows a decrease in Revenue. The Revenue has decreased by -4.91% in the last year.
Measured over the past years, ALG shows a small growth in Revenue. The Revenue has been growing by 7.79% on average per year.
EPS 1Y (TTM)-7.01%
EPS 3Y13.14%
EPS 5Y10.26%
EPS Q2Q%9.36%
Revenue 1Y (TTM)-4.91%
Revenue growth 3Y6.87%
Revenue growth 5Y7.79%
Sales Q2Q%0.67%
3.2 Future
ALG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.54% yearly.
ALG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.65% yearly.
EPS Next Y11.52%
EPS Next 2Y14.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.48%
Revenue Next 2Y2.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.74, ALG is valued on the expensive side.
68.99% of the companies in the same industry are more expensive than ALG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ALG to the average of the S&P500 Index (27.53), we can say ALG is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.57 indicates a correct valuation of ALG.
ALG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALG is cheaper than 78.29% of the companies in the same industry.
ALG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.74 | ||
| Fwd PE | 14.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALG is valued a bit cheaper than the industry average as 79.07% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ALG is valued cheaply inside the industry as 89.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.03 | ||
| EV/EBITDA | 10.17 |
4.3 Compensation for Growth
ALG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ALG has a very decent profitability rating, which may justify a higher PE ratio.
ALG's earnings are expected to grow with 14.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.63
PEG (5Y)1.83
EPS Next 2Y14.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.65%, ALG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.81, ALG has a dividend in line with its industry peers.
With a Dividend Yield of 0.65, ALG pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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
5.3 Sustainability
11.34% 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.
DP11.34%
EPS Next 2Y14.54%
EPS Next 3YN/A
NYSE:ALG (10/16/2025, 3:30:25 PM)
184.03
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners87.88%
Inst Owner Change-0.42%
Ins Owners0.85%
Ins Owner Change-2.53%
Market Cap2.23B
Analysts80
Price Target241.49 (31.22%)
Short Float %2.86%
Short Ratio4.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend1.04
Dividend Growth(5Y)16.84%
DP11.34%
Div Incr Years10
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.85%
Min EPS beat(2)-5.67%
Max EPS beat(2)15.36%
EPS beat(4)2
Avg EPS beat(4)1.18%
Min EPS beat(4)-7.39%
Max EPS beat(4)15.36%
EPS beat(8)4
Avg EPS beat(8)0.11%
EPS beat(12)6
Avg EPS beat(12)3.31%
EPS beat(16)8
Avg EPS beat(16)1.91%
Revenue beat(2)1
Avg Revenue beat(2)0.16%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)1.34%
Revenue beat(4)1
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-3.87%
Max Revenue beat(4)1.34%
Revenue beat(8)3
Avg Revenue beat(8)-0.56%
Revenue beat(12)6
Avg Revenue beat(12)-0.11%
Revenue beat(16)9
Avg Revenue beat(16)0.59%
PT rev (1m)0%
PT rev (3m)8.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.74 | ||
| Fwd PE | 14.57 | ||
| P/S | 1.4 | ||
| P/FCF | 12.03 | ||
| P/OCF | 10.49 | ||
| P/B | 2 | ||
| P/tB | 2.98 | ||
| EV/EBITDA | 10.17 |
EPS(TTM)9.82
EY5.34%
EPS(NY)12.63
Fwd EY6.86%
FCF(TTM)15.3
FCFY8.31%
OCF(TTM)17.54
OCFY9.53%
SpS131.85
BVpS92.11
TBVpS61.83
PEG (NY)1.63
PEG (5Y)1.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.6% | ||
| ROE | 10.61% | ||
| ROCE | 12.29% | ||
| ROIC | 9.54% | ||
| ROICexc | 11.22% | ||
| ROICexgc | 16.48% | ||
| OM | 10.4% | ||
| PM (TTM) | 7.42% | ||
| GM | 25.29% | ||
| FCFM | 11.6% |
ROA(3y)8.48%
ROA(5y)7.45%
ROE(3y)12.99%
ROE(5y)11.88%
ROIC(3y)11.11%
ROIC(5y)9.98%
ROICexc(3y)12.08%
ROICexc(5y)10.73%
ROICexgc(3y)18.15%
ROICexgc(5y)16.79%
ROCE(3y)14.31%
ROCE(5y)12.86%
ROICexcg growth 3Y5.21%
ROICexcg growth 5Y8.14%
ROICexc growth 3Y8.81%
ROICexc growth 5Y10.49%
OM growth 3Y4.92%
OM growth 5Y3.6%
PM growth 3Y5.8%
PM growth 5Y4.77%
GM growth 3Y0.34%
GM growth 5Y0.72%
F-Score6
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.15 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 50.05% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 10.71 | ||
| Cash Conversion | 96.41% | ||
| Profit Quality | 156.46% | ||
| Current Ratio | 4.56 | ||
| Quick Ratio | 2.76 | ||
| Altman-Z | 5.88 |
F-Score6
WACC9.64%
ROIC/WACC0.99
Cap/Depr(3y)64.41%
Cap/Depr(5y)58.21%
Cap/Sales(3y)1.95%
Cap/Sales(5y)1.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.01%
EPS 3Y13.14%
EPS 5Y10.26%
EPS Q2Q%9.36%
EPS Next Y11.52%
EPS Next 2Y14.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.91%
Revenue growth 3Y6.87%
Revenue growth 5Y7.79%
Sales Q2Q%0.67%
Revenue Next Year-0.48%
Revenue Next 2Y2.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-10.18%
EBIT growth 3Y12.13%
EBIT growth 5Y11.67%
EBIT Next Year39.08%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y205.67%
FCF growth 3Y96.3%
FCF growth 5Y26.31%
OCF growth 1Y123.32%
OCF growth 3Y61.61%
OCF growth 5Y18.76%