ALAMO GROUP INC (ALG) Stock Fundamental Analysis
NYSE:ALG - US0113111076 - Common Stock
208.77 USD
-2.69 (-1.27%)
208.77 USD
0 (0%)
ALG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 128 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.
ALG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALG has a better Return On Assets (7.60%) than 71.09% of its industry peers.
With a Return On Equity value of 10.61%, ALG perfoms like the industry average, outperforming 58.59% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.54%, ALG is doing good in the industry, outperforming 66.41% 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 9.99%.
| 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
ALG has a Profit Margin of 7.42%. This is in the better half of the industry: ALG outperforms 60.16% of its industry peers.
ALG's Profit Margin has improved in the last couple of years.
ALG's Operating Margin of 10.40% is in line compared to the rest of the industry. ALG outperforms 56.25% of its industry peers.
In the last couple of years the Operating Margin of ALG has grown nicely.
ALG's Gross Margin of 25.29% is on the low side compared to the rest of the industry. ALG is outperformed by 64.84% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ALG is still creating some value.
Compared to 1 year ago, ALG has more shares outstanding
Compared to 5 years ago, ALG has more shares outstanding
Compared to 1 year ago, ALG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.33 indicates that ALG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.33, ALG belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.15, ALG belongs to the top of the industry, outperforming 86.72% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that ALG is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.18, ALG is doing good in the industry, outperforming 74.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 6.33 |
ROIC/WACC0.91
WACC10.47%
2.3 Liquidity
ALG has a Current Ratio of 4.56. This indicates that ALG is financially healthy and has no problem in meeting its short term obligations.
ALG has a better Current ratio (4.56) than 89.84% of its industry peers.
A Quick Ratio of 2.76 indicates that ALG has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.76, ALG belongs to the top of the industry, outperforming 88.28% 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.
ALG shows a decrease in Revenue. In the last year, the revenue decreased by -4.91%.
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
Based on the Price/Earnings ratio of 21.26, the valuation of ALG can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ALG indicates a somewhat cheap valuation: ALG is cheaper than 63.28% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.90. ALG is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.53, which indicates a correct valuation of ALG.
Based on the Price/Forward Earnings ratio, ALG is valued a bit cheaper than the industry average as 69.53% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.52. ALG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.26 | ||
| Fwd PE | 16.53 |
4.2 Price Multiples
ALG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ALG is cheaper than 67.97% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ALG is valued cheaply inside the industry as 85.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.65 | ||
| EV/EBITDA | 11.68 |
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.
ALG's earnings are expected to grow with 14.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.85
PEG (5Y)2.07
EPS Next 2Y14.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ALG has a yearly dividend return of 0.56%, which is pretty low.
Compared to an average industry Dividend Yield of 1.78, ALG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, ALG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
5.2 History
The dividend of ALG is nicely growing with an annual growth rate of 16.84%!
ALG has been paying a dividend for at least 10 years, so it has 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.
ALG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP11.34%
EPS Next 2Y14.54%
EPS Next 3YN/A
208.77
-2.69 (-1.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners87.92%
Inst Owner Change-0.2%
Ins Owners1.13%
Ins Owner Change-0.1%
Market Cap2.53B
Analysts80
Price Target241.49 (15.67%)
Short Float %3.03%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
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)8.85%
PT rev (3m)16.34%
EPS NQ rev (1m)-3.35%
EPS NQ rev (3m)-1.43%
EPS NY rev (1m)-1.23%
EPS NY rev (3m)-1.25%
Revenue NQ rev (1m)-1.17%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)1.17%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.26 | ||
| Fwd PE | 16.53 | ||
| P/S | 1.58 | ||
| P/FCF | 13.65 | ||
| P/OCF | 11.9 | ||
| P/B | 2.27 | ||
| P/tB | 3.38 | ||
| EV/EBITDA | 11.68 |
EPS(TTM)9.82
EY4.7%
EPS(NY)12.63
Fwd EY6.05%
FCF(TTM)15.3
FCFY7.33%
OCF(TTM)17.54
OCFY8.4%
SpS131.85
BVpS92.11
TBVpS61.83
PEG (NY)1.85
PEG (5Y)2.07
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 | 6.33 |
F-Score6
WACC10.47%
ROIC/WACC0.91
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 Year38.46%
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%