ALTA EQUIPMENT GROUP INC (ALTG) Stock Fundamental Analysis
NYSE:ALTG - New York Stock Exchange, Inc. - US02128L1061 - Common Stock - Currency: USD
ALTG gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 48 industry peers in the Trading Companies & Distributors industry. Both the profitability and financial health of ALTG have multiple concerns. ALTG has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ALTG has reported negative net income.
ALTG had a positive operating cash flow in the past year.
In multiple years ALTG reported negative net income over the last 5 years.
ALTG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.93%, ALTG is doing worse than 87.50% of the companies in the same industry.
Looking at the Return On Equity, with a value of -132.32%, ALTG is doing worse than 95.83% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.25%, ALTG is doing worse than 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ALTG is significantly below the industry average of 9.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.93% | ||
| ROE | -132.32% | ||
| ROIC | 1.25% |
ROA(3y)-1.18%
ROA(5y)-1.83%
ROE(3y)-25.15%
ROE(5y)-21.62%
ROIC(3y)2.46%
ROIC(5y)N/A
1.3 Margins
ALTG has a worse Operating Margin (1.09%) than 75.00% of its industry peers.
ALTG's Operating Margin has declined in the last couple of years.
ALTG has a Gross Margin of 26.27%. This is in the lower half of the industry: ALTG underperforms 64.58% of its industry peers.
ALTG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.09% | ||
| PM (TTM) | N/A | ||
| GM | 26.27% |
OM growth 3Y-12.59%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.49%
GM growth 5YN/A
2. Health
2.1 Basic Checks
ALTG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ALTG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ALTG has been increased compared to 5 years ago.
Compared to 1 year ago, ALTG has a worse debt to assets ratio.
2.2 Solvency
ALTG has an Altman-Z score of 1.38. This is a bad value and indicates that ALTG is not financially healthy and even has some risk of bankruptcy.
ALTG has a worse Altman-Z score (1.38) than 77.08% of its industry peers.
ALTG has a Debt/Equity ratio of 19.68. This is a high value indicating a heavy dependency on external financing.
ALTG has a worse Debt to Equity ratio (19.68) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 19.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.38 |
ROIC/WACC0.16
WACC7.6%
2.3 Liquidity
ALTG has a Current Ratio of 1.36. This is a normal value and indicates that ALTG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.36, ALTG is doing worse than 77.08% of the companies in the same industry.
ALTG has a Quick Ratio of 1.36. This is a bad value and indicates that ALTG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ALTG (0.42) is worse than 85.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The earnings per share for ALTG have decreased strongly by -221.88% in the last year.
The Revenue has decreased by -0.01% in the past year.
ALTG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.66% yearly.
EPS 1Y (TTM)-221.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%44.74%
Revenue 1Y (TTM)-0.01%
Revenue growth 3Y15.66%
Revenue growth 5YN/A
Sales Q2Q%-1.41%
3.2 Future
ALTG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.26% yearly.
ALTG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.65% yearly.
EPS Next Y27.01%
EPS Next 2Y21.85%
EPS Next 3Y21.58%
EPS Next 5Y20.26%
Revenue Next Year0.58%
Revenue Next 2Y1.82%
Revenue Next 3Y2.18%
Revenue Next 5Y2.65%
3.3 Evolution
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
ALTG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year ALTG is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALTG indicates a rather cheap valuation: ALTG is cheaper than 97.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.96 |
4.3 Compensation for Growth
A more expensive valuation may be justified as ALTG's earnings are expected to grow with 21.58% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y21.85%
EPS Next 3Y21.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.00%, ALTG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.07, ALTG pays a better dividend. On top of this ALTG pays more dividend than 100.00% of the companies listed in the same industry.
ALTG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10% |
5.2 History
ALTG has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
ALTG has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-14.57%
EPS Next 2Y21.85%
EPS Next 3Y21.58%
7.74
+0.57 (+7.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners54.38%
Inst Owner Change-0.58%
Ins Owners20.48%
Ins Owner Change2.63%
Market Cap256.89M
Analysts80
Price Target10.67 (37.86%)
Short Float %5.82%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10% |
Yearly Dividend0.34
Dividend Growth(5Y)N/A
DP-14.57%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8%
Min EPS beat(2)-13.64%
Max EPS beat(2)-2.37%
EPS beat(4)0
Avg EPS beat(4)-169.76%
Min EPS beat(4)-408.04%
Max EPS beat(4)-2.37%
EPS beat(8)1
Avg EPS beat(8)-72.09%
EPS beat(12)4
Avg EPS beat(12)41.72%
EPS beat(16)5
Avg EPS beat(16)-37.11%
Revenue beat(2)1
Avg Revenue beat(2)-2.16%
Min Revenue beat(2)-4.91%
Max Revenue beat(2)0.59%
Revenue beat(4)1
Avg Revenue beat(4)-4.49%
Min Revenue beat(4)-8.31%
Max Revenue beat(4)0.59%
Revenue beat(8)3
Avg Revenue beat(8)-1.36%
Revenue beat(12)7
Avg Revenue beat(12)1.12%
Revenue beat(16)11
Avg Revenue beat(16)2.62%
PT rev (1m)0%
PT rev (3m)-8.37%
EPS NQ rev (1m)4.67%
EPS NQ rev (3m)11.3%
EPS NY rev (1m)2.6%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.14 | ||
| P/FCF | N/A | ||
| P/OCF | 5 | ||
| P/B | 4.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.96 |
EPS(TTM)-2.06
EYN/A
EPS(NY)-1.01
Fwd EYN/A
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)1.55
OCFY20.01%
SpS55.98
BVpS1.69
TBVpS-2.24
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.93% | ||
| ROE | -132.32% | ||
| ROCE | 2.21% | ||
| ROIC | 1.25% | ||
| ROICexc | 1.26% | ||
| ROICexgc | 1.4% | ||
| OM | 1.09% | ||
| PM (TTM) | N/A | ||
| GM | 26.27% | ||
| FCFM | N/A |
ROA(3y)-1.18%
ROA(5y)-1.83%
ROE(3y)-25.15%
ROE(5y)-21.62%
ROIC(3y)2.46%
ROIC(5y)N/A
ROICexc(3y)2.49%
ROICexc(5y)N/A
ROICexgc(3y)2.81%
ROICexgc(5y)N/A
ROCE(3y)4.28%
ROCE(5y)N/A
ROICexcg growth 3Y-12.75%
ROICexcg growth 5YN/A
ROICexc growth 3Y-12.74%
ROICexc growth 5YN/A
OM growth 3Y-12.59%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.49%
GM growth 5YN/A
F-Score4
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 19.68 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.75 | ||
| Cap/Depr | 46.96% | ||
| Cap/Sales | 3.61% | ||
| Interest Coverage | 0.27 | ||
| Cash Conversion | 31.5% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 1.38 |
F-Score4
WACC7.6%
ROIC/WACC0.16
Cap/Depr(3y)58.62%
Cap/Depr(5y)58.33%
Cap/Sales(3y)4.26%
Cap/Sales(5y)4.47%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-221.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%44.74%
EPS Next Y27.01%
EPS Next 2Y21.85%
EPS Next 3Y21.58%
EPS Next 5Y20.26%
Revenue 1Y (TTM)-0.01%
Revenue growth 3Y15.66%
Revenue growth 5YN/A
Sales Q2Q%-1.41%
Revenue Next Year0.58%
Revenue Next 2Y1.82%
Revenue Next 3Y2.18%
Revenue Next 5Y2.65%
EBIT growth 1Y-50.97%
EBIT growth 3Y1.1%
EBIT growth 5YN/A
EBIT Next Year539.24%
EBIT Next 3Y94.31%
EBIT Next 5Y54.04%
FCF growth 1Y75.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y307.94%
OCF growth 3Y22.91%
OCF growth 5YN/A