ALTA EQUIPMENT GROUP INC (ALTG)
US02128L1061 - Common Stock
We assign a fundamental rating of 2 out of 10 to ALTG. ALTG was compared to 51 industry peers in the Trading Companies & Distributors industry. ALTG may be in some trouble as it scores bad on both profitability and health. ALTG is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ALTG was profitable.
In the past year ALTG had a positive cash flow from operations.
In multiple years ALTG reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: ALTG reported negative operating cash flow in multiple years.
1.2 Ratios
ALTG has a worse Return On Assets (0.38%) than 78.43% of its industry peers.
Looking at the Return On Equity, with a value of 3.94%, ALTG is doing worse than 74.51% of the companies in the same industry.
The Return On Invested Capital of ALTG (3.58%) is worse than 72.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALTG is significantly below the industry average of 11.58%.
The 3 year average ROIC (2.95%) for ALTG is below the current ROIC(3.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.38% | ||
| ROE | 3.94% | ||
| ROIC | 3.58% |
ROA(3y)-0.51%
ROA(5y)-0.95%
ROE(3y)-2.97%
ROE(5y)-4.84%
ROIC(3y)2.95%
ROIC(5y)N/A
1.3 Margins
ALTG has a worse Profit Margin (0.31%) than 78.43% of its industry peers.
ALTG has a Operating Margin of 2.90%. This is in the lower half of the industry: ALTG underperforms 78.43% of its industry peers.
ALTG has a worse Gross Margin (27.02%) than 62.75% of its industry peers.
In the last couple of years the Gross Margin of ALTG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.9% | ||
| PM (TTM) | 0.31% | ||
| GM | 27.02% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.25%
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.
Compared to 1 year ago, ALTG has more shares outstanding
Compared to 5 years ago, ALTG has more shares outstanding
ALTG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.55, we must say that ALTG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.55, ALTG is doing worse than 62.75% of the companies in the same industry.
A Debt/Equity ratio of 7.06 is on the high side and indicates that ALTG has dependencies on debt financing.
ALTG has a worse Debt to Equity ratio (7.06) than 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.55 |
ROIC/WACC0.43
WACC8.31%
2.3 Liquidity
ALTG has a Current Ratio of 1.32. This is a normal value and indicates that ALTG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ALTG (1.32) is worse than 76.47% of its industry peers.
ALTG has a Quick Ratio of 1.32. This is a bad value and indicates that ALTG is not financially healthy enough and could expect problems in meeting its short term obligations.
ALTG has a Quick ratio of 0.48. This is amonst the worse of the industry: ALTG underperforms 84.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The earnings per share for ALTG have decreased by -10.00% in the last year.
Looking at the last year, ALTG shows a quite strong growth in Revenue. The Revenue has grown by 19.40% in the last year.
The Revenue has been growing by 29.03% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-10%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-66.67%
Revenue 1Y (TTM)19.4%
Revenue growth 3Y29.03%
Revenue growth 5YN/A
Revenue growth Q2Q21.68%
3.2 Future
The Earnings Per Share is expected to grow by 32.45% on average over the next years. This is a very strong growth
ALTG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.60% yearly.
EPS Next Y62.45%
EPS Next 2Y85.54%
EPS Next 3Y32.45%
EPS Next 5YN/A
Revenue Next Year7.04%
Revenue Next 2Y6.43%
Revenue Next 3Y5.36%
Revenue Next 5Y5.6%
3.3 Evolution
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
A Price/Earnings ratio of 64.94 indicates a quite expensive valuation of ALTG.
ALTG's Price/Earnings ratio is rather expensive when compared to the industry. ALTG is more expensive than 80.39% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.92, ALTG is valued quite expensively.
The Price/Forward Earnings ratio is 39.98, which means the current valuation is very expensive for ALTG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALTG indicates a slightly more expensive valuation: ALTG is more expensive than 74.51% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, ALTG is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.94 | ||
| Fwd PE | 39.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALTG is valued cheaply inside the industry as 86.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.41 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as ALTG's earnings are expected to grow with 32.45% in the coming years.
PEG (NY)1.04
PEG (5Y)N/A
EPS Next 2Y85.54%
EPS Next 3Y32.45%
5. Dividend
5.1 Amount
ALTG has a Yearly Dividend Yield of 1.99%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.71, ALTG pays a better dividend. On top of this ALTG pays more dividend than 90.20% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, ALTG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
ALTG has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
179.66% of the earnings are spent on dividend by ALTG. This is not a sustainable payout ratio.
DP179.66%
EPS Next 2Y85.54%
EPS Next 3Y32.45%
ALTA EQUIPMENT GROUP INC
NYSE:ALTG (4/26/2024, 7:04:00 PM)
After market: 11.69 0 (0%)11.69
+0.25 (+2.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap383.55M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 | 64.94 | ||
| Fwd PE | 39.98 | ||
| 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)1.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.38% | ||
| ROE | 3.94% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.9% | ||
| PM (TTM) | 0.31% | ||
| GM | 27.02% | ||
| 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 Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.06 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.48 | ||
| 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)-10%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y62.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19.4%
Revenue growth 3Y29.03%
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