ALTA EQUIPMENT GROUP INC (ALTG) Stock Fundamental Analysis
NYSE:ALTG - New York Stock Exchange, Inc. - US02128L1061 - Common Stock - Currency: USD
Taking everything into account, ALTG scores 2 out of 10 in our fundamental rating. ALTG was compared to 48 industry peers in the Trading Companies & Distributors industry. ALTG has a bad profitability rating. Also its financial health evaluation is rather negative. ALTG is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ALTG had negative earnings in the past year.
ALTG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ALTG reported negative net income in multiple years.
Of the past 5 years ALTG 4 years had a positive operating cash flow.
1.2 Ratios
ALTG has a Return On Assets of -4.93%. This is amonst the worse of the industry: ALTG underperforms 89.58% of its industry peers.
ALTG's Return On Equity of -132.32% is on the low side compared to the rest of the industry. ALTG is outperformed by 95.83% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.25%, ALTG is doing worse than 79.17% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ALTG is significantly below the industry average of 9.18%.
| 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
With a Operating Margin value of 1.09%, ALTG is not doing good in the industry: 77.08% of the companies in the same industry are doing better.
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.
In the last couple of years the Gross Margin of ALTG has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALTG is destroying value.
Compared to 1 year ago, ALTG has less shares outstanding
Compared to 5 years ago, ALTG has more shares outstanding
Compared to 1 year ago, ALTG has a worse debt to assets ratio.
2.2 Solvency
ALTG has an Altman-Z score of 1.35. This is a bad value and indicates that ALTG is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.35, ALTG is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
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 | 1.35 |
ROIC/WACC0.18
WACC7.03%
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.
With a Current ratio value of 1.36, ALTG is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
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.
ALTG has a Quick ratio of 0.42. This is amonst the worse of the industry: ALTG underperforms 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 -961.90% in the last year.
ALTG shows a decrease in Revenue. In the last year, the revenue decreased by -2.09%.
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)-961.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-71.05%
Revenue 1Y (TTM)-2.09%
Revenue growth 3Y15.66%
Revenue growth 5YN/A
Sales Q2Q%-4.21%
3.2 Future
The Earnings Per Share is expected to grow by 20.80% 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 3.40% yearly.
EPS Next Y18.99%
EPS Next 2Y20.56%
EPS Next 3Y23.08%
EPS Next 5Y20.8%
Revenue Next Year0.74%
Revenue Next 2Y1.98%
Revenue Next 3Y2.18%
Revenue Next 5Y3.4%
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
The Price/Earnings Ratio is negative for ALTG. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for ALTG. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
ALTG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALTG is cheaper than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.51 |
4.3 Compensation for Growth
A more expensive valuation may be justified as ALTG's earnings are expected to grow with 23.08% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y20.56%
EPS Next 3Y23.08%
5. Dividend
5.1 Amount
ALTG has a Yearly Dividend Yield of 4.21%, which is a nice return.
In the last 3 months the price of ALTG has falen by -23.26%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.68, ALTG pays a better dividend. On top of this ALTG pays more dividend than 91.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, ALTG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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 Years2
5.3 Sustainability
The earnings of ALTG are negative and hence is the payout ratio. ALTG will probably not be able to sustain this dividend level.
DP-14.57%
EPS Next 2Y20.56%
EPS Next 3Y23.08%
4.95
+0.02 (+0.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners56.64%
Inst Owner Change-2.42%
Ins Owners20.12%
Ins Owner Change2.46%
Market Cap164.29M
Analysts78
Price Target11.65 (135.35%)
Short Float %6.91%
Short Ratio5.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Yearly Dividend0.34
Dividend Growth(5Y)N/A
DP-14.57%
Div Incr Years1
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)-9.79%
EPS NQ rev (1m)-13.62%
EPS NQ rev (3m)-25.64%
EPS NY rev (1m)-9.82%
EPS NY rev (3m)-54.51%
Revenue NQ rev (1m)-1.43%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)-1.44%
Revenue NY rev (3m)-1.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.09 | ||
| P/FCF | N/A | ||
| P/OCF | 3.2 | ||
| P/B | 2.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.51 |
EPS(TTM)-2.23
EYN/A
EPS(NY)-1.07
Fwd EYN/A
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)1.55
OCFY31.29%
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 | 1.35 |
F-Score4
WACC7.03%
ROIC/WACC0.18
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)-961.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-71.05%
EPS Next Y18.99%
EPS Next 2Y20.56%
EPS Next 3Y23.08%
EPS Next 5Y20.8%
Revenue 1Y (TTM)-2.09%
Revenue growth 3Y15.66%
Revenue growth 5YN/A
Sales Q2Q%-4.21%
Revenue Next Year0.74%
Revenue Next 2Y1.98%
Revenue Next 3Y2.18%
Revenue Next 5Y3.4%
EBIT growth 1Y-50.97%
EBIT growth 3Y1.1%
EBIT growth 5YN/A
EBIT Next Year543.29%
EBIT Next 3Y100.98%
EBIT Next 5Y56.72%
FCF growth 1Y75.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y307.94%
OCF growth 3Y22.91%
OCF growth 5YN/A