ALAMO GROUP INC (ALG) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ALG • US0113111076
211.92 USD
+4.6 (+2.22%)
Last: Feb 11, 2026, 10:01 AM
ALG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 131 industry peers in the Machinery industry. ALG is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. ALG is valued correctly, but it does not seem to be growing.
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 Return On Assets of 7.30%. This is in the better half of the industry: ALG outperforms 74.05% of its industry peers.
- The Return On Equity of ALG (10.27%) is better than 61.83% of its industry peers.
- ALG has a better Return On Invested Capital (9.24%) than 68.70% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ALG is in line with the industry average of 10.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.3% | ||
| ROE | 10.27% | ||
| ROIC | 9.24% |
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 better Profit Margin (7.20%) than 61.07% of its industry peers.
- In the last couple of years the Profit Margin of ALG has grown nicely.
- Looking at the Operating Margin, with a value of 10.12%, ALG is in line with its industry, outperforming 55.73% of the companies in the same industry.
- In the last couple of years the Operating Margin of ALG has grown nicely.
- The Gross Margin of ALG (25.05%) is worse than 65.65% 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 | 10.12% | ||
| PM (TTM) | 7.2% | ||
| GM | 25.05% |
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
- ALG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
- The debt/assets ratio for ALG has been reduced compared to a year ago.
2.2 Solvency
- ALG has an Altman-Z score of 6.09. This indicates that ALG is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.09, ALG belongs to the best of the industry, outperforming 83.21% of the companies in the same industry.
- ALG has a debt to FCF ratio of 1.40. This is a very positive value and a sign of high solvency as it would only need 1.40 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 1.40, ALG belongs to the best of the industry, outperforming 86.26% of the companies in the same industry.
- ALG has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
- ALG's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. ALG outperforms 71.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 6.09 |
ROIC/WACC0.95
WACC9.77%
2.3 Liquidity
- ALG has a Current Ratio of 4.43. This indicates that ALG is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 4.43, ALG belongs to the top of the industry, outperforming 89.31% of the companies in the same industry.
- A Quick Ratio of 2.72 indicates that ALG has no problem at all paying its short term obligations.
- ALG has a Quick ratio of 2.72. This is amongst the best in the industry. ALG outperforms 86.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.43 | ||
| Quick Ratio | 2.72 |
3. Growth
3.1 Past
- ALG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.92%.
- 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 -2.73% 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)-2.92%
EPS 3Y13.14%
EPS 5Y10.26%
EPS Q2Q%-7.89%
Revenue 1Y (TTM)-2.73%
Revenue growth 3Y6.87%
Revenue growth 5Y7.79%
Sales Q2Q%4.67%
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 11.64% yearly.
- ALG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.26% yearly.
EPS Next Y-1.64%
EPS Next 2Y9.94%
EPS Next 3Y11.64%
EPS Next 5YN/A
Revenue Next Year-0.42%
Revenue Next 2Y2.3%
Revenue Next 3Y2.26%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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 21.98, the valuation of ALG can be described as rather expensive.
- 74.05% of the companies in the same industry are more expensive than ALG, based on the Price/Earnings ratio.
- ALG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.03.
- Based on the Price/Forward Earnings ratio of 18.21, the valuation of ALG can be described as rather expensive.
- ALG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALG is cheaper than 79.39% 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 27.97.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.98 | ||
| Fwd PE | 18.21 |
4.2 Price Multiples
- 80.15% of the companies in the same industry are more expensive than ALG, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, ALG is valued cheaply inside the industry as 86.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.13 | ||
| EV/EBITDA | 11.35 |
4.3 Compensation for Growth
- ALG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.14
EPS Next 2Y9.94%
EPS Next 3Y11.64%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.67%, ALG is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.15, ALG has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.80, ALG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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
- 11.96% 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.
DP11.96%
EPS Next 2Y9.94%
EPS Next 3Y11.64%
NYSE:ALG (2/11/2026, 10:01:35 AM)
211.92
+4.6 (+2.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-19 2026-02-19/amc
Inst Owners88.1%
Inst Owner Change1.43%
Ins Owners0.86%
Ins Owner Change-2.48%
Market Cap2.57B
Revenue(TTM)1.62B
Net Income(TTM)116.37M
Analysts80
Price Target217.01 (2.4%)
Short Float %5.43%
Short Ratio5.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend1.04
Dividend Growth(5Y)16.84%
DP11.96%
Div Incr Years10
Div Non Decr Years24
Ex-Date01-16 2026-01-16 (0.34)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.43%
Min EPS beat(2)-21.2%
Max EPS beat(2)-5.67%
EPS beat(4)2
Avg EPS beat(4)-2.27%
Min EPS beat(4)-21.2%
Max EPS beat(4)15.36%
EPS beat(8)3
Avg EPS beat(8)-3.61%
EPS beat(12)6
Avg EPS beat(12)2.5%
EPS beat(16)8
Avg EPS beat(16)2.05%
Revenue beat(2)2
Avg Revenue beat(2)1.69%
Min Revenue beat(2)1.34%
Max Revenue beat(2)2.04%
Revenue beat(4)2
Avg Revenue beat(4)-0.38%
Min Revenue beat(4)-3.87%
Max Revenue beat(4)2.04%
Revenue beat(8)3
Avg Revenue beat(8)-0.73%
Revenue beat(12)7
Avg Revenue beat(12)0.6%
Revenue beat(16)10
Avg Revenue beat(16)0.82%
PT rev (1m)0%
PT rev (3m)-9.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.98 | ||
| Fwd PE | 18.21 | ||
| P/S | 1.59 | ||
| P/FCF | 17.13 | ||
| P/OCF | 14.15 | ||
| P/B | 2.27 | ||
| P/tB | 3.33 | ||
| EV/EBITDA | 11.35 |
EPS(TTM)9.64
EY4.55%
EPS(NY)11.64
Fwd EY5.49%
FCF(TTM)12.37
FCFY5.84%
OCF(TTM)14.98
OCFY7.07%
SpS133.28
BVpS93.45
TBVpS63.6
PEG (NY)N/A
PEG (5Y)2.14
Graham Number142.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.3% | ||
| ROE | 10.27% | ||
| ROCE | 11.9% | ||
| ROIC | 9.24% | ||
| ROICexc | 11.24% | ||
| ROICexgc | 16.54% | ||
| OM | 10.12% | ||
| PM (TTM) | 7.2% | ||
| GM | 25.05% | ||
| FCFM | 9.28% |
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%
ROICexgc growth 3Y5.21%
ROICexgc 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 Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.4 | ||
| Debt/EBITDA | 0.89 | ||
| Cap/Depr | 57.71% | ||
| Cap/Sales | 1.96% | ||
| Interest Coverage | 11.53 | ||
| Cash Conversion | 83.15% | ||
| Profit Quality | 128.83% | ||
| Current Ratio | 4.43 | ||
| Quick Ratio | 2.72 | ||
| Altman-Z | 6.09 |
F-Score6
WACC9.77%
ROIC/WACC0.95
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)-2.92%
EPS 3Y13.14%
EPS 5Y10.26%
EPS Q2Q%-7.89%
EPS Next Y-1.64%
EPS Next 2Y9.94%
EPS Next 3Y11.64%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.73%
Revenue growth 3Y6.87%
Revenue growth 5Y7.79%
Sales Q2Q%4.67%
Revenue Next Year-0.42%
Revenue Next 2Y2.3%
Revenue Next 3Y2.26%
Revenue Next 5YN/A
EBIT growth 1Y-6.65%
EBIT growth 3Y12.13%
EBIT growth 5Y11.67%
EBIT Next Year32.75%
EBIT Next 3Y18.03%
EBIT Next 5YN/A
FCF growth 1Y92.7%
FCF growth 3Y96.3%
FCF growth 5Y26.31%
OCF growth 1Y61.1%
OCF growth 3Y61.61%
OCF growth 5Y18.76%
ALAMO GROUP INC / ALG FAQ
What is the ChartMill fundamental rating of ALAMO GROUP INC (ALG) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ALG.
What is the valuation status for ALG stock?
ChartMill assigns a valuation rating of 5 / 10 to ALAMO GROUP INC (ALG). This can be considered as Fairly Valued.
Can you provide the profitability details for ALAMO GROUP INC?
ALAMO GROUP INC (ALG) has a profitability rating of 6 / 10.
What is the financial health of ALAMO GROUP INC (ALG) stock?
The financial health rating of ALAMO GROUP INC (ALG) is 8 / 10.
Can you provide the dividend sustainability for ALG stock?
The dividend rating of ALAMO GROUP INC (ALG) is 5 / 10 and the dividend payout ratio is 11.96%.