ALAMO GROUP INC (ALG) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ALG • US0113111076
202.16 USD
+6.64 (+3.4%)
Last: Feb 4, 2026, 02:42 PM
ALG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. ALG has an excellent financial health rating, but there are some minor concerns on its profitability. ALG has a valuation in line with the averages, 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's Return On Assets of 7.30% is fine compared to the rest of the industry. ALG outperforms 72.73% of its industry peers.
- ALG's Return On Equity of 10.27% is fine compared to the rest of the industry. ALG outperforms 62.12% of its industry peers.
- ALG's Return On Invested Capital of 9.24% is fine compared to the rest of the industry. ALG outperforms 68.18% 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 10.37%.
| 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's Profit Margin of 7.20% is fine compared to the rest of the industry. ALG outperforms 62.12% of its industry peers.
- ALG's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 10.12%, ALG perfoms like the industry average, outperforming 56.06% of the companies in the same industry.
- In the last couple of years the Operating Margin of ALG has grown nicely.
- ALG's Gross Margin of 25.05% is on the low side compared to the rest of the industry. ALG is outperformed by 64.39% of its industry peers.
- ALG's Gross Margin has been stable in the last couple of years.
| 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.
- Compared to 1 year ago, ALG has more shares outstanding
- The number of shares outstanding for ALG has been increased compared to 5 years ago.
- Compared to 1 year ago, ALG has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.90 indicates that ALG is not in any danger for bankruptcy at the moment.
- ALG has a better Altman-Z score (5.90) than 83.33% of its industry peers.
- The Debt to FCF ratio of ALG is 1.40, which is an excellent value as it means it would take ALG, only 1.40 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.40, ALG belongs to the top of the industry, outperforming 84.85% 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.
- Looking at the Debt to Equity ratio, with a value of 0.17, ALG is in the better half of the industry, outperforming 71.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 5.9 |
ROIC/WACC0.94
WACC9.85%
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.
- ALG has a better Current ratio (4.43) than 90.15% of its industry peers.
- ALG has a Quick Ratio of 2.72. This indicates that ALG is financially healthy and has no problem in meeting its short term obligations.
- ALG has a better Quick ratio (2.72) than 86.36% 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.
- ALG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.79% yearly.
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
- The Earnings Per Share is expected to grow by 11.64% on average over the next years. This is quite good.
- Based on estimates for the next years, ALG will show a small growth in Revenue. The Revenue will grow by 2.26% on average per year.
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
- The EPS growth rate is stable: in the next years the growth will be about the same 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
- The Price/Earnings ratio is 20.97, which indicates a rather expensive current valuation of ALG.
- Based on the Price/Earnings ratio, ALG is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
- ALG is valuated rather cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 17.37, which indicates a rather expensive current valuation of ALG.
- ALG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALG is cheaper than 79.55% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ALG to the average of the S&P500 Index (25.51), we can say ALG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.97 | ||
| Fwd PE | 17.37 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALG indicates a rather cheap valuation: ALG is cheaper than 80.30% of the companies listed in the same industry.
- ALG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALG is cheaper than 85.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.34 | ||
| EV/EBITDA | 10.69 |
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)2.04
EPS Next 2Y9.94%
EPS Next 3Y11.64%
5. Dividend
5.1 Amount
- ALG has a yearly dividend return of 0.70%, which is pretty low.
- ALG's Dividend Yield is comparable with the industry average which is at 1.01.
- Compared to an average S&P500 Dividend Yield of 1.83, ALG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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 their dividend for at least 10 years, which is a reliable track record.
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 (2/4/2026, 2:42:12 PM)
202.16
+6.64 (+3.4%)
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 Change1.56%
Ins Owners0.86%
Ins Owner Change-2.48%
Market Cap2.45B
Revenue(TTM)1.62B
Net Income(TTM)116.37M
Analysts80
Price Target217.01 (7.35%)
Short Float %5.43%
Short Ratio5.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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)-11.8%
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 | 20.97 | ||
| Fwd PE | 17.37 | ||
| P/S | 1.52 | ||
| P/FCF | 16.34 | ||
| P/OCF | 13.5 | ||
| P/B | 2.16 | ||
| P/tB | 3.18 | ||
| EV/EBITDA | 10.69 |
EPS(TTM)9.64
EY4.77%
EPS(NY)11.64
Fwd EY5.76%
FCF(TTM)12.37
FCFY6.12%
OCF(TTM)14.98
OCFY7.41%
SpS133.28
BVpS93.45
TBVpS63.6
PEG (NY)N/A
PEG (5Y)2.04
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 | 5.9 |
F-Score6
WACC9.85%
ROIC/WACC0.94
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%.