ALAMO GROUP INC (ALG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALG - US0113111076 - Common Stock
167.87 USD
-2.7 (-1.58%)
167.87 USD
0 (0%)
Overall ALG gets a fundamental rating of 6 out of 10. We evaluated ALG against 132 industry peers in the Machinery industry. While ALG has a great health rating, its profitability is only average at the moment. 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.
ALG had positive earnings in each of the past 5 years.
Each year in the past 5 years ALG had a positive operating cash flow.
1.2 Ratios
ALG's Return On Assets of 7.30% is fine compared to the rest of the industry. ALG outperforms 71.97% of its industry peers.
With a decent Return On Equity value of 10.27%, ALG is doing good in the industry, outperforming 61.36% of the companies in the same industry.
ALG has a Return On Invested Capital of 9.24%. This is in the better half of the industry: ALG outperforms 67.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALG is in line with the industry average of 10.27%.
| 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.
ALG has a Operating Margin of 10.12%. This is comparable to the rest of the industry: ALG outperforms 56.06% of its industry peers.
ALG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 25.05%, ALG is doing worse than 64.39% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ALG 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 5.51. This indicates that ALG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ALG (5.51) is better than 81.06% of its industry peers.
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.
ALG has a Debt to FCF ratio of 1.40. This is amongst the best in the industry. ALG outperforms 84.09% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that ALG is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.17, ALG is doing good in the industry, outperforming 73.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 5.51 |
ROIC/WACC0.96
WACC9.64%
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's Current ratio of 4.43 is amongst the best of the industry. ALG outperforms 90.91% of its industry peers.
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 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.43 | ||
| Quick Ratio | 2.72 |
3. Growth
3.1 Past
The earnings per share for ALG have decreased by -2.92% in the last year.
ALG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.26% yearly.
ALG shows a decrease in Revenue. In the last year, the revenue decreased by -2.73%.
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.
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.
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 17.41 indicates a rather expensive valuation of ALG.
Based on the Price/Earnings ratio, ALG is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.51. ALG is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.42 indicates a correct valuation of ALG.
ALG's Price/Forward Earnings ratio is rather cheap when compared to the industry. ALG is cheaper than 82.58% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ALG to the average of the S&P500 Index (23.13), we can say ALG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.41 | ||
| Fwd PE | 14.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALG is valued cheaply inside the industry as 84.85% of the companies are valued more expensively.
84.85% of the companies in the same industry are more expensive than ALG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.57 | ||
| EV/EBITDA | 9.31 |
4.3 Compensation for Growth
The decent profitability rating of ALG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.7
EPS Next 2Y9.94%
EPS Next 3Y11.64%
5. Dividend
5.1 Amount
ALG has a yearly dividend return of 0.69%, which is pretty low.
Compared to an average industry Dividend Yield of 0.98, ALG has a dividend in line with its industry peers.
With a Dividend Yield of 0.69, ALG pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
On average, the dividend of ALG grows each year by 16.84%, which is quite nice.
ALG has paid a dividend for at least 10 years, which is 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
ALG pays out 11.96% of its income as dividend. This is a 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%
167.87
-2.7 (-1.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners87.98%
Inst Owner Change-2.52%
Ins Owners0.86%
Ins Owner Change-2.48%
Market Cap2.03B
Revenue(TTM)1.62B
Net Income(TTM)116.37M
Analysts80
Price Target217.01 (29.27%)
Short Float %4.28%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend1.04
Dividend Growth(5Y)16.84%
DP11.96%
Div Incr Years10
Div Non Decr Years24
Ex-DateN/A
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)-10.14%
EPS NQ rev (1m)-6.7%
EPS NQ rev (3m)-23.5%
EPS NY rev (1m)-11.78%
EPS NY rev (3m)-11.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.53%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.41 | ||
| Fwd PE | 14.42 | ||
| P/S | 1.26 | ||
| P/FCF | 13.57 | ||
| P/OCF | 11.21 | ||
| P/B | 1.8 | ||
| P/tB | 2.64 | ||
| EV/EBITDA | 9.31 |
EPS(TTM)9.64
EY5.74%
EPS(NY)11.64
Fwd EY6.93%
FCF(TTM)12.37
FCFY7.37%
OCF(TTM)14.98
OCFY8.92%
SpS133.28
BVpS93.45
TBVpS63.6
PEG (NY)N/A
PEG (5Y)1.7
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 | 5.51 |
F-Score6
WACC9.64%
ROIC/WACC0.96
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 6 / 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%.