ALAMO GROUP INC (ALG) Stock Fundamental Analysis
USA - NYSE:ALG - US0113111076 - Common Stock
205.3 USD
+0.88 (+0.43%)
205.3 USD
0 (0%)
Overall ALG gets a fundamental rating of 6 out of 10. We evaluated ALG against 128 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 not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years ALG always reported a positive cash flow from operatings.
1.2 Ratios
ALG has a Return On Assets of 7.60%. This is in the better half of the industry: ALG outperforms 71.09% of its industry peers.
With a Return On Equity value of 10.61%, ALG perfoms like the industry average, outperforming 58.59% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.54%, ALG is in the better half of the industry, outperforming 66.41% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ALG is in line with the industry average of 10.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.6% | ||
| ROE | 10.61% | ||
| ROIC | 9.54% |
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 (7.42%) than 60.94% 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 10.40%, ALG is in line with its industry, outperforming 56.25% 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 (25.29%) is worse than 64.84% of its industry peers.
ALG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.4% | ||
| PM (TTM) | 7.42% | ||
| GM | 25.29% |
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.
Compared to 5 years ago, ALG has more shares outstanding
ALG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.21 indicates that ALG is not in any danger for bankruptcy at the moment.
ALG's Altman-Z score of 6.21 is amongst the best of the industry. ALG outperforms 86.72% of its industry peers.
The Debt to FCF ratio of ALG is 1.15, which is an excellent value as it means it would take ALG, only 1.15 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.15, ALG belongs to the top of the industry, outperforming 86.72% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that ALG is not too dependend on debt financing.
The Debt to Equity ratio of ALG (0.18) is better than 74.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 6.21 |
ROIC/WACC0.95
WACC10.07%
2.3 Liquidity
A Current Ratio of 4.56 indicates that ALG has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.56, ALG belongs to the best of the industry, outperforming 89.84% of the companies in the same industry.
ALG has a Quick Ratio of 2.76. This indicates that ALG is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.76, ALG belongs to the best of the industry, outperforming 88.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.56 | ||
| Quick Ratio | 2.76 |
3. Growth
3.1 Past
ALG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.01%.
The Earnings Per Share has been growing by 10.26% on average over the past years. This is quite good.
ALG shows a decrease in Revenue. In the last year, the revenue decreased by -4.91%.
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)-7.01%
EPS 3Y13.14%
EPS 5Y10.26%
EPS Q2Q%9.36%
Revenue 1Y (TTM)-4.91%
Revenue growth 3Y6.87%
Revenue growth 5Y7.79%
Sales Q2Q%0.67%
3.2 Future
The Earnings Per Share is expected to grow by 14.54% 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 2.65% on average per year.
EPS Next Y11.52%
EPS Next 2Y14.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.48%
Revenue Next 2Y2.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 20.91, ALG is valued on the expensive side.
ALG's Price/Earnings ratio is a bit cheaper when compared to the industry. ALG is cheaper than 65.63% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, ALG is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.25, ALG is valued correctly.
Based on the Price/Forward Earnings ratio, ALG is valued a bit cheaper than 72.66% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.71. ALG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 16.25 |
4.2 Price Multiples
ALG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ALG is cheaper than 74.22% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALG indicates a rather cheap valuation: ALG is cheaper than 85.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.42 | ||
| EV/EBITDA | 11.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALG does not grow enough to justify the current Price/Earnings ratio.
ALG has a very decent profitability rating, which may justify a higher PE ratio.
ALG's earnings are expected to grow with 14.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.81
PEG (5Y)2.04
EPS Next 2Y14.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, ALG is not a good candidate for dividend investing.
ALG's Dividend Yield is comparable with the industry average which is at 1.74.
With a Dividend Yield of 0.57, ALG pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
The dividend of ALG is nicely growing with an annual growth rate of 16.84%!
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 11.34% of its income as dividend. This is a sustainable payout ratio.
The dividend of ALG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP11.34%
EPS Next 2Y14.54%
EPS Next 3YN/A
205.3
+0.88 (+0.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners87.92%
Inst Owner Change-0.2%
Ins Owners1.13%
Ins Owner Change-2.62%
Market Cap2.49B
Analysts80
Price Target241.49 (17.63%)
Short Float %3.04%
Short Ratio4.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend1.04
Dividend Growth(5Y)16.84%
DP11.34%
Div Incr Years10
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.85%
Min EPS beat(2)-5.67%
Max EPS beat(2)15.36%
EPS beat(4)2
Avg EPS beat(4)1.18%
Min EPS beat(4)-7.39%
Max EPS beat(4)15.36%
EPS beat(8)4
Avg EPS beat(8)0.11%
EPS beat(12)6
Avg EPS beat(12)3.31%
EPS beat(16)8
Avg EPS beat(16)1.91%
Revenue beat(2)1
Avg Revenue beat(2)0.16%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)1.34%
Revenue beat(4)1
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-3.87%
Max Revenue beat(4)1.34%
Revenue beat(8)3
Avg Revenue beat(8)-0.56%
Revenue beat(12)6
Avg Revenue beat(12)-0.11%
Revenue beat(16)9
Avg Revenue beat(16)0.59%
PT rev (1m)0%
PT rev (3m)8.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.35%
EPS NY rev (1m)-1.23%
EPS NY rev (3m)-1.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.57%
Revenue NY rev (1m)1.17%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 16.25 | ||
| P/S | 1.56 | ||
| P/FCF | 13.42 | ||
| P/OCF | 11.71 | ||
| P/B | 2.23 | ||
| P/tB | 3.32 | ||
| EV/EBITDA | 11.29 |
EPS(TTM)9.82
EY4.78%
EPS(NY)12.63
Fwd EY6.15%
FCF(TTM)15.3
FCFY7.45%
OCF(TTM)17.54
OCFY8.54%
SpS131.85
BVpS92.11
TBVpS61.83
PEG (NY)1.81
PEG (5Y)2.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.6% | ||
| ROE | 10.61% | ||
| ROCE | 12.29% | ||
| ROIC | 9.54% | ||
| ROICexc | 11.22% | ||
| ROICexgc | 16.48% | ||
| OM | 10.4% | ||
| PM (TTM) | 7.42% | ||
| GM | 25.29% | ||
| FCFM | 11.6% |
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%
ROICexcg growth 3Y5.21%
ROICexcg 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 Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.15 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 50.05% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 10.71 | ||
| Cash Conversion | 96.41% | ||
| Profit Quality | 156.46% | ||
| Current Ratio | 4.56 | ||
| Quick Ratio | 2.76 | ||
| Altman-Z | 6.21 |
F-Score6
WACC10.07%
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)-7.01%
EPS 3Y13.14%
EPS 5Y10.26%
EPS Q2Q%9.36%
EPS Next Y11.52%
EPS Next 2Y14.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.91%
Revenue growth 3Y6.87%
Revenue growth 5Y7.79%
Sales Q2Q%0.67%
Revenue Next Year-0.48%
Revenue Next 2Y2.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-10.18%
EBIT growth 3Y12.13%
EBIT growth 5Y11.67%
EBIT Next Year38.46%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y205.67%
FCF growth 3Y96.3%
FCF growth 5Y26.31%
OCF growth 1Y123.32%
OCF growth 3Y61.61%
OCF growth 5Y18.76%