ALAMO GROUP INC (ALG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALG - US0113111076 - Common Stock
165.59 USD
+3.69 (+2.28%)
165.59 USD
0 (0%)
Taking everything into account, ALG scores 6 out of 10 in our fundamental rating. ALG was compared to 130 industry peers in the Machinery industry. ALG has an excellent financial health rating, but there are some minor concerns on its profitability. 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.
ALG had a positive operating cash flow in the past year.
Each year in the past 5 years ALG has been profitable.
In the past 5 years ALG always reported a positive cash flow from operatings.
1.2 Ratios
ALG has a Return On Assets of 7.30%. This is in the better half of the industry: ALG outperforms 73.08% of its industry peers.
ALG's Return On Equity of 10.27% is fine compared to the rest of the industry. ALG outperforms 60.77% of its industry peers.
With a decent Return On Invested Capital value of 9.24%, ALG is doing good in the industry, outperforming 66.92% of the companies in the same industry.
ALG had an Average Return On Invested Capital over the past 3 years of 11.11%. This is in line with the industry average of 10.39%.
| 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 61.54% of its industry peers.
In the last couple of years the Profit Margin of ALG has grown nicely.
ALG has a Operating Margin (10.12%) which is in line with its industry peers.
ALG's Operating Margin has improved in the last couple of years.
ALG's Gross Margin of 25.05% is on the low side compared to the rest of the industry. ALG is outperformed by 64.62% 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.
The number of shares outstanding for ALG has been increased compared to 1 year ago.
Compared to 5 years ago, ALG has more shares outstanding
The debt/assets ratio for ALG has been reduced compared to a year ago.
2.2 Solvency
ALG has an Altman-Z score of 5.38. This indicates that ALG is financially healthy and has little risk of bankruptcy at the moment.
ALG has a Altman-Z score of 5.38. This is in the better half of the industry: ALG outperforms 80.00% 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.
ALG has a Debt to FCF ratio of 1.40. This is amongst the best in the industry. ALG outperforms 85.38% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that ALG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.17, ALG is in the better half of the industry, outperforming 74.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 5.38 |
ROIC/WACC0.96
WACC9.59%
2.3 Liquidity
A Current Ratio of 4.43 indicates that ALG has no problem at all paying its short term obligations.
ALG has a better Current ratio (4.43) than 90.00% 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.
With an excellent Quick ratio value of 2.72, ALG belongs to the best of the industry, outperforming 85.38% of the companies in the same industry.
| 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.
Measured over the past years, ALG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.26% on average per year.
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 16.43% 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 4.63% on average per year.
EPS Next Y11.49%
EPS Next 2Y14.01%
EPS Next 3Y16.43%
EPS Next 5YN/A
Revenue Next Year-0.48%
Revenue Next 2Y2.48%
Revenue Next 3Y4.63%
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 accelerating.
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 17.18, which indicates a rather expensive current valuation of ALG.
ALG's Price/Earnings ratio is a bit cheaper when compared to the industry. ALG is cheaper than 78.46% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.37, ALG is valued a bit cheaper.
ALG is valuated correctly with a Price/Forward Earnings ratio of 13.23.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALG indicates a rather cheap valuation: ALG is cheaper than 82.31% of the companies listed in the same industry.
ALG is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.18 | ||
| Fwd PE | 13.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALG is valued cheaper than 83.85% 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 86.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.39 | ||
| EV/EBITDA | 8.82 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ALG has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ALG's earnings are expected to grow with 16.43% in the coming years.
PEG (NY)1.49
PEG (5Y)1.67
EPS Next 2Y14.01%
EPS Next 3Y16.43%
5. Dividend
5.1 Amount
ALG has a yearly dividend return of 0.75%, which is pretty low.
The stock price of ALG dropped by -20.85% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.90, ALG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, ALG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
On average, the dividend of ALG grows each year by 16.84%, which is quite nice.
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 2Y14.01%
EPS Next 3Y16.43%
165.59
+3.69 (+2.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners87.88%
Inst Owner Change-2.52%
Ins Owners0.85%
Ins Owner Change-2.63%
Market Cap2.01B
Revenue(TTM)1.62B
Net Income(TTM)116.37M
Analysts80
Price Target217.01 (31.05%)
Short Float %3.75%
Short Ratio4.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend1.04
Dividend Growth(5Y)16.84%
DP11.96%
Div Incr Years10
Div Non Decr Years24
Ex-Date
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)-10.14%
PT rev (3m)-10.14%
EPS NQ rev (1m)-18%
EPS NQ rev (3m)-18%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)-3.57%
Revenue NQ rev (3m)-3.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.18 | ||
| Fwd PE | 13.23 | ||
| P/S | 1.24 | ||
| P/FCF | 13.39 | ||
| P/OCF | 11.05 | ||
| P/B | 1.77 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 8.82 |
EPS(TTM)9.64
EY5.82%
EPS(NY)12.52
Fwd EY7.56%
FCF(TTM)12.37
FCFY7.47%
OCF(TTM)14.98
OCFY9.05%
SpS133.28
BVpS93.45
TBVpS63.6
PEG (NY)1.49
PEG (5Y)1.67
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 | 5.38 |
F-Score6
WACC9.59%
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 Y11.49%
EPS Next 2Y14.01%
EPS Next 3Y16.43%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.73%
Revenue growth 3Y6.87%
Revenue growth 5Y7.79%
Sales Q2Q%4.67%
Revenue Next Year-0.48%
Revenue Next 2Y2.48%
Revenue Next 3Y4.63%
Revenue Next 5YN/A
EBIT growth 1Y-6.65%
EBIT growth 3Y12.13%
EBIT growth 5Y11.67%
EBIT Next Year39.08%
EBIT Next 3YN/A
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 of ALAMO GROUP INC (ALG) stock?
ChartMill assigns a valuation rating of 6 / 10 to ALAMO GROUP INC (ALG). This can be considered as Fairly Valued.
What is the profitability of ALG stock?
ALAMO GROUP INC (ALG) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for ALG stock?
The Earnings per Share (EPS) of ALAMO GROUP INC (ALG) is expected to grow by 11.49% in the next year.
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%.