ALAMO GROUP INC (ALG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALG - US0113111076 - Common Stock
164.86 USD
-1.82 (-1.09%)
164.86 USD
0 (0%)
Overall ALG gets a fundamental rating of 6 out of 10. We evaluated ALG against 130 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ALG had positive earnings in the past year.
ALG had a positive operating cash flow in the past year.
ALG had positive earnings in each of the past 5 years.
ALG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.30%, ALG is doing good in the industry, outperforming 73.08% of the companies in the same industry.
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.
ALG has a better Return On Invested Capital (9.24%) than 66.92% of its industry peers.
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.
The Operating Margin of ALG (10.12%) is comparable to the rest of the 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 64.62% 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.
Compared to 1 year ago, ALG has more shares outstanding
Compared to 5 years ago, ALG has more shares outstanding
ALG has a better debt/assets ratio than last year.
2.2 Solvency
ALG has an Altman-Z score of 5.45. This indicates that ALG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ALG (5.45) is better than 80.77% 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 better Debt to FCF ratio (1.40) than 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 | 5.45 |
ROIC/WACC0.96
WACC9.67%
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 90.00% 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 85.38% 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.
ALG shows a decrease in Revenue. In the last year, the revenue decreased by -2.73%.
The Revenue has been growing slightly by 7.79% on average over the past years.
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.
ALG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.63% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 17.10, 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.
When comparing the Price/Earnings ratio of ALG to the average of the S&P500 Index (26.46), we can say ALG is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.17, which indicates a correct valuation of ALG.
Based on the Price/Forward Earnings ratio, ALG is valued cheaply inside the industry as 82.31% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.10. ALG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 13.17 |
4.2 Price Multiples
ALG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALG is cheaper than 83.85% of the companies in the same industry.
ALG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALG is cheaper than 86.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.33 | ||
| EV/EBITDA | 9.09 |
4.3 Compensation for Growth
ALG's 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.
ALG's earnings are expected to grow with 16.43% in the coming years. This may justify a more expensive valuation.
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 -21.20% 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.
With a Dividend Yield of 0.75, ALG pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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
11.96% of the earnings are spent on dividend by ALG. This is a low number and sustainable payout ratio.
The dividend of ALG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP11.96%
EPS Next 2Y14.01%
EPS Next 3Y16.43%
164.86
-1.82 (-1.09%)
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 Cap2.00B
Revenue(TTM)1.62B
Net Income(TTM)116.37M
Analysts80
Price Target217.01 (31.63%)
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 | 17.1 | ||
| Fwd PE | 13.17 | ||
| P/S | 1.24 | ||
| P/FCF | 13.33 | ||
| P/OCF | 11.01 | ||
| P/B | 1.76 | ||
| P/tB | 2.59 | ||
| EV/EBITDA | 9.09 |
EPS(TTM)9.64
EY5.85%
EPS(NY)12.52
Fwd EY7.59%
FCF(TTM)12.37
FCFY7.5%
OCF(TTM)14.98
OCFY9.09%
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 | 5.45 |
F-Score6
WACC9.67%
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%.