ALAMO GROUP INC (ALG) Stock Fundamental Analysis
USA - NYSE:ALG - US0113111076 - Common Stock
165.41 USD
-1.45 (-0.87%)
165.41 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ALG. ALG was compared to 130 industry peers in the Machinery industry. While ALG has a great health rating, its profitability is only average at the moment. 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.
In the past 5 years ALG has always been profitable.
Each year in the past 5 years ALG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ALG (7.60%) is better than 71.54% of its industry peers.
With a Return On Equity value of 10.61%, ALG perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
ALG has a Return On Invested Capital of 9.54%. This is in the better half of the industry: ALG outperforms 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 10.24%.
| 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 Profit Margin of 7.42%. This is in the better half of the industry: ALG outperforms 61.54% of its industry peers.
ALG's Profit Margin has improved in the last couple of years.
ALG has a Operating Margin of 10.40%. This is comparable to the rest of the industry: ALG outperforms 55.38% of its industry peers.
ALG's Operating Margin has improved in the last couple of years.
ALG has a Gross Margin of 25.29%. This is in the lower half of the industry: ALG underperforms 65.38% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ALG is still creating some value.
The number of shares outstanding for ALG has been increased compared to 1 year ago.
ALG has more shares outstanding than it did 5 years ago.
ALG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.59 indicates that ALG is not in any danger for bankruptcy at the moment.
ALG has a better Altman-Z score (5.59) than 82.31% 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 88.46% 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 74.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 5.59 |
ROIC/WACC0.98
WACC9.72%
2.3 Liquidity
A Current Ratio of 4.56 indicates that ALG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.56, ALG belongs to the top of the industry, outperforming 91.54% of the companies in the same industry.
A Quick Ratio of 2.76 indicates that ALG has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.76, ALG belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.56 | ||
| Quick Ratio | 2.76 |
3. Growth
3.1 Past
The earnings per share for ALG have decreased by -2.92% in the last year.
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 -3.62%.
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)-2.92%
EPS 3Y13.14%
EPS 5Y10.26%
EPS Q2Q%-7.89%
Revenue 1Y (TTM)-3.62%
Revenue growth 3Y6.87%
Revenue growth 5Y7.79%
Sales Q2Q%4.67%
3.2 Future
Based on estimates for the next years, ALG will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.43% on average per year.
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.
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
With a Price/Earnings ratio of 17.16, ALG is valued on the expensive side.
Based on the Price/Earnings ratio, ALG is valued a bit cheaper than 75.38% of the companies in the same industry.
ALG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.28.
Based on the Price/Forward Earnings ratio of 13.21, the valuation of ALG can be described as correct.
Based on the Price/Forward Earnings ratio, ALG is valued cheaper than 83.08% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 33.61. ALG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.16 | ||
| Fwd PE | 13.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALG is valued cheaper than 81.54% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ALG is valued cheaply inside the industry as 90.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.81 | ||
| EV/EBITDA | 9.22 |
4.3 Compensation for Growth
ALG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ALG 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 0.72%, which is pretty low.
The stock price of ALG dropped by -25.58% 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 1.85, ALG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, ALG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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
11.34% 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.
DP11.34%
EPS Next 2Y14.01%
EPS Next 3Y16.43%
165.41
-1.45 (-0.87%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners87.88%
Inst Owner Change-0.28%
Ins Owners0.85%
Ins Owner Change-2.53%
Market Cap2.00B
Revenue(TTM)1.63B
Net Income(TTM)118.39M
Analysts80
Price Target239.19 (44.6%)
Short Float %3.44%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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)-0.95%
PT rev (3m)-0.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.35%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-1.25%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.16 | ||
| Fwd PE | 13.21 | ||
| P/S | 1.25 | ||
| P/FCF | 10.81 | ||
| P/OCF | 9.43 | ||
| P/B | 1.8 | ||
| P/tB | 2.68 | ||
| EV/EBITDA | 9.22 |
EPS(TTM)9.64
EY5.83%
EPS(NY)12.52
Fwd EY7.57%
FCF(TTM)15.3
FCFY9.25%
OCF(TTM)17.54
OCFY10.6%
SpS131.85
BVpS92.11
TBVpS61.83
PEG (NY)1.49
PEG (5Y)1.67
Graham Number141.34
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%
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 Turnover1.03
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 | 5.59 |
F-Score6
WACC9.72%
ROIC/WACC0.98
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)-3.62%
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-10.18%
EBIT growth 3Y12.13%
EBIT growth 5Y11.67%
EBIT Next Year39.08%
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%
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 11.34%.