ALAMO GROUP INC (ALG) Stock Fundamental Analysis
USA - NYSE:ALG - US0113111076 - Common Stock
177.45 USD
-1.27 (-0.71%)
177.45 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 has an excellent financial health rating, but there are some minor concerns on its profitability. 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.
Each year in the past 5 years ALG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.60%, ALG is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
ALG has a Return On Equity of 10.61%. This is comparable to the rest of the industry: ALG outperforms 57.69% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.54%, ALG is in the better half of 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 10.25%.
| 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
The Profit Margin of ALG (7.42%) is comparable to the rest of the industry.
ALG's Profit Margin has improved in the last couple of years.
ALG's Operating Margin of 10.40% is in line compared to the rest of the industry. ALG outperforms 56.15% of its industry peers.
In the last couple of years the Operating Margin of ALG has grown nicely.
ALG has a worse Gross Margin (25.29%) than 65.38% 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 | 10.4% | ||
| 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
ALG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ALG has more shares outstanding than it did 1 year ago.
ALG has more shares outstanding than it did 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 5.79. This indicates that ALG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.79, ALG belongs to the best of the industry, outperforming 82.31% of the companies in the same industry.
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.
The Debt to FCF ratio of ALG (1.15) is better than 87.69% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that ALG is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.18, ALG is doing good in the industry, outperforming 73.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 5.79 |
ROIC/WACC0.98
WACC9.73%
2.3 Liquidity
ALG has a Current Ratio of 4.56. This indicates that ALG is financially healthy and has no problem in meeting its short term obligations.
ALG has a better Current ratio (4.56) than 91.54% of its industry peers.
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.
ALG has a better Quick ratio (2.76) than 86.15% of its industry peers.
| 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%.
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.
The Revenue has decreased by -4.91% in the past 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)-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
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.
ALG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.63% yearly.
EPS Next Y11.52%
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
With a Price/Earnings ratio of 18.07, ALG is valued on the expensive side.
Based on the Price/Earnings ratio, ALG is valued a bit cheaper than 70.77% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, ALG is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.18, the valuation of ALG can be described as correct.
Based on the Price/Forward Earnings ratio, ALG is valued a bit cheaper than 77.69% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ALG to the average of the S&P500 Index (22.53), we can say ALG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.07 | ||
| Fwd PE | 14.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALG is valued a bit cheaper than 75.38% 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 87.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.6 | ||
| EV/EBITDA | 9.88 |
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)1.57
PEG (5Y)1.76
EPS Next 2Y14.01%
EPS Next 3Y16.43%
5. Dividend
5.1 Amount
ALG has a yearly dividend return of 0.68%, which is pretty low.
The stock price of ALG dropped by -20.28% 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 1.81, ALG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, ALG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
The dividend of ALG is nicely growing with an annual growth rate of 16.84%!
ALG has been paying a dividend for at least 10 years, so it has 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
11.34% 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%
177.45
-1.27 (-0.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners87.88%
Inst Owner Change-0.43%
Ins Owners0.85%
Ins Owner Change-2.53%
Market Cap2.15B
Revenue(TTM)1.60B
Net Income(TTM)118.39M
Analysts80
Price Target239.19 (34.79%)
Short Float %3.44%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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)7.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.23%
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 | 18.07 | ||
| Fwd PE | 14.18 | ||
| P/S | 1.35 | ||
| P/FCF | 11.6 | ||
| P/OCF | 10.12 | ||
| P/B | 1.93 | ||
| P/tB | 2.87 | ||
| EV/EBITDA | 9.88 |
EPS(TTM)9.82
EY5.53%
EPS(NY)12.52
Fwd EY7.05%
FCF(TTM)15.3
FCFY8.62%
OCF(TTM)17.54
OCFY9.88%
SpS131.85
BVpS92.11
TBVpS61.83
PEG (NY)1.57
PEG (5Y)1.76
Graham Number142.66
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 | 5.79 |
F-Score6
WACC9.73%
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)-7.01%
EPS 3Y13.14%
EPS 5Y10.26%
EPS Q2Q%9.36%
EPS Next Y11.52%
EPS Next 2Y14.01%
EPS Next 3Y16.43%
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 2Y2.48%
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 11.52% 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%.