ALAMO GROUP INC (ALG) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ALG • US0113111076
203.23 USD
+7.71 (+3.94%)
At close: Feb 4, 2026
203.23 USD
0 (0%)
After Hours: 2/4/2026, 8:04:00 PM
Taking everything into account, ALG scores 6 out of 10 in our fundamental rating. ALG was compared to 132 industry peers in the Machinery industry. While ALG has a great health rating, its profitability is only average at the moment. ALG has a valuation in line with the averages, but on the other hand it scores bad on growth.
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
- The Return On Assets of ALG (7.30%) is better than 72.73% of its industry peers.
- ALG has a Return On Equity of 10.27%. This is in the better half of the industry: ALG outperforms 62.12% of its industry peers.
- ALG has a better Return On Invested Capital (9.24%) than 68.18% 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 10.37%.
| 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 62.12% 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.
- ALG's Operating Margin has improved in the last couple of years.
- ALG has a Gross Margin of 25.05%. This is in the lower half of the industry: ALG underperforms 64.39% 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
- 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.
- The number of shares outstanding for ALG has been increased compared to 5 years ago.
- ALG has a better debt/assets ratio than last year.
2.2 Solvency
- ALG has an Altman-Z score of 5.90. This indicates that ALG is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of ALG (5.90) is better than 83.33% 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's Debt to FCF ratio of 1.40 is amongst the best of the industry. ALG outperforms 84.85% of its industry peers.
- ALG has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of ALG (0.17) is better than 71.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 5.9 |
ROIC/WACC0.94
WACC9.84%
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.
- ALG's Current ratio of 4.43 is amongst the best of the industry. ALG outperforms 90.15% 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.
- Looking at the Quick ratio, with a value of 2.72, ALG belongs to the top of the industry, outperforming 86.36% 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.
- 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 -2.73%.
- 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
- ALG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.64% yearly.
- The Revenue is expected to grow by 2.26% on average over the next years.
EPS Next Y-1.64%
EPS Next 2Y9.94%
EPS Next 3Y11.64%
EPS Next 5YN/A
Revenue Next Year-0.42%
Revenue Next 2Y2.3%
Revenue Next 3Y2.26%
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 stable.
- 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
- ALG is valuated rather expensively with a Price/Earnings ratio of 21.08.
- Based on the Price/Earnings ratio, ALG is valued a bit cheaper than 75.00% 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 28.25.
- A Price/Forward Earnings ratio of 17.46 indicates a rather expensive valuation of ALG.
- Based on the Price/Forward Earnings ratio, ALG is valued a bit cheaper than the industry average as 79.55% of the companies are valued more expensively.
- ALG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.08 | ||
| Fwd PE | 17.46 |
4.2 Price Multiples
- 80.30% of the companies in the same industry are more expensive than ALG, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALG indicates a rather cheap valuation: ALG is cheaper than 85.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.43 | ||
| EV/EBITDA | 10.69 |
4.3 Compensation for Growth
- The decent profitability rating of ALG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.06
EPS Next 2Y9.94%
EPS Next 3Y11.64%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.70%, ALG is not a good candidate for dividend investing.
- ALG's Dividend Yield is comparable with the industry average which is at 1.01.
- With a Dividend Yield of 0.70, ALG pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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 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.
- The dividend of ALG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP11.96%
EPS Next 2Y9.94%
EPS Next 3Y11.64%
203.23
+7.71 (+3.94%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-19 2026-02-19/amc
Inst Owners88.1%
Inst Owner Change1.56%
Ins Owners0.86%
Ins Owner Change-2.48%
Market Cap2.46B
Revenue(TTM)1.62B
Net Income(TTM)116.37M
Analysts80
Price Target217.01 (6.78%)
Short Float %5.43%
Short Ratio5.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend1.04
Dividend Growth(5Y)16.84%
DP11.96%
Div Incr Years10
Div Non Decr Years24
Ex-Date01-16 2026-01-16 (0.34)
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)0%
PT rev (3m)-9.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.08 | ||
| Fwd PE | 17.46 | ||
| P/S | 1.52 | ||
| P/FCF | 16.43 | ||
| P/OCF | 13.57 | ||
| P/B | 2.17 | ||
| P/tB | 3.2 | ||
| EV/EBITDA | 10.69 |
EPS(TTM)9.64
EY4.74%
EPS(NY)11.64
Fwd EY5.73%
FCF(TTM)12.37
FCFY6.09%
OCF(TTM)14.98
OCFY7.37%
SpS133.28
BVpS93.45
TBVpS63.6
PEG (NY)N/A
PEG (5Y)2.06
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 | 5.9 |
F-Score6
WACC9.84%
ROIC/WACC0.94
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 Y-1.64%
EPS Next 2Y9.94%
EPS Next 3Y11.64%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.73%
Revenue growth 3Y6.87%
Revenue growth 5Y7.79%
Sales Q2Q%4.67%
Revenue Next Year-0.42%
Revenue Next 2Y2.3%
Revenue Next 3Y2.26%
Revenue Next 5YN/A
EBIT growth 1Y-6.65%
EBIT growth 3Y12.13%
EBIT growth 5Y11.67%
EBIT Next Year32.75%
EBIT Next 3Y18.03%
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 for ALG stock?
ChartMill assigns a valuation rating of 5 / 10 to ALAMO GROUP INC (ALG). This can be considered as Fairly Valued.
Can you provide the profitability details for ALAMO GROUP INC?
ALAMO GROUP INC (ALG) has a profitability rating of 6 / 10.
What is the financial health of ALAMO GROUP INC (ALG) stock?
The financial health rating of ALAMO GROUP INC (ALG) is 8 / 10.
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%.