ALAMO GROUP INC (ALG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALG - US0113111076 - Common Stock
192.58 USD
-0.47 (-0.24%)
192.58 USD
0 (0%)
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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year ALG was profitable.
- In the past year ALG had a positive cash flow from operations.
- Each year in the past 5 years ALG has been profitable.
- Each year in the past 5 years ALG had a positive operating cash flow.
1.2 Ratios
- ALG has a Return On Assets of 7.30%. This is in the better half of the industry: ALG outperforms 72.73% of its industry peers.
- Looking at the Return On Equity, with a value of 10.27%, ALG is in the better half of the industry, outperforming 62.12% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 9.24%, ALG is in the better half of the industry, outperforming 67.42% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ALG is in line with the industry average of 10.24%.
| 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.
- ALG's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 10.12%, ALG perfoms like the industry average, outperforming 56.06% of the companies in the same industry.
- 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 64.39% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ALG is creating some value.
- Compared to 1 year ago, ALG has more shares outstanding
- The number of shares outstanding for ALG has been increased compared to 5 years ago.
- The debt/assets ratio for ALG has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 5.87 indicates that ALG is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.87, ALG belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
- 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.
- With an excellent Debt to FCF ratio value of 1.40, ALG belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
- ALG has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.17, ALG is in the better half of the industry, outperforming 71.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 5.87 |
ROIC/WACC0.96
WACC9.64%
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 has a better Current ratio (4.43) than 90.91% 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 87.12% of the companies in the same industry.
| 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%.
- 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.
- 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)-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.
- ALG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.26% yearly.
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
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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
- With a Price/Earnings ratio of 19.98, ALG is valued on the expensive side.
- Based on the Price/Earnings ratio, ALG is valued a bit cheaper than 76.52% of the companies in the same industry.
- When comparing the Price/Earnings ratio of ALG to the average of the S&P500 Index (27.47), we can say ALG is valued slightly cheaper.
- ALG is valuated correctly with a Price/Forward Earnings ratio of 16.54.
- 79.55% of the companies in the same industry are more expensive than ALG, based on the Price/Forward Earnings ratio.
- ALG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.98 | ||
| Fwd PE | 16.54 |
4.2 Price Multiples
- 79.55% of the companies in the same industry are more expensive than ALG, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, ALG is valued cheaper than 84.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.57 | ||
| EV/EBITDA | 10.55 |
4.3 Compensation for Growth
- ALG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.95
EPS Next 2Y9.94%
EPS Next 3Y11.64%
5. Dividend
5.1 Amount
- ALG has a yearly dividend return of 0.73%, which is pretty low.
- ALG's Dividend Yield is comparable with the industry average which is at 0.80.
- With a Dividend Yield of 0.73, ALG pays less dividend than the S&P500 average, which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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 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 2Y9.94%
EPS Next 3Y11.64%
192.58
-0.47 (-0.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-25 2026-02-25/amc
Inst Owners88.1%
Inst Owner Change-0.35%
Ins Owners0.86%
Ins Owner Change-2.48%
Market Cap2.33B
Revenue(TTM)1.62B
Net Income(TTM)116.37M
Analysts80
Price Target217.01 (12.69%)
Short Float %4.28%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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)-10.14%
EPS NQ rev (1m)-6.7%
EPS NQ rev (3m)-23.5%
EPS NY rev (1m)-3.63%
EPS NY rev (3m)-11.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.98 | ||
| Fwd PE | 16.54 | ||
| P/S | 1.44 | ||
| P/FCF | 15.57 | ||
| P/OCF | 12.86 | ||
| P/B | 2.06 | ||
| P/tB | 3.03 | ||
| EV/EBITDA | 10.55 |
EPS(TTM)9.64
EY5.01%
EPS(NY)11.64
Fwd EY6.04%
FCF(TTM)12.37
FCFY6.42%
OCF(TTM)14.98
OCFY7.78%
SpS133.28
BVpS93.45
TBVpS63.6
PEG (NY)N/A
PEG (5Y)1.95
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 | 5.87 |
F-Score6
WACC9.64%
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 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%.