ALAMO GROUP INC (ALG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALG - US0113111076 - Common Stock
173.87 USD
+1.48 (+0.86%)
173.87 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ALG. ALG was compared to 131 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 correct valuation and a medium growth rate.
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.
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 71.97% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.27%, ALG is in the better half of the industry, outperforming 61.36% of the companies in the same industry.
ALG's Return On Invested Capital of 9.24% is fine compared to the rest of the industry. ALG outperforms 67.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALG is in line with the industry average of 10.32%.
| 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
The Profit Margin of ALG (7.20%) is better than 61.36% of its industry peers.
ALG's Profit Margin has improved in the last couple of years.
ALG has a Operating Margin (10.12%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ALG has grown nicely.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ALG is creating some value.
ALG has more shares outstanding than it did 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
An Altman-Z score of 5.56 indicates that ALG is not in any danger for bankruptcy at the moment.
ALG has a better Altman-Z score (5.56) than 81.82% 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 84.09% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that ALG is not too dependend on debt financing.
ALG has a better Debt to Equity ratio (0.17) than 73.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 5.56 |
ROIC/WACC0.94
WACC9.79%
2.3 Liquidity
A Current Ratio of 4.43 indicates that ALG has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.43, ALG belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
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.
ALG has a Quick ratio of 2.72. This is amongst the best in the industry. ALG outperforms 85.61% of its industry peers.
| 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.
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.
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
Based on estimates for the next years, ALG will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.99% on average per year.
Based on estimates for the next years, ALG will show a small growth in Revenue. The Revenue will grow by 2.26% on average per year.
EPS Next Y2.06%
EPS Next 2Y11.13%
EPS Next 3Y12.99%
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 accelerating.
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
A Price/Earnings ratio of 18.04 indicates a rather expensive valuation of ALG.
Compared to the rest of the industry, the Price/Earnings ratio of ALG indicates a somewhat cheap valuation: ALG is cheaper than 77.27% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.38. ALG is valued slightly cheaper when compared to this.
ALG is valuated correctly with a Price/Forward Earnings ratio of 14.62.
Based on the Price/Forward Earnings ratio, ALG is valued cheaper than 81.82% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, ALG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.04 | ||
| Fwd PE | 14.62 |
4.2 Price Multiples
84.09% 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 85.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.06 | ||
| EV/EBITDA | 9.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALG does not grow enough to justify the current Price/Earnings ratio.
ALG has a very decent profitability rating, which may justify a higher PE ratio.
ALG's earnings are expected to grow with 12.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)8.75
PEG (5Y)1.76
EPS Next 2Y11.13%
EPS Next 3Y12.99%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, ALG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.04, ALG has a dividend in line with its industry peers.
With a Dividend Yield of 0.70, ALG pays less dividend than the S&P500 average, which is at 1.87.
| 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 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 2Y11.13%
EPS Next 3Y12.99%
173.87
+1.48 (+0.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners87.98%
Inst Owner Change-2.52%
Ins Owners0.86%
Ins Owner Change-2.2%
Market Cap2.11B
Revenue(TTM)1.62B
Net Income(TTM)116.37M
Analysts80
Price Target217.01 (24.81%)
Short Float %4.05%
Short Ratio4.44
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-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)-9.28%
PT rev (3m)-10.14%
EPS NQ rev (1m)-6.7%
EPS NQ rev (3m)-23.5%
EPS NY rev (1m)-8.46%
EPS NY rev (3m)-8.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.53%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.04 | ||
| Fwd PE | 14.62 | ||
| P/S | 1.3 | ||
| P/FCF | 14.06 | ||
| P/OCF | 11.61 | ||
| P/B | 1.86 | ||
| P/tB | 2.73 | ||
| EV/EBITDA | 9.49 |
EPS(TTM)9.64
EY5.54%
EPS(NY)11.89
Fwd EY6.84%
FCF(TTM)12.37
FCFY7.11%
OCF(TTM)14.98
OCFY8.62%
SpS133.28
BVpS93.45
TBVpS63.6
PEG (NY)8.75
PEG (5Y)1.76
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 | 5.56 |
F-Score6
WACC9.79%
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 Y2.06%
EPS Next 2Y11.13%
EPS Next 3Y12.99%
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 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 2.06% 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%.