ALAMO GROUP INC (ALG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALG - US0113111076 - Common Stock
161.01 USD
+3.21 (+2.03%)
161.01 USD
0 (0%)
Taking everything into account, ALG scores 6 out of 10 in our fundamental rating. ALG was compared to 130 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 decent growth rate and is not valued too expensively.
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.
ALG had positive earnings in each of the past 5 years.
ALG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALG's Return On Assets of 7.60% is fine compared to the rest of the industry. ALG outperforms 73.85% of its industry peers.
ALG has a Return On Equity (10.61%) which is comparable to the rest of the industry.
ALG has a better Return On Invested Capital (9.54%) than 69.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALG 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 better Profit Margin (7.42%) than 63.08% of its industry peers.
In the last couple of years the Profit Margin of ALG has grown nicely.
ALG has a Operating Margin (10.40%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ALG has grown nicely.
ALG's Gross Margin of 25.29% is on the low side compared to the rest of the industry. ALG is outperformed by 64.62% 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.
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 5.45 indicates that ALG is not in any danger for bankruptcy at the moment.
ALG has a better Altman-Z score (5.45) than 83.85% 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 86.92% 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 | 5.45 |
ROIC/WACC0.99
WACC9.63%
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.
A Quick Ratio of 2.76 indicates that ALG has no problem at all paying its short term obligations.
ALG has a better Quick ratio (2.76) than 86.92% 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 -2.92%.
ALG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.26% yearly.
The Revenue has decreased by -3.62% in the past year.
The Revenue has been growing slightly by 7.79% on average over the past years.
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
The Earnings Per Share is expected to grow by 16.43% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.63% on average over the next years.
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
A Price/Earnings ratio of 16.70 indicates a correct valuation of ALG.
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 25.45.
ALG is valuated correctly with a Price/Forward Earnings ratio of 12.86.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALG indicates a somewhat cheap valuation: ALG is cheaper than 80.00% of the companies listed in the same industry.
ALG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 12.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALG indicates a rather cheap valuation: ALG is cheaper than 83.08% of the companies listed in the same industry.
88.46% of the companies in the same industry are more expensive than ALG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.53 | ||
| EV/EBITDA | 8.73 |
4.3 Compensation for Growth
ALG's 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.
ALG's earnings are expected to grow with 16.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.45
PEG (5Y)1.63
EPS Next 2Y14.01%
EPS Next 3Y16.43%
5. Dividend
5.1 Amount
ALG has a yearly dividend return of 0.76%, which is pretty low.
In the last 3 months the price of ALG has falen by -27.32%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.95, ALG has a dividend in line with its industry peers.
With a Dividend Yield of 0.76, ALG pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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
ALG pays out 11.34% of its income as dividend. This is a sustainable payout ratio.
The dividend of ALG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP11.34%
EPS Next 2Y14.01%
EPS Next 3Y16.43%
161.01
+3.21 (+2.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners87.88%
Inst Owner Change-2.54%
Ins Owners0.85%
Ins Owner Change-3.56%
Market Cap1.95B
Revenue(TTM)1.63B
Net Income(TTM)118.39M
Analysts80
Price Target217.01 (34.78%)
Short Float %3.35%
Short Ratio4.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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)0%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-1.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 12.86 | ||
| P/S | 1.22 | ||
| P/FCF | 10.53 | ||
| P/OCF | 9.18 | ||
| P/B | 1.75 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 8.73 |
EPS(TTM)9.64
EY5.99%
EPS(NY)12.52
Fwd EY7.77%
FCF(TTM)15.3
FCFY9.5%
OCF(TTM)17.54
OCFY10.89%
SpS131.85
BVpS92.11
TBVpS61.83
PEG (NY)1.45
PEG (5Y)1.63
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 | 5.45 |
F-Score6
WACC9.63%
ROIC/WACC0.99
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%.