ALAMO GROUP INC (ALG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALG - US0113111076 - Common Stock
163.64 USD
+3.76 (+2.35%)
163.64 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 is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. ALG is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, ALG could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
ALG had positive earnings in the past year.
In the past year ALG had a positive cash flow from operations.
ALG had positive earnings in each of the past 5 years.
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 73.08% of its industry peers.
ALG has a better Return On Equity (10.27%) than 60.77% of its industry peers.
ALG has a Return On Invested Capital of 9.24%. This is in the better half of the industry: ALG outperforms 67.69% 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 10.34%.
| 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
With a decent Profit Margin value of 7.20%, ALG is doing good in the industry, outperforming 61.54% of the companies in the same industry.
ALG's Profit Margin has improved in the last couple of years.
ALG's Operating Margin of 10.12% is in line compared to the rest of the industry. ALG outperforms 55.38% of its industry peers.
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 64.62% of its industry peers.
ALG's Gross Margin has been stable in the last couple of years.
| 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
ALG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ALG has more shares outstanding
Compared to 5 years ago, ALG has more shares outstanding
Compared to 1 year ago, ALG has an improved debt to assets ratio.
2.2 Solvency
ALG has an Altman-Z score of 5.34. This indicates that ALG is financially healthy and has little risk of bankruptcy at the moment.
ALG has a Altman-Z score of 5.34. This is in the better half of the industry: ALG outperforms 80.00% of its industry peers.
ALG has a debt to FCF ratio of 1.40. This is a very positive value and a sign of high solvency as it would only need 1.40 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.40, ALG belongs to the top of the industry, outperforming 85.38% of the companies in the same industry.
A Debt/Equity ratio of 0.17 indicates that ALG is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.17, ALG is doing good in the industry, outperforming 74.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 5.34 |
ROIC/WACC0.97
WACC9.55%
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 Current ratio of 4.43. This is amongst the best in the industry. ALG outperforms 90.77% of its industry peers.
A Quick Ratio of 2.72 indicates that ALG has no problem at all paying its short term obligations.
ALG's Quick ratio of 2.72 is amongst the best of the industry. ALG outperforms 85.38% of its industry peers.
| 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%.
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 -2.73% 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)-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 16.43% yearly.
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
The Price/Earnings ratio is 16.98, which indicates a correct valuation of ALG.
76.92% of the companies in the same industry are more expensive than ALG, based on the Price/Earnings ratio.
ALG is valuated rather cheaply when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.07 indicates a correct valuation of ALG.
83.08% of the companies in the same industry are more expensive than ALG, based on the Price/Forward Earnings ratio.
ALG is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.98 | ||
| Fwd PE | 13.07 |
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 84.62% of the companies listed in the same industry.
85.38% 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 | 13.22 | ||
| EV/EBITDA | 8.71 |
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.
ALG's earnings are expected to grow with 16.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.48
PEG (5Y)1.65
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 -22.61%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
ALG's Dividend Yield is comparable with the industry average which is at 1.97.
Compared to an average S&P500 Dividend Yield of 2.41, ALG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
On average, the dividend of ALG grows each year by 16.84%, which is quite nice.
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.
ALG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP11.96%
EPS Next 2Y14.01%
EPS Next 3Y16.43%
163.64
+3.76 (+2.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners87.88%
Inst Owner Change-2.52%
Ins Owners0.85%
Ins Owner Change-2.63%
Market Cap1.98B
Revenue(TTM)1.62B
Net Income(TTM)116.37M
Analysts80
Price Target217.01 (32.61%)
Short Float %3.35%
Short Ratio4.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend1.04
Dividend Growth(5Y)16.84%
DP11.96%
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)-10.14%
PT rev (3m)-10.14%
EPS NQ rev (1m)-18%
EPS NQ rev (3m)-18%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)-3.57%
Revenue NQ rev (3m)-3.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.98 | ||
| Fwd PE | 13.07 | ||
| P/S | 1.23 | ||
| P/FCF | 13.22 | ||
| P/OCF | 10.91 | ||
| P/B | 1.75 | ||
| P/tB | 2.57 | ||
| EV/EBITDA | 8.71 |
EPS(TTM)9.64
EY5.89%
EPS(NY)12.52
Fwd EY7.65%
FCF(TTM)12.38
FCFY7.57%
OCF(TTM)14.99
OCFY9.16%
SpS133.39
BVpS93.53
TBVpS63.65
PEG (NY)1.48
PEG (5Y)1.65
Graham Number142.43
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 | 5.34 |
F-Score6
WACC9.55%
ROIC/WACC0.97
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)-2.73%
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-6.65%
EBIT growth 3Y12.13%
EBIT growth 5Y11.67%
EBIT Next Year39.08%
EBIT Next 3YN/A
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 7 / 10 to ALAMO GROUP INC (ALG). This can be considered as Undervalued.
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 11.96%.