ALAMO GROUP INC (ALG) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ALG • US0113111076
208.38 USD
+5.69 (+2.81%)
At close: Feb 6, 2026
208.38 USD
0 (0%)
After Hours: 2/6/2026, 8:17:32 PM
Overall ALG gets a fundamental rating of 6 out of 10. We evaluated ALG against 132 industry peers in the Machinery industry. ALG has an excellent financial health rating, but there are some minor concerns on its profitability. ALG is valued correctly, but it does not seem to be growing.
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
- Looking at the Return On Assets, with a value of 7.30%, ALG is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
- ALG has a better Return On Equity (10.27%) than 62.12% of its industry peers.
- The Return On Invested Capital of ALG (9.24%) is better than 68.18% 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 10.37%.
| 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 has a better Profit Margin (7.20%) than 62.12% of its industry peers.
- In the last couple of years the Profit Margin of ALG has grown nicely.
- ALG has a Operating Margin (10.12%) which is in line with its industry peers.
- ALG's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 25.05%, ALG is not doing good in the industry: 64.39% of the companies in the same industry are doing better.
- 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.
- 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
- An Altman-Z score of 6.02 indicates that ALG is not in any danger for bankruptcy at the moment.
- ALG has a Altman-Z score of 6.02. This is amongst the best in the industry. ALG outperforms 82.58% 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 84.85% 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.
- ALG's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. ALG outperforms 71.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 6.02 |
ROIC/WACC0.95
WACC9.74%
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 90.15% of the companies in the same industry.
- A Quick Ratio of 2.72 indicates that ALG has no problem at all paying its short term obligations.
- The Quick ratio of ALG (2.72) is better than 86.36% 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%.
- 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.
- 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
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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
- With a Price/Earnings ratio of 21.62, ALG is valued on the expensive side.
- 72.73% of the companies in the same industry are more expensive than ALG, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.92, ALG is valued a bit cheaper.
- The Price/Forward Earnings ratio is 17.90, which indicates a rather expensive current valuation of ALG.
- Based on the Price/Forward Earnings ratio, ALG is valued a bit cheaper than the industry average as 76.52% of the companies are valued more expensively.
- ALG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 17.9 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ALG is valued cheaper than 81.82% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALG indicates a rather cheap valuation: ALG is cheaper than 84.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.85 | ||
| EV/EBITDA | 11.09 |
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)2.11
EPS Next 2Y9.94%
EPS Next 3Y11.64%
5. Dividend
5.1 Amount
- ALG has a yearly dividend return of 0.70%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.00, 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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 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 11.96% of its income as dividend. This is a sustainable payout ratio.
- ALG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP11.96%
EPS Next 2Y9.94%
EPS Next 3Y11.64%
208.38
+5.69 (+2.81%)
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 Cap2.53B
Revenue(TTM)1.62B
Net Income(TTM)116.37M
Analysts80
Price Target217.01 (4.14%)
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 | 21.62 | ||
| Fwd PE | 17.9 | ||
| P/S | 1.56 | ||
| P/FCF | 16.85 | ||
| P/OCF | 13.91 | ||
| P/B | 2.23 | ||
| P/tB | 3.28 | ||
| EV/EBITDA | 11.09 |
EPS(TTM)9.64
EY4.63%
EPS(NY)11.64
Fwd EY5.59%
FCF(TTM)12.37
FCFY5.94%
OCF(TTM)14.98
OCFY7.19%
SpS133.28
BVpS93.45
TBVpS63.6
PEG (NY)N/A
PEG (5Y)2.11
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 | 6.02 |
F-Score6
WACC9.74%
ROIC/WACC0.95
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%.