ALAMO GROUP INC (ALG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALG - US0113111076 - Common Stock
164.86 USD
-1.82 (-1.09%)
164.86 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ALG. ALG was compared to 130 industry peers in the Machinery industry. ALG has an excellent financial health rating, but there are some minor concerns on its profitability. ALG has a decent growth rate and is not valued too expensively.
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.
In the past 5 years ALG has always been profitable.
ALG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALG has a Return On Assets of 7.30%. This is in the better half of the industry: ALG outperforms 73.08% of its industry peers.
ALG has a better Return On Equity (10.27%) than 60.77% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.24%, ALG is in the better half of the industry, outperforming 66.92% 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 10.39%.
| 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 61.54% 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.
Looking at the Gross Margin, with a value of 25.05%, ALG is doing worse than 64.62% of the companies in the same industry.
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
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.
ALG has more shares outstanding than it did 5 years ago.
ALG has a better debt/assets ratio than last year.
2.2 Solvency
ALG has an Altman-Z score of 5.45. This indicates that ALG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.45, ALG belongs to the best of the industry, outperforming 80.77% 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.
ALG has a Debt to FCF ratio of 1.40. This is amongst the best in the industry. ALG outperforms 85.38% 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.
Looking at the Debt to Equity ratio, with a value of 0.17, ALG is in the better half of 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 | 5.45 |
ROIC/WACC0.96
WACC9.63%
2.3 Liquidity
A Current Ratio of 4.43 indicates that ALG has no problem at all paying its short term obligations.
ALG's Current ratio of 4.43 is amongst the best of the industry. ALG outperforms 90.00% of its industry peers.
A Quick Ratio of 2.72 indicates that ALG has no problem at all paying its short term obligations.
ALG has a better Quick ratio (2.72) than 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%.
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.
The Revenue has decreased by -2.73% in the past 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
The Earnings Per Share is expected to grow by 16.43% on average over the next years. This is quite good.
Based on estimates for the next years, ALG will show a small growth in Revenue. The Revenue will grow by 4.63% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better 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 17.10, ALG is valued on the expensive side.
ALG's Price/Earnings ratio is a bit cheaper when compared to the industry. ALG is cheaper than 78.46% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.46. ALG is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.17, ALG is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALG indicates a rather cheap valuation: ALG is cheaper than 82.31% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.10. ALG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 13.17 |
4.2 Price Multiples
83.85% 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 86.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.33 | ||
| EV/EBITDA | 9.09 |
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)1.49
PEG (5Y)1.67
EPS Next 2Y14.01%
EPS Next 3Y16.43%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, ALG is not a good candidate for dividend investing.
The stock price of ALG dropped by -21.20% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
ALG's Dividend Yield is comparable with the industry average which is at 1.90.
Compared to an average S&P500 Dividend Yield of 2.32, ALG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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 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%
164.86
-1.82 (-1.09%)
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 Cap2.00B
Revenue(TTM)1.62B
Net Income(TTM)116.37M
Analysts80
Price Target217.01 (31.63%)
Short Float %3.75%
Short Ratio4.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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 | 17.1 | ||
| Fwd PE | 13.17 | ||
| P/S | 1.24 | ||
| P/FCF | 13.33 | ||
| P/OCF | 11.01 | ||
| P/B | 1.76 | ||
| P/tB | 2.59 | ||
| EV/EBITDA | 9.09 |
EPS(TTM)9.64
EY5.85%
EPS(NY)12.52
Fwd EY7.59%
FCF(TTM)12.37
FCFY7.5%
OCF(TTM)14.98
OCFY9.09%
SpS133.28
BVpS93.45
TBVpS63.6
PEG (NY)1.49
PEG (5Y)1.67
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 | 5.45 |
F-Score6
WACC9.63%
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 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 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 11.96%.