ALAMO GROUP INC (ALG) Fundamental Analysis & Valuation

NYSE:ALG • US0113111076

Current stock price

169.22 USD
+0.04 (+0.02%)
Last:

This ALG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. ALG Profitability Analysis

1.1 Basic Checks

  • In the past year ALG was profitable.
  • 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.
ALG Yearly Net Income VS EBIT VS OCF VS FCFALG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M 100M 150M 200M

1.2 Ratios

  • ALG's Return On Assets of 6.46% is fine compared to the rest of the industry. ALG outperforms 70.99% of its industry peers.
  • ALG has a Return On Equity of 9.04%. This is comparable to the rest of the industry: ALG outperforms 57.25% of its industry peers.
  • ALG has a Return On Invested Capital of 8.29%. This is in the better half of the industry: ALG outperforms 64.89% 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 10.00%.
Industry RankSector Rank
ROA 6.46%
ROE 9.04%
ROIC 8.29%
ROA(3y)8.04%
ROA(5y)7.71%
ROE(3y)11.67%
ROE(5y)11.87%
ROIC(3y)10.27%
ROIC(5y)9.93%
ALG Yearly ROA, ROE, ROICALG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10

1.3 Margins

  • ALG has a Profit Margin (6.47%) which is comparable to the rest of the industry.
  • ALG's Profit Margin has improved in the last couple of years.
  • ALG has a Operating Margin (9.45%) which is in line with its industry peers.
  • ALG's Operating Margin has improved in the last couple of years.
  • ALG has a Gross Margin of 24.81%. This is in the lower half of the industry: ALG underperforms 66.41% of its industry peers.
  • ALG's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 9.45%
PM (TTM) 6.47%
GM 24.81%
OM growth 3Y-1.25%
OM growth 5Y3.02%
PM growth 3Y-1.3%
PM growth 5Y5.43%
GM growth 3Y-0.09%
GM growth 5Y-0.35%
ALG Yearly Profit, Operating, Gross MarginsALG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

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8

2. ALG Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALG is destroying value.
  • Compared to 1 year ago, ALG has more shares outstanding
  • Compared to 5 years ago, ALG has more shares outstanding
  • ALG has a better debt/assets ratio than last year.
ALG Yearly Shares OutstandingALG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2M 4M 6M 8M 10M
ALG Yearly Total Debt VS Total AssetsALG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.2 Solvency

  • An Altman-Z score of 5.50 indicates that ALG is not in any danger for bankruptcy at the moment.
  • ALG's Altman-Z score of 5.50 is fine compared to the rest of the industry. ALG outperforms 79.39% of its industry peers.
  • ALG has a debt to FCF ratio of 1.42. This is a very positive value and a sign of high solvency as it would only need 1.42 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 1.42, ALG belongs to the top of the industry, outperforming 87.02% of the companies in the same industry.
  • A Debt/Equity ratio of 0.17 indicates that ALG is not too dependend on debt financing.
  • ALG has a Debt to Equity ratio of 0.17. This is in the better half of the industry: ALG outperforms 73.28% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF 1.42
Altman-Z 5.5
ROIC/WACC0.8
WACC10.32%
ALG Yearly LT Debt VS Equity VS FCFALG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • A Current Ratio of 4.57 indicates that ALG has no problem at all paying its short term obligations.
  • With an excellent Current ratio value of 4.57, ALG belongs to the best of the industry, outperforming 88.55% of the companies in the same industry.
  • ALG has a Quick Ratio of 2.82. This indicates that ALG is financially healthy and has no problem in meeting its short term obligations.
  • ALG's Quick ratio of 2.82 is amongst the best of the industry. ALG outperforms 87.02% of its industry peers.
Industry RankSector Rank
Current Ratio 4.57
Quick Ratio 2.82
ALG Yearly Current Assets VS Current LiabilitesALG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. ALG Growth Analysis

3.1 Past

  • The earnings per share for ALG have decreased strongly by -10.80% in the last year.
  • ALG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.34% yearly.
  • The Revenue has decreased by -1.52% in the past year.
  • The Revenue has been growing slightly by 6.63% on average over the past years.
EPS 1Y (TTM)-10.8%
EPS 3Y-0.12%
EPS 5Y11.34%
EPS Q2Q%-45.06%
Revenue 1Y (TTM)-1.52%
Revenue growth 3Y1.95%
Revenue growth 5Y6.63%
Sales Q2Q%-3.03%

3.2 Future

  • The Earnings Per Share is expected to grow by 18.23% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 3.16% on average over the next years.
EPS Next Y21.49%
EPS Next 2Y18.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.37%
Revenue Next 2Y3.16%
Revenue Next 3YN/A
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.
ALG Yearly Revenue VS EstimatesALG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
ALG Yearly EPS VS EstimatesALG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8 10

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7

4. ALG Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 19.70, the valuation of ALG can be described as rather expensive.
  • Based on the Price/Earnings ratio, ALG is valued a bit cheaper than the industry average as 77.10% of the companies are valued more expensively.
  • ALG is valuated rather cheaply when we compare the Price/Earnings ratio to 27.66, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 16.22, ALG is valued correctly.
  • Based on the Price/Forward Earnings ratio, ALG is valued a bit cheaper than the industry average as 78.63% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 38.00. ALG is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 19.7
Fwd PE 16.22
ALG Price Earnings VS Forward Price EarningsALG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 88.55% of the companies listed in the same industry.
  • 87.79% of the companies in the same industry are more expensive than ALG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 14.19
EV/EBITDA 9.45
ALG Per share dataALG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

  • ALG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 18.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)1.74
EPS Next 2Y18.23%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. ALG Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.81%, ALG is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.08, ALG pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.81, ALG pays less dividend than the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 0.81%

5.2 History

  • The dividend of ALG is nicely growing with an annual growth rate of 18.28%!
  • 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)18.28%
Div Incr Years11
Div Non Decr Years25
ALG Yearly Dividends per shareALG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • ALG pays out 13.89% 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.
DP13.89%
EPS Next 2Y18.23%
EPS Next 3YN/A
ALG Yearly Income VS Free CF VS DividendALG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M 100M 150M
ALG Dividend Payout.ALG Dividend Payout, showing the Payout Ratio.ALG Dividend Payout.PayoutRetained Earnings

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ALG Fundamentals: All Metrics, Ratios and Statistics

ALAMO GROUP INC

NYSE:ALG (4/22/2026, 1:25:52 PM)

169.22

+0.04 (+0.02%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)03-02
Earnings (Next)05-06
Inst Owners89.29%
Inst Owner Change1.13%
Ins Owners1%
Ins Owner Change4.62%
Market Cap2.06B
Revenue(TTM)1.60B
Net Income(TTM)103.80M
Analysts82.5
Price Target208.34 (23.12%)
Short Float %4.35%
Short Ratio3.54
Dividend
Industry RankSector Rank
Dividend Yield 0.81%
Yearly Dividend1.2
Dividend Growth(5Y)18.28%
DP13.89%
Div Incr Years11
Div Non Decr Years25
Ex-Date04-15
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-30.76%
Min EPS beat(2)-40.32%
Max EPS beat(2)-21.2%
EPS beat(4)1
Avg EPS beat(4)-12.96%
Min EPS beat(4)-40.32%
Max EPS beat(4)15.36%
EPS beat(8)3
Avg EPS beat(8)-8.32%
EPS beat(12)5
Avg EPS beat(12)-2.65%
EPS beat(16)7
Avg EPS beat(16)-0.47%
Revenue beat(2)1
Avg Revenue beat(2)-2.69%
Min Revenue beat(2)-7.42%
Max Revenue beat(2)2.04%
Revenue beat(4)2
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-7.42%
Max Revenue beat(4)2.04%
Revenue beat(8)3
Avg Revenue beat(8)-1.48%
Revenue beat(12)6
Avg Revenue beat(12)-0.36%
Revenue beat(16)9
Avg Revenue beat(16)0.23%
PT rev (1m)-4%
PT rev (3m)-4%
EPS NQ rev (1m)-1.68%
EPS NQ rev (3m)-11.75%
EPS NY rev (1m)-10.34%
EPS NY rev (3m)-10.34%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-3.42%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-2.6%
Valuation
Industry RankSector Rank
PE 19.7
Fwd PE 16.22
P/S 1.28
P/FCF 14.19
P/OCF 11.6
P/B 1.79
P/tB 2.61
EV/EBITDA 9.45
EPS(TTM)8.59
EY5.08%
EPS(NY)10.44
Fwd EY6.17%
FCF(TTM)11.93
FCFY7.05%
OCF(TTM)14.59
OCFY8.62%
SpS131.78
BVpS94.39
TBVpS64.84
PEG (NY)0.92
PEG (5Y)1.74
Graham Number135.066 (-20.18%)
Profitability
Industry RankSector Rank
ROA 6.46%
ROE 9.04%
ROCE 10.92%
ROIC 8.29%
ROICexc 10.67%
ROICexgc 16.01%
OM 9.45%
PM (TTM) 6.47%
GM 24.81%
FCFM 9.05%
ROA(3y)8.04%
ROA(5y)7.71%
ROE(3y)11.67%
ROE(5y)11.87%
ROIC(3y)10.27%
ROIC(5y)9.93%
ROICexc(3y)11.87%
ROICexc(5y)11.06%
ROICexgc(3y)17.75%
ROICexgc(5y)16.89%
ROCE(3y)13.52%
ROCE(5y)13.08%
ROICexgc growth 3Y-0.05%
ROICexgc growth 5Y3.19%
ROICexc growth 3Y0.43%
ROICexc growth 5Y6.28%
OM growth 3Y-1.25%
OM growth 5Y3.02%
PM growth 3Y-1.3%
PM growth 5Y5.43%
GM growth 3Y-0.09%
GM growth 5Y-0.35%
F-Score6
Asset Turnover1
Health
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF 1.42
Debt/EBITDA 0.92
Cap/Depr 58.5%
Cap/Sales 2.02%
Interest Coverage 10.29
Cash Conversion 85.78%
Profit Quality 139.84%
Current Ratio 4.57
Quick Ratio 2.82
Altman-Z 5.5
F-Score6
WACC10.32%
ROIC/WACC0.8
Cap/Depr(3y)61.57%
Cap/Depr(5y)61.74%
Cap/Sales(3y)1.93%
Cap/Sales(5y)1.95%
Profit Quality(3y)122.54%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.8%
EPS 3Y-0.12%
EPS 5Y11.34%
EPS Q2Q%-45.06%
EPS Next Y21.49%
EPS Next 2Y18.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.52%
Revenue growth 3Y1.95%
Revenue growth 5Y6.63%
Sales Q2Q%-3.03%
Revenue Next Year2.37%
Revenue Next 2Y3.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-8.01%
EBIT growth 3Y0.67%
EBIT growth 5Y9.85%
EBIT Next Year37.29%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-21.35%
FCF growth 3YN/A
FCF growth 5Y-2.7%
OCF growth 1Y-15.37%
OCF growth 3Y130.49%
OCF growth 5Y-0.74%

ALAMO GROUP INC / ALG Fundamental Analysis 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 7 / 10 to ALAMO GROUP INC (ALG). This can be considered as Undervalued.


How profitable is ALAMO GROUP INC (ALG) stock?

ALAMO GROUP INC (ALG) has a profitability rating of 6 / 10.


What is the valuation of ALAMO GROUP INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ALAMO GROUP INC (ALG) is 19.7 and the Price/Book (PB) ratio is 1.79.


What is the earnings growth outlook for ALAMO GROUP INC?

The Earnings per Share (EPS) of ALAMO GROUP INC (ALG) is expected to grow by 21.49% in the next year.