ALAMO GROUP INC (ALG) Stock Fundamental Analysis
USA - NYSE:ALG - US0113111076 - Common Stock
180.83 USD
-3.12 (-1.7%)
180.83 USD
0 (0%)
Overall ALG gets a fundamental rating of 6 out of 10. We evaluated ALG against 129 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 correct valuation and a medium growth rate.
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.
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 72.09% of its industry peers.
ALG has a Return On Equity (10.61%) which is in line with its industry peers.
The Return On Invested Capital of ALG (9.54%) is better than 66.67% 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 10.01%.
| 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 61.24% of its industry peers.
ALG's Profit Margin has improved in the last couple of years.
ALG's Operating Margin of 10.40% is in line compared to the rest of the industry. ALG outperforms 56.59% of its industry peers.
In the last couple of years the Operating Margin of ALG has grown nicely.
The Gross Margin of ALG (25.29%) is worse than 65.12% of its industry peers.
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 | 10.4% | ||
| 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
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 5.88 indicates that ALG is not in any danger for bankruptcy at the moment.
ALG has a better Altman-Z score (5.88) than 84.50% 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.
The Debt to FCF ratio of ALG (1.15) is better than 88.37% of its industry peers.
ALG has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
ALG's Debt to Equity ratio of 0.18 is fine compared to the rest of the industry. ALG outperforms 74.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 5.88 |
ROIC/WACC0.99
WACC9.6%
2.3 Liquidity
A Current Ratio of 4.56 indicates that ALG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.56, ALG belongs to the top of the industry, outperforming 91.47% of the companies in the same industry.
A Quick Ratio of 2.76 indicates that ALG has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.76, ALG belongs to the top of the industry, outperforming 86.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.56 | ||
| Quick Ratio | 2.76 |
3. Growth
3.1 Past
The earnings per share for ALG have decreased by -7.01% in the last year.
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 -4.91% in the last year.
The Revenue has been growing slightly by 7.79% on average over the past years.
EPS 1Y (TTM)-7.01%
EPS 3Y13.14%
EPS 5Y10.26%
EPS Q2Q%9.36%
Revenue 1Y (TTM)-4.91%
Revenue growth 3Y6.87%
Revenue growth 5Y7.79%
Sales Q2Q%0.67%
3.2 Future
Based on estimates for the next years, ALG will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.54% on average per year.
ALG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.65% yearly.
EPS Next Y11.52%
EPS Next 2Y14.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.48%
Revenue Next 2Y2.65%
Revenue Next 3YN/A
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.41, ALG is valued on the expensive side.
68.22% of the companies in the same industry are more expensive than ALG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ALG to the average of the S&P500 Index (27.40), we can say ALG is valued slightly cheaper.
With a Price/Forward Earnings ratio of 14.31, ALG is valued correctly.
Based on the Price/Forward Earnings ratio, ALG is valued a bit cheaper than the industry average as 77.52% of the companies are valued more expensively.
ALG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.41 | ||
| Fwd PE | 14.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALG is valued a bit cheaper than the industry average as 77.52% of the companies are valued more expensively.
89.15% 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 | 11.82 | ||
| EV/EBITDA | 10.16 |
4.3 Compensation for Growth
ALG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ALG may justify a higher PE ratio.
A more expensive valuation may be justified as ALG's earnings are expected to grow with 14.54% in the coming years.
PEG (NY)1.6
PEG (5Y)1.8
EPS Next 2Y14.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.65%, ALG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.82, ALG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, ALG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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 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
11.34% 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.
DP11.34%
EPS Next 2Y14.54%
EPS Next 3YN/A
180.83
-3.12 (-1.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners87.88%
Inst Owner Change-0.42%
Ins Owners0.85%
Ins Owner Change-2.53%
Market Cap2.19B
Analysts80
Price Target241.49 (33.55%)
Short Float %2.86%
Short Ratio4.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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%
PT rev (3m)8.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.41 | ||
| Fwd PE | 14.31 | ||
| P/S | 1.37 | ||
| P/FCF | 11.82 | ||
| P/OCF | 10.31 | ||
| P/B | 1.96 | ||
| P/tB | 2.92 | ||
| EV/EBITDA | 10.16 |
EPS(TTM)9.82
EY5.43%
EPS(NY)12.63
Fwd EY6.99%
FCF(TTM)15.3
FCFY8.46%
OCF(TTM)17.54
OCFY9.7%
SpS131.85
BVpS92.11
TBVpS61.83
PEG (NY)1.6
PEG (5Y)1.8
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%
ROICexcg growth 3Y5.21%
ROICexcg 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 | 5.88 |
F-Score6
WACC9.6%
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)-7.01%
EPS 3Y13.14%
EPS 5Y10.26%
EPS Q2Q%9.36%
EPS Next Y11.52%
EPS Next 2Y14.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.91%
Revenue growth 3Y6.87%
Revenue growth 5Y7.79%
Sales Q2Q%0.67%
Revenue Next Year-0.48%
Revenue Next 2Y2.65%
Revenue Next 3YN/A
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%