ALAMO GROUP INC (ALG) Fundamental Analysis & Valuation

NYSE:ALG • US0113111076

Current stock price

167.6 USD
-0.6 (-0.36%)
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 has a Return On Assets of 6.46%. This is in the better half of the industry: ALG outperforms 70.99% of its industry peers.
  • ALG has a Return On Equity (9.04%) which is in line with its industry peers.
  • The Return On Invested Capital of ALG (8.29%) is better than 64.12% 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 10.04%.
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's Profit Margin of 6.47% is in line compared to the rest of the industry. ALG outperforms 58.78% of its industry peers.
  • In the last couple of years the Profit Margin of ALG has grown nicely.
  • ALG's Operating Margin of 9.45% is in line compared to the rest of the industry. ALG outperforms 54.96% of its industry peers.
  • ALG's Operating Margin has improved in the last couple of years.
  • ALG's Gross Margin of 24.81% is on the low side compared to the rest of the industry. ALG is outperformed by 65.65% 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 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) 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
  • 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

  • ALG has an Altman-Z score of 5.47. This indicates that ALG is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 5.47, ALG belongs to the top of the industry, outperforming 80.92% of the companies in the same industry.
  • The Debt to FCF ratio of ALG is 1.42, which is an excellent value as it means it would take ALG, only 1.42 years of fcf income to pay off all of its debts.
  • ALG has a better Debt to FCF ratio (1.42) than 87.02% of its industry peers.
  • A Debt/Equity ratio of 0.17 indicates that ALG is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.17, ALG is in the better half of the industry, outperforming 73.28% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF 1.42
Altman-Z 5.47
ROIC/WACC0.81
WACC10.19%
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

  • ALG has a Current Ratio of 4.57. This indicates that ALG is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 4.57, ALG belongs to the top 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.
  • Looking at the Quick ratio, with a value of 2.82, ALG belongs to the top of the industry, outperforming 87.02% of the companies in the same industry.
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

  • ALG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.80%.
  • Measured over the past years, ALG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.34% on average per year.
  • The Revenue has decreased by -1.52% in the past year.
  • Measured over the past years, ALG shows a small growth in Revenue. The Revenue has been growing by 6.63% on average per year.
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

  • ALG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.89% yearly.
  • The Revenue is expected to grow by 3.16% on average over the next years.
EPS Next Y35.51%
EPS Next 2Y24.89%
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

  • 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.
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

  • The Price/Earnings ratio is 19.51, which indicates a rather expensive current valuation of ALG.
  • Compared to the rest of the industry, the Price/Earnings ratio of ALG indicates a somewhat cheap valuation: ALG is cheaper than 71.76% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of ALG to the average of the S&P500 Index (26.17), we can say ALG is valued slightly cheaper.
  • A Price/Forward Earnings ratio of 14.40 indicates a correct valuation of ALG.
  • 81.68% of the companies in the same industry are more expensive than ALG, based on the Price/Forward Earnings ratio.
  • ALG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.05.
Industry RankSector Rank
PE 19.51
Fwd PE 14.4
ALG Price Earnings VS Forward Price EarningsALG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 84.73% of the companies listed in the same industry.
  • 87.02% 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 13.99
EV/EBITDA 9.35
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

  • The 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 24.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)1.72
EPS Next 2Y24.89%
EPS Next 3YN/A

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

6

5. ALG Dividend Analysis

5.1 Amount

  • ALG has a yearly dividend return of 0.81%, which is pretty low.
  • Compared to an average industry Dividend Yield of 1.21, ALG has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, ALG's dividend is way lower than the S&P500 average.
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

  • 13.89% of the earnings are spent on dividend by ALG. This is a low number and sustainable payout ratio.
  • ALG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP13.89%
EPS Next 2Y24.89%
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 (4/6/2026, 2:19:43 PM)

167.6

-0.6 (-0.36%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)03-02
Earnings (Next)05-06
Inst Owners89.65%
Inst Owner Change0%
Ins Owners0.87%
Ins Owner Change4.62%
Market Cap2.03B
Revenue(TTM)1.60B
Net Income(TTM)103.80M
Analysts82.5
Price Target213.44 (27.35%)
Short Float %4.14%
Short Ratio3.57
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)-1.65%
PT rev (3m)-1.65%
EPS NQ rev (1m)-11.75%
EPS NQ rev (3m)-11.75%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-3.42%
Revenue NQ rev (3m)-3.42%
Revenue NY rev (1m)-2.6%
Revenue NY rev (3m)-2.6%
Valuation
Industry RankSector Rank
PE 19.51
Fwd PE 14.4
P/S 1.27
P/FCF 13.99
P/OCF 11.44
P/B 1.77
P/tB 2.57
EV/EBITDA 9.35
EPS(TTM)8.59
EY5.13%
EPS(NY)11.64
Fwd EY6.95%
FCF(TTM)11.98
FCFY7.15%
OCF(TTM)14.65
OCFY8.74%
SpS132.32
BVpS94.78
TBVpS65.11
PEG (NY)0.55
PEG (5Y)1.72
Graham Number135.34
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 5.47
F-Score6
WACC10.19%
ROIC/WACC0.81
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 Y35.51%
EPS Next 2Y24.89%
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 Year47.28%
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 19.51 and the Price/Book (PB) ratio is 1.77.


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 35.51% in the next year.