ALAMO GROUP INC (ALG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALG - US0113111076 - Common Stock
162.44 USD
-0.59 (-0.36%)
162.44 USD
0 (0%)
ALG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. While ALG has a great health rating, its profitability is only average at the moment. ALG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ALG was profitable.
In the past year ALG had a positive cash flow from operations.
Each year in the past 5 years ALG has 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 71.54% of its industry peers.
ALG has a Return On Equity of 10.27%. This is in the better half of the industry: ALG outperforms 60.77% of its industry peers.
ALG has a better Return On Invested Capital (9.24%) than 66.92% 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 10.46%.
| 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
With a decent Profit Margin value of 7.20%, ALG is doing good in the industry, outperforming 60.77% of the companies in the same industry.
In the last couple of years the Profit Margin of ALG has grown nicely.
The Operating Margin of ALG (10.12%) is comparable to the rest of the industry.
ALG's Operating Margin has improved in the last couple of years.
ALG has a worse Gross Margin (25.05%) than 64.62% 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 | 10.12% | ||
| 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.
Compared to 1 year ago, ALG has more shares outstanding
ALG has more shares outstanding than it did 5 years ago.
ALG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.39 indicates that ALG is not in any danger for bankruptcy at the moment.
The Altman-Z score of ALG (5.39) is better than 80.77% of its industry peers.
ALG has a debt to FCF ratio of 1.40. This is a very positive value and a sign of high solvency as it would only need 1.40 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.40, ALG belongs to the best of the industry, outperforming 83.85% of the companies in the same industry.
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 73.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 5.39 |
ROIC/WACC0.95
WACC9.75%
2.3 Liquidity
ALG has a Current Ratio of 4.43. This indicates that ALG is financially healthy and has no problem in meeting its short term obligations.
ALG has a Current ratio of 4.43. This is amongst the best in the industry. ALG outperforms 90.77% of its industry peers.
ALG has a Quick Ratio of 2.72. This indicates that ALG is financially healthy and has no problem in meeting its short term obligations.
ALG has a Quick ratio of 2.72. This is amongst the best in the industry. ALG outperforms 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%.
The Earnings Per Share has been growing by 10.26% on average over the past years. This is quite good.
ALG shows a decrease in Revenue. In the last year, the revenue decreased by -2.73%.
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 12.99% 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 2.26% on average per year.
EPS Next Y2.06%
EPS Next 2Y11.13%
EPS Next 3Y12.99%
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 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 16.85, ALG is valued correctly.
Based on the Price/Earnings ratio, ALG is valued a bit cheaper than the industry average as 79.23% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.34, ALG is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.66 indicates a correct valuation of ALG.
ALG's Price/Forward Earnings ratio is rather cheap when compared to the industry. ALG is cheaper than 83.85% of the companies in the same industry.
ALG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.85 | ||
| Fwd PE | 13.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALG is valued cheaply inside the industry as 83.85% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ALG is valued cheaply inside the industry as 85.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.13 | ||
| EV/EBITDA | 8.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALG does not grow enough to justify the current Price/Earnings ratio.
ALG has a very decent profitability rating, which may justify a higher PE ratio.
ALG's earnings are expected to grow with 12.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)8.17
PEG (5Y)1.64
EPS Next 2Y11.13%
EPS Next 3Y12.99%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, ALG is not a good candidate for dividend investing.
The stock price of ALG dropped by -20.72% 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 1.84.
Compared to an average S&P500 Dividend Yield of 2.31, ALG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
The dividend of ALG is nicely growing with an annual growth rate of 16.84%!
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
11.96% of the earnings are spent on dividend by ALG. This is a low number and sustainable payout ratio.
The dividend of ALG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP11.96%
EPS Next 2Y11.13%
EPS Next 3Y12.99%
162.44
-0.59 (-0.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners87.98%
Inst Owner Change-2.52%
Ins Owners0.86%
Ins Owner Change-2.2%
Market Cap1.97B
Revenue(TTM)1.62B
Net Income(TTM)116.37M
Analysts80
Price Target217.01 (33.59%)
Short Float %3.75%
Short Ratio4.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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)-9.28%
PT rev (3m)-10.14%
EPS NQ rev (1m)-18%
EPS NQ rev (3m)-18%
EPS NY rev (1m)-8.46%
EPS NY rev (3m)-8.48%
Revenue NQ rev (1m)-3.57%
Revenue NQ rev (3m)-3.53%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.85 | ||
| Fwd PE | 13.66 | ||
| P/S | 1.22 | ||
| P/FCF | 13.13 | ||
| P/OCF | 10.84 | ||
| P/B | 1.74 | ||
| P/tB | 2.55 | ||
| EV/EBITDA | 8.89 |
EPS(TTM)9.64
EY5.93%
EPS(NY)11.89
Fwd EY7.32%
FCF(TTM)12.37
FCFY7.61%
OCF(TTM)14.98
OCFY9.22%
SpS133.28
BVpS93.45
TBVpS63.6
PEG (NY)8.17
PEG (5Y)1.64
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 | 5.39 |
F-Score6
WACC9.75%
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 Y2.06%
EPS Next 2Y11.13%
EPS Next 3Y12.99%
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 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 2.06% 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%.