ALAMO GROUP INC (ALG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALG - US0113111076 - Common Stock
172.34 USD
-2.02 (-1.16%)
172.34 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ALG. ALG was compared to 132 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 valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
ALG had positive earnings in the past year.
ALG had a positive operating cash flow in the past year.
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 has a better Return On Assets (7.30%) than 71.97% of its industry peers.
ALG has a better Return On Equity (10.27%) than 61.36% 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 67.42% 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 10.27%.
| 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 62.12% of its industry peers.
In the last couple of years the Profit Margin of ALG has grown nicely.
With a Operating Margin value of 10.12%, ALG perfoms like the industry average, outperforming 56.06% of the companies in the same industry.
ALG's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 25.05%, ALG is not doing good in the industry: 64.39% of the companies in the same industry are doing better.
ALG's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for ALG has been increased compared to 1 year ago.
Compared to 5 years ago, ALG has more shares outstanding
The debt/assets ratio for ALG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.54 indicates that ALG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.54, ALG belongs to the top of the industry, outperforming 81.06% of the companies in the same industry.
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.
ALG has a better Debt to FCF ratio (1.40) than 84.09% 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.
The Debt to Equity ratio of ALG (0.17) is better than 73.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 5.54 |
ROIC/WACC0.96
WACC9.65%
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's Current ratio of 4.43 is amongst the best of the industry. ALG outperforms 90.91% 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's Quick ratio of 2.72 is amongst the best of the industry. ALG outperforms 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.43 | ||
| Quick Ratio | 2.72 |
3. Growth
3.1 Past
The earnings per share for ALG have decreased by -2.92% 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 10.26% yearly.
Looking at the last year, ALG shows a decrease in Revenue. The Revenue has decreased by -2.73% in the last 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 11.64% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.26% on average over the next years.
EPS Next Y-1.64%
EPS Next 2Y9.94%
EPS Next 3Y11.64%
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 stable: in the next years the growth will be about the same 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
The Price/Earnings ratio is 17.88, which indicates a rather expensive current valuation of ALG.
78.79% of the companies in the same industry are more expensive than ALG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.84. ALG is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.81, which indicates a correct valuation of ALG.
82.58% of the companies in the same industry are more expensive than ALG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.40. ALG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 14.81 |
4.2 Price Multiples
84.85% of the companies in the same industry are more expensive than ALG, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALG indicates a rather cheap valuation: ALG is cheaper than 84.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.93 | ||
| EV/EBITDA | 9.4 |
4.3 Compensation for Growth
ALG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.74
EPS Next 2Y9.94%
EPS Next 3Y11.64%
5. Dividend
5.1 Amount
ALG has a yearly dividend return of 0.69%, which is pretty low.
Compared to an average industry Dividend Yield of 0.98, ALG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, ALG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
On average, the dividend of ALG grows each year by 16.84%, which is quite nice.
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
ALG pays out 11.96% 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.
DP11.96%
EPS Next 2Y9.94%
EPS Next 3Y11.64%
172.34
-2.02 (-1.16%)
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-2.48%
Market Cap2.09B
Revenue(TTM)1.62B
Net Income(TTM)116.37M
Analysts80
Price Target217.01 (25.92%)
Short Float %4.05%
Short Ratio4.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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)0%
PT rev (3m)-10.14%
EPS NQ rev (1m)-6.7%
EPS NQ rev (3m)-23.5%
EPS NY rev (1m)-11.78%
EPS NY rev (3m)-11.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.53%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 14.81 | ||
| P/S | 1.29 | ||
| P/FCF | 13.93 | ||
| P/OCF | 11.5 | ||
| P/B | 1.84 | ||
| P/tB | 2.71 | ||
| EV/EBITDA | 9.4 |
EPS(TTM)9.64
EY5.59%
EPS(NY)11.64
Fwd EY6.75%
FCF(TTM)12.37
FCFY7.18%
OCF(TTM)14.98
OCFY8.69%
SpS133.28
BVpS93.45
TBVpS63.6
PEG (NY)N/A
PEG (5Y)1.74
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 | 5.54 |
F-Score6
WACC9.65%
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 Y-1.64%
EPS Next 2Y9.94%
EPS Next 3Y11.64%
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 decline by -1.64% 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%.