ALAMO GROUP INC (ALG) Stock Fundamental Analysis
USA - NYSE:ALG - US0113111076 - Common Stock
161.66 USD
-0.79 (-0.49%)
161.66 USD
0 (0%)
Taking everything into account, ALG scores 6 out of 10 in our fundamental rating. ALG was compared to 130 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 decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years ALG had a positive operating cash flow.
1.2 Ratios
ALG has a better Return On Assets (7.60%) than 73.85% of its industry peers.
Looking at the Return On Equity, with a value of 10.61%, ALG is in line with its industry, outperforming 60.00% of the companies in the same industry.
ALG has a better Return On Invested Capital (9.54%) than 69.23% 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 10.25%.
| 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 63.08% of its industry peers.
In the last couple of years the Profit Margin of ALG has grown nicely.
With a Operating Margin value of 10.40%, ALG perfoms like the industry average, outperforming 56.15% of the companies in the same industry.
ALG's Operating Margin has improved in the last couple of years.
The Gross Margin of ALG (25.29%) is worse 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 | 10.4% | ||
| 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
ALG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
Compared to 1 year ago, ALG has an improved debt to assets ratio.
2.2 Solvency
ALG has an Altman-Z score of 5.52. This indicates that ALG is financially healthy and has little risk of bankruptcy at the moment.
ALG's Altman-Z score of 5.52 is amongst the best of the industry. ALG outperforms 83.85% of its industry peers.
ALG has a debt to FCF ratio of 1.15. This is a very positive value and a sign of high solvency as it would only need 1.15 years to pay back of all of its debts.
ALG has a better Debt to FCF ratio (1.15) than 86.92% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that ALG is not too dependend on debt financing.
ALG has a better Debt to Equity ratio (0.18) than 74.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 5.52 |
ROIC/WACC0.97
WACC9.8%
2.3 Liquidity
ALG has a Current Ratio of 4.56. 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 4.56, ALG belongs to the top of the industry, outperforming 91.54% of the companies in the same industry.
ALG has a Quick Ratio of 2.76. This indicates that ALG is financially healthy and has no problem in meeting its short term obligations.
ALG has a Quick ratio of 2.76. This is amongst the best in the industry. ALG outperforms 86.92% of its industry peers.
| 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 -2.92% 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.
The Revenue has decreased by -3.62% in the past 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)-3.62%
Revenue growth 3Y6.87%
Revenue growth 5Y7.79%
Sales Q2Q%4.67%
3.2 Future
ALG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.43% yearly.
Based on estimates for the next years, ALG will show a small growth in Revenue. The Revenue will grow by 4.63% on average per year.
EPS Next Y11.49%
EPS Next 2Y14.01%
EPS Next 3Y16.43%
EPS Next 5YN/A
Revenue Next Year-0.48%
Revenue Next 2Y2.48%
Revenue Next 3Y4.63%
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
Based on the Price/Earnings ratio of 16.77, the valuation of ALG can be described as correct.
Based on the Price/Earnings ratio, ALG is valued a bit cheaper than 74.62% of the companies in the same industry.
When comparing the Price/Earnings ratio of ALG to the average of the S&P500 Index (25.56), we can say ALG is valued slightly cheaper.
The Price/Forward Earnings ratio is 12.92, which indicates a correct valuation of ALG.
80.00% of the companies in the same industry are more expensive than ALG, based on the Price/Forward Earnings ratio.
ALG is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.77 | ||
| Fwd PE | 12.92 |
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.
ALG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALG is cheaper than 90.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.57 | ||
| EV/EBITDA | 8.98 |
4.3 Compensation for Growth
ALG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ALG has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ALG's earnings are expected to grow with 16.43% in the coming years.
PEG (NY)1.46
PEG (5Y)1.63
EPS Next 2Y14.01%
EPS Next 3Y16.43%
5. Dividend
5.1 Amount
ALG has a yearly dividend return of 0.72%, which is pretty low.
In the last 3 months the price of ALG has falen by -27.02%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.87, ALG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, ALG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16.84%
Div Incr Years10
Div Non Decr Years24
5.3 Sustainability
ALG pays out 11.34% 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.
DP11.34%
EPS Next 2Y14.01%
EPS Next 3Y16.43%
161.66
-0.79 (-0.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners87.88%
Inst Owner Change-2.54%
Ins Owners0.85%
Ins Owner Change-3.56%
Market Cap1.96B
Revenue(TTM)1.63B
Net Income(TTM)118.39M
Analysts80
Price Target239.19 (47.96%)
Short Float %3.44%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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)-0.95%
PT rev (3m)-0.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-1.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.77 | ||
| Fwd PE | 12.92 | ||
| P/S | 1.23 | ||
| P/FCF | 10.57 | ||
| P/OCF | 9.22 | ||
| P/B | 1.76 | ||
| P/tB | 2.61 | ||
| EV/EBITDA | 8.98 |
EPS(TTM)9.64
EY5.96%
EPS(NY)12.52
Fwd EY7.74%
FCF(TTM)15.3
FCFY9.46%
OCF(TTM)17.54
OCFY10.85%
SpS131.85
BVpS92.11
TBVpS61.83
PEG (NY)1.46
PEG (5Y)1.63
Graham Number141.34
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%
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 Turnover1.03
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 | 5.52 |
F-Score6
WACC9.8%
ROIC/WACC0.97
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 Y11.49%
EPS Next 2Y14.01%
EPS Next 3Y16.43%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.62%
Revenue growth 3Y6.87%
Revenue growth 5Y7.79%
Sales Q2Q%4.67%
Revenue Next Year-0.48%
Revenue Next 2Y2.48%
Revenue Next 3Y4.63%
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%
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 11.49% 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 11.34%.