ALAMO GROUP INC (ALG) Fundamental Analysis & Valuation

NYSE:ALG • US0113111076

Current stock price

169.35 USD
-6.27 (-3.57%)
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

  • ALG had positive earnings in the past year.
  • In the past year ALG had a positive cash flow from operations.
  • Each year in the past 5 years ALG has been profitable.
  • In the past 5 years ALG always reported a positive cash flow from operatings.
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

  • With a decent Return On Assets value of 6.46%, ALG is doing good in the industry, outperforming 70.99% of the companies in the same industry.
  • With a Return On Equity value of 9.04%, ALG perfoms like the industry average, outperforming 57.25% of the companies in the same industry.
  • ALG's Return On Invested Capital of 8.29% is fine compared to the rest of the industry. ALG outperforms 64.89% 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 10.00%.
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.
  • Looking at the Operating Margin, with a value of 9.45%, ALG is in line with its industry, outperforming 54.96% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ALG has grown nicely.
  • With a Gross Margin value of 24.81%, ALG is not doing good in the industry: 66.41% of the companies in the same industry are doing better.
  • ALG's Gross Margin has been stable in the last couple of years.
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) below the Cost of Capital (WACC), ALG is destroying value.
  • The number of shares outstanding for ALG has been increased compared to 1 year ago.
  • The number of shares outstanding for ALG has been increased compared to 5 years ago.
  • 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 5.61. 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 5.61, ALG is in the better half of the industry, outperforming 79.39% 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.
  • Looking at the Debt to FCF ratio, with a value of 1.42, ALG belongs to the top of the industry, outperforming 87.02% 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.
  • ALG has a better Debt to Equity ratio (0.17) than 73.28% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF 1.42
Altman-Z 5.61
ROIC/WACC0.79
WACC10.49%
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

  • A Current Ratio of 4.57 indicates that ALG has no problem at all paying its short term obligations.
  • ALG's Current ratio of 4.57 is amongst the best of the industry. ALG outperforms 88.55% of its industry peers.
  • 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.
  • ALG has a Quick ratio of 2.82. This is amongst the best in the industry. ALG outperforms 87.02% of its industry peers.
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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4

3. ALG Growth Analysis

3.1 Past

  • The earnings per share for ALG have decreased strongly by -10.80% 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 11.34% yearly.
  • Looking at the last year, ALG shows a decrease in Revenue. The Revenue has decreased by -1.52% in the last year.
  • ALG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.63% yearly.
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

  • Based on estimates for the next years, ALG will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.23% on average per year.
  • Based on estimates for the next years, ALG will show a small growth in Revenue. The Revenue will grow by 3.16% on average per year.
EPS Next Y21.49%
EPS Next 2Y18.23%
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

  • A Price/Earnings ratio of 19.71 indicates a rather expensive valuation of ALG.
  • ALG's Price/Earnings ratio is a bit cheaper when compared to the industry. ALG is cheaper than 74.81% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.33. ALG is valued slightly cheaper when compared to this.
  • Based on the Price/Forward Earnings ratio of 16.23, the valuation of ALG can be described as correct.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ALG indicates a somewhat cheap valuation: ALG is cheaper than 78.63% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 38.16. ALG is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 19.71
Fwd PE 16.23
ALG Price Earnings VS Forward Price EarningsALG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ALG is valued cheaply inside the industry as 87.79% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, ALG is valued cheaper than 87.79% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.2
EV/EBITDA 9.84
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

  • ALG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of ALG may justify a higher PE ratio.
  • ALG's earnings are expected to grow with 18.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)1.74
EPS Next 2Y18.23%
EPS Next 3YN/A

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5

5. ALG Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.76%, ALG is not a good candidate for dividend investing.
  • ALG's Dividend Yield is a higher than the industry average which is at 1.08.
  • With a Dividend Yield of 0.76, ALG pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.76%

5.2 History

  • The dividend of ALG is nicely growing with an annual growth rate of 18.28%!
  • 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)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 slower than its dividend. This means the dividend growth is not sustainable.
DP13.89%
EPS Next 2Y18.23%
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 (4/15/2026, 1:12:39 PM)

169.35

-6.27 (-3.57%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)03-02
Earnings (Next)05-06
Inst Owners89.29%
Inst Owner Change0.01%
Ins Owners1%
Ins Owner Change4.62%
Market Cap2.06B
Revenue(TTM)1.60B
Net Income(TTM)103.80M
Analysts82.5
Price Target208.34 (23.02%)
Short Float %4.35%
Short Ratio3.54
Dividend
Industry RankSector Rank
Dividend Yield 0.76%
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)-4%
PT rev (3m)-4%
EPS NQ rev (1m)-1.68%
EPS NQ rev (3m)-11.75%
EPS NY rev (1m)-10.34%
EPS NY rev (3m)-10.34%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-3.42%
Revenue NY rev (1m)-2.6%
Revenue NY rev (3m)-2.6%
Valuation
Industry RankSector Rank
PE 19.71
Fwd PE 16.23
P/S 1.29
P/FCF 14.2
P/OCF 11.61
P/B 1.79
P/tB 2.61
EV/EBITDA 9.84
EPS(TTM)8.59
EY5.07%
EPS(NY)10.44
Fwd EY6.16%
FCF(TTM)11.93
FCFY7.04%
OCF(TTM)14.59
OCFY8.61%
SpS131.78
BVpS94.39
TBVpS64.84
PEG (NY)0.92
PEG (5Y)1.74
Graham Number135.066 (-20.24%)
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 5.61
F-Score6
WACC10.49%
ROIC/WACC0.79
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 Y21.49%
EPS Next 2Y18.23%
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 Year37.29%
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 19.71 and the Price/Book (PB) ratio is 1.79.


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 21.49% in the next year.