ALAMO GROUP INC (ALG) Fundamental Analysis & Valuation

NYSE:ALG • US0113111076

Current stock price

171.89 USD
-2.46 (-1.41%)
At close:
171.89 USD
0 (0%)
After Hours:

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.
  • In the past 5 years ALG has always 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

  • 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.
  • 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.
  • The Average Return On Invested Capital over the past 3 years 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 has a Profit Margin (6.47%) which is in line with its industry peers.
  • In the last couple of years the Profit Margin of ALG has grown nicely.
  • ALG has a Operating Margin (9.45%) which is in line with its industry peers.
  • 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.
  • 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • Compared to 1 year ago, ALG has more shares outstanding
  • ALG has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, ALG has an improved debt to assets ratio.
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 5.58. This indicates that ALG is financially healthy and has little risk of bankruptcy at the moment.
  • ALG has a better Altman-Z score (5.58) than 79.39% of its industry peers.
  • 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.
  • With an excellent Debt to FCF ratio value of 1.42, ALG belongs to the best of the industry, outperforming 87.02% of the companies in the same industry.
  • A Debt/Equity ratio of 0.17 indicates that ALG is not too dependend on debt financing.
  • The Debt to Equity ratio of ALG (0.17) is better than 73.28% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF 1.42
Altman-Z 5.58
ROIC/WACC0.8
WACC10.4%
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 has a Current ratio of 4.57. This is amongst the best in the industry. ALG outperforms 88.55% of its industry peers.
  • A Quick Ratio of 2.82 indicates that ALG has no problem at all paying 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

More info and screens

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%.
  • The Earnings Per Share has been growing by 11.34% on average over the past years. This is quite good.
  • Looking at the last year, ALG shows a decrease in Revenue. The Revenue has decreased by -1.52% in the last year.
  • The Revenue has been growing slightly by 6.63% on average over the past years.
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

  • The Earnings Per Share is expected to grow by 18.23% on average over the next years. This is quite good.
  • ALG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.16% yearly.
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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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

More info and screens

Find the best growth stocksShow best growing peers

6

4. ALG Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 20.01, the valuation of ALG can be described as rather expensive.
  • 74.81% 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 27.42. ALG is valued slightly cheaper when compared to this.
  • The Price/Forward Earnings ratio is 16.47, which indicates a correct valuation of ALG.
  • 78.63% 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 22.24.
Industry RankSector Rank
PE 20.01
Fwd PE 16.47
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

  • ALG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALG is cheaper than 87.79% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ALG is valued cheaply inside the industry as 87.79% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 14.41
EV/EBITDA 9.75
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.
  • The decent profitability rating of ALG may justify a higher PE ratio.
  • A more expensive valuation may be justified as ALG's earnings are expected to grow with 18.23% in the coming years.
PEG (NY)0.93
PEG (5Y)1.76
EPS Next 2Y18.23%
EPS Next 3YN/A

More info and screens

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

5

5. ALG Dividend Analysis

5.1 Amount

  • ALG has a yearly dividend return of 0.78%, which is pretty low.
  • ALG's Dividend Yield is a higher than the industry average which is at 1.08.
  • Compared to an average S&P500 Dividend Yield of 1.81, ALG's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.78%

5.2 History

  • On average, the dividend of ALG grows each year by 18.28%, which is quite nice.
  • ALG has been paying a dividend for at least 10 years, so it has a reliable track record.
  • ALG has not decreased their dividend for at least 10 years, which is a reliable track record.
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

  • ALG pays out 13.89% of its income as dividend. This is a 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

More info and screens

Find the best dividend stocksShow peers with best dividend

ALG Fundamentals: All Metrics, Ratios and Statistics

ALAMO GROUP INC

NYSE:ALG (4/24/2026, 8:20:57 PM)

After market: 171.89 0 (0%)

171.89

-2.46 (-1.41%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)03-02
Earnings (Next)05-04
Inst Owners89.29%
Inst Owner Change1.13%
Ins Owners1%
Ins Owner Change4.62%
Market Cap2.09B
Revenue(TTM)1.60B
Net Income(TTM)103.80M
Analysts82.5
Price Target208.34 (21.21%)
Short Float %4.35%
Short Ratio3.54
Dividend
Industry RankSector Rank
Dividend Yield 0.78%
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)-0.24%
Revenue NY rev (3m)-2.6%
Valuation
Industry RankSector Rank
PE 20.01
Fwd PE 16.47
P/S 1.3
P/FCF 14.41
P/OCF 11.78
P/B 1.82
P/tB 2.65
EV/EBITDA 9.75
EPS(TTM)8.59
EY5%
EPS(NY)10.44
Fwd EY6.07%
FCF(TTM)11.93
FCFY6.94%
OCF(TTM)14.59
OCFY8.49%
SpS131.78
BVpS94.39
TBVpS64.84
PEG (NY)0.93
PEG (5Y)1.76
Graham Number135.066 (-21.42%)
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 5.58
F-Score6
WACC10.4%
ROIC/WACC0.8
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 6 / 10 to ALAMO GROUP INC (ALG). This can be considered as Fairly Valued.


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 20.01 and the Price/Book (PB) ratio is 1.82.


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.