ALTA EQUIPMENT GROUP INC (ALTG) Stock Fundamental Analysis
USA - NYSE:ALTG - US02128L1061 - Common Stock
5.26 USD
-0.63 (-10.7%)
5.17 USD
-0.09 (-1.71%)
Overall ALTG gets a fundamental rating of 2 out of 10. We evaluated ALTG against 51 industry peers in the Trading Companies & Distributors industry. ALTG has a bad profitability rating. Also its financial health evaluation is rather negative. ALTG does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year ALTG has reported negative net income.
ALTG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ALTG reported negative net income in multiple years.
ALTG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ALTG has a Return On Assets of -4.76%. This is amonst the worse of the industry: ALTG underperforms 82.35% of its industry peers.
ALTG's Return On Equity of -155.58% is on the low side compared to the rest of the industry. ALTG is outperformed by 90.20% of its industry peers.
ALTG has a worse Return On Invested Capital (1.43%) than 72.55% of its industry peers.
ALTG had an Average Return On Invested Capital over the past 3 years of 2.46%. This is significantly below the industry average of 10.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.76% | ||
| ROE | -155.58% | ||
| ROIC | 1.43% |
ROA(3y)-1.18%
ROA(5y)-1.83%
ROE(3y)-25.15%
ROE(5y)-21.62%
ROIC(3y)2.46%
ROIC(5y)N/A
1.3 Margins
ALTG's Operating Margin of 1.21% is on the low side compared to the rest of the industry. ALTG is outperformed by 72.55% of its industry peers.
In the last couple of years the Operating Margin of ALTG has declined.
ALTG has a worse Gross Margin (25.84%) than 60.78% of its industry peers.
In the last couple of years the Gross Margin of ALTG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.21% | ||
| PM (TTM) | N/A | ||
| GM | 25.84% |
OM growth 3Y-12.59%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.49%
GM growth 5YN/A
2. Health
2.1 Basic Checks
ALTG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ALTG has less shares outstanding than it did 1 year ago.
ALTG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ALTG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.41, we must say that ALTG is in the distress zone and has some risk of bankruptcy.
ALTG has a worse Altman-Z score (1.41) than 62.75% of its industry peers.
ALTG has a debt to FCF ratio of 81.33. This is a negative value and a sign of low solvency as ALTG would need 81.33 years to pay back of all of its debts.
ALTG has a Debt to FCF ratio (81.33) which is in line with its industry peers.
A Debt/Equity ratio of 24.20 is on the high side and indicates that ALTG has dependencies on debt financing.
ALTG has a worse Debt to Equity ratio (24.20) than 94.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 24.2 | ||
| Debt/FCF | 81.33 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.21
WACC6.99%
2.3 Liquidity
A Current Ratio of 1.39 indicates that ALTG should not have too much problems paying its short term obligations.
With a Current ratio value of 1.39, ALTG is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
ALTG has a Quick Ratio of 1.39. This is a bad value and indicates that ALTG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.48, ALTG is doing worse than 78.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
ALTG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -55.29%.
The Revenue has decreased by -0.01% in the past year.
ALTG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.66% yearly.
EPS 1Y (TTM)-55.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-52.33%
Revenue 1Y (TTM)-0.01%
Revenue growth 3Y15.66%
Revenue growth 5YN/A
Sales Q2Q%-5.84%
3.2 Future
The Earnings Per Share is expected to grow by 21.33% on average over the next years. This is a very strong growth
Based on estimates for the next years, ALTG will show a small growth in Revenue. The Revenue will grow by 2.92% on average per year.
EPS Next Y24.8%
EPS Next 2Y20.64%
EPS Next 3Y20.75%
EPS Next 5Y21.33%
Revenue Next Year0%
Revenue Next 2Y1.62%
Revenue Next 3Y2.68%
Revenue Next 5Y2.92%
3.3 Evolution
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
The Price/Earnings Ratio is negative for ALTG. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for ALTG. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
96.08% of the companies in the same industry are more expensive than ALTG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ALTG is valued cheaply inside the industry as 82.35% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.77 | ||
| EV/EBITDA | 5.55 |
4.3 Compensation for Growth
A more expensive valuation may be justified as ALTG's earnings are expected to grow with 20.75% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y20.64%
EPS Next 3Y20.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.81%, ALTG is a good candidate for dividend investing.
In the last 3 months the price of ALTG has falen by -32.04%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
ALTG's Dividend Yield is rather good when compared to the industry average which is at 2.20. ALTG pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, ALTG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.81% |
5.2 History
ALTG has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
ALTG has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-15.81%
EPS Next 2Y20.64%
EPS Next 3Y20.75%
5.26
-0.63 (-10.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners54.27%
Inst Owner Change1.04%
Ins Owners21.22%
Ins Owner Change0.86%
Market Cap168.58M
Revenue(TTM)1.88B
Net Income(TTM)-68.30M
Analysts80
Price Target11.61 (120.72%)
Short Float %4.74%
Short Ratio4.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.81% |
Yearly Dividend0.34
Dividend Growth(5Y)N/A
DP-15.81%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-16.54%
Min EPS beat(2)-30.72%
Max EPS beat(2)-2.37%
EPS beat(4)0
Avg EPS beat(4)-75.43%
Min EPS beat(4)-255%
Max EPS beat(4)-2.37%
EPS beat(8)1
Avg EPS beat(8)-69.56%
EPS beat(12)3
Avg EPS beat(12)-56.7%
EPS beat(16)5
Avg EPS beat(16)6.62%
Revenue beat(2)0
Avg Revenue beat(2)-3.17%
Min Revenue beat(2)-4.91%
Max Revenue beat(2)-1.43%
Revenue beat(4)1
Avg Revenue beat(4)-3.52%
Min Revenue beat(4)-8.31%
Max Revenue beat(4)0.59%
Revenue beat(8)3
Avg Revenue beat(8)-1.47%
Revenue beat(12)6
Avg Revenue beat(12)-0.1%
Revenue beat(16)10
Avg Revenue beat(16)1.85%
PT rev (1m)0%
PT rev (3m)8.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.09 | ||
| P/FCF | 12.77 | ||
| P/OCF | 2.26 | ||
| P/B | 3.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.55 |
EPS(TTM)-2.64
EYN/A
EPS(NY)-1.07
Fwd EYN/A
FCF(TTM)0.41
FCFY7.83%
OCF(TTM)2.33
OCFY44.25%
SpS57.76
BVpS1.37
TBVpS-2.65
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.76% | ||
| ROE | -155.58% | ||
| ROCE | 2.48% | ||
| ROIC | 1.43% | ||
| ROICexc | 1.45% | ||
| ROICexgc | 1.62% | ||
| OM | 1.21% | ||
| PM (TTM) | N/A | ||
| GM | 25.84% | ||
| FCFM | 0.71% |
ROA(3y)-1.18%
ROA(5y)-1.83%
ROE(3y)-25.15%
ROE(5y)-21.62%
ROIC(3y)2.46%
ROIC(5y)N/A
ROICexc(3y)2.49%
ROICexc(5y)N/A
ROICexgc(3y)2.81%
ROICexgc(5y)N/A
ROCE(3y)4.28%
ROCE(5y)N/A
ROICexgc growth 3Y-12.75%
ROICexgc growth 5YN/A
ROICexc growth 3Y-12.74%
ROICexc growth 5YN/A
OM growth 3Y-12.59%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.49%
GM growth 5YN/A
F-Score5
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 24.2 | ||
| Debt/FCF | 81.33 | ||
| Debt/EBITDA | 6.56 | ||
| Cap/Depr | 44.01% | ||
| Cap/Sales | 3.32% | ||
| Interest Coverage | 0.26 | ||
| Cash Conversion | 46.08% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.41 |
F-Score5
WACC6.99%
ROIC/WACC0.21
Cap/Depr(3y)58.62%
Cap/Depr(5y)58.33%
Cap/Sales(3y)4.26%
Cap/Sales(5y)4.47%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-55.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-52.33%
EPS Next Y24.8%
EPS Next 2Y20.64%
EPS Next 3Y20.75%
EPS Next 5Y21.33%
Revenue 1Y (TTM)-0.01%
Revenue growth 3Y15.66%
Revenue growth 5YN/A
Sales Q2Q%-5.84%
Revenue Next Year0%
Revenue Next 2Y1.62%
Revenue Next 3Y2.68%
Revenue Next 5Y2.92%
EBIT growth 1Y-36.9%
EBIT growth 3Y1.1%
EBIT growth 5YN/A
EBIT Next Year534.55%
EBIT Next 3Y88.49%
EBIT Next 5Y54.05%
FCF growth 1Y114.41%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y766.07%
OCF growth 3Y22.91%
OCF growth 5YN/A
ALTA EQUIPMENT GROUP INC / ALTG FAQ
What is the fundamental rating for ALTG stock?
ChartMill assigns a fundamental rating of 2 / 10 to ALTG.
Can you provide the valuation status for ALTA EQUIPMENT GROUP INC?
ChartMill assigns a valuation rating of 3 / 10 to ALTA EQUIPMENT GROUP INC (ALTG). This can be considered as Overvalued.
What is the profitability of ALTG stock?
ALTA EQUIPMENT GROUP INC (ALTG) has a profitability rating of 1 / 10.
Can you provide the expected EPS growth for ALTG stock?
The Earnings per Share (EPS) of ALTA EQUIPMENT GROUP INC (ALTG) is expected to grow by 24.8% in the next year.