ALTA EQUIPMENT GROUP INC (ALTG)
US02128L1061 - Common Stock
Taking everything into account, ALTG scores 2 out of 10 in our fundamental rating. ALTG was compared to 51 industry peers in the Trading Companies & Distributors industry. Both the profitability and financial health of ALTG have multiple concerns. ALTG does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
ALTG had negative earnings in the past year.
ALTG had a positive operating cash flow in the past year.
In multiple years ALTG reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: ALTG reported negative operating cash flow in multiple years.
1.2 Ratios
ALTG has a worse Return On Assets (-3.64%) than 86.27% of its industry peers.
Looking at the Return On Equity, with a value of -58.93%, ALTG is doing worse than 88.24% of the companies in the same industry.
With a Return On Invested Capital value of 1.87%, ALTG is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for ALTG is significantly below the industry average of 9.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.64% | ||
| ROE | -58.93% | ||
| ROIC | 1.87% |
ROA(3y)-0.51%
ROA(5y)-0.95%
ROE(3y)-2.97%
ROE(5y)-4.84%
ROIC(3y)2.95%
ROIC(5y)N/A
1.3 Margins
ALTG has a worse Operating Margin (1.49%) than 76.47% of its industry peers.
With a Gross Margin value of 26.85%, ALTG perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
ALTG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.49% | ||
| PM (TTM) | N/A | ||
| GM | 26.85% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.25%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALTG is destroying value.
Compared to 1 year ago, ALTG has more shares outstanding
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
ALTG has an Altman-Z score of 1.43. This is a bad value and indicates that ALTG is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.43, ALTG is doing worse than 68.63% of the companies in the same industry.
ALTG has a debt to FCF ratio of 36.80. This is a negative value and a sign of low solvency as ALTG would need 36.80 years to pay back of all of its debts.
ALTG's Debt to FCF ratio of 36.80 is in line compared to the rest of the industry. ALTG outperforms 47.06% of its industry peers.
ALTG has a Debt/Equity ratio of 11.58. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 11.58, ALTG is doing worse than 90.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.58 | ||
| Debt/FCF | 36.8 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.25
WACC7.34%
2.3 Liquidity
A Current Ratio of 1.35 indicates that ALTG should not have too much problems paying its short term obligations.
ALTG has a worse Current ratio (1.35) than 82.35% of its industry peers.
ALTG has a Quick Ratio of 1.35. This is a bad value and indicates that ALTG is not financially healthy enough and could expect problems in meeting its short term obligations.
ALTG has a worse Quick ratio (0.43) than 86.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The earnings per share for ALTG have decreased strongly by -901.89% in the last year.
The Revenue has been growing slightly by 6.51% in the past year.
ALTG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.03% yearly.
EPS 1Y (TTM)-901.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-530%
Revenue 1Y (TTM)6.51%
Revenue growth 3Y29.03%
Revenue growth 5YN/A
Sales Q2Q%-3.73%
3.2 Future
Based on estimates for the next years, ALTG will show a very negative growth in Earnings Per Share. The EPS will decrease by -67.07% on average per year.
The Revenue is expected to grow by 4.40% on average over the next years.
EPS Next Y-747.42%
EPS Next 2Y-144.56%
EPS Next 3Y-67.07%
EPS Next 5YN/A
Revenue Next Year4.64%
Revenue Next 2Y3.84%
Revenue Next 3Y2.98%
Revenue Next 5Y4.4%
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
ALTG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year ALTG is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALTG is valued cheaper than 92.16% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ALTG is valued cheaper than 92.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.22 | ||
| EV/EBITDA | 5.48 |
4.3 Compensation for Growth
A cheap valuation may be justified as ALTG's earnings are expected to decrease with -67.07% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-144.56%
EPS Next 3Y-67.07%
5. Dividend
5.1 Amount
ALTG has a Yearly Dividend Yield of 3.20%.
ALTG's Dividend Yield is rather good when compared to the industry average which is at 1.73. ALTG pays more dividend than 92.16% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, ALTG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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 Years1
Div Non Decr Years1
5.3 Sustainability
The earnings of ALTG are negative and hence is the payout ratio. ALTG will probably not be able to sustain this dividend level.
DP-19.15%
EPS Next 2Y-144.56%
EPS Next 3Y-67.07%
ALTA EQUIPMENT GROUP INC
NYSE:ALTG (11/21/2024, 8:11:56 PM)
After market: 7.51 0 (0%)7.51
+0.06 (+0.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap249.78M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.64% | ||
| ROE | -58.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.49% | ||
| PM (TTM) | N/A | ||
| GM | 26.85% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.58 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-901.89%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-747.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.51%
Revenue growth 3Y29.03%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y