ALTA EQUIPMENT GROUP INC (ALTG) Stock Fundamental Analysis
USA - NYSE:ALTG - US02128L1061 - Common Stock
6.35 USD
+0.18 (+2.92%)
6.35 USD
0 (0%)
We assign a fundamental rating of 2 out of 10 to ALTG. ALTG was compared to 49 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.
The reported net income has been mixed in the past 5 years: ALTG reported negative net income in multiple years.
Of the past 5 years ALTG 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ALTG (-4.76%) is worse than 83.67% of its industry peers.
With a Return On Equity value of -155.58%, ALTG is not doing good in the industry: 91.84% of the companies in the same industry are doing better.
ALTG has a worse Return On Invested Capital (1.43%) than 73.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ALTG is significantly below the industry average of 10.03%.
| 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 73.47% of its industry peers.
ALTG's Operating Margin has declined in the last couple of years.
ALTG has a Gross Margin of 25.84%. This is in the lower half of the industry: ALTG underperforms 61.22% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALTG is destroying value.
The number of shares outstanding for ALTG has been reduced compared to 1 year ago.
The number of shares outstanding for ALTG has been increased compared to 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 1.42. This is a bad value and indicates that ALTG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ALTG (1.42) is worse than 71.43% of its industry peers.
The Debt to FCF ratio of ALTG is 81.33, which is on the high side as it means it would take ALTG, 81.33 years of fcf income to pay off all of its debts.
ALTG has a Debt to FCF ratio (81.33) which is comparable to the rest of the industry.
ALTG has a Debt/Equity ratio of 24.20. This is a high value indicating a heavy dependency on external financing.
ALTG has a Debt to Equity ratio of 24.20. This is amonst the worse of the industry: ALTG underperforms 95.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 24.2 | ||
| Debt/FCF | 81.33 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.2
WACC7.22%
2.3 Liquidity
ALTG has a Current Ratio of 1.39. This is a normal value and indicates that ALTG is financially healthy and should not expect problems in meeting its short term obligations.
ALTG has a worse Current ratio (1.39) than 71.43% of its industry peers.
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 79.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The earnings per share for ALTG have decreased strongly by -242.19% in the last year.
ALTG shows a decrease in Revenue. In the last year, the revenue decreased by -3.46%.
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)-242.19%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%10.53%
Revenue 1Y (TTM)-3.46%
Revenue growth 3Y15.66%
Revenue growth 5YN/A
Sales Q2Q%-1.41%
3.2 Future
ALTG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.33% yearly.
ALTG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.92% yearly.
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
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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 cheaply inside the industry as 95.92% of the companies are valued more expensively.
ALTG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ALTG is cheaper than 79.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.42 | ||
| EV/EBITDA | 5.73 |
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
ALTG has a Yearly Dividend Yield of 3.58%. Purely for dividend investing, there may be better candidates out there.
ALTG's Dividend Yield is rather good when compared to the industry average which is at 2.83. ALTG pays more dividend than 89.80% of the companies in the same industry.
ALTG's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
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
The earnings of ALTG are negative and hence is the payout ratio. ALTG will probably not be able to sustain this dividend level.
DP-15.81%
EPS Next 2Y20.64%
EPS Next 3Y20.75%
6.35
+0.18 (+2.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners54.27%
Inst Owner Change0.02%
Ins Owners21.22%
Ins Owner Change0.86%
Market Cap203.52M
Analysts80
Price Target11.61 (82.83%)
Short Float %4.36%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
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 | 0.11 | ||
| P/FCF | 15.42 | ||
| P/OCF | 2.73 | ||
| P/B | 4.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.73 |
EPS(TTM)-2.19
EYN/A
EPS(NY)-1.07
Fwd EYN/A
FCF(TTM)0.41
FCFY6.49%
OCF(TTM)2.33
OCFY36.66%
SpS57.76
BVpS1.37
TBVpS-2.65
PEG (NY)N/A
PEG (5Y)N/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
ROICexcg growth 3Y-12.75%
ROICexcg 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 | 1.42 |
F-Score5
WACC7.22%
ROIC/WACC0.2
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)-242.19%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%10.53%
EPS Next Y24.8%
EPS Next 2Y20.64%
EPS Next 3Y20.75%
EPS Next 5Y21.33%
Revenue 1Y (TTM)-3.46%
Revenue growth 3Y15.66%
Revenue growth 5YN/A
Sales Q2Q%-1.41%
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