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ALG: Future Profitability Will Likely Support A Higher Fair Value

Update shared on 09 Dec 2025

Fair value Increased 3.29%
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AnalystConsensusTarget's Fair Value
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1Y
-9.4%
7D
9.2%

Analysts have raised their price target on Alamo Group by 7.00 dollars to 219.75 dollars, citing stronger anticipated revenue growth, improved profit margins, and a slightly lower expected future P/E multiple. Together these factors support a higher fair value estimate despite a modest uptick in the discount rate.

What's in the News

  • Reported completion of its share repurchase authorization announced on October 31, 2024. No shares were bought back between July 1, 2025 and September 30, 2025, leaving total repurchases at 0 shares for 0 million dollars under the program (Key Developments).

Valuation Changes

  • Fair Value Estimate increased moderately to 219.75 dollars from 212.75 dollars, reflecting a higher assessed intrinsic value per share.
  • Discount Rate edged up slightly to approximately 8.57 percent from about 8.54 percent, indicating a modestly higher required return.
  • Revenue Growth was raised meaningfully to roughly 4.78 percent from about 3.93 percent, signaling stronger expected top line expansion.
  • Net Profit Margin improved to about 10.04 percent from approximately 9.15 percent, pointing to better anticipated profitability.
  • Future P/E was reduced to around 18.09 times from roughly 19.67 times, implying a lower valuation multiple applied to forward earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.