NYSE:ALG

Stock Analysis Report

Executive Summary

Alamo Group Inc. designs, manufactures, distributes, and services agricultural and infrastructure maintenance equipment for governmental and industrial use worldwide.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Alamo Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.6%

ALG

2.5%

US Machinery

0.4%

US Market


1 Year Return

45.2%

ALG

8.5%

US Machinery

6.9%

US Market

Return vs Industry: ALG exceeded the US Machinery industry which returned 8.5% over the past year.

Return vs Market: ALG exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

ALGIndustryMarket
7 Day0.6%2.5%0.4%
30 Day-0.02%0.9%-1.1%
90 Day22.4%-0.4%-0.5%
1 Year46.0%45.2%10.8%8.5%9.3%6.9%
3 Year86.3%83.7%49.9%40.2%45.8%36.4%
5 Year213.7%205.5%57.6%38.3%62.9%45.1%

Price Volatility Vs. Market

How volatile is Alamo Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Alamo Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ALG ($119.51) is trading below our estimate of fair value ($511.21)

Significantly Undervalued: ALG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ALG is good value based on its PE Ratio (18.4x) compared to the Machinery industry average (20.1x).

PE vs Market: ALG is poor value based on its PE Ratio (18.4x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: ALG is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: ALG is overvalued based on its PB Ratio (2.6x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

How is Alamo Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALG's forecast earnings growth (10.1% per year) is above the savings rate (2.7%).

Earnings vs Market: ALG's earnings (10.1% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: ALG's earnings are forecast to grow, but not significantly.

Revenue vs Market: ALG's revenue (4.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: ALG's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if ALG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Alamo Group performed over the past 5 years?

13.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ALG's earnings have grown by 13.5% per year over the past 5 years.

Accelerating Growth: ALG's earnings growth over the past year (43%) exceeds its 5-year average (13.5% per year).

Earnings vs Industry: ALG earnings growth over the past year (43%) exceeded the Machinery industry 17.5%.


Return on Equity

High ROE: ALG's Return on Equity (14%) is considered low.


Return on Assets

ROA vs Industry: ALG has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: ALG's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Alamo Group's financial position?


Financial Position Analysis

Short Term Liabilities: ALG's short term assets ($536.1M) exceeds its short term liabilities ($117.2M)

Long Term Liabilities: ALG's short term assets (536.1M) exceeds its long term liabilities (206.6M)


Debt to Equity History and Analysis

Debt Level: ALG's debt to equity ratio (30.6%) is considered satisfactory

Reducing Debt: ALG's debt to equity ratio has reduced from 51.2% to 30.6% over the past 5 years.

Debt Coverage: ALG's debt is well covered by operating cash flow (25%).

Interest Coverage: ALG's interest payments on its debt are well covered by EBIT (19.6x coverage).


Balance Sheet

Inventory Level: ALG has a high level of physical assets or inventory.

Debt Coverage by Assets: ALG's debt is covered by short term assets (assets are 3.229540x debt).


Next Steps

Dividend

What is Alamo Group's current dividend yield, its reliability and sustainability?

0.40%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ALG's dividend (0.4%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: ALG's dividend (0.4%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stable Dividend: ALG is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: ALG is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ALG is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ALG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Alamo Group's salary, the management and board of directors tenure and is there insider trading?

8.6yrs

Average management tenure


CEO

Ron Robinson (67yo)

20.3yrs

Tenure

US$2,770,809

Compensation

Mr. Ronald A. Robinson, also known as Ron, has been the Chief Executive Officer and President of Alamo Group Inc. since July 7, 1999 and served as its Interim Chairman of the Board from November 30, 2017 t ...


CEO Compensation Analysis

Compensation vs. Market: Ron's total compensation ($USD2.77M) is below average for companies of similar size in the US market ($USD4.00M).

Compensation vs Earnings: Ron's compensation has been consistent with company performance over the past year.


Management Age and Tenure

8.6yrs

Average Tenure

59.5yo

Average Age

Experienced Management: ALG's management team is seasoned and experienced (8.6 years average tenure).


Board Age and Tenure

4.2yrs

Average Tenure

65yo

Average Age

Experienced Board: ALG's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

Insider Buying: ALG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$8,37420 Sep 19
Janet Pollock
EntityIndividual
Role
Head of Human Resources
VP of Human Resources
Shares70
Max PriceUS$119.64
SellUS$106,18416 Aug 19
Jeffery Leonard
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Industrial Division
Shares1,000
Max PriceUS$106.18
SellUS$130,47016 Aug 19
Dan Malone
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares1,200
Max PriceUS$108.73
SellUS$8,22412 Aug 19
Janet Pollock
EntityIndividual
Role
Head of Human Resources
VP of Human Resources
Shares76
Max PriceUS$108.21
SellUS$141,29307 Aug 19
Dan Malone
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares1,299
Max PriceUS$108.77
SellUS$222,15201 Jul 19
Dan Malone
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares2,206
Max PriceUS$101.15
SellUS$30,24021 Jun 19
Edward Rizzuti
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Secretary
Shares300
Max PriceUS$100.80
SellUS$70,00721 Jun 19
Richard Wehrle
EntityIndividual
Role
Senior Key Executive
VP,Treasurer & Corporate Controller
Shares700
Max PriceUS$100.01
SellUS$49,43907 Jun 19
Richard Raborn
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Agricultural Division
Shares500
Max PriceUS$98.88
SellUS$54,29821 May 19
Richard Raborn
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Agricultural Division
Shares569
Max PriceUS$95.43
SellUS$23,73517 May 19
Edward Rizzuti
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Secretary
Shares250
Max PriceUS$94.94
SellUS$782,55725 Mar 19
David Grzelak
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,000
Max PriceUS$97.82
BuyUS$98,13207 Mar 19
Richard Parod
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$98.40
SellUS$64,01207 Mar 19
Dan Malone
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares650
Max PriceUS$98.48
BuyUS$152,64914 Dec 18
Roderick Baty
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares2,000
Max PriceUS$76.32

Ownership Breakdown


Management Team

  • Ron Robinson (67yo)

    President

    • Tenure: 20.3yrs
    • Compensation: US$2.77m
  • Robert George (72yo)

    Vice President

    • Tenure: 0yrs
    • Compensation: US$374.80k
  • Richard Wehrle (62yo)

    VP,Treasurer & Corporate Controller

    • Tenure: 18.4yrs
    • Compensation: US$375.63k
  • Dan Malone (59yo)

    Executive VP

    • Tenure: 12.8yrs
    • Compensation: US$644.47k
  • Jeffery Leonard (59yo)

    Executive Vice President of Industrial Division

    • Tenure: 0yrs
    • Compensation: US$910.53k
  • Ed Rizzuti (49yo)

    VP, General Counsel & Secretary

    • Tenure: 4.3yrs
  • Janet Pollock (60yo)

    VP of Human Resources

    • Tenure: 1.4yrs
  • Rick Raborn (53yo)

    Executive Vice President of Agricultural Division

    • Tenure: 4.5yrs
    • Compensation: US$694.88k

Board Members

  • Ron Robinson (67yo)

    President

    • Tenure: 20.3yrs
    • Compensation: US$2.77m
  • Rick Parod (66yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$137.00k
  • Roderick Baty (65yo)

    Independent Chairman of the Board

    • Tenure: 1.4yrs
    • Compensation: US$170.00k
  • Bob Bauer (61yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$141.50k
  • Dave Grzelak (69yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: US$153.50k
  • Eric Etchart (62yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$154.00k
  • Tracy Jokinen (50yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$151.20k

Company Information

Alamo Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alamo Group Inc.
  • Ticker: ALG
  • Exchange: NYSE
  • Founded: 1955
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: US$1.412b
  • Shares outstanding: 11.82m
  • Website: https://www.alamo-group.com

Number of Employees


Location

  • Alamo Group Inc.
  • 1627 East Walnut
  • Seguin
  • Texas
  • 78155
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALGNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 1993
AL3DB (Deutsche Boerse AG)YesCommon StockDEEURMar 1993

Biography

Alamo Group Inc. designs, manufactures, distributes, and services agricultural and infrastructure maintenance equipment for governmental and industrial use worldwide. The company offers hydraulically-power ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:30
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.