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ALG

Alamo GroupNYSE:ALG Stock Report

Market Cap

US$1.7b

7D

-6.6%

1Y

4.7%

Updated

30 Nov, 2021

Data

Company Financials +
ALG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance4/6
Financial Health5/6
Dividends0/6

ALG Stock Overview

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

Alamo Group Competitors

Federal Signal

NYSE:FSS

US$2.6b

Astec Industries

NasdaqGS:ASTE

US$1.4b

Commercial Vehicle Group

NasdaqGS:CVGI

US$276.7m

LCI Industries

NYSE:LCII

US$3.8b

Price History & Performance

Summary of all time highs, changes and price drops for Alamo Group
Historical stock prices
Current Share PriceUS$142.22
52 Week HighUS$165.98
52 Week LowUS$132.85
Beta1
1 Month Change-5.94%
3 Month Change-8.28%
1 Year Change4.65%
3 Year Change76.39%
5 Year Change93.60%
Change since IPO1,060.98%

Recent News & Updates

Nov 20
Alamo Group (NYSE:ALG) Has A Pretty Healthy Balance Sheet

Alamo Group (NYSE:ALG) Has A Pretty Healthy Balance Sheet

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

ALGUS MachineryUS Market
7D-6.6%-5.6%-2.8%
1Y4.7%15.1%20.0%

Return vs Industry: ALG underperformed the US Machinery industry which returned 17.8% over the past year.

Return vs Market: ALG underperformed the US Market which returned 23.3% over the past year.

Price Volatility

Is ALG's price volatile compared to industry and market?
ALG volatility
ALG Average Weekly Movement3.1%
Machinery Industry Average Movement4.8%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: ALG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ALG's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19553,990Jeff Leonardhttps://www.alamo-group.com

Alamo Group Inc. designs, manufactures, distributes, and services agricultural and infrastructure maintenance equipment for governmental and industrial use worldwide. The company offers hydraulically-powered and tractor-mounted mowers, such as boom-mounted mowers; other cutters and replacement parts for heavy-duty and intensive uses; and heavy duty, tractor-and truck-mounted mowing, and vegetation maintenance equipment and replacement parts. It also provides truck-mounted air vacuum, mechanical broom, and regenerative air sweepers; pothole patchers; leaf collection equipment and replacement brooms; parking lot and street sweepers; excavators; catch basin cleaners and roadway debris vacuum systems; truck-mounted vacuum trucks, combination sewer cleaners, and hydro excavators; ice control products; snow plows and heavy duty snow removal equipment, hitches, attachments, and graders; landscape and vegetation maintenance equipment; and public works and runway maintenance products, parts, and services.

Alamo Group Fundamentals Summary

How do Alamo Group's earnings and revenue compare to its market cap?
ALG fundamental statistics
Market CapUS$1.70b
Earnings (TTM)US$69.10m
Revenue (TTM)US$1.29b

24.5x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALG income statement (TTM)
RevenueUS$1.29b
Cost of RevenueUS$966.80m
Gross ProfitUS$318.87m
ExpensesUS$249.77m
EarningsUS$69.10m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)5.79
Gross Margin24.80%
Net Profit Margin5.37%
Debt/Equity Ratio42.5%

How did ALG perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

9%

Payout Ratio

Valuation

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

40.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALG ($142.22) is trading below our estimate of fair value ($239.85)

Significantly Below Fair Value: 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 (24.5x) compared to the US Machinery industry average (29.7x).

PE vs Market: ALG is poor value based on its PE Ratio (24.5x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: ALG is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: ALG is good value based on its PB Ratio (2.5x) compared to the US Machinery industry average (2.8x).


Future Growth

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

18.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALG's forecast earnings growth (18.8% per year) is above the savings rate (2%).

Earnings vs Market: ALG's earnings (18.8% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: ALG's revenue (6.9% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: ALG's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALG's Return on Equity is forecast to be low in 3 years time (12.6%).


Past Performance

How has Alamo Group performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALG has high quality earnings.

Growing Profit Margin: ALG's current net profit margins (5.4%) are higher than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: ALG's earnings have grown by 8.7% per year over the past 5 years.

Accelerating Growth: ALG's earnings growth over the past year (18.9%) exceeds its 5-year average (8.7% per year).

Earnings vs Industry: ALG earnings growth over the past year (18.9%) underperformed the Machinery industry 32%.


Return on Equity

High ROE: ALG's Return on Equity (10%) is considered low.


Financial Health

How is Alamo Group's financial position?


Financial Position Analysis

Short Term Liabilities: ALG's short term assets ($635.8M) exceed its short term liabilities ($195.7M).

Long Term Liabilities: ALG's short term assets ($635.8M) exceed its long term liabilities ($330.4M).


Debt to Equity History and Analysis

Debt Level: ALG's net debt to equity ratio (29.6%) is considered satisfactory.

Reducing Debt: ALG's debt to equity ratio has increased from 34.7% to 42.5% over the past 5 years.

Debt Coverage: ALG's debt is well covered by operating cash flow (31.2%).

Interest Coverage: ALG's interest payments on its debt are well covered by EBIT (11.1x coverage).


Balance Sheet


Dividend

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

0.39%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ALG's dividend (0.39%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: ALG's dividend (0.39%) is low compared to the top 25% of dividend payers in the US market (3.57%).


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

0.5yrs

Average management tenure


CEO

Jeff Leonard (61 yo)

0.50

Tenure

US$1,206,839

Compensation

Mr. Jeffery A. Leonard, also known as Jeff, serves as Director at Alamo Group Inc. since June 1, 2021. He served as an Executive Vice President of Industrial Division at Alamo Group Inc. until May 31, 2021...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD1.21M) is below average for companies of similar size in the US market ($USD3.67M).

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


Leadership Team

Experienced Management: ALG's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: ALG's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Alamo Group Inc.'s 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$1.696b
  • Shares outstanding: 11.92m
  • Website: https://www.alamo-group.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 23:52
End of Day Share Price2021/11/30 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.