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ALG

Alamo Group NYSE:ALG Stock Report

Last Price

US$133.24

Market Cap

US$1.6b

7D

6.6%

1Y

-6.1%

Updated

05 Oct, 2022

Data

Company Financials +
ALG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance4/6
Financial Health3/6
Dividends0/6

ALG Stock Overview

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

Alamo Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Alamo Group
Historical stock prices
Current Share PriceUS$133.24
52 Week HighUS$160.71
52 Week LowUS$108.35
Beta0.97
1 Month Change3.75%
3 Month Change13.58%
1 Year Change-6.09%
3 Year Change16.90%
5 Year Change22.31%
Change since IPO987.67%

Recent News & Updates

Oct 04
Does Alamo Group (NYSE:ALG) Have A Healthy Balance Sheet?

Does Alamo Group (NYSE:ALG) Have A Healthy Balance Sheet?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Oct 03

Alamo declares $0.18 dividend

Alamo (NYSE:ALG) declares $0.18/share quarterly dividend, in line with previous. Forward yield 0.57% Payable Nov. 1; for shareholders of record Oct. 18; ex-div Oct. 17. See ALG Dividend Scorecard, Yield Chart, & Dividend Growth.

Sep 19
An Intrinsic Calculation For Alamo Group Inc. (NYSE:ALG) Suggests It's 40% Undervalued

An Intrinsic Calculation For Alamo Group Inc. (NYSE:ALG) Suggests It's 40% Undervalued

Today we will run through one way of estimating the intrinsic value of Alamo Group Inc. ( NYSE:ALG ) by projecting its...

Sep 02
If EPS Growth Is Important To You, Alamo Group (NYSE:ALG) Presents An Opportunity

If EPS Growth Is Important To You, Alamo Group (NYSE:ALG) Presents An Opportunity

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...

Shareholder Returns

ALGUS MachineryUS Market
7D6.6%4.6%1.9%
1Y-6.1%-12.5%-18.8%

Return vs Industry: ALG exceeded the US Machinery industry which returned -12.5% over the past year.

Return vs Market: ALG exceeded the US Market which returned -18.2% over the past year.

Price Volatility

Is ALG's price volatile compared to industry and market?
ALG volatility
ALG Average Weekly Movement4.0%
Machinery Industry Average Movement5.5%
Market Average Movement7.0%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.9%

Stable Share Price: ALG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ALG's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19554,200Jeff Leonardhttps://www.alamo-group.com

Alamo Group Inc. designs, manufactures, distributes, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural uses worldwide. Its Vegetation Management Division segment offers hydraulically-powered and tractor-mounted mowers, other cutters and replacement parts for heavy-duty and intensive uses and heavy duty applications, tractor- and truck-mounted mowing and vegetation maintenance equipment, and replacement parts. This segment also provides rotary and finishing mowers, flail and disc mowers, front-end loaders, backhoes, rotary tillers, posthole diggers, scraper blades and replacement parts, zero turn radius mowers, cutting parts, plain and hard-faced replacement tillage tools, disc blades, and fertilizer application components; aftermarket agricultural parts, heavy-duty mechanical rotary mowers, snow blowers, rock removal equipment, replacement parts, tractor attachments, agricultural implements, hydraulic and boom-mounted hedge and grass cutters, tractor attachments and implements, hedgerow cutters, industrial grass mowers, agricultural seedbed preparation cultivators, self-propelled sprayers and multi-drive load-carrying vehicles, cutting blades, and hydraulic and mechanical boom mowers.

Alamo Group Fundamentals Summary

How do Alamo Group's earnings and revenue compare to its market cap?
ALG fundamental statistics
Market CapUS$1.59b
Earnings (TTM)US$83.69m
Revenue (TTM)US$1.43b

19.1x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALG income statement (TTM)
RevenueUS$1.43b
Cost of RevenueUS$1.08b
Gross ProfitUS$356.31m
Other ExpensesUS$272.62m
EarningsUS$83.69m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)6.99
Gross Margin24.85%
Net Profit Margin5.84%
Debt/Equity Ratio50.4%

How did ALG perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

9%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ALG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ALG?

Other financial metrics that can be useful for relative valuation.

ALG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.3x
Enterprise Value/EBITDA11.1x
PEG Ratio1.2x

Price to Earnings Ratio vs Peers

How does ALG's PE Ratio compare to its peers?

ALG PE Ratio vs Peers
The above table shows the PE ratio for ALG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average18.5x
FSS Federal Signal
23.6x19.4%US$2.4b
TEX Terex
9.6x7.2%US$2.2b
SHYF Shyft Group
17.8x64.7%US$760.7m
PLOW Douglas Dynamics
23.1x34.1%US$673.3m
ALG Alamo Group
19.1x16.4%US$1.6b

Price-To-Earnings vs Peers: ALG is expensive based on its Price-To-Earnings Ratio (19.1x) compared to the peer average (18.5x).


Price to Earnings Ratio vs Industry

How does ALG's PE Ratio compare vs other companies in the US Machinery Industry?

Price-To-Earnings vs Industry: ALG is good value based on its Price-To-Earnings Ratio (19.1x) compared to the US Machinery industry average (19.3x)


Price to Earnings Ratio vs Fair Ratio

What is ALG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ALG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.1x
Fair PE Ratio18.1x

Price-To-Earnings vs Fair Ratio: ALG is expensive based on its Price-To-Earnings Ratio (19.1x) compared to the estimated Fair Price-To-Earnings Ratio (18.1x).


Share Price vs Fair Value

What is the Fair Price of ALG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ALG ($133.24) is trading below our estimate of fair value ($207.7)

Significantly Below Fair Value: ALG is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALG's forecast earnings growth (16.4% per year) is above the savings rate (1.9%).

Earnings vs Market: ALG's earnings (16.4% per year) are forecast to grow faster than the US market (14.8% per year).

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

Revenue vs Market: ALG's revenue (6.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ALG's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Discover growth companies

Past Performance

How has Alamo Group performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


8.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ALG has high quality earnings.

Growing Profit Margin: ALG's current net profit margins (5.8%) are lower than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: ALG's earnings have grown by 8.8% per year over the past 5 years.

Accelerating Growth: ALG's earnings growth over the past year (15%) exceeds its 5-year average (8.8% per year).

Earnings vs Industry: ALG earnings growth over the past year (15%) exceeded the Machinery industry 9.8%.


Return on Equity

High ROE: ALG's Return on Equity (11.4%) is considered low.


Discover strong past performing companies

Financial Health

How is Alamo Group's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ALG's short term assets ($748.3M) exceed its short term liabilities ($189.6M).

Long Term Liabilities: ALG's short term assets ($748.3M) exceed its long term liabilities ($406.3M).


Debt to Equity History and Analysis

Debt Level: ALG's net debt to equity ratio (40.1%) is considered high.

Reducing Debt: ALG's debt to equity ratio has increased from 34.4% to 50.4% over the past 5 years.

Debt Coverage: ALG's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: ALG's interest payments on its debt are well covered by EBIT (12.5x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.54%

Current Dividend Yield

Dividend Yield vs Market

Alamo Group Dividend Yield vs Market
How does Alamo Group dividend yield compare to the market?
SegmentDividend Yield
Company (Alamo Group)0.5%
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.5%
Industry Average (Machinery)1.9%
Analyst forecast in 3 Years (Alamo Group)0.5%

Notable Dividend: ALG's dividend (0.54%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: ALG's dividend (0.54%) is low compared to the top 25% of dividend payers in the US market (4.53%).


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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: ALG is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

2.9yrs

Average management tenure


CEO

Jeff Leonard (62 yo)

1.33yrs

Tenure

US$2,816,259

Compensation

Mr. Jeffery A. Leonard, also known as Jeff, has been a Director at Alamo Group Inc. since June 1, 2021. Mr. Leonard has been President and Chief Executive Officer at Alamo Group Inc. since May 31, 2021. He...


CEO Compensation Analysis

Jeff Leonard's Compensation vs Alamo Group Earnings
How has Jeff Leonard's remuneration changed compared to Alamo Group's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$84m

Mar 31 2022n/an/a

US$81m

Dec 31 2021US$3mUS$625k

US$80m

Sep 30 2021n/an/a

US$69m

Jun 30 2021n/an/a

US$73m

Mar 31 2021n/an/a

US$60m

Dec 31 2020US$1mUS$445k

US$58m

Sep 30 2020n/an/a

US$58m

Jun 30 2020n/an/a

US$56m

Mar 31 2020n/an/a

US$63m

Dec 31 2019US$1mUS$388k

US$63m

Sep 30 2019n/an/a

US$70m

Jun 30 2019n/an/a

US$76m

Mar 31 2019n/an/a

US$74m

Dec 31 2018US$911kUS$369k

US$73m

Sep 30 2018n/an/a

US$60m

Jun 30 2018n/an/a

US$53m

Mar 31 2018n/an/a

US$47m

Dec 31 2017US$921kUS$345k

US$44m

Sep 30 2017n/an/a

US$49m

Jun 30 2017n/an/a

US$45m

Mar 31 2017n/an/a

US$44m

Dec 31 2016US$656kUS$334k

US$40m

Sep 30 2016n/an/a

US$44m

Jun 30 2016n/an/a

US$45m

Mar 31 2016n/an/a

US$45m

Dec 31 2015US$594kUS$314k

US$43m

Compensation vs Market: Jeff's total compensation ($USD2.82M) is below average for companies of similar size in the US market ($USD5.48M).

Compensation vs Earnings: Jeff's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ALG's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: ALG's board of directors are considered experienced (6.2 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

NYSE:ALG Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
15 Aug 22SellUS$35,749Edward RizzutiIndividual250US$143.00
10 Aug 22SellUS$171,112Dan MaloneIndividual1,262US$136.23
10 Aug 22SellUS$212,068Richard RabornIndividual1,553US$136.55
15 Jun 22BuyUS$56,994Robert BauerIndividual500US$113.99
02 Jun 22SellUS$44,885Edward RizzutiIndividual371US$120.98
03 Mar 22BuyUS$100,058Robert BauerIndividual700US$142.94
11 Nov 21SellUS$445,800Ronald RobinsonIndividual2,895US$158.70
10 Nov 21SellUS$691,688Ronald RobinsonIndividual4,387US$159.24
10 Nov 21SellUS$5,907Ronald RobinsonIndividual38US$155.46
09 Nov 21SellUS$44,167Janet PollockIndividual281US$157.18
08 Nov 21SellUS$525,753Ronald RobinsonIndividual3,334US$159.71
08 Nov 21SellUS$20,257Ronald RobinsonIndividual129US$159.20
04 Nov 21SellUS$1,320,117Ronald RobinsonIndividual8,628US$156.22
02 Nov 21SellUS$703,081Ronald RobinsonIndividual4,559US$156.10
29 Oct 21SellUS$211,398Ronald RobinsonIndividual1,400US$152.49
29 Oct 21SellUS$308Ronald RobinsonIndividual2US$153.79
26 Oct 21SellUS$126,287Ronald RobinsonIndividual840US$150.41
25 Oct 21SellUS$302Ronald RobinsonIndividual2US$151.23
22 Oct 21SellUS$600Ronald RobinsonIndividual4US$150.00

Ownership Breakdown

What is the ownership structure of ALG?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders280,6912.3%
General Public459,5933.8%
Institutions11,225,89393.8%

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


Top Shareholders

Top 25 shareholders own 79.09% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
12.97%
BlackRock, Inc.
1,551,944$206.8m0.95%no data
11.38%
LongView Asset Management, LLC
1,361,800$181.4m0%2.53%
7.22%
T. Rowe Price Group, Inc.
864,063$115.1m4.38%0.01%
5.57%
The Vanguard Group, Inc.
666,996$88.9m-6.33%no data
5.47%
Victory Capital Management Inc.
654,918$87.3m8.85%0.09%
5.11%
Dimensional Fund Advisors LP
611,533$81.5m1.57%0.02%
3.04%
Allspring Global Investments, LLC
363,785$48.5m-1.07%0.07%
3.01%
GW&K Investment Management, LLC
360,641$48.1m4.68%0.49%
2.89%
State Street Global Advisors, Inc.
345,574$46.0m2.86%no data
2.13%
Vaughan Nelson Investment Management, L.P.
255,351$34.0m1.27%0.44%
2.11%
Eaton Vance Management
252,829$33.7m-1.39%0.01%
2.07%
Westwood Management Corp.
247,346$33.0m5.17%0.35%
1.96%
Northern Trust Global Investments
234,085$31.2m-1.55%0.01%
1.55%
Franklin Resources, Inc.
184,938$24.6m-1.75%0.01%
1.43%
Neumeier Poma Investment Counsel LLC
171,535$22.9m0.29%1.76%
1.42%
Janus Henderson Group plc
170,201$22.7m-0.26%0.01%
1.42%
Geode Capital Management, LLC
169,741$22.6m1.38%no data
1.32%
Granite Investment Partners, LLC
158,049$21.1m-6.39%0.62%
1.27%
Sarofim Fayez & Co
151,500$20.2m0%0.07%
1.11%
Ronald Robinson
132,778$17.7m0.8%no data
1.06%
RBC Global Asset Management Inc.
127,298$17.0m-1.02%0.01%
0.98%
Kennedy Capital Management, Inc.
117,811$15.7m-1.06%0.42%
0.91%
BNY Mellon Asset Management
108,546$14.5m-4.07%no data
0.9%
Charles Schwab Investment Management, Inc.
107,587$14.3m5.27%no data
0.78%
Toronto-Dominion Bank, Banking Investments
93,135$12.4m-1.55%0.02%

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
  • Implied Market Cap: US$1.594b
  • Shares outstanding: 11.97m
  • Website: https://www.alamo-group.com

Number of Employees


Location

  • Alamo Group Inc.
  • 1627 East Walnut Street
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/05 00:00
End of Day Share Price2022/10/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.