(ALG) Alamo - Ratings and Ratios

Alamo Group Inc. (NYSE:ALG) is a leading global provider of vegetation management and infrastructure maintenance equipment, serving governmental, industrial, and agricultural sectors. Headquartered in Seguin, Texas, since its founding in 1955, the company operates through two primary segments: Vegetation Management and Industrial Equipment. Its extensive product portfolio includes mowers, rock removal equipment, landscape and vegetation maintenance tools, street sweepers, solid waste and recycling equipment, and commercial tree care and forestry attachments. Additionally, the company manufactures front-end loaders, backhoes, rotary tillers, posthole diggers, scraper blades, snow blowers, hydraulic and tractor attachments, cutting blades, tree chippers, stump grinders, mulchers, flails, and debarkers. It also offers engineered underground construction forms and a wide range of municipal and specialty equipment, including vacuum trucks, cleaning systems, trenchers, snow plows, dump bodies, spreaders, salt spreaders, and asphalt maintenance patchers. The company’s products are designed to address the diverse needs of its customers, ensuring efficiency and durability in various applications.

The company’s commitment to innovation and quality has established it as a key player in the construction machinery and heavy transportation equipment industry. With a global presence, Alamo Group Inc. continues to expand its market reach, supported by its robust product lineup and focus on customer satisfaction. The company’s equipment is widely used in municipal, agricultural, and industrial settings, where reliability and performance are critical. Its product range also includes specialized equipment for tasks such as hydro excavation, sewer cleaning, and traffic control, further diversifying its offerings in the infrastructure maintenance sector.

From a technical perspective, ALG is currently trading at $168.60, closely aligned with its 20-day SMA of $168.64 but below its 50-day SMA of $177.94 and 200-day SMA of $181.53. This indicates that the stock is in a short-term sideways trend but may face resistance at higher moving averages. The ATR of 5.68 suggests moderate volatility. On the fundamental side, the company has a market cap of $2.024 billion, with a P/E ratio of 17.39, indicating reasonable valuation relative to its earnings. The P/B ratio of 1.98 reflects a fair valuation relative to book value, while the P/S ratio of 1.24 suggests the company is moderately priced relative to its revenue. The RoE of 11.39% highlights decent profitability.

3-Month Forecast:

Technical Data: ALG is likely to face resistance at $177.94 (50-day SMA) and $181.53 (200-day SMA). If the stock breaks below $168.64 (20-day SMA), it could test lower support levels. Conversely, a breakout above $177.94 may signal a potential uptrend toward $181.53.

Fundamental Data: The company’s market cap of $2.024 billion and P/E of 17.39 suggest stability. With a P/S ratio of 1.24, ALG is well-positioned for growth if it leverages its product diversification and global reach. The RoE of 11.39% indicates consistent profitability, which could support further expansion.