(ALG) Alamo - Overview
Sector: Industrials | Industry: Farm & Heavy Construction Machinery | Exchange: NYSE (USA) | Market Cap: 1.825m USD | Total Return: -23.9% in 12m
Avg Turnover: 32.8M
EPS Trend: -85.1%
Qual. Beats: 0
Rev. Trend: -52.7%
Qual. Beats: 1
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
Alamo Group Inc. (ALG) designs and manufactures equipment for vegetation management and industrial infrastructure maintenance. The company operates through two primary segments: Vegetation Management, focusing on agricultural and forestry implements, and Industrial Equipment, which specializes in vacuum trucks, street sweepers, and snow removal systems. Its customer base primarily consists of government agencies, industrial contractors, and agricultural operators.
The business model relies heavily on the replacement parts market, as high-wear applications in forestry and municipal sanitation create recurring revenue streams. In the heavy equipment sector, demand is often tied to multi-year municipal budget cycles and federal infrastructure spending. For a deeper look at these specific financial drivers, you might find the data on ValueRay useful.
Founded in 1955 and headquartered in Seguin, Texas, Alamo Group distributes its products globally to support land maintenance and public works projects. The company’s diverse product portfolio, ranging from robotic mowers to hydro excavators, allows it to mitigate cyclicality across different equipment sub-sectors.
- Municipal budget allocations impact demand for street sweepers and vacuum trucks
- Global agricultural commodity prices influence tractor attachment and mower sales volume
- Infrastructure spending legislation drives orders for vegetation and industrial equipment
- Raw material costs for steel and hydraulic components affect operating margins
- Interest rate fluctuations impact financing costs for heavy equipment dealer inventories
| Net Income: 101.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA -6.77 > 1.0 |
| NWC/Revenue: 46.37% < 20% (prev 43.89%; Δ 2.48% < -1%) |
| CFO/TA 0.08 > 3% & CFO 139.8m > Net Income 101.2m |
| Net Debt (101.4m) to EBITDA (246.6m): 0.41 < 3 |
| Current Ratio: 4.32 > 1.5 & < 3 |
| Outstanding Shares: last quarter (12.1m) vs 12m ago 0.46% < -2% |
| Gross Margin: 24.23% > 18% (prev 0.25%; Δ 2.40k% > 0.5%) |
| Asset Turnover: 100.9% > 50% (prev 105.9%; Δ -5.07% > 0%) |
| Interest Coverage Ratio: 5.79 > 6 (EBITDA TTM 246.6m / Interest Expense TTM 28.2m) |
| A: 0.44 (Total Current Assets 983.6m - Total Current Liabilities 227.8m) / Total Assets 1.73b |
| B: 0.62 (Retained Earnings 1.07b / Total Assets 1.73b) |
| C: 0.10 (EBIT TTM 163.5m / Avg Total Assets 1.62b) |
| D: 1.84 (Book Value of Equity 1.02b / Total Liabilities 554.5m) |
| Altman-Z'' = 7.50 = AAA |
| DSRI: 0.96 (Receivables 335.0m/339.6m, Revenue 1.63b/1.59b) |
| GMI: 1.05 (GM 24.23% / 25.33%) |
| AQI: 0.83 (AQ_t 0.21 / AQ_t-1 0.25) |
| SGI: 1.02 (Revenue 1.63b / 1.59b) |
| TATA: -0.02 (NI 101.2m - CFO 139.8m) / TA 1.73b) |
| Beneish M = -3.12 (Cap -4..+1) = AA |
As of May 27, 2026, the stock is trading at USD 152.58 with a total of 91,489 shares traded.
Over the past week, the price has changed by +0.90%,
over one month by -11.31%,
over three months by -29.39% and
over the past year by -23.86%.
Alamo has received a consensus analysts rating of 4.25. Therefore, it is recommended to buy ALG.
- StrongBuy: 2
- Buy: 1
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 209.8 | 37.5% |
P/E Trailing = 17.945
P/E Forward = 14.43
P/S = 1.12
P/B = 1.5564
P/EG = 0.9024
Revenue TTM = 1.63b USD
EBIT TTM = 163.5m USD
EBITDA TTM = 246.6m USD
Long Term Debt = 275.5m USD (from longTermDebt, last quarter)
Short Term Debt = 15.0m USD (from shortTermDebt, last quarter)
Debt = 296.6m USD (from shortLongTermDebtTotal, last quarter) + Leases 6.15m
Net Debt = 101.4m USD (calculated: Debt 296.6m - CCE 195.2m)
Enterprise Value = 1.93b USD (1.83b + Debt 296.6m - CCE 195.2m)
Interest Coverage Ratio = 5.79 (Ebit TTM 163.5m / Interest Expense TTM 28.2m)
EV/FCF = 17.41x (Enterprise Value 1.93b / FCF TTM 110.7m)
FCF Yield = 5.75% (FCF TTM 110.7m / Enterprise Value 1.93b)
FCF Margin = 6.79% (FCF TTM 110.7m / Revenue TTM 1.63b)
Net Margin = 6.21% (Net Income TTM 101.2m / Revenue TTM 1.63b)
Gross Margin = 24.23% ((Revenue TTM 1.63b - Cost of Revenue TTM 1.24b) / Revenue TTM)
Gross Margin QoQ = 23.95% (prev 22.75%)
Tobins Q-Ratio = 1.12 (Enterprise Value 1.93b / Total Assets 1.73b)
Interest Expense / Debt = 9.52% (Interest Expense 28.2m / Debt 296.6m)
Taxrate = 25.26% (9.86m / 39.0m)
NOPAT = 122.2m (EBIT 163.5m * (1 - 25.26%))
Current Ratio = 4.32 (Total Current Assets 983.6m / Total Current Liabilities 227.8m)
Debt / Equity = 0.25 (Debt 296.6m / totalStockholderEquity, last quarter 1.17b)
Debt / EBITDA = 0.41 (Net Debt 101.4m / EBITDA 246.6m)
Debt / FCF = 0.92 (Net Debt 101.4m / FCF TTM 110.7m)
Total Stockholder Equity = 1.14b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.26% (Net Income 101.2m / Total Assets 1.73b)
RoE = 8.86% (Net Income TTM 101.2m / Total Stockholder Equity 1.14b)
RoCE = 11.53% (EBIT 163.5m / Capital Employed (Equity 1.14b + L.T.Debt 275.5m))
RoIC = 8.07% (NOPAT 122.2m / Invested Capital 1.51b)
WACC = 8.70% (E(1.83b)/V(2.12b) * Re(8.96%) + D(296.6m)/V(2.12b) * Rd(9.52%) * (1-Tc(0.25)))
Discount Rate = 8.96% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 0.0 | Cagr: 0.0%
[DCF] Terminal Value 71.78% ; FCFF base≈145.7m ; Y1≈127.8m ; Y5≈103.3m
[DCF] Fair Price = 120.4 (EV 1.57b - Net Debt 101.4m = Equity 1.46b / Shares 12.2m; r=8.70% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -85.15 | EPS CAGR: -6.72% | SUE: -0.03 | # QB: 0
Revenue Correlation: -52.67 | Revenue CAGR: -1.34% | SUE: 1.53 | # QB: 1
EPS current Quarter (2026-06-30): EPS=2.80 | Chg30d=+0.79% | Revisions=+25% | Analysts=5
EPS next Quarter (2026-09-30): EPS=2.74 | Chg30d=+5.03% | Revisions=-14% | Analysts=5
EPS current Year (2026-12-31): EPS=10.70 | Chg30d=+3.54% | Revisions=+50% | GrowthEPS=+14.2% | GrowthRev=+6.8%
EPS next Year (2027-12-31): EPS=12.03 | Chg30d=+1.19% | Revisions=+43% | GrowthEPS=+12.5% | GrowthRev=+2.9%
[Analyst] Revisions Ratio: +50%