(ALTG) Alta Equipment - Overview
Sector: Industrials | Industry: Rental & Leasing Services | Exchange: NYSE (USA) | Market Cap: 207m USD | Total Return: 26.2% in 12m
Avg Turnover: 2.14M
Qual. Beats: 0
Rev. Trend: 19.2%
Qual. Beats: 0
Warnings
High Debt/EBITDA (11.3) with thin interest coverage (0.3)
Interest Coverage Ratio 0.3 is critical
Altman Z'' 0.20 < 1.0 - financial distress zone
Choppy
Tailwinds
Confidence
Alta Equipment Group Inc. (ALTG) operates an integrated dealership network across the United States and Canada, organized into Material Handling, Construction Equipment, and Master Distribution segments. The company’s business model focuses on the full lifecycle of industrial and construction machinery, generating revenue through new and used equipment sales, high-margin parts and service support, and short-term rentals.
The company serves a diverse range of end markets, including infrastructure, food and beverage, and waste management. As a distributor in the industrial sector, Alta relies on a razor-blade model where the initial equipment sale establishes a long-term relationship for recurring maintenance and replacement parts. Investors may find ValueRays quantitative analysis useful for evaluating the sustainability of these service-based revenue streams.
Headquartered in Livonia, Michigan, Alta has expanded its footprint since its 1984 founding to include specialized services such as warehouse automation and systems integration. This diversification allows the firm to capture value from both heavy physical construction projects and the growing demand for automated logistics technology.
- High-margin parts and service revenue stabilizes cash flow during downturns
- Strategic M&A execution expands geographic footprint and market share
- Elevated interest rates increase floorplan financing costs and pressure margins
- Infrastructure spending and industrial automation drive construction and material handling demand
| Net Income: -78.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 5.02 > 1.0 |
| NWC/Revenue: 10.75% < 20% (prev 11.19%; Δ -0.44% < -1%) |
| CFO/TA 0.07 > 3% & CFO 98.4m > Net Income -78.9m |
| Net Debt (1.29b) to EBITDA (113.7m): 11.33 < 3 |
| Current Ratio: 1.37 > 1.5 & < 3 |
| Outstanding Shares: last quarter (32.6m) vs 12m ago -1.66% < -2% |
| Gross Margin: 25.72% > 18% (prev 0.26%; Δ 2.55k% > 0.5%) |
| Asset Turnover: 128.4% > 50% (prev 123.5%; Δ 4.95% > 0%) |
| Interest Coverage Ratio: 0.26 > 6 (EBITDA TTM 113.7m / Interest Expense TTM 62.8m) |
| A: 0.15 (Total Current Assets 723.8m - Total Current Liabilities 527.8m) / Total Assets 1.33b |
| B: -0.19 (Retained Earnings -256.7m / Total Assets 1.33b) |
| C: 0.01 (EBIT TTM 16.5m / Avg Total Assets 1.42b) |
| D: -0.20 (Book Value of Equity -278.1m / Total Liabilities 1.36b) |
| Altman-Z'' = 0.20 = B |
| DSRI: 0.94 (Receivables 192.0m/207.8m, Revenue 1.82b/1.86b) |
| GMI: 1.02 (GM 25.72% / 26.27%) |
| AQI: 0.97 (AQ_t 0.10 / AQ_t-1 0.10) |
| SGI: 0.98 (Revenue 1.82b / 1.86b) |
| TATA: -0.13 (NI -78.9m - CFO 98.4m) / TA 1.33b) |
| Beneish M = -3.22 (Cap -4..+1) = AA |
As of May 30, 2026, the stock is trading at USD 6.16 with a total of 246,995 shares traded.
Over the past week, the price has changed by +22.22%,
over one month by -17.32%,
over three months by -10.72% and
over the past year by +26.23%.
Alta Equipment has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy ALTG.
- StrongBuy: 2
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 10.5 | 70.5% |
P/E Forward = 222.2222
P/S = 0.0971
P/B = 78.8097
Revenue TTM = 1.82b USD
EBIT TTM = 16.5m USD
EBITDA TTM = 113.7m USD
Long Term Debt = 690.1m USD (from longTermDebt, last quarter)
Short Term Debt = 359.6m USD (from shortTermDebt, last quarter)
Debt = 1.31b USD (from shortLongTermDebtTotal, last quarter) + Leases 138.9m
Net Debt = 1.29b USD (calculated: Debt 1.31b - CCE 23.9m)
Enterprise Value = 1.50b USD (206.8m + Debt 1.31b - CCE 23.9m)
Interest Coverage Ratio = 0.26 (Ebit TTM 16.5m / Interest Expense TTM 62.8m)
EV/FCF = 28.87x (Enterprise Value 1.50b / FCF TTM 51.8m)
FCF Yield = 3.46% (FCF TTM 51.8m / Enterprise Value 1.50b)
FCF Margin = 2.84% (FCF TTM 51.8m / Revenue TTM 1.82b)
Net Margin = -4.33% (Net Income TTM -78.9m / Revenue TTM 1.82b)
Gross Margin = 25.72% ((Revenue TTM 1.82b - Cost of Revenue TTM 1.35b) / Revenue TTM)
Gross Margin QoQ = 26.63% (prev 23.47%)
Tobins Q-Ratio = 1.12 (Enterprise Value 1.50b / Total Assets 1.33b)
Interest Expense / Debt = 4.78% (Interest Expense 62.8m / Debt 1.31b)
Taxrate = 21.0% (US default 21%)
NOPAT = 13.0m (EBIT 16.5m * (1 - 21.00%))
Current Ratio = 1.37 (Total Current Assets 723.8m / Total Current Liabilities 527.8m)
Debt / Equity = -46.38 (negative equity) (Debt 1.31b / totalStockholderEquity, last quarter -28.3m)
Debt / EBITDA = 11.33 (Net Debt 1.29b / EBITDA 113.7m)
Debt / FCF = 24.88 (Net Debt 1.29b / FCF TTM 51.8m)
Total Stockholder Equity = 2.42m (last 4 quarters mean from totalStockholderEquity)
RoA = -5.56% (Net Income -78.9m / Total Assets 1.33b)
RoE = -30.45% (Net Income TTM -78.9m / Total Stockholder Equity 259.1m)
RoCE = 1.74% (EBIT 16.5m / Capital Employed (Equity 259.1m + L.T.Debt 690.1m))
RoIC = 1.12% (NOPAT 13.0m / Invested Capital 1.17b)
WACC = 5.06% (E(206.8m)/V(1.52b) * Re(13.21%) + D(1.31b)/V(1.52b) * Rd(4.78%) * (1-Tc(0.21)))
Discount Rate = 13.21% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: -55.56 | Cagr: -0.90%
[DCF] Terminal Value 75.44% ; FCFF base≈51.8m ; Y1≈52.0m ; Y5≈55.1m
[DCF] Fair Price = N/A (negative equity: EV 857.0m - Net Debt 1.29b = -431.6m; debt exceeds intrinsic value)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.40 | # QB: 0
Revenue Correlation: 19.18 | Revenue CAGR: 0.64% | SUE: -0.62 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-0.07 | Chg30d=+43.23% | Revisions=+33% | Analysts=3
EPS next Quarter (2026-09-30): EPS=-0.17 | Chg30d=+43.16% | Revisions=+0% | Analysts=3
EPS current Year (2026-12-31): EPS=-0.87 | Chg30d=+12.38% | Revisions=+0% | GrowthEPS=+53.1% | GrowthRev=+2.8%
EPS next Year (2027-12-31): EPS=-0.55 | Chg30d=+9.38% | Revisions=+0% | GrowthEPS=+37.4% | GrowthRev=+3.1%
[Analyst] Revisions Ratio: +33%