Alamo Group Inc.
Alamo Group Inc. Fundamental Analysis
Alamo Group Inc. (ALG) shows weak financial fundamentals with a PE ratio of 19.47, profit margin of 6.47%, and ROE of 9.32%. The company generates $1.6B in annual revenue with weak year-over-year growth of -3.62%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ALG's fundamental strength across five key dimensions:
Efficiency Score
WeakALG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentALG trades at attractive valuation levels.
Growth Score
WeakALG faces weak or negative growth trends.
Financial Health Score
ExcellentALG maintains a strong and stable balance sheet.
Profitability Score
WeakALG struggles to sustain strong margins.
Key Financial Metrics
Is ALG Expensive or Cheap?
P/E Ratio
ALG trades at 19.47 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ALG's PEG of -1.80 indicates potential undervaluation.
Price to Book
The market values Alamo Group Inc. at 1.76 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.57 times EBITDA. This is generally considered low.
How Well Does ALG Make Money?
Net Profit Margin
For every $100 in sales, Alamo Group Inc. keeps $6.47 as profit after all expenses.
Operating Margin
Core operations generate 9.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.32 in profit for every $100 of shareholder equity.
ROA
Alamo Group Inc. generates $6.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Alamo Group Inc. produces operating cash flow of $179.07M, showing steady but balanced cash generation.
Free Cash Flow
Alamo Group Inc. produces free cash flow of $148.18M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $12.22 in free cash annually.
FCF Yield
ALG converts 7.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.80
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How ALG Stacks Against Its Sector Peers
| Metric | ALG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.47 | 25.96 | Better (Cheaper) |
| ROE | 9.32% | 1263.00% | Weak |
| Net Margin | 6.47% | -41827.00% (disorted) | Weak |
| Debt/Equity | 0.19 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 4.57 | 10.05 | Strong Liquidity |
| ROA | 6.46% | -1497918.00% (disorted) | Weak |
ALG outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Alamo Group Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
42.61%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
80.61%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
131.48%
Industry Style: Cyclical, Value, Infrastructure
High Growth