Alta Equipment Group Inc. Fundamental Analysis (NYSE: ALTG-PA)
Alta Equipment Group Inc. Fundamental Analysis (NYSE: ALTG-PA)
Alta Equipment Group Inc. (NYSE: ALTG-PA) shows weak financial fundamentals with a PE ratio of -2.54, profit margin of -4.42%, and ROE of 4.56%. The company generates $1.8B in annual revenue with weak year-over-year growth of -2.17%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 218.2/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze ALTG-PA's fundamental strength across five key dimensions:
Efficiency Score
WeakALTG-PA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentALTG-PA trades at attractive valuation levels.
Growth Score
WeakALTG-PA faces weak or negative growth trends.
Financial Health Score
ExcellentALTG-PA maintains a strong and stable balance sheet.
Profitability Score
WeakALTG-PA struggles to sustain strong margins.
Key Financial Metrics
Is ALTG-PA Expensive or Cheap?
P/E Ratio
ALTG-PA trades at -2.54 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ALTG-PA's PEG of 0.11 indicates potential undervaluation.
Price to Book
The market values Alta Equipment Group Inc. at -5.90 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -8.55 times EBITDA. This is generally considered low.
How Well Does ALTG-PA Make Money?
Net Profit Margin
For every $100 in sales, Alta Equipment Group Inc. keeps $-4.42 as profit after all expenses.
Operating Margin
Core operations generate 2.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.56 in profit for every $100 of shareholder equity.
ROA
Alta Equipment Group Inc. generates $-6.07 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Alta Equipment Group Inc. generates limited operating cash flow of $61.99M, signaling weaker underlying cash strength.
Free Cash Flow
Alta Equipment Group Inc. generates weak or negative free cash flow of $26.58M, restricting financial flexibility.
FCF Per Share
Each share generates $0.82 in free cash annually.
FCF Yield
ALTG-PA converts 12.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-2.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
-5.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-19.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
4.56
vs 25 benchmark
ROA
Return on assets percentage
-0.06
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How ALTG-PA Stacks Against Its Sector Peers
| Metric | ALTG-PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -2.54 | 29.88 | Better (Cheaper) |
| ROE | 456.25% | 1106.00% | Weak |
| Net Margin | -4.42% | -23408.00% (disorted) | Weak |
| Debt/Equity | -19.10 | 0.94 | Strong (Low Leverage) |
| Current Ratio | 1.38 | 21.64 | Neutral |
| ROA | -6.07% | -1320888.00% (disorted) | Weak |
ALTG-PA outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Alta Equipment Group Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
70.97%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-172.20%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
176.71%
Industry Style: Cyclical, Value, Infrastructure
High Growth