Alamo Group Inc.

Alamo Group Inc.

ALGยทNYSE

$150.12

+0.17%
IndustrialsAgricultural - Machinery

Alamo Group Inc. designs, manufactures, distributes, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural uses worldwide. Its Vegetation Management Division segment offers hydraulically-powered and tractor-mounted mowers, other cutters and replacement parts for heavy-duty and intensive uses and heavy duty applications, tractor- and truck-mounted mowing and vegetation maintenance equipment, and replacement parts. This segment also provides rotary and finishing mowers, flail and disc mowers, front-end loaders, backhoes, rotary tillers, posthole diggers, scraper blades and replacement parts, zero turn radius mowers, cutting parts, plain and hard-faced replacement tillage tools, disc blades, and fertilizer application components; aftermarket agricultural parts, heavy-duty mechanical rotary mowers, snow blowers, rock removal equipment, replacement parts, tractor attachments, agricultural implements, hydraulic and boom-mounted hedge and grass cutters, tractor attachments and implements, hedgerow cutters, industrial grass mowers, agricultural seedbed preparation cultivators, self-propelled sprayers and multi-drive load-carrying vehicles, cutting blades, and hydraulic and mechanical boom mowers. The company's Industrial Equipment Division segment offers truck-mounted air vacuum, mechanical broom, and regenerative air sweepers, pothole patchers, leaf collection equipment and replacement brooms, parking lot and street sweepers, excavators, catch basin cleaners, and roadway debris vacuum systems, as well as truck-mounted vacuum machines, combination sewer cleaners, and hydro excavators. This segment also offers ice control products, snowplows and heavy duty snow removal equipment, hitches, attachments, and graders; and public works and runway maintenance products, parts, and services, and high pressure cleaning systems and trenchers. The company was founded in 1955 and is headquartered in Seguin, Texas.

At a Glance

Live Snapshot
Market Cap$1.83B
EPS8.6400
P/E Ratio17.38
Earnings Date08/05/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is mid-range (P/E 17.4).

Valuation inputs: P/E 17.4, earnings yield +5.8%, momentum +0.2%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is acceptable (ROE +9.0%, ROIC +8.0%).

Profitability stack: net margin +6.5%, ROE +9.0%, ROIC +8.0%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +28.5%, momentum +0.2%, net margin +6.5%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Alamo Group Inc. Market vs Earnings Trajectory

ALG ยท NYSE

Loading price and EPS data...

Alamo Group Inc.

Alamo Group Inc. Fair Value Envelope

ALG ยท NYSE

Our analysis suggests that ALG has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $150.12, this represents a potential HIDDEN relative to our calculated worth for Alamo Group Inc..

Intrinsic Value
Current Price: $150.12
3Y+1.0%
5Y+76.0%
10Y+147.0%
3Y+6.0%
5Y+38.0%
10Y+90.0%
3Y+2.0%
5Y+80.0%
10Y+159.0%
3Y+1122.0%
5Y-4.0%
10Y+135.0%
3Y-976.0%
5Y-12.0%
10Y+123.0%
3Y+23.0%
5Y+43.0%
10Y+191.0%
Alamo Group Inc.

Alamo Group Inc. Profit Bridge

ALG ยท NYSE
Revenue1.60B
Cost of Goods Sold (1.21B)
Gross Profit397.82M
Operating Expenses (246.20M)
Operating Income151.61M
Interest Expense (14.88M)
Other Income/Expense-12.10M
Pretax Income139.51M
Income Tax (35.71M)
Net Income103.80M
Net Income
103.80M

Profitability Analysis

Gross Margin

24.8%

Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.

Operating Margin

9.5%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

6.5%

Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.

Effective Tax Rate

25.6%

Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.

Profitability Insight

Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.

24.81%
Gross Profit Margin
-2%
3Y-
5Y-2.0%
10Y+2.0%
9.45%
Operating Profit Margin
-7%
3Y-4.0%
5Y+16.0%
10Y+18.0%
6.47%
Net Profit Margin
-9%
3Y-4.0%
5Y+30.0%
10Y+37.0%
9.04%
Return on Equity
-21%
3Y-30.0%
5Y-1.0%
10Y-13.0%
6.46%
Return on Assets
-19%
3Y-17.0%
5Y+25.0%
10Y-11.0%
8.00%
Return on Invested Capital
-20%
3Y-19.0%
5Y+15.0%
10Y-13.0%
ALG

Alamo Group Inc. Cash Conversion Engine

ALG ยท NYSE
Net Income103.80M
Depreciation & Amortization43.63M
Stock-Based Compensation9.94M
Change in Working Capital-418.00K
Others10.01M
Capital Expenditures-30.63M
Free Cash Flow146.92M

Cash Flow Quality Analysis

FCF Conversion Rate

141.5%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

17.3%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

-20.5%

Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.

Working Capital Impact

-$418.00K

Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.

Cash Flow Quality Insight

Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.

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Alamo Group Inc. Funding & Solvency Profile

ALG ยท NYSE
Cash & Cash Equivalents195.23M
Net Receivables334.96M
Inventory425.54M
Other Current Assets27.84M
Total Current Assets984 M
Property, Plant & Equipment386.66M
Goodwill & Intangible Assets492.30M
Long-Term Investments0.00
Other Non-Current Assets-136.35M
Total Non-Current Assets250 M
Total Assets
1.73B

Financial Health Analysis

Current Ratio

4.32x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.47x

Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.

Working Capital

756 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

57% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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Alamo Group Inc. Street Expectations Map

ALG ยท NYSE

Wall Street analysts project that ALG stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 189.00, with estimates ranging from a low of 188.00 to a high of 190.00.

Lowest Target
188.00
25.23%
Consensus Target
189.00
25.90%
Highest Target
190.00
26.57%

The consensus 1-year price target stands at 189.00, with estimates ranging from a low of 188.00 to a high of 190.00.

Analyst Consensus Analysis

Upside Potential

+25.9%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

1.1% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

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Alamo Group Inc. Insider Positioning

ALG ยท NYSE

During the last 12 months, insiders have purchased $279K and sold $1.98M worth of ALG shares, resulting in $1.70M of net selling activity.

3 Months

Bought

693

115.61K

Sold

1.1K

189.98K

Net Activity

-74K

-$74K

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

984

163.22K

Sold

0

0.00

Net Activity

+163K

+$163K

9-12 Months

Bought

0

0.00

Sold

8.4K

1.79M

Net Activity

-1.8M

-$1.79M

Top Buyers

1
HRP

Hureau Robert Paul

Director, Officer: President & Ceo

1.4K sharesโ€ข4 transactions

$239K

2
GNC

Grooms Nina C

Director

233 sharesโ€ข1 transactions

$40K

Top Sellers

1
LJA

Leonard Jeffery Allen

Director, Officer: President & Ceo

8.4K sharesโ€ข2 transactions

$1.79M

2
RE

Rizzuti Edward

Officer: Evp, Corp Dev, Ir & Secretary

600 sharesโ€ข1 transactions

$103K

3
GNC

Grooms Nina C

Director

499 sharesโ€ข1 transactions

$87K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $1.70M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.14:1

Weak buy/sell ratio. Selling significantly exceeds buyingโ€”monitor for potential fundamental concerns.

Recent Trend (3 Months)

$74K

Negative recent trend with net selling. Insiders have reduced positions in recent months, which could signal caution.

Insider Participation

Moderate Selling

3 insider sellers vs. 2 buyers. More insiders selling than buying suggests cautious or negative sentiment.

Insider Activity Insight

Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.

0.21%
Dividend Yield
15%
3Y+73.0%
5Y+130.0%
10Y+51.0%
ย 

alg Dividend History

ALG
10Y CAGR +14%
Latest $0.34
Annual $1.58
5 year growth trend
Last Period: +0%