ALG Alamo Group Inc. - Fundamental Analysis
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ALG Stock | Fundamental Analysis & Investment Insights
NYSE
Industrials
Farm & Heavy Construction Machinery
Current Price
Live
$191.14
Analyst Target
$219.75
+15.0%
Upside
52W High
$233.29
52W Low
$156.3
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 24, 2026
Market cap
$2.32B
P/E
19.99
ROE
10.8%
Profit margin
7.2%
Debt/Equity
0.2
Dividend yield
0.64%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
Alamo Group Inc. (ALG) exhibits strong financial health with a Piotroski F-Score of 8/9, indicating robust accounting fundamentals. However, the stock trades above its Graham Number of $142.55 at a current price of $191.14, suggesting overvaluation on a defensive basis, while growth metrics are mixed with declining YoY earnings. Despite solid profitability and low leverage, insider selling and inconsistent earnings beats over the last four quarters weigh on sentiment. Relative to sector peers, ALG has lower revenue growth and below-average profit margins, though it maintains a healthier balance sheet.
Key Strengths
Strong financial health indicated by Piotroski F-Score of 8/9
Low debt burden with Debt/Equity ratio of 0.20
High liquidity with Current Ratio of 4.43 and Quick Ratio of 2.68
Attractive valuation multiples relative to sector average P/E of 49.24
Low payout ratio of 12.03% supports dividend sustainability
Key Risks
Earnings underperformance with 1 out of last 4 quarters beating estimates
Declining YoY earnings growth of -7.90% and Q/Q EPS drop of -8.9%
Insider selling activity totaling $1.18M in the past 6 months
Stock trades at a premium to Graham Number ($142.55) with current price at $191.14
Weak technical trend score of 0/100 indicating bearish momentum
AI Fair Value Estimate
Based on comprehensive analysis
$158.75
-16.9% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
64
Strong
55
50
65
90
58
AI Verdict
Neutral with value concerns
Key drivers: Strong financial health, Overvaluation relative to Graham criteria, Mixed earnings trajectory, Bearish insider and technical signals
Confidence
75%
Value
55/100
Ref P/E, PEG, Graham Number
Positives
- P/E of 19.99 below sector average of 49.24
- Forward P/E of 15.99 suggests earnings recovery priced in
Watchpoints
- Current price 33.7% above Graham Number of $142.55
- No PEG ratio due to negative earnings growth
Future
50/100
Ref Growth rates
Positives
- Analyst target price of $219.75 implies 15% upside
Watchpoints
- Negative YoY earnings growth of -7.90%
- Q/Q earnings decline of -7.40%
- No PEG ratio due to lack of positive growth
Past
65/100
Ref Historical trends
Positives
- Long-term 5Y return of +28.5% outperforms market averages
- History of strong earnings surprises in earlier quarters (e.g., +34.5% in 2023)
Watchpoints
- Recent earnings misses: 3 out of last 4 quarters below estimates
- 6-month return of -12.7% indicates near-term weakness
Health
90/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Piotroski F-Score of 8/9 indicates excellent financial strength
- Debt/Equity of 0.20 shows conservative capital structure
- Current Ratio of 4.43 reflects strong short-term liquidity
Watchpoints
- Altman Z-Score not available, limiting distress risk assessment
Dividend
58/100
Ref Yield, Payout
Positives
- Low payout ratio of 12.03% provides safety buffer
- Dividend has been maintained without cuts
Watchpoints
- Dividend Strength score of 25/100 indicates weak yield and growth
- Yield of 0.64% is below sector and market averages
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$191.14
Analyst Target
$219.75
Upside/Downside
+15.0%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for ALG and closest competitors.
Updated 2026-01-23
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
ALG
Alamo Group Inc.
Primary
|
+28.5% | +27.0% | +4.4% | -12.7% | +10.3% | -0.8% |
|
ATKR
Atkore Inc.
Peer
|
+58.7% | -38.1% | -15.0% | -8.4% | +10.9% | +0.3% |
|
ATRO
Astronics Corporation
Peer
|
+444.1% | +413.7% | +344.9% | +121.3% | +38.1% | +2.2% |
|
ARCB
ArcBest Corporation
Peer
|
+20.9% | -7.4% | +17.0% | +21.0% | -20.0% | -9.0% |
|
ABM
ABM Industries Incorporated
Peer
|
+26.5% | +7.0% | -11.8% | -3.7% | +8.3% | +0.2% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
19.99
Forward P/E
15.99
PEG Ratio
N/A
P/B Ratio
2.02
P/S Ratio
1.43
EV/Revenue
1.42
EV/EBITDA
10.52
Market Cap
$2.32B
Profitability
Profit margins and return metrics
Profit Margin
7.2%
Operating Margin
8.94%
Gross Margin
25.05%
ROE
10.82%
ROA
6.64%
Growth
Revenue and earnings growth rates
Revenue Growth
+4.7%
Earnings Growth
-7.9%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
-7.4%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.2
Low debt
Current Ratio
4.43
Strong
Quick Ratio
2.68
Excellent
Cash/Share
$20.21
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-26
$N/A
2025-11-06
$2.34
-11.3% surprise
2025-08-06
$2.57
-5.2% surprise
2025-05-08
$2.64
+19.6% surprise
Industrials Sector Comparison
Comparing ALG against 122 companies in the Industrials sector
(6 bullish, 59 neutral, 57 bearish)
P/E Ratio
19.99
This Stock
vs
73.49
Sector Avg
-72.8%
(Discount)
Return on Equity (ROE)
10.82%
This Stock
vs
7.83%
Sector Avg
+38.2%
(Excellent)
Profit Margin
7.2%
This Stock
vs
57.85%
Sector Avg
-87.5%
(Weaker)
Debt to Equity
0.2
This Stock
vs
5.46
Sector Avg
-96.4%
(Less Debt)
Revenue Growth
4.7%
This Stock
vs
22.8%
Sector Avg
-79.4%
(Slower)
Current Ratio
4.43
This Stock
vs
2.64
Sector Avg
+67.9%
(Stronger)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
ALG
Alamo Group Inc.
|
NEUTRAL | $2.32B | 19.99 | 10.8% | 7.2% | $191.14 | |
|
ATKR
Atkore Inc.
|
BEARISH | $2.44B | - | -1.0% | -0.5% | $72.2 | |
|
ATRO
Astronics Corporation
|
BEARISH | $2.72B | - | -1.7% | -0.4% | $76.34 | |
|
ARCB
ArcBest Corporation
|
BEARISH | $1.91B | 32.39 | 4.6% | 1.5% | $84.87 | |
|
ABM
ABM Industries Incorporated
|
NEUTRAL | $2.78B | 17.86 | 9.1% | 1.9% | $45.37 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-11-26 | HUREAU ROBERT PAUL | Chief Executive Officer | Purchase | 304 | $49,697 |
| 2025-11-14 | HUREAU ROBERT PAUL | Chief Executive Officer | Purchase | 754 | $125,511 |
| 2025-08-22 | LEONARD JEFFERY ALLEN | Chief Executive Officer | Sale | 2,500 | $555,484 |
| 2025-08-21 | RIZZUTI EDWARD | Officer | Sale | 2,928 | $621,169 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
NONE
4 analysts
DA Davidson
2025-11-11
Neutral
Neutral
Baird
2025-08-04
Neutral
Outperform
Past News Coverage
Recent headlines mentioning ALG from our newsroom.
Newest → oldest
No matching news yet.