Alamo Group Inc

Industrials
Industrial Machinery/Components
www.alamo-group.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $2.36B
PE 20
Debt $239.18M
Cash $140.04M
EV $2.46B
FCF $155.08M

Earnings

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Sales & Net Margins

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Earnings	$119.37M
EBIT	$175.17M
ROE	12%
ROA	12%
FCF	$155.08M
Equity	$1.02B
Growth Stability	94%
PE	19.78
PEG	0.84
PB	2.32
P/FCF	15.23
P/S	1.42
Price/Cash	0.06
Debt/Equity	0.24
Debt/FCF	1.54
Net Margins	7%
Gross Margins	26%
Op. Margins	11%
Earnings CAGR	14%
Sales Growth YoY	-4%
Sales Growth QoQ	-4%
Sales CAGR	9%
FCF CAGR	6%
Equity CAGR	12%
Earnings Stability	0.85
Earnings Growth YoY	-22%
Earnings Growth QoQ	-3%
Earnings CAGR 5Y	24%

Sales CAGR 5Y	11%
FCF CAGR 5Y	-2%
Equity CAGR 5Y	14%
Earnings CAGR 3Y	9%
Sales CAGR 3Y	9%
FCF CAGR 3Y	77%
Equity CAGR 3Y	15%
Market Cap	$2.36B
Revenue	$1.66B
Dividend Yield	1%
Payout Ratio	10%
Assets	$1.48B
Total Debt	$239.18M
Cash	$140.04M
Shares Outstanding	11.97M
EV	2.46B
Earnings Score	94%
Moat Score	90%
Safety Score	95%
Final Score	93%
Working Capital	667.59M
Current Ratio	4.15
Gross Profit	$429.62M
Shares Growth 3y	0%
Equity Growth QoQ	4%
Equity Growth YoY	15%

Assets & ROA

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Stockholders Equity & ROE

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Alamo Group Inc is engaged in the design and manufacturing of agricultural equipment and infrastructure maintenance equipment. Its products include tractor-mounted mowing and other vegetation maintenance equipment, street sweepers, excavators, vacuum trucks, snow removal equipment, leaf collection equipment, pothole patchers, zero-turn radius mowers, agricultural implements, and related aftermarket parts. The company's reportable segments are Vegetation Management and Industrial Equipment. It generates a majority of its revenue from Vegetation Management. Geographically, the company generates most of the revenue from the United States.

SEC Filings

Direct access to Alamo Group Inc (ALG) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Alamo Group Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Alamo Group Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 14%

Stability 85%

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Alamo Group Inc Discounted Cash Flow

Fully customizable DCF calculator online for Alamo Group Inc.

Years

Calculation mode

= $2.3B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$155M	$164M	$173M	$183M	$193M	$204M	$215M	$227M	$240M	$254M	$268M	$2.7B
DCF		$149M	$143M	$137M	$132M	$127M	$121M	$117M	$112M	$108M	$103M	$1B
Value	$2.3B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	5%	5%	5%	5%	7%	6%	5%	6%	7%	8%	7%
ROA	-	12%	12%	14%	14%	8%	8%	10%	11%	14%	12%
ROE	-	12%	10%	10%	14%	11%	9%	11%	13%	15%	12%

Net Margins (7.07%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	3.89	1.07	1.05	-6.25	8.05	1.8	11.66	-19.08	2.68	1.54
Debt over Equity	0.57	0.4	0.18	0.13	0.17	0.81	0.48	0.4	0.4	0.27	0.24
Growth Stability	-	-	-	100%	100%	100%	94%	100%	100%	100%	94%

Good Debt/FCF ratio (1.54)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.24)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (94%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	5%	-4%	8%	11%	11%	4%	15%	13%	12%	11%
Earnings YoY growth	-	5%	-7%	11%	66%	-14%	-10%	42%	27%	34%	24%
Equity YoY growth	-	7%	8%	16%	13%	12%	10%	13%	11%	19%	14%
FCF YoY growth	-	82%	78%	-13%	-124%	-520%	190%	-85%	-168%	-662%	-2%