ALG

Alamo Group Inc.

Fundamental data last updated:June 6, 2026

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company profile

SECTOR

Industrials

industry

Agricultural - Machinery

Exchange

NYSE

County of HQ

US

Next Earnings Date

08/05/2026

Business Summary

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.

 


VALUATION

P/E

18.16

Market Cap ($M USD)

$1.86B

Forward P/E

12.72

PEG

0.30

PRICE TO SALES

1.14

PRICE TO BOOK

1.57

EV / EBITDA

7.91

5-Year Average P/E

Free Cash Flow Yield

5.97%

DCF Value

$192.03

Graham Number

$135.60

Price to FCF

16.76

EV to FCF

17.62

Earnings Yield

5.51%

FCF Yield

5.97%

DIVIDEND

Yield

0.84%

Annual Payout

$1.28

Payout Ratio

14.74%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$8.40

Next Year EPS Growth Estimate

$11.99

Next Year Revenue Growth Estimate

$175.68B

Return on Equity (ROE)

8.86%

FREE CASH FLOW

Operating Margin

9.16%

Debt-to-Equity

0.19

Piotroski F-Score

5

Altman Z-Score

4.67

Return on Invested Capital (ROIC)

9.96%

Current Ratio

4.32

Quick Ratio

2.45

Net Debt to EBITDA

0.39

Interest Coverage

5.29

Gross Profit margin

24.23%

FCF PER SHARE

$9.19

REVENUE PER SHARE

$135.25

Gainseekers Quantitative Analysis

Summary

Alamo Group Inc. presents a compelling valuation story. Recent pricing indicated it traded below its DCF Value, suggesting potential undervaluation. The Forward P/E of 13.67 and an impressive Altman Z-score of 4.80 highlight both growth potential and financial stability. However, the Earnings Yield of 5.13% suggests the market may not fully appreciate its earnings power. Overall, the stock appears to be a solid candidate for value investors seeking safety and growth.

AI Exposure / Tech Reliance

Operating within the agricultural machinery sector, Alamo Group is well-positioned to integrate AI and modern technology into its operations. The industry is ripe for automation and efficiency improvements, which could enhance productivity. As a leader in its field, Alamo has the potential to leverage these technologies to maintain a competitive edge.

The Bull Case

For the discerning value investor, Alamo Group shines with its robust ROIC of 9.96% and a healthy FCF Yield of 5.56%. These metrics underscore its capital efficiency and ability to generate cash. The Piotroski F-Score of 5 indicates moderate financial health, while an operating margin of 9.16% showcases its pricing power. Together, these factors paint a picture of a company with strong institutional tailwinds and operational prowess.

The Bear Case

Despite its strengths, Alamo Group faces challenges. The Price/Book ratio of 1.68 and Price/Sales of 1.22 suggest the stock isn't a bargain basement deal. Additionally, the stock's proximity to its 52-week high could indicate technical overextension. While its debt levels are low, the modest gross profit margin of 24.23% may limit its ability to weather competitive pressures.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$189.00

Institutional Ownership %

1-Year Beta

1.17

Insider Buying % (6 Mo)

Distance to 52-Week High

53.00%

Distance to 52-Week Low

4.41%

EARNINGS SURPRISE %

19.07%

50-DAY SMA

$164.94

200-DAY SMA

$182.83

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.