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Alamo Group
(NYSE:ALG)
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Rating:67Neutral
Price Target:
$172.00
â–²(4.07% Upside)
Action:Downgraded
Date:10/01/26
The score is anchored by strong financial health—especially an exceptionally conservative balance sheet and continued positive free cash flow—offset by weak technical momentum (below key moving averages with negative MACD). Valuation is reasonable but not compelling, and corporate events add some near-term uncertainty due to restructuring-related costs and risk disclosures.
Positive Factors
Conservative Balance Sheet
Extremely low leverage reduces financial risk and gives Alamo Group greater flexibility to fund operations, pursue acquisitions, or withstand weaker demand. Growing equity and still-healthy returns on equity further support the durability of its capital structure over the next several quarters.
Negative Factors
Margin Compression and Uneven Revenue
Recent margin deterioration and inconsistent top-line performance indicate that operating momentum has weakened from prior stronger periods. If this pattern persists, lower profitability could constrain reinvestment, reduce earnings resilience, and limit the benefits of the company’s otherwise solid business position.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Extremely low leverage reduces financial risk and gives Alamo Group greater flexibility to fund operations, pursue acquisitions, or withstand weaker demand. Growing equity and still-healthy returns on equity further support the durability of its capital structure over the next several quarters.
Read all positive factors
Alamo Group (ALG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.78B
Dividend Yield0.93%
Average Volume (3M)187.40K
Price to Earnings (P/E)17.4
Beta (1Y)0.65
Revenue Growth4.07%
EPS Growth-15.07%
CountryUS
Employees3,800
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)8.39
Shares Outstanding12,170,965
10 Day Avg. Volume156,460
30 Day Avg. Volume187,399
Financial Highlights & Ratios
PEG Ratio-1.79
Price to Book (P/B)1.76
Price to Sales (P/S)1.26
P/FCF Ratio13.73
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue1.25
Enterprise Value/Gross Profit5.16
Enterprise Value/Ebitda9.30
Forecast
1Y Price Target
$188.00Price Target Upside13.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)10.53
Revenue Forecast (FY)$1.71B
Alamo Group Business Overview & Revenue Model
Company Description
Alamo Group Inc. is a global enterprise specializing in the design, production, distribution, and servicing of equipment crucial for managing vegetation and maintaining public and private infrastructure. It serves a broad international clientele s...
How the Company Makes Money
Alamo Group makes money primarily by selling manufactured equipment across its end markets (vegetation management, roadway/infrastructure maintenance, and agricultural applications). Revenue is generated through the sale of new machines and implem...
Alamo Group Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: solid top-line growth (revenue up 6.7% YoY), sequential operating momentum and successful early integration of Petersen and product innovations are positive. However, year-over-year margin pressure (gross margin down 118 bps; adjusted EBITDA margin slightly lower), a YoY EPS decline, negative operating cash flow in the quarter, acquisition-related costs and tariff/inflation headwinds temper the outlook. Management emphasized operational initiatives (procurement, manufacturing efficiency, parts/commercial improvement) and strong liquidity to address these issues.Positive Updates
Consolidated Revenue Growth
Net sales for Q1 FY2026 were $417.1 million, up 6.7% year-over-year, driven by strength across Industrial Equipment and Vegetation Management and contributions from recent acquisitions.
Negative Updates
Gross Margin Decline
Gross margin fell to 25.1%, down 118 basis points year-over-year, driven primarily by Vegetation Management (municipal mowing weakness and ongoing manufacturing ramp inefficiencies).
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Net sales for Q1 FY2026 were $417.1 million, up 6.7% year-over-year, driven by strength across Industrial Equipment and Vegetation Management and contributions from recent acquisitions.
Read all positive updates
Company Guidance
Management did not give a formal full‑year numeric guide but laid out clear expectations and long‑term targets: Q1 provides the baseline (net sales $417.1M; gross profit $104.8M; gross margin 25.1%, down 118 bps YoY; adjusted EBITDA $59.3M or 14.2%; adjusted EPS $2.56) and they expect the Industrial segment (58% of sales) excluding acquisitions to be roughly flattish to up low‑single digits in 2026 (book‑to‑bill ~1x; Industrial adjusted EBITDA ~16% this quarter), while Vegetation (42% of sales) should stabilize — flattish to modestly down year‑over‑year but sequentially improving with Q1 Vegetation adjusted EBITDA at 11.2%; long‑term financial goals remain >10% sales growth, ~15% adjusted operating margin, >18% adjusted EBITDA margin and free cash flow ~100% of net income. They also reiterated a tariff headwind of roughly 0.8–0.9% of sales, net leverage below 1x (gross debt $290.5M, cash $195.2M), LTM operating cash flow $139.8M (138.2% of net income), a $0.34 quarterly dividend, and plans to drive ~300 bps of margin improvement via procurement, manufacturing/automation and parts/commercial initiatives (with some procurement benefits expected later in 2026 as inventory is worked down).Alamo Group Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
90
Very Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.66B | 1.60B | 1.63B | 1.69B | 1.51B | 1.33B |
| Gross Profit | 402.35M | 397.82M | 412.49M | 453.64M | 376.52M | 334.51M |
| EBITDA | 223.35M | 198.02M | 223.26M | 249.19M | 195.36M | 164.51M |
| Net Income | 101.02M | 103.80M | 115.93M | 136.16M | 101.93M | 80.25M |
Balance Sheet | ||||||
| Total Assets | 1.72B | 1.61B | 1.45B | 1.41B | 1.31B | 1.21B |
| Cash, Cash Equivalents and Short-Term Investments | 195.00M | 309.66M | 197.27M | 51.92M | 47.02M | 42.12M |
| Total Debt | 273.06M | 220.29M | 226.93M | 240.57M | 306.64M | 274.21M |
| Total Liabilities | 535.49M | 457.91M | 432.02M | 476.62M | 523.15M | 500.08M |
| Stockholders Equity | 1.19B | 1.15B | 1.02B | 932.76M | 785.36M | 705.66M |
Cash Flow | ||||||
| Free Cash Flow | 135.31M | 146.92M | 184.78M | 93.41M | -16.77M | 24.36M |
| Operating Cash Flow | 163.29M | 177.54M | 209.78M | 131.15M | 14.53M | 49.67M |
| Investing Cash Flow | -188.09M | -46.19M | -22.18M | -52.62M | -31.74M | -33.44M |
| Financing Cash Flow | 21.59M | -30.79M | -31.97M | -76.88M | 24.45M | -23.00M |
Alamo Group Technical Analysis
Negative
165.27
Price Trends
160.90
Negative
161.06
Negative
169.15
Negative
Market Momentum
-4.09
Positive
28.64
Positive
16.96
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALG, the sentiment is Negative. The current price of 165.27 is above the 20-day moving average (MA) of 153.92, above the 50-day MA of 160.90, and below the 200-day MA of 169.15, indicating a bearish trend. The MACD of -4.09 indicates Positive momentum. The RSI at 28.64 is Positive, neither overbought nor oversold. The STOCH value of 16.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALG.
Alamo Group Risk Analysis
Alamo Group disclosed 31 risk factors in its most recent earnings report. Alamo Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Alamo Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $254.75M | 17.21 | 6.82% | ― | -6.39% | -1.99% | |
67 Neutral | $1.78B | 17.42 | 8.70% | 0.93% | 4.07% | -15.07% | |
64 Neutral | $5.86B | 25.77 | 4.30% | 1.33% | 29.17% | -27.70% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $918.47M | 17.77 | 18.51% | 2.96% | 20.05% | -20.51% | |
54 Neutral | $885.33M | 44.71 | 2.88% | 1.35% | 18.70% | -57.51% | |
46 Neutral | $1.13B | 66.17 | 3.17% | 1.87% | -2.91% | -68.31% |
* Industrials Sector Average
ALG
Alamo Group
146.18
-37.36
-20.36%
ASTE
Astec
38.45
-8.86
-18.73%
PLOW
Douglas Dynamics
39.80
9.28
30.39%
GENC
Gencor
17.38
3.46
24.86%
TNC
Tennant Co
66.26
-14.05
-17.49%
TEX
Terex
51.29
-6.51
-11.26%
Alamo Group Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Alamo Group Addresses Restructuring Costs and Related Risks
Negative
Sep 30, 2026
Alamo Group filed a Form 8-K on September 30, 2026, formally certifying the report through the signature of Vice President, General Counsel and Secretary Andrew Sefzik. The filing references a discussion under Item 2.05 concerning costs associated...
Business Operations and StrategyRegulatory Filings and Compliance
Alamo Group Addresses Restructuring Costs and Related Risks
Negative
Sep 8, 2026
Alamo Group filed a Current Report on Form 8-K dated September 8, 2026, formally signed by Vice President, General Counsel and Secretary Andrew Sefzik under the requirements of the Securities Exchange Act of 1934. The filing references a discussio...
Business Operations and StrategyExecutive/Board Changes
Alamo Group Announces Executive Retirement and Advisory Role
Neutral
Aug 11, 2026
On August 7, 2026, Alamo Group Inc. reported that Executive Vice President and Head of Corporate Development Edward T. Rizzuti notified the company of his intent to retire effective September 11, 2026, with the move not tied to any disagreement ov...
Business Operations and StrategyExecutive/Board Changes
Alamo Group Appoints New Chief Accounting Officer
Positive
Jul 8, 2026
On July 5, 2026, Alamo Group Inc. appointed Greg Lucas as Vice President, Corporate Controller and Chief Accounting Officer, with his start date expected on or before August 10, 2026. Lucas will become the company’s principal accounting offi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.