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Alamo Group (ALG) AI Stock Analysis
Alamo Group
(NYSE:ALG)
ALG scores in the mid-range primarily due to solid financial stability (low leverage and healthy free cash flow) despite a clear near-term slowdown in growth and margins. Technical conditions are the main drag, with the price below key moving averages and negative momentum. Valuation is only moderate for the current backdrop, while the latest earnings call adds a modest offset via strong cash flow/liquidity and an accretive acquisition, tempered by soft demand and limited 2027 visibility.
Alamo Group (ALG) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $1.81B
- Dividend Yield
- 0.94%
- Average Volume (3M)
- 176.48K
- Price to Earnings (P/E)
- 22.3
- Beta (1Y)
- 0.68
- Revenue Growth
- 1.81%
- EPS Growth
- -33.54%
- Country
- US
- Employees
- 3,800
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Industrial - Machinery
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 span...
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 implement...
Alamo Group Earnings Call Summary
The call reflected mixed performance. Positive developments included improved underlying Vegetation Management profitability, strong Industrial Equipment order growth, substantial free cash flow, strong liquidity, portfolio simplification and the acquisition of Econ Engineering. These were balanced by lower consolidated sales and adjusted earnings, Industrial Equipment margin compression, persistently soft end markets, restructuring charges, elevated taxes and limited visibility for 2027.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management said it is “not providing financial guidance to 2027 at this time”; North American ag, North American Tree Care and European markets are “down low to mid-single digits” or “thereabouts in that ZIP code,” with 2026 soft and “likely” continuing into 2027, while Industrial markets may be “low single digits or flattish or something in that ZIP code.” The company expects long-term effective tax rate of “approximately 25% to 26%,” capital expenditures of “approximately 2% of net sales on average or approximately 3%, including Econ,” target net leverage of “up to 2.5x,” “one to two tuck-ins in a typical year,” a quarterly dividend “currently $0.34 per share per quarter” reflecting a target payout ratio of “approximately 15% of net income,” and backlog of about “4.5 months of revenue” for Industrial and “around a quarter or maybe a smidge over a quarter” for Vegetation; price is expected to catch up “over the course of the fourth quarter or thereabouts,” with recovery “over the next quarter or two,” while procurement savings should continue in the fourth quarter with “an acceleration in 2027.”
Alamo Group Financial Statement Overview
Summary
Overall fundamentals are solid but slowing. The balance sheet is a clear strength with conservative leverage and a stronger equity base, and cash generation remains healthy with strong free cash flow. Offsetting this, TTM revenue is flat to slightly down and profitability has cooled with margin compression and uneven cash conversion, pointing to softer near-term demand.
Income Statement
64PositiveBalance Sheet
78PositiveCash Flow
71Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.64B | 1.60B | 1.63B | 1.69B | 1.51B | 1.33B |
| Gross Profit | 376.78M | 397.82M | 412.49M | 453.64M | 376.52M | 334.51M |
| EBITDA | 193.32M | 198.02M | 223.26M | 249.19M | 195.36M | 164.51M |
| Net Income | 77.66M | 103.80M | 115.93M | 136.16M | 101.93M | 80.25M |
Balance Sheet | ||||||
| Total Assets | 1.70B | 1.61B | 1.45B | 1.41B | 1.31B | 1.21B |
| Cash, Cash Equivalents and Short-Term Investments | 230.65M | 309.66M | 197.27M | 51.92M | 47.02M | 42.12M |
| Total Debt | 232.31M | 220.29M | 226.93M | 240.57M | 306.64M | 274.21M |
| Total Liabilities | 513.52M | 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 | 137.06M | 146.92M | 184.78M | 93.41M | -16.77M | 24.36M |
| Operating Cash Flow | 158.35M | 177.54M | 209.78M | 131.15M | 14.53M | 49.67M |
| Investing Cash Flow | -165.27M | -46.19M | -22.18M | -52.62M | -31.74M | -33.44M |
| Financing Cash Flow | -4.64M | -30.79M | -31.97M | -76.88M | 24.45M | -23.00M |
Alamo Group Technical Analysis
Price Trends
Market Momentum
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 144.12 is below the 20-day moving average (MA) of 149.90, below the 50-day MA of 158.74, and below the 200-day MA of 167.72, indicating a bearish trend. The MACD of -3.07 indicates Negative momentum. The RSI at 43.12 is Neutral, neither overbought nor oversold. The STOCH value of 72.43 is Neutral, 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.
Latest Risks Added
0 New RisksAlamo Group Peers Comparison
Overall Rating
GENC82Outperform
TEX74Outperform
PLOW65Neutral- ALG64Neutral
ASTE56Neutral
TNC53Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| GENC | 82Outperform | $252.70M | 17.38 | 6.82% | ― | -6.39% | -1.99% |
| TEX | 74Outperform | $6.47B | 28.64 | 4.71% | 1.18% | 40.10% | -17.18% |
| PLOW | 65Neutral | $846.00M | 13.56 | 22.34% | 3.10% | 22.75% | 57.30% |
| ALG | 64Neutral | $1.81B | 22.34 | 6.62% | 0.94% | 1.81% | -33.54% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| ASTE | 56Neutral | $922.40M | 45.70 | 2.88% | 1.32% | 18.70% | -57.51% |
| TNC | 53Neutral | $1.23B | 54.30 | 4.14% | 1.70% | -0.40% | -53.68% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| ALG | Alamo Group Inc. | 144.12 | -27.64 | -16.09% | |
| ASTE | Astec Industries, Inc. | 39.30 | -5.83 | -12.91% | |
| PLOW | Douglas Dynamics | 38.12 | 7.87 | 26.01% | |
| GENC | Gencor Industries, Inc. | 17.55 | 3.74 | 27.08% | |
| TNC | Tennant Company | 72.84 | -0.35 | -0.48% | |
| TEX | Terex Corporation | 57.56 | 11.86 | 25.94% |
Alamo Group Corporate Events
Alamo Group Acquires UK Roadway Maintenance Leader Econ
PositiveOn October 27, 2026, Alamo Group Inc. announced the acquisition of Econ Engineering Group Limited, a UK-based manufacturer of roadway maintenance trucks and equipment, for £120 million, or about $158.7 million, funded through the company’s...
Alamo Group Addresses Restructuring Costs and Related Risks
NegativeAlamo 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 wi...
Alamo Group Addresses Restructuring Costs and Related Risks
NegativeAlamo 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 discussion o...
Alamo Group Announces Executive Retirement and Advisory Role
NeutralOn 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 over...
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.
Date of analysis: Nov 04, 2026