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Alta Equipment Group (ALTG)
NYSE:ALTG
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Alta Equipment Group
(NYSE:ALTG)
60Neutral
Alta Equipment Group (ALTG) vs. S&P 500 (SPY)
Market Cap
$176.91M
Dividend Yield4.2%
Average Volume (3M)155.68K
Price to Earnings (P/E)―
Beta (1Y)1.86
Revenue Growth-2.09%
EPS Growth-977.36%
CountryUS
Employees2,900
SectorIndustrials
Sector Strength91
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)-0.47
Shares Outstanding33,191,067
10 Day Avg. Volume143,244
30 Day Avg. Volume155,683
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)1.98
Price to Sales (P/S)0.00
P/FCF Ratio-10.94
Enterprise Value/Market Cap7.56
Enterprise Value/Revenue0.18
Enterprise Value/Gross Profit2.75
Enterprise Value/Ebitda1.90
Forecast
1Y Price Target
$8.33Price Target Upside56.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Alta Equipment Group Business Overview & Revenue Model
Company DescriptionAlta Equipment Group (NASDAQ: ALTG) is a leading provider of industrial and construction equipment in the United States. The company operates through a network of branches across the Midwest and Northeast regions, offering a comprehensive range of equipment solutions. Alta Equipment Group specializes in the sale, rental, and servicing of new and used equipment, including material handling, construction, and industrial machinery. The company serves a diverse customer base across various sectors, including construction, logistics, manufacturing, and agriculture.
How the Company Makes MoneyAlta Equipment Group generates revenue through several key streams. The primary source of income is the sale of new and used equipment, which includes forklifts, excavators, loaders, and other industrial machinery. Additionally, the company earns significant revenue from its equipment rental services, providing short-term and long-term rental solutions to customers who prefer not to purchase machinery. Alta Equipment Group also offers a wide range of after-sales services, such as maintenance, repair, and parts distribution, which contribute to its recurring revenue. The company has strategic partnerships with leading equipment manufacturers, enabling it to offer high-quality products and leverage manufacturer support, further enhancing its market position and revenue potential.
Alta Equipment Group Financial Statement Overview
Summary
Alta Equipment Group exhibits strengths in revenue growth and cash flow generation but faces challenges with profitability and high leverage. The income statement reflects steady revenue but inconsistent profits, while the balance sheet highlights financial risks associated with high debt levels. Cash flow improvements are a positive sign, yet variability remains a concern. Overall, the company shows potential but requires better financial management to enhance stability and profitability.Income Statement
Alta Equipment Group's revenue growth has been quite strong over the years, showcasing a significant increase from 2019 to 2022. However, in 2023 and 2024, revenue growth stalled. The gross profit margin is moderate, but the company has struggled with profitability, as evidenced by negative net income in several recent years. The EBIT and EBITDA margins also reflect challenges in maintaining profitability, contributing to a mixed performance in this area.55
Neutral
Balance Sheet
The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. The equity ratio is low, and there has been a decrease in stockholders' equity over time. The return on equity (ROE) has been inconsistent, with negative net income impacting potential returns for shareholders. Overall, the balance sheet suggests a need for improved financial stability.40
Negative
Cash Flow
The company has shown improvement in operating cash flow, with positive free cash flow in 2024 after negative figures in previous years. The operating cash flow to net income ratio is favorable, indicating good cash generation relative to accounting profits. However, fluctuations in free cash flow over the years suggest variability in cash management.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.88B | 1.88B | 1.57B | 1.21B | 873.60M | Gross Profit |
| 493.70M | 507.20M | 419.60M | 314.40M | 214.50M | EBIT |
| 18.60M | 54.40M | 40.80M | 18.00M | 800.00K | EBITDA |
| 159.50M | 192.10M | 154.40M | 102.60M | 68.20M | Net Income Common Stockholders |
| -62.10M | 8.90M | 9.30M | -20.80M | -24.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 13.40M | 31.00M | 2.70M | 2.30M | 1.20M | Total Assets |
| 1.48B | 1.57B | 1.29B | 982.60M | 746.20M | Total Debt |
| 1.20B | 1.18B | 921.80M | 679.40M | 461.00M | Net Debt |
| 1.19B | 1.15B | 919.10M | 677.10M | 459.80M | Total Liabilities |
| 1.40B | 1.42B | 1.15B | 847.90M | 589.30M | Stockholders Equity |
| 77.60M | 149.70M | 139.80M | 134.70M | 156.90M |
| Cash Flow | Free Cash Flow | |||
| -13.50M | -10.80M | -50.70M | -19.70M | -84.30M | Operating Cash Flow |
| 57.00M | 63.80M | 26.00M | 30.70M | -38.40M | Investing Cash Flow |
| -56.20M | -122.80M | -162.60M | -113.40M | -224.50M | Financing Cash Flow |
| -17.90M | 87.30M | 136.90M | 83.80M | 264.10M |
Alta Equipment Group Technical Analysis
Neutral
5.33
Price Trends
4.65
Positive
5.62
Negative
6.15
Negative
Market Momentum
0.21
Negative
63.13
Neutral
79.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALTG, the sentiment is Neutral. The current price of 5.33 is above the 20-day moving average (MA) of 4.70, above the 50-day MA of 4.65, and below the 200-day MA of 6.15, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 63.13 is Neutral, neither overbought nor oversold. The STOCH value of 79.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ALTG.
Alta Equipment Group Risk Analysis
Alta Equipment Group disclosed 33 risk factors in its most recent earnings report. Alta Equipment 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
Alta Equipment Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $3.89B | 30.61 | 9.60% | 1.96% | 8.34% | -63.02% | |
67 Neutral | $5.33B | 332.30 | 1.28% | 0.23% | -0.77% | -94.12% | |
64 Neutral | $4.44B | 11.99 | 5.16% | 249.23% | 4.01% | -11.87% | |
60 Neutral | $176.91M | ― | -73.72% | 4.20% | -2.09% | -977.36% | |
59 Neutral | $1.06B | ― | -3.76% | ― | -0.61% | -248.58% | |
56 Neutral | $3.52B | 38.66 | 15.74% | 1.14% | -3.52% | -46.60% | |
51 Neutral | $26.40M | ― | -4.33% | ― | 19.51% | 29.43% |
* Industrials Sector Average
Performance Comparison
ALTG
Alta Equipment Group
5.33
-3.04
-36.32%
WSC
WillScot Mobile Mini Holdings
28.75
-13.02
-31.17%
HEES
H&E Equipment Services
96.11
48.86
103.41%
HRI
Herc Holdings
136.64
-15.21
-10.02%
FPAY
FlexShopper
1.21
0.06
5.22%
CTOS
Custom Truck One Source
4.66
<0.01
0.22%
Alta Equipment Group Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 18.44%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several positive developments, such as strong performance in product support and strategic divestitures, which were offset by challenges, including a decline in overall revenue and the suspension of the dividend. The company also faces uncertainties related to tariffs. Despite these challenges, Alta Equipment Group demonstrated resilience and strategic focus, as evidenced by the increased share repurchase program.Q1-2025 Updates
Positive Updates
Solid Performance in Product Support
The product support business held strong and remains a critical pillar of strength. Service gross margin increased by 230 basis points year-over-year, adding $2.7 million in gross margin.
Positive Developments in Construction Equipment
The construction equipment market expanded modestly year-over-year, driven by infrastructure-related projects, despite some regional softening in private nonresidential construction.
Successful Divestiture of Aerial Equipment Rental Business
Alta Equipment Group strategically divested its aerial equipment rental business in the Chicagoland market, generating approximately $20 million in cash proceeds.
Increased Share Repurchase Program
The Board of Directors increased the share repurchase program by $10 million, bringing the total to $30 million, alongside a $10 million allocation to a Rule 10b5-1 plan.
Master Distribution Segment Growth
Ecoverse, part of the Master Distribution segment, outperformed last year's revenue figure by 35.9% due to strong demand for environmental processing equipment.
Negative Updates
Decline in Revenue
The company recorded revenue of $423 million, a reduction of 4.2% compared to last year, due to reduced new equipment sales and lower rental revenues.
Suspension of Quarterly Dividend
The Board of Directors authorized the indefinite suspension of the quarterly dividend, reallocating resources to share buybacks.
Challenges in Material Handling Segment
New equipment sales in the Material Handling segment were down due to elevated delivery volumes in the previous year. However, stronger margins helped offset lower delivery volumes.
Uncertain Impact of Tariffs
The company faces challenges due to tariffs, with potential impacts on demand if surcharges increase beyond the current 0-10% range.
Company Guidance
During the first quarter of 2025, Alta Equipment Group provided several key metrics in their earnings call. The company reported a revenue of $423 million, marking a 4.2% decline year-over-year. Despite this reduction, adjusted EBITDA was $33.6 million, only down by $0.5 million compared to Q1 2024, showcasing strong cost management and operational efficiency. Gross margins improved with a notable 230 basis point year-over-year increase in service gross margin and a 290 basis point gain specifically in the Construction segment. The company also managed a significant $7.9 million reduction in SG&A expenses. On the balance sheet front, Alta ended the quarter with approximately $290 million in cash and available credit, and a strategic divestiture of the aerial equipment rental business in Illinois yielded $20 million in cash proceeds. Alta reaffirmed their fiscal year 2025 adjusted EBITDA guidance, now projected between $171.5 million and $186.5 million, after accounting for the recent divestiture. Additionally, the company announced a shift in capital allocation strategy, suspending their quarterly dividend to focus on a $30 million share repurchase program, reflecting confidence in Alta's intrinsic value and commitment to shareholder returns.Alta Equipment Group Corporate Events
M&A TransactionsStock BuybackDividends
Alta Equipment Group Expands Stock Repurchase Program
Neutral
May 7, 2025
On May 1, 2025, Alta Equipment Group‘s Construction Equipment segment divested its aerial fleet rental business in Chicago for $18 million, aiming to reduce senior indebtedness. The Board increased the stock repurchase program from $20 million to $30 million and suspended the quarterly dividend, reallocating funds to enhance shareholder returns.
Spark’s Take on ALTG Stock
According to Spark, TipRanks’ AI Analyst, ALTG is a Neutral.
Alta Equipment Group’s overall score reflects its strengths in revenue stability and cash flow improvements but is tempered by profitability challenges, high leverage, and bearish technical indicators. The successful debt refinancing and dividend yield are positive factors, yet ongoing sales declines and weak margins present significant risks.
To see Spark’s full report on ALTG stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.