Alamo Group (ALG)
NYSE:ALG
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Alamo Group
(NYSE:ALG)
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Rating:65Neutral
Price Target:
$158.00
â–¼(-8.20% Downside)
Action:Reiterated
Date:05/09/26
The score is driven mainly by solid underlying financial health and a balanced earnings outlook with clear margin-improvement initiatives, but it is held back by weak technicals (below major moving averages with negative MACD) and some near-term margin/cash-flow and demand pressures.
Positive Factors
Conservative balance sheet / liquidity
Low debt-to-equity and net leverage under 1x give durable financial flexibility. Strong liquidity and a cash buffer support disciplined M&A, dividend continuity and capital spending through revenue cycles, reducing insolvency risk and enabling investment in margin-improvement programs over the next several quarters.
Negative Factors
Margin compression from 2023 peaks
Gross and adjusted EBITDA margin declines reflect manufacturing ramp inefficiencies and segment-specific weakness. Sustained margin pressure undermines earnings power and requires multi-quarter procurement and automation gains to fully reverse, exposing near-term earnings to cost and pricing volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / liquidity
Low debt-to-equity and net leverage under 1x give durable financial flexibility. Strong liquidity and a cash buffer support disciplined M&A, dividend continuity and capital spending through revenue cycles, reducing insolvency risk and enabling investment in margin-improvement programs over the next several quarters.
Read all positive factors
Alamo Group (ALG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.85B
Dividend Yield0.69%
Average Volume (3M)84.52K
Price to Earnings (P/E)17.0
Beta (1Y)0.74
Revenue Growth2.26%
EPS Growth-12.86%
CountryUS
Employees3,750
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)8.41
Shares Outstanding12,168,343
10 Day Avg. Volume111,508
30 Day Avg. Volume84,518
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 Cap1.05
Enterprise Value/Revenue1.19
Enterprise Value/Gross Profit4.93
Enterprise Value/Ebitda7.89
Forecast
1Y Price Target
$202.67Price Target Upside17.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)10.45
Revenue Forecast (FY)$1.69B
Alamo Group Business Overview & Revenue Model
Company Description
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 hydra...
How the Company Makes Money
ALG makes money primarily by manufacturing and selling equipment across its two main operating segments and by supporting that installed base with aftermarket parts and service. (1) New equipment sales: The largest revenue driver is the sale of fi...
Alamo Group Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 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
78
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.63B | 1.60B | 1.63B | 1.69B | 1.51B | 1.33B |
| Gross Profit | 394.90M | 397.82M | 412.49M | 453.64M | 376.52M | 334.51M |
| EBITDA | 246.63M | 198.02M | 223.26M | 249.19M | 195.36M | 164.51M |
| Net Income | 101.19M | 103.80M | 115.93M | 136.16M | 101.93M | 80.25M |
Balance Sheet | ||||||
| Total Assets | 1.73B | 1.61B | 1.45B | 1.41B | 1.31B | 1.21B |
| Cash, Cash Equivalents and Short-Term Investments | 195.23M | 309.66M | 197.27M | 51.92M | 47.02M | 42.12M |
| Total Debt | 290.47M | 220.29M | 226.93M | 240.57M | 306.64M | 274.21M |
| Total Liabilities | 554.52M | 457.91M | 432.02M | 476.62M | 523.15M | 500.08M |
| Stockholders Equity | 1.17B | 1.15B | 1.02B | 932.76M | 785.36M | 705.66M |
Cash Flow | ||||||
| Free Cash Flow | 110.70M | 146.92M | 184.78M | 93.41M | -16.77M | 24.36M |
| Operating Cash Flow | 139.83M | 177.54M | 209.78M | 131.15M | 14.53M | 49.67M |
| Investing Cash Flow | -210.07M | -46.19M | -22.18M | -52.62M | -31.74M | -33.44M |
| Financing Cash Flow | 57.98M | -30.79M | -31.97M | -76.88M | 24.45M | -23.00M |
Alamo Group Technical Analysis
Negative
172.11
Price Trends
166.68
Negative
179.86
Negative
184.03
Negative
Market Momentum
-5.92
Positive
36.81
Neutral
20.94
Neutral
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 172.11 is above the 20-day moving average (MA) of 162.30, above the 50-day MA of 166.68, and below the 200-day MA of 184.03, indicating a bearish trend. The MACD of -5.92 indicates Positive momentum. The RSI at 36.81 is Neutral, neither overbought nor oversold. The STOCH value of 20.94 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.
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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $6.58B | -10.42 | 3.93% | 1.24% | 17.03% | -43.69% | |
65 Neutral | $1.85B | 17.03 | 8.86% | 0.69% | 2.26% | -12.86% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $1.13B | 29.53 | 11.28% | 1.24% | -1.70% | -22.14% | |
53 Neutral | $1.12B | 237.51 | 3.82% | 1.14% | 11.47% | 69.53% | |
52 Neutral | $409.25M | 20.66 | 0.66% | 1.59% | 2.13% | -36.14% |
* Industrials Sector Average
ALG
Alamo Group
152.16
-45.83
-23.15%
ASTE
Astec
48.70
9.04
22.79%
CMCO
Columbus Mckinnon
14.24
-1.92
-11.87%
LNN
Lindsay
108.48
-28.62
-20.88%
TEX
Terex
57.61
12.65
28.14%
Alamo Group Corporate Events
Executive/Board ChangesShareholder Meetings
Alamo Group Shareholders Back Board, Pay and Auditor
Positive
May 1, 2026
On May 1, 2026, Alamo Group stockholders held their annual meeting and elected all nine director nominees to serve until the next annual meeting, signaling continued support for the company’s existing board composition and governance directi...
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.