Alamo Group (ALG) AI Stock Analysis

• Market Cap: $2.65B
• Dividend Yield: 0.53%
• Average Volume (3M): 84.34K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.91
• Revenue Growth: -4.91%
• EPS Growth: -7.08%
• Country: US
• Employees: 3,750
• Sector: Industrials
• Sector Strength: 79
• Industry: Agricultural - Machinery
• EPS (TTM): 2.57
• Shares Outstanding: 12,110,910
• 10 Day Avg. Volume: 80,780
• 30 Day Avg. Volume: 84,337
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 1.67
• Enterprise Value/Gross Profit: 6.61
• Enterprise Value/Ebitda: 11.97
• 1Y Price Target: $260.00
• Price Target Upside: 18.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: $248.00 ▲(13.32% Upside)

Alamo Group's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The appointment of a new CEO adds a positive strategic outlook. However, valuation concerns and technical indicators suggest caution, balancing the overall score.

Positive Factors

Cost Management

Recent cost reduction initiatives are expected to boost earnings expectations into 2026.

Demand and Market Conditions

Demand stabilization in utility/small tractors along with tangible dealer destocking and a rebound in Hay/Alfalfa prices are helping the Vegetation segment.

Growth Strategy

The company could deploy over $600 million in mergers and acquisitions, which is seen as a key component for long-term growth.

Negative Factors

Earnings Risk

There is a risk of flat or declining earnings for two years, partly due to potential future impacts from tariffs or material cost increases.

Future Demand

Orders and backlog have decreased year over year, suggesting weaker future demand.

Profitability

The company's operating margin fell short of expectations, indicating pressure on profitability.

Alamo Group Business Overview & Revenue Model

Company Description

Alamo Group Inc. (ALG) is a leading manufacturer of equipment for infrastructure maintenance and agricultural applications. The company operates in two main segments: the Industrial Division and the Agricultural Division. Alamo Group produces a wide range of products, including street sweepers, mowing equipment, and other specialty equipment used by governmental and commercial entities. Its products are crucial for maintaining public infrastructure and supporting agricultural productivity, making Alamo a key player in these sectors.

How the Company Makes Money

Alamo Group generates revenue primarily through the sale of its equipment and related services. Key revenue streams include the direct sale of machinery to municipal and agricultural customers, as well as parts and service offerings that support their products. The company also benefits from long-term contracts with government entities, which provide a stable income base. Additionally, Alamo Group's strategic acquisitions of complementary businesses enhance its product offerings and market reach, further driving revenue growth. Partnerships with distributors and dealers across various regions also contribute to sales and enhance market penetration.

Alamo Group Financial Statement Overview

Summary

Alamo Group demonstrates strong financial health with solid profitability and cash generation capabilities. The balance sheet is robust with favorable debt levels, though revenue growth challenges need attention.

Income Statement

Alamo Group's income statement shows solid profitability with a stable gross profit margin. However, revenue has seen a slight decline in the TTM (Trailing-Twelve-Months) compared to the previous year, which affects the revenue growth rate adversely. The net profit margin remains healthy but slightly decreased. Overall, the company's income statement reflects strong profitability but with a need to address revenue growth challenges.

Balance Sheet

The balance sheet displays strong equity levels with a favorable debt-to-equity ratio, indicating prudent financial management. The equity ratio is robust, suggesting a stable capital structure. However, the return on equity has slightly decreased, pointing to potential efficiency improvements in generating profit from equity. Overall, the balance sheet demonstrates excellent financial stability with manageable leverage.

Cash Flow

Cash flow analysis shows a significant improvement in free cash flow growth, driven by strong operating cash flows. The operating cash flow to net income ratio is favorable, indicating efficient cash generation from operations. The company maintains a healthy free cash flow to net income ratio, highlighting effective cash management. Overall, cash flow metrics are strong, supporting operational and financial resilience.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.60B	1.63B	1.69B	1.51B	1.33B	1.16B
Gross Profit	403.81M	412.49M	453.64M	376.52M	334.51M	292.11M
EBITDA	222.89M	223.26M	249.19M	195.28M	161.42M	143.43M
Net Income	118.39M	115.93M	136.16M	101.93M	80.25M	57.80M
Balance Sheet
Total Assets	1.56B	1.45B	1.41B	1.31B	1.21B	1.11B
Cash, Cash Equivalents and Short-Term Investments	201.82M	197.27M	51.92M	47.02M	42.12M	50.20M
Total Debt	213.12M	226.93M	251.88M	301.95M	269.55M	285.39M
Total Liabilities	442.25M	432.02M	476.62M	523.15M	500.08M	483.69M
Stockholders Equity	1.12B	1.02B	932.76M	785.36M	705.66M	625.64M
Cash Flow
Free Cash Flow	185.24M	184.78M	93.41M	-16.77M	24.36M	166.46M
Operating Cash Flow	212.37M	209.78M	131.15M	14.53M	49.67M	184.33M
Investing Cash Flow	-41.65M	-22.18M	-52.62M	-31.74M	-33.44M	-14.17M
Financing Cash Flow	-94.26M	-31.97M	-76.88M	24.45M	-23.00M	-164.24M

Alamo Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 218.85
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALG, the sentiment is Neutral. The current price of 218.85 is below the 20-day moving average (MA) of 221.79, below the 50-day MA of 220.19, and above the 200-day MA of 194.85, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 48.30 is Neutral, neither overbought nor oversold. The STOCH value of 31.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ALG.

Alamo Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEX	77 Outperform	$3.38B	19.23	9.45%	1.32%	-0.35%	-63.44%
REVG	77 Outperform	$2.55B	28.05	34.41%	0.43%	-9.50%	-54.36%
LNN	75 Outperform	$1.52B	20.55	15.06%	1.01%	9.46%	5.91%
ALG	74 Outperform	$2.65B	22.55	11.30%	0.53%	-4.91%	-7.08%
ASTE	71 Outperform	$1.05B	23.03	7.02%	1.13%	1.17%	―
Sector *	64 Neutral	$10.82B	16.31	8.86%	2.03%	2.58%	-16.43%
HY	58 Neutral	$691.86M	31.33	4.39%	3.61%	-7.11%	-87.41%

Alamo Group Corporate Events

Alamo Group Appoints Robert Hureau as New CEO

On August 14, 2025, Alamo Group‘s Board of Directors approved the appointment of Robert P. Hureau as the new President and CEO, effective September 2, 2025. Hureau, with a strong background in the industrial and life science sectors, succeeds Jeffery A. Leonard, who will retire on September 1, 2025. The transition is part of a strategic succession plan aimed at continuing the company’s growth trajectory. Hureau’s appointment is expected to bring additional growth and profitability, leveraging his experience in scaling businesses and executing successful mergers and acquisitions.