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Alamo Group
(NYSE:ALG)
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Rating:73Outperform
Price Target:
$183.00
â–˛(10.67% Upside)
Action:Reiterated
Date:08/04/26
ALG’s score is driven primarily by strong financial health, especially a very conservative balance sheet and continued positive free cash flow, despite some volatility in cash conversion and softer margins versus prior peaks. The earnings call supports a cautiously constructive view with YoY revenue growth and sequential operational improvement, but ongoing margin pressure, working-capital-related quarterly cash outflow, and tariff/demand headwinds limit upside. Technicals are neutral-to-soft (below the 200-day average with muted momentum), and valuation is reasonable but not compelling with a low dividend yield.
Positive Factors
Conservative balance sheet
Extremely low leverage and a growing equity base provide durable financial flexibility. This reduces refinancing and liquidity risk, supports disciplined M&A and capital returns, and gives management room to invest in productivity improvements without materially increasing financial risk over the medium term.
Negative Factors
Margin compression
Material YoY gross- and EBITDA-margin declines signal structural profitability pressure from product mix, manufacturing ramp inefficiencies and pricing/headwinds. Restoring margins will require sustained procurement, manufacturing and commercial improvements, which can take multiple quarters and weigh on medium-term returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage and a growing equity base provide durable financial flexibility. This reduces refinancing and liquidity risk, supports disciplined M&A and capital returns, and gives management room to invest in productivity improvements without materially increasing financial risk over the medium term.
Read all positive factors
Alamo Group (ALG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.01B
Dividend Yield0.82%
Average Volume (3M)84.52K
Price to Earnings (P/E)19.3
Beta (1Y)0.75
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. 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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$188.00Price Target Upside13.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)10.14
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 primarily makes money by selling manufactured equipment and related parts to customers that maintain land and infrastructure. Its core revenue stream is product sales of maintenance machinery (e.g., equipment used for mowing/brush cutt...
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 | 235.58M | 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
165.35
Price Trends
162.08
Negative
162.55
Negative
171.32
Negative
Market Momentum
0.76
Positive
46.14
Neutral
11.61
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 165.35 is above the 20-day moving average (MA) of 164.46, above the 50-day MA of 162.08, and below the 200-day MA of 171.32, indicating a bearish trend. The MACD of 0.76 indicates Positive momentum. The RSI at 46.14 is Neutral, neither overbought nor oversold. The STOCH value of 11.61 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.01B | 19.29 | 8.70% | 0.80% | 4.07% | -15.07% | |
71 Outperform | $1.17B | 21.76 | 10.73% | 1.30% | -7.37% | -25.20% | |
64 Neutral | $7.76B | 33.84 | 4.30% | 0.97% | 29.17% | -27.70% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $555.64M | -1.73 | -27.20% | 1.74% | 55.23% | -1626.88% | |
54 Neutral | $996.54M | 50.29 | 2.88% | 0.92% | 18.70% | -57.51% |
* Industrials Sector Average
ALG
Alamo Group
161.87
-61.47
-27.52%
ASTE
Astec
43.25
-1.58
-3.52%
CMCO
Columbus Mckinnon
19.08
4.76
33.21%
LNN
Lindsay
114.04
-23.96
-17.36%
TEX
Terex
67.34
17.44
34.94%
Alamo Group Corporate Events
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...
Business Operations and StrategyPrivate Placements and Financing
Alamo Group Secures New $602.5 Million Credit Facility
Positive
May 28, 2026
On May 27, 2026, Alamo Group Inc. and its domestic subsidiaries entered into a Fourth Amended and Restated Credit Agreement with Bank of America, providing access to up to $602.5 million in financing, including a $202.5 million term loan and a $40...
Executive/Board Changes
Alamo Group Announces EVP Raborn’s Planned Retirement
Neutral
May 19, 2026
Alamo Group Inc. announced that Richard H. Raborn, Executive Vice President of its Vegetation Management Division, will retire from the company on May 29, 2026, under a formal letter agreement governing his separation. The company stated that his ...
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.