Alamo Group (ALG) AI Stock Analysis

• Market Cap: $2.34B
• Dividend Yield: 0.69%
• Average Volume (3M): 84.52K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.75
• Revenue Growth: -2.73%
• EPS Growth: -2.91%
• Country: US
• Employees: 3,750
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 2.10
• Shares Outstanding: 12,115,428
• 10 Day Avg. Volume: 111,508
• 30 Day Avg. Volume: 84,518
• PEG Ratio: -1.27
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 1.37
• P/FCF Ratio: 12.04
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $201.00
• Price Target Upside: 4.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $212.00 ▲(9.82% Upside)

Alamo Group's overall stock score reflects a strong financial position and strategic growth initiatives, such as the acquisition of Petersen Industries. However, technical indicators suggest potential bearish momentum, and challenges in the Vegetation Management division weigh on the outlook. The stock is reasonably valued, but cash flow management remains a concern.

Positive Factors

Strategic Acquisition

The acquisition of Petersen Industries is expected to enhance Alamo's product offerings and market reach, providing solid recurring revenue and unlocking cost savings, which will be accretive to growth and margins.

Industrial Equipment Division Growth

Consistent double-digit growth in the Industrial Equipment division demonstrates strong market demand and effective sales strategies, contributing positively to Alamo's overall revenue growth.

Strong Financial Position

A robust financial position with increased assets and effective equity utilization indicates financial stability and capacity for strategic investments.

Negative Factors

Vegetation Management Division Weakness

Declining sales in the Vegetation Management division highlight ongoing market challenges and production issues, potentially impacting overall revenue and growth.

Gross Margin Decline

A decline in gross margin due to production inefficiencies and tariff costs may pressure profitability and require strategic adjustments to maintain margin sustainability.

Cash Flow Management Challenges

Fluctuations in free cash flow indicate potential challenges in converting profits into cash, which could affect the company's ability to fund growth initiatives and manage debt.

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 hydraulically-powered and tractor-mounted mowers, other cutters and replacement parts for heavy-duty and intensive uses and heavy duty applications, tractor- and truck-mounted mowing and vegetation maintenance equipment, and replacement parts. This segment also provides rotary and finishing mowers, flail and disc mowers, front-end loaders, backhoes, rotary tillers, posthole diggers, scraper blades and replacement parts, zero turn radius mowers, cutting parts, plain and hard-faced replacement tillage tools, disc blades, and fertilizer application components; aftermarket agricultural parts, heavy-duty mechanical rotary mowers, snow blowers, rock removal equipment, replacement parts, tractor attachments, agricultural implements, hydraulic and boom-mounted hedge and grass cutters, tractor attachments and implements, hedgerow cutters, industrial grass mowers, agricultural seedbed preparation cultivators, self-propelled sprayers and multi-drive load-carrying vehicles, cutting blades, and hydraulic and mechanical boom mowers. The company's Industrial Equipment Division segment offers truck-mounted air vacuum, mechanical broom, and regenerative air sweepers, pothole patchers, leaf collection equipment and replacement brooms, parking lot and street sweepers, excavators, catch basin cleaners, and roadway debris vacuum systems, as well as truck-mounted vacuum machines, combination sewer cleaners, and hydro excavators. This segment also offers ice control products, snowplows and heavy duty snow removal equipment, hitches, attachments, and graders; and public works and runway maintenance products, parts, and services, and high pressure cleaning systems and trenchers. The company was founded in 1955 and is headquartered in Seguin, Texas.

How the Company Makes Money

Alamo Group generates revenue primarily through the sale of its manufactured products, which include road maintenance equipment, agricultural machinery, and various attachments. Key revenue streams include direct sales to municipalities for road maintenance and to agricultural businesses for land management. The company also benefits from aftermarket sales, including parts and services for the equipment it sells, which provides a recurring revenue source. Additionally, Alamo Group may engage in strategic partnerships or collaborations with other manufacturers and distributors, enhancing its market reach and operational efficiency. Factors contributing to its earnings include strong demand in the municipal and agricultural sectors, a focus on product innovation, and a growing need for infrastructure maintenance and development.

Alamo Group Financial Statement Overview

Summary

Alamo Group demonstrates solid financial health with stable profitability and improved leverage. Revenue growth and profit margins are recovering, though cash flow management presents some challenges. Overall, the company is on a positive trajectory with a strong balance sheet and consistent operational performance.

Income Statement

Alamo Group shows a stable gross profit margin of around 25% over the years, with a slight decrease in the TTM period. The net profit margin has improved slightly to 7.2% in the TTM, indicating better cost management. Revenue growth is positive in the TTM after a decline in the previous year, suggesting recovery. EBIT and EBITDA margins are stable, reflecting consistent operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.18 in the TTM, indicating reduced leverage and financial risk. Return on equity remains strong at 10.8%, showcasing effective use of equity to generate profits. The equity ratio is stable, reflecting a solid capital structure.

Cash Flow

Operating cash flow to net income ratio is healthy at 0.82 in the TTM, though it has decreased from previous years, indicating potential cash flow management issues. Free cash flow growth is negative in the TTM, suggesting challenges in generating cash after capital expenditures. However, the free cash flow to net income ratio remains strong, indicating efficient conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.62B	1.63B	1.69B	1.51B	1.33B	1.16B
Gross Profit	404.60M	412.49M	453.64M	376.52M	334.51M	293.73M
EBITDA	221.74M	223.26M	249.19M	195.36M	164.51M	139.43M
Net Income	116.37M	115.93M	136.16M	101.93M	80.25M	57.80M
Balance Sheet
Total Assets	1.59B	1.45B	1.41B	1.31B	1.21B	1.12B
Cash, Cash Equivalents and Short-Term Investments	244.81M	197.27M	51.92M	47.02M	42.12M	50.20M
Total Debt	209.43M	226.93M	240.57M	306.64M	274.21M	289.07M
Total Liabilities	462.37M	432.02M	476.62M	523.15M	500.08M	486.86M
Stockholders Equity	1.13B	1.02B	932.76M	785.36M	705.66M	635.00M
Cash Flow
Free Cash Flow	149.92M	184.78M	93.41M	-16.77M	24.36M	166.46M
Operating Cash Flow	181.56M	209.78M	131.15M	14.53M	49.67M	184.33M
Investing Cash Flow	-48.02M	-22.18M	-52.62M	-31.74M	-33.44M	-14.17M
Financing Cash Flow	-30.15M	-31.97M	-76.88M	24.45M	-23.00M	-164.24M

Alamo Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 193.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALG, the sentiment is Positive. The current price of 193.05 is above the 20-day moving average (MA) of 178.81, above the 50-day MA of 171.26, and above the 200-day MA of 192.55, indicating a bullish trend. The MACD of 5.33 indicates Negative momentum. The RSI at 74.19 is Negative, neither overbought nor oversold. The STOCH value of 94.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALG.

Alamo Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEX	71 Outperform	$3.98B	25.74	7.85%	1.24%	4.60%	-65.73%
ALG	70 Outperform	$2.34B	20.02	10.82%	0.69%	-2.73%	-2.91%
LNN	70 Outperform	$1.32B	18.71	14.61%	1.24%	11.41%	13.05%
REVG	70 Outperform	$3.35B	36.27	29.41%	0.39%	3.50%	-57.51%
CMCO	66 Neutral	$613.35M	156.75	0.44%	1.59%	-2.36%	-73.77%
ASTE	66 Neutral	$1.12B	23.53	7.37%	1.14%	6.66%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Alamo Group Corporate Events

Alamo Group Announces Acquisition of Petersen Industries

On December 10, 2025, Alamo Group Inc. announced its plan to acquire Petersen Industries, a leader in truck-mounted grapple loader equipment, for approximately $166.5 million. This strategic acquisition, expected to close in the first quarter of 2026, aims to integrate Petersen into Alamo’s Industrial Equipment Division, enhancing its product offerings and market reach. The acquisition is anticipated to be accretive to Alamo Group’s growth and margins, providing solid recurring revenue from aftermarket parts and services, while unlocking significant cost savings and revenue growth opportunities.

The most recent analyst rating on (ALG) stock is a Hold with a $176.00 price target. To see the full list of analyst forecasts on Alamo Group stock, see the ALG Stock Forecast page.

Alamo Group Approves New Deferred Compensation Plan

On November 6, 2025, Alamo Group Inc.’s Board of Directors approved a new Nonqualified Deferred Compensation Plan effective January 1, 2026. This plan allows eligible employees to receive discretionary contributions up to 6% of their base salary and bonus, with full vesting after three years of service. The plan replaces the Supplemental Executive Retirement Plan for new participants, with initial contributions for certain executives based on the present value of their previous plan accounts.

The most recent analyst rating on (ALG) stock is a Hold with a $190.00 price target. To see the full list of analyst forecasts on Alamo Group stock, see the ALG Stock Forecast page.