Alamo Group (ALG) AI Stock Analysis

• Market Cap: $2.48B
• Dividend Yield: 0.56%
• Average Volume (3M): 80.00K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.88
• Revenue Growth: -4.91%
• EPS Growth: -7.08%
• Country: US
• Employees: 3,750
• Sector: Industrials
• Sector Strength: 70
• Industry: Agricultural - Machinery
• EPS (TTM): 2.57
• Shares Outstanding: 12,110,910
• 10 Day Avg. Volume: 75,081
• 30 Day Avg. Volume: 79,998
• 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: 1.08
• Enterprise Value/Revenue: 1.67
• Enterprise Value/Gross Profit: 6.61
• Enterprise Value/Ebitda: 11.97
• 1Y Price Target: $242.00
• Price Target Upside: 18.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: $224.00 ▲(9.58% Upside)

Alamo Group's strong financial performance and positive earnings call sentiment are key strengths, supported by robust revenue growth and effective debt management. However, technical indicators suggest a bearish trend, and valuation metrics indicate moderate pricing, which tempers the overall score.

Positive Factors

Strong Financial Position

The significant reduction in debt enhances Alamo Group's financial flexibility and stability, allowing for strategic investments and acquisitions that can drive future growth.

Industrial Equipment Division Growth

The strong performance in the Industrial Equipment division underscores Alamo's competitive position and ability to capture market share, supporting long-term revenue growth.

Order Backlog and Bookings

A robust order backlog provides revenue visibility and indicates sustained demand for Alamo's products, which is crucial for planning and growth projections.

Negative Factors

Vegetation Management Revenue Decline

The decline in the Vegetation Management division's revenue highlights potential challenges in this segment, which could impact overall growth if not addressed.

Forestry and Tree Care Sales Challenges

Ongoing sales challenges in the Forestry and Tree Care segment may indicate structural issues or competitive pressures, potentially affecting long-term performance.

Foreign Currency Impact

Foreign currency fluctuations pose a risk to earnings stability, especially for a company with international operations, potentially affecting profitability.

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 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 exhibits strong financial health with robust revenue growth and profitability metrics. The balance sheet is solid, with low leverage and effective equity utilization. However, recent negative free cash flow growth highlights a potential area of concern that needs to be monitored.

Income Statement

Alamo Group has demonstrated strong revenue growth in recent years, with a notable 17.4% increase in the TTM period. The company maintains healthy profit margins, with a gross profit margin of 25.3% and a net profit margin of 7.4% in the TTM. EBIT and EBITDA margins are also robust at 10.6% and 13.9%, respectively. However, the revenue growth rate has fluctuated, indicating potential volatility in sales performance.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.19 in the TTM, indicating conservative leverage. Return on equity is healthy at 11.3%, showcasing effective use of shareholder funds. The equity ratio stands at 71.6%, suggesting a strong equity base relative to total assets. However, the decline in debt levels over time suggests a focus on reducing leverage, which may impact growth opportunities.

Cash Flow

Operating cash flow remains strong, covering net income with a ratio of 1.03 in the TTM. Free cash flow to net income ratio is also solid at 0.87. However, free cash flow growth has been negative recently, indicating potential challenges in generating cash from operations. The company needs to address this to ensure sustainable cash flow generation.

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: Negative
• Last Price: 204.42
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 204.42 is below the 20-day moving average (MA) of 213.80, below the 50-day MA of 218.61, and above the 200-day MA of 196.02, indicating a neutral trend. The MACD of -3.33 indicates Positive momentum. The RSI at 39.85 is Neutral, neither overbought nor oversold. The STOCH value of 30.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$3.51B	19.95	9.45%	1.29%	-0.35%	-63.44%
LNN	74 Outperform	$1.52B	20.08	15.06%	1.04%	9.46%	5.91%
REVG	71 Outperform	$3.02B	29.27	35.30%	0.37%	-3.17%	-49.47%
ASTE	71 Outperform	$1.06B	23.26	7.02%	1.12%	1.17%	―
ALG	68 Neutral	$2.48B	20.81	11.30%	0.56%	-4.91%	-7.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CMCO	58 Neutral	$424.85M	55.98	-1.74%	1.94%	-5.75%	-133.96%

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.

The most recent analyst rating on (ALG) stock is a Buy with a $260.00 price target. To see the full list of analyst forecasts on Alamo Group stock, see the ALG Stock Forecast page.