Alta Equipment Group (ALTG) AI Stock Analysis

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Alta Equipment Group

(NYSE:ALTG)

47Neutral

Alta Equipment Group's stock score reflects strengths in revenue growth and cash flow improvements but is weighed down by high leverage and inconsistent profitability. The bearish technical indicators and negative P/E ratio further impact the score. Despite these challenges, the attractive dividend yield offers some support.

Alta Equipment Group (ALTG) vs. S&P 500 (SPY)

Market Cap

$148.53M

Dividend Yield5.04%

Average Volume (3M)311.85K

Price to Earnings (P/E)―

Beta (1Y)1.80

Revenue Growth-0.01%

EPS Growth-1174.26%

CountryUS

Employees2,900

SectorIndustrials

Sector Strength61

IndustryRental & Leasing Services

Share Statistics

EPS (TTM)-1.96

Shares Outstanding32,859,690

10 Day Avg. Volume305,883

30 Day Avg. Volume311,853

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.09

Price to Cash Flow (P/CF)1.20

P/FCF Ratio0.80

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$11.88

Price Target Upside162.83% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering4

Alta Equipment Group Business Overview & Revenue Model

Company DescriptionAlta Equipment Group Inc. owns and operates integrated equipment dealership platforms in the United States. It operates in two segments, Material Handling and Construction Equipment. The company operates a branch network that sells, rents, and provides parts and service support for various categories of specialized equipment, including lift trucks and aerial work platforms, earthmoving equipment, cranes, paving and asphalt equipment, and other material handling and construction equipment. It also offers repair and maintenance services for its equipment. In addition, the company designs and builds warehouses; and provides automated equipment installation and system integration solutions. It serves diversified manufacturing, food and beverage, wholesale/retail, construction, automotive, municipal/government, and medical sectors. Alta Equipment Group Inc. was founded in 1984 and is headquartered in Livonia, Michigan.

How the Company Makes MoneyAlta Equipment Group generates revenue through several key streams. The primary source of income is the sale of new and used equipment, which includes forklifts, excavators, loaders, and other industrial machinery. Additionally, the company earns significant revenue from its equipment rental services, providing short-term and long-term rental solutions to customers who prefer not to purchase machinery. Alta Equipment Group also offers a wide range of after-sales services, such as maintenance, repair, and parts distribution, which contribute to its recurring revenue. The company has strategic partnerships with leading equipment manufacturers, enabling it to offer high-quality products and leverage manufacturer support, further enhancing its market position and revenue potential.

Alta Equipment Group Financial Statement Overview

Summary

Alta Equipment Group shows strong revenue growth and cash flow improvements but struggles with profitability and high leverage. The income statement reflects steady revenue, while the balance sheet highlights financial risks from high debt levels. Cash flow improvements are positive, yet variability remains a concern.

Income Statement

Neutral

Alta Equipment Group's revenue growth has been quite strong over the years, showcasing a significant increase from 2019 to 2022. However, in 2023 and 2024, revenue growth stalled. The gross profit margin is moderate, but the company has struggled with profitability, as evidenced by negative net income in several recent years. The EBIT and EBITDA margins also reflect challenges in maintaining profitability, contributing to a mixed performance in this area.

Balance Sheet

Negative

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. The equity ratio is low, and there has been a decrease in stockholders' equity over time. The return on equity (ROE) has been inconsistent, with negative net income impacting potential returns for shareholders. Overall, the balance sheet suggests a need for improved financial stability.

Cash Flow

Positive

The company has shown improvement in operating cash flow, with positive free cash flow in 2024 after negative figures in previous years. The operating cash flow to net income ratio is favorable, indicating good cash generation relative to accounting profits. However, fluctuations in free cash flow over the years suggest variability in cash management.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.88B	1.88B	1.57B	1.21B	873.60M
	Gross Profit
493.70M	507.20M	419.60M	314.40M	214.50M
	EBIT
18.60M	54.40M	40.80M	18.00M	800.00K
	EBITDA
159.50M	192.10M	154.40M	102.60M	68.20M
	Net Income Common Stockholders
-62.10M	8.90M	9.30M	-20.80M	-24.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.40M	31.00M	2.70M	2.30M	1.20M
	Total Assets
1.48B	1.57B	1.29B	982.60M	746.20M
	Total Debt
318.80M	1.18B	921.80M	679.40M	461.00M
	Net Debt
305.40M	1.15B	919.10M	677.10M	459.80M
	Total Liabilities
1.40B	1.42B	1.15B	847.90M	589.30M
	Stockholders Equity
77.60M	149.70M	139.80M	134.70M	156.90M
Cash Flow		Free Cash Flow
57.00M	-10.80M	-50.70M	-19.70M	-84.30M
	Operating Cash Flow
57.00M	63.80M	26.00M	30.70M	-38.40M
	Investing Cash Flow
-56.20M	-122.80M	-162.60M	-113.40M	-224.50M
	Financing Cash Flow
-17.90M	87.30M	136.90M	83.80M	264.10M

Alta Equipment Group Technical Analysis

Technical Analysis Sentiment

Negative

Last Price4.52

Price Trends

50DMA

5.72

Negative

100DMA

6.44

Negative

200DMA

6.83

Negative

Market Momentum

MACD

-0.35

Negative

RSI

36.25

Neutral

STOCH

11.64

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALTG, the sentiment is Negative. The current price of 4.52 is below the 20-day moving average (MA) of 4.80, below the 50-day MA of 5.72, and below the 200-day MA of 6.83, indicating a bearish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 36.25 is Neutral, neither overbought nor oversold. The STOCH value of 11.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALTG.

Alta Equipment Group Risk Analysis

Alta Equipment Group disclosed 33 risk factors in its most recent earnings report. Alta Equipment 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

Alta Equipment Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URI	76 Outperform	$39.93B	15.80	30.74%	1.09%	7.07%	9.56%
FSS	74 Outperform	$4.68B	21.85	19.77%	0.72%	8.06%	36.93%
HEES	70 Outperform	$3.43B	27.80	21.26%	1.21%	3.22%	-27.67%
MTW	65 Neutral	$286.02M	5.16	8.98%	―	-2.24%	42.13%
Sector *	62 Neutral	$7.68B	13.06	3.21%	3.34%	3.61%	-14.41%
ALTG	47 Neutral	$148.53M	―	-54.64%	5.04%	-0.01%	-1174.26%
TITN	47 Neutral	$365.12M	11.08	-5.81%	―	-2.04%	-133.17%

* Industrials Sector Average

Performance Comparison

ALTG

Alta Equipment Group

4.28

-8.16

-65.59%

FSS

Federal Signal

74.20

-10.25

-12.14%

HEES

H&E Equipment Services

91.98

29.85

48.04%

MTW

Manitowoc Company

7.60

-5.98

-44.04%

TITN

Titan Machinery

15.60

-8.28

-34.67%

URI

United Rentals

579.94

-99.63

-14.66%

Alta Equipment Group Earnings Call Summary

Earnings Call Date: Mar 5, 2025 | % Change Since: -11.37% | Next Earnings Date: May 7, 2025

Earnings Call Sentiment Neutral

Alta Equipment Group maintained revenue stability for the full year despite a challenging fourth quarter. Successful debt refinancing and cost optimization initiatives are positive steps. However, declines in equipment sales and weak margins present ongoing challenges.

Highlights

Revenue Stability

For the full year 2024, total revenue held steady at approximately $1.9 billion, demonstrating the resilience of Alta Equipment Group's dealership model and strong product support business.

Successful Debt Refinancing

Alta Equipment Group successfully raised $500 million in senior second lien bonds, refinancing senior debt and extending maturities to 2029, which strengthened the balance sheet and enhanced liquidity.

Cost Optimization

Implemented cost optimization initiatives yielded approximately $8 million in annual savings, contributing to improved financial stability.

Product Support Revenue Growth

Organic product support revenues increased 3.7% year-over-year, driven by stronger service rate utilization.

Lowlights

Revenue Decline in Q4

Fourth-quarter revenue declined by 4.5% year-over-year to $498.1 million, reflecting broader market trends and challenges.

Construction Equipment Sales Decline

New and used equipment sales in the Construction Equipment segment saw a 10.2% decline organically, a reduction of over $60 million due to macroeconomic challenges.

Material Handling Segment Challenges

The North American lift truck market experienced a decline in new order bookings, impacting future sales velocity. Alta's material handling revenue only increased by 0.9% from 2023.

Weak Equipment Sales Margins

Gross margins on equipment sales were weak due to competitive pricing pressures and industry oversupply.

Company Guidance

During the Alta Equipment Group's earnings call for the fourth quarter and full year 2024, the company provided a comprehensive overview of their financial performance and strategic outlook. Total revenue for 2024 remained steady at approximately $1.9 billion, despite a 4.5% year-over-year decline in Q4 revenue to $498.1 million, attributed to broader market trends and higher interest rates. Adjusted EBITDA for the year was $168.3 million, reflecting disciplined cost management. The company addressed a 2026 maturity wall by raising $500 million in senior second lien bonds, extending debt maturities to 2029, thereby enhancing liquidity. Alta's construction equipment segment saw a 10.2% organic decline in sales, while product support revenues increased by 3.7%. In the material handling segment, revenue remained stable at $687.4 million, with a 0.9% increase from 2023. For 2025, Alta provided guidance for adjusted EBITDA in the range of $175 million to $190 million, focusing on operational efficiency and strategic growth. The company also highlighted its "rent-to-sell" business model's flexibility, which allowed for a $45 million fleet reduction, contributing to a $61 million debt paydown in the second half of 2024.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.