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Alta Equipment Group (ALTG)
NYSE:ALTG
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Alta Equipment Group
(NYSE:ALTG)
Rating:61Neutral
Price Target:
$6.50
▼(-10.71%Downside)
Alta Equipment Group (ALTG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$223.04M
Dividend Yield3.39%
Average Volume (3M)243.85K
Price to Earnings (P/E)―
Beta (1Y)1.97
Revenue Growth-2.09%
EPS Growth-977.36%
CountryUS
Employees2,900
SectorIndustrials
Sector Strength87
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)-0.47
Shares Outstanding33,191,067
10 Day Avg. Volume340,569
30 Day Avg. Volume243,847
Financial Highlights & Ratios
PEG Ratio-6.35
Price to Book (P/B)0.50
Price to Sales (P/S)0.00
P/FCF Ratio-3.21
Enterprise Value/Market Cap2.03
Enterprise Value/Revenue0.06
Enterprise Value/Gross Profit0.93
Enterprise Value/Ebitda0.71
Forecast
1Y Price Target
$7.50Price Target Upside3.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Alta Equipment Group Business Overview & Revenue Model
Company DescriptionAlta Equipment Group (ALTG) is a leading provider of industrial and construction equipment, serving a wide range of sectors including construction, logistics, agriculture, and material handling. The company offers an extensive portfolio of products and services, including new and used equipment sales, rental solutions, and a comprehensive suite of support services. Alta Equipment Group operates across multiple locations in the United States, leveraging a strong network to deliver top-tier products and customer service.
How the Company Makes MoneyAlta Equipment Group generates revenue through several key streams: equipment sales, rentals, and support services. The company sells both new and used industrial and construction equipment, providing customers with a range of options to suit their needs and budgets. Rentals are another significant revenue source, as businesses often prefer leasing equipment for short-term projects. Additionally, Alta offers maintenance and repair services, parts sales, and equipment financing, which contribute to their earnings. Strategic partnerships with leading equipment manufacturers enhance Alta's product offerings and market reach, bolstering their revenue potential.
Alta Equipment Group Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 61.78%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several positive developments, such as strong performance in product support and strategic divestitures, which were offset by challenges, including a decline in overall revenue and the suspension of the dividend. The company also faces uncertainties related to tariffs. Despite these challenges, Alta Equipment Group demonstrated resilience and strategic focus, as evidenced by the increased share repurchase program.Q1-2025 Updates
Positive Updates
Solid Performance in Product Support
The product support business held strong and remains a critical pillar of strength. Service gross margin increased by 230 basis points year-over-year, adding $2.7 million in gross margin.
Positive Developments in Construction Equipment
The construction equipment market expanded modestly year-over-year, driven by infrastructure-related projects, despite some regional softening in private nonresidential construction.
Successful Divestiture of Aerial Equipment Rental Business
Alta Equipment Group strategically divested its aerial equipment rental business in the Chicagoland market, generating approximately $20 million in cash proceeds.
Increased Share Repurchase Program
The Board of Directors increased the share repurchase program by $10 million, bringing the total to $30 million, alongside a $10 million allocation to a Rule 10b5-1 plan.
Master Distribution Segment Growth
Ecoverse, part of the Master Distribution segment, outperformed last year's revenue figure by 35.9% due to strong demand for environmental processing equipment.
Negative Updates
Decline in Revenue
The company recorded revenue of $423 million, a reduction of 4.2% compared to last year, due to reduced new equipment sales and lower rental revenues.
Suspension of Quarterly Dividend
The Board of Directors authorized the indefinite suspension of the quarterly dividend, reallocating resources to share buybacks.
Challenges in Material Handling Segment
New equipment sales in the Material Handling segment were down due to elevated delivery volumes in the previous year. However, stronger margins helped offset lower delivery volumes.
Uncertain Impact of Tariffs
The company faces challenges due to tariffs, with potential impacts on demand if surcharges increase beyond the current 0-10% range.
Company Guidance
During the first quarter of 2025, Alta Equipment Group provided several key metrics in their earnings call. The company reported a revenue of $423 million, marking a 4.2% decline year-over-year. Despite this reduction, adjusted EBITDA was $33.6 million, only down by $0.5 million compared to Q1 2024, showcasing strong cost management and operational efficiency. Gross margins improved with a notable 230 basis point year-over-year increase in service gross margin and a 290 basis point gain specifically in the Construction segment. The company also managed a significant $7.9 million reduction in SG&A expenses. On the balance sheet front, Alta ended the quarter with approximately $290 million in cash and available credit, and a strategic divestiture of the aerial equipment rental business in Illinois yielded $20 million in cash proceeds. Alta reaffirmed their fiscal year 2025 adjusted EBITDA guidance, now projected between $171.5 million and $186.5 million, after accounting for the recent divestiture. Additionally, the company announced a shift in capital allocation strategy, suspending their quarterly dividend to focus on a $30 million share repurchase program, reflecting confidence in Alta's intrinsic value and commitment to shareholder returns.Alta Equipment Group Financial Statement Overview
Summary
Alta Equipment Group shows strong revenue growth but struggles with profitability and high leverage. The significant debt load and negative free cash flow highlight potential risks, particularly in economic downturns or interest rate hikes. Operational efficiency improvements and debt management are key areas for enhancing financial health.Income Statement
Alta Equipment Group's revenue has shown strong growth over the past few years, notably increasing from $873.6 million in 2020 to $1.86 billion TTM. However, profitability remains a challenge with a negative net income of $71.1 million TTM, resulting in a negative net profit margin. The gross profit margin is robust at 26.3% TTM, indicating good control over cost of goods sold. EBIT and EBITDA margins are relatively low at 1.09% and 6.21% TTM, respectively, suggesting room for improvement in operational efficiency.62
Positive
Balance Sheet
The balance sheet reflects a high debt burden with a debt-to-equity ratio of 6.38 TTM, which poses a risk if interest rates rise or cash flows are disrupted. Stockholders' equity has declined, leading to a low equity ratio of 3.72%. Although the company maintains a stable asset base, the high leverage could impact financial stability.55
Neutral
Cash Flow
Operating cash flow decreased to $47 million TTM from $57 million in the previous year, with free cash flow remaining negative at -$1.8 million TTM. The cash flow to net income ratios are unfavorable due to negative net income, indicating challenges in converting revenue into cash flow. Free cash flow growth is constrained by high capital expenditures, impacting overall liquidity.48
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.86B | 1.88B | 1.88B | 1.57B | 1.21B | 873.60M |
| Gross Profit | 488.10M | 493.70M | 507.20M | 419.60M | 314.40M | 214.50M |
| EBITDA | 115.30M | 159.50M | 192.10M | 154.40M | 102.60M | 68.20M |
| Net Income | -71.10M | -62.10M | 8.90M | 9.30M | -20.80M | -24.00M |
Balance Sheet | ||||||
| Total Assets | 1.50B | 1.48B | 1.57B | 1.29B | 982.60M | 746.20M |
| Cash, Cash Equivalents and Short-Term Investments | 11.10M | 13.40M | 31.00M | 2.70M | 2.30M | 1.20M |
| Total Debt | 357.60M | 1.20B | 1.18B | 921.80M | 679.40M | 461.00M |
| Total Liabilities | 1.45B | 1.40B | 1.42B | 1.15B | 847.90M | 589.30M |
| Stockholders Equity | 56.00M | 77.60M | 149.70M | 139.80M | 134.70M | 156.90M |
Cash Flow | ||||||
| Free Cash Flow | -1.80M | -13.50M | -10.80M | -50.70M | -19.70M | -84.30M |
| Operating Cash Flow | 47.00M | 57.00M | 63.80M | 26.00M | 30.70M | -38.40M |
| Investing Cash Flow | -52.40M | -56.20M | -122.80M | -162.60M | -113.40M | -224.50M |
| Financing Cash Flow | 7.00M | -17.90M | 87.30M | 136.90M | 83.80M | 264.10M |
Alta Equipment Group Technical Analysis
Positive
7.28
Price Trends
5.35
Positive
5.29
Positive
6.04
Positive
Market Momentum
0.38
Negative
75.33
Negative
86.17
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALTG, the sentiment is Positive. The current price of 7.28 is above the 20-day moving average (MA) of 6.18, above the 50-day MA of 5.35, and above the 200-day MA of 6.04, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 75.33 is Negative, neither overbought nor oversold. The STOCH value of 86.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $4.60B | 30.89 | 9.60% | 2.02% | 8.34% | -63.02% | |
64 Neutral | $1.11B | ― | -3.76% | ― | -0.61% | -248.58% | |
64 Neutral | $5.18B | 314.98 | 1.28% | 0.99% | -0.77% | -94.12% | |
61 Neutral | $223.04M | ― | -73.72% | 3.39% | -2.09% | -977.36% | |
59 Neutral | AU$1.63B | 9.47 | 11.29% | 3.71% | 6.59% | 5.93% | |
41 Neutral | $25.11M | ― | -4.33% | ― | 19.51% | 29.43% |
* Industrials Sector Average
Performance Comparison
ALTG
Alta Equipment Group
7.28
-0.34
-4.46%
WSC
WillScot Mobile Mini Holdings
28.90
-6.77
-18.98%
HRI
Herc Holdings
143.50
19.20
15.45%
FPAY
FlexShopper
1.12
-0.06
-5.08%
CTOS
Custom Truck One Source
5.00
0.82
19.62%
Alta Equipment Group Corporate Events
Dividends
Alta Equipment Group Declares Quarterly Dividend Announcement
Positive
Jul 2, 2025
On July 2, 2025, Alta Equipment Group Inc. announced that its Board of Directors declared a quarterly dividend of $625 per share on its 10% Series A Cumulative Perpetual Preferred Stock, with a record date of July 15, 2025, and a payment date of July 31, 2025. This decision underscores the company’s commitment to providing value to its shareholders and could positively impact its market positioning by reinforcing investor confidence.
The most recent analyst rating on (ALTG) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Alta Equipment Group stock, see the ALTG Stock Forecast page.
M&A TransactionsStock BuybackDividends
Alta Equipment Group Expands Stock Repurchase Program
Neutral
May 7, 2025
On May 1, 2025, Alta Equipment Group‘s Construction Equipment segment divested its aerial fleet rental business in Chicago for $18 million, aiming to reduce senior indebtedness. The Board increased the stock repurchase program from $20 million to $30 million and suspended the quarterly dividend, reallocating funds to enhance shareholder returns.
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.