Alta Equipment Group (ALTG)
NYSE:ALTG
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Alta Equipment Group
(NYSE:ALTG)
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Rating:46Neutral
Price Target:
$5.00
▼(-7.06% Downside)
Action:ReiteratedDate:04/03/26
The score is held down primarily by weak profitability and a highly leveraged/negative-equity balance sheet, with bearish technicals reinforcing near-term risk. Offsetting this, the latest earnings call pointed to improving 2026 EBITDA guidance and strong recent free cash flow/deleveraging progress, while valuation support is limited due to losses despite a moderate dividend yield.
Positive Factors
High product-support margins
Sustained, high-margin product-support revenue is a durable cash generator that buffers equipment sales cyclicality. A ~46% product-support margin driven by pricing discipline and technician productivity supports recurring cash flow, improves FCF durability, and underpins long-term margin resilience.
Negative Factors
Elevated leverage and negative equity
Negative equity and very high net leverage materially constrain financial flexibility and increase refinancing and covenant risk. This capital-structure weakness limits ability to invest, raises cost of capital, and makes multi-year recovery plans sensitive to cash-flow consistency and interest-rate moves.
Read all positive and negative factors
Positive Factors
Negative Factors
High product-support margins
Sustained, high-margin product-support revenue is a durable cash generator that buffers equipment sales cyclicality. A ~46% product-support margin driven by pricing discipline and technician productivity supports recurring cash flow, improves FCF durability, and underpins long-term margin resilience.
Read all positive factors
Alta Equipment Group (ALTG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$173.59M
Dividend Yield4.88%
Average Volume (3M)207.81K
Price to Earnings (P/E)―
Beta (1Y)2.04
Revenue Growth-3.95%
EPS Growth-47.70%
CountryUS
Employees2,900
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)-0.39
Shares Outstanding32,266,582
10 Day Avg. Volume168,489
30 Day Avg. Volume207,812
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)-17.10
Price to Sales (P/S)0.08
P/FCF Ratio4.02
Enterprise Value/Market Cap7.60
Enterprise Value/Revenue0.72
Enterprise Value/Gross Profit2.78
Enterprise Value/Ebitda10.71
Forecast
1Y Price Target
$11.17Price Target Upside107.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-1.23
Revenue Forecast (FY)$1.88B
Alta Equipment Group Business Overview & Revenue Model
Company Description
Alta 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 pro...
How the Company Makes Money
Alta Equipment Group primarily makes money through a mix of equipment sales, equipment rentals, and aftermarket support. (1) New and used equipment sales: The company generates revenue by selling equipment sourced from OEM relationships and also b...
Alta Equipment Group Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call portrays cautious optimism. Management reported a record quarter for equipment sales, improved product support margins, meaningful free cash flow generation, inventory normalization, and a concrete plan to delever and re-focus the business. Several multi-quarter challenges remain — notably softer Material Handling markets, equipment margin compression (down ~100 bps), ongoing rental revenue declines (~10% YoY in Q4), and elevated net leverage (4.9x) — but the balance of commentary emphasized improving market indicators, strategic discipline, and a clear path to modest EBITDA improvement in 2026 (midpoint guidance of $180M) and longer-term targets for 2028. On balance, the positive operational and financial developments and an actionable plan to address the key weaknesses lead to a positive overall tone.Positive Updates
Record Quarter for Equipment Sales and Revenue Growth
Q4 revenue of $509,000,000, up $11,000,000 year over year; new and used equipment sales of ~$301,000,000 in Q4, up $13,800,000 versus Q4 2024 and up ~$90,000,000 sequentially from Q3 2025 — driven by improved capital investment conditions.
Negative Updates
Full-Year EBITDA and Equipment Margin Pressure
Full-year 2025 adjusted EBITDA of $164,400,000 was down modestly versus 2024. New and used equipment gross margins declined to 14.1%, down approximately 100 basis points year over year, reflecting tariff impacts, competitive discounting, and oversupply.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarter for Equipment Sales and Revenue Growth
Q4 revenue of $509,000,000, up $11,000,000 year over year; new and used equipment sales of ~$301,000,000 in Q4, up $13,800,000 versus Q4 2024 and up ~$90,000,000 sequentially from Q3 2025 — driven by improved capital investment conditions.
Read all positive updates
Company Guidance
Alta guided to a 2026 adjusted EBITDA midpoint of $180.0M (up from $164.4M in 2025), driven by a modest, second‑half‑weighted recovery in new and used equipment volumes, modest equipment margin improvement (2025 new/used gross margins ~14.1%), renewed product‑support growth (Q4 parts & service revenue $127.4M, Q4 product‑support margin 46.1%), and continued rental rationalization (Q4 rental revenue down ~$4.7M; rental fleet gross book value reduced ~$38M in 2025 with roughly $40M more to exit); Alta finished 2025 with $1.84B revenue, Q4 revenue of ~$509M (Q4 equipment sales ~$301M), generated free cash flow of ~$105M before (and ~$103.1M after) rent‑to‑sell, exited with ~$249M liquidity and net leverage of 4.9x (net debt down ~$25M sequentially) and expects to be below 4.5x by year‑end 2026, while targeting longer‑term 2028 goals of >$200M high‑quality EBITDA, ~ $1.4B equipment sales, mid‑ to high‑single‑digit annual product‑support growth, and ~3.5x leverage.Alta Equipment Group Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
22
Negative
Cash Flow
41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.84B | 1.88B | 1.88B | 1.57B | 1.21B |
| Gross Profit | 474.60M | 493.70M | 507.20M | 419.60M | 314.40M |
| EBITDA | -19.20M | 159.50M | 192.10M | 154.40M | 102.60M |
| Net Income | -80.30M | -62.10M | 8.90M | 9.30M | -20.80M |
Balance Sheet | |||||
| Total Assets | 1.34B | 1.48B | 1.57B | 1.29B | 982.60M |
| Cash, Cash Equivalents and Short-Term Investments | 18.60M | 13.40M | 31.00M | 2.70M | 2.30M |
| Total Debt | 1.17B | 1.20B | 1.18B | 921.80M | 679.40M |
| Total Liabilities | 1.35B | 1.40B | 1.42B | 1.15B | 847.90M |
| Stockholders Equity | -8.80M | 77.60M | 149.70M | 139.80M | 134.70M |
Cash Flow | |||||
| Free Cash Flow | 37.40M | -13.50M | -16.20M | -58.20M | -19.70M |
| Operating Cash Flow | 33.00M | 57.00M | 58.40M | 18.50M | 30.70M |
| Investing Cash Flow | -22.70M | -56.20M | -117.40M | -155.10M | -113.40M |
| Financing Cash Flow | -5.30M | -17.90M | 87.30M | 136.90M | 83.80M |
Alta Equipment Group Technical Analysis
Negative
5.38
Price Trends
6.40
Negative
5.78
Negative
6.50
Negative
Market Momentum
-0.34
Positive
38.67
Neutral
33.76
Neutral
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 5.38 is below the 20-day moving average (MA) of 5.71, below the 50-day MA of 6.40, and below the 200-day MA of 6.50, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 38.67 is Neutral, neither overbought nor oversold. The STOCH value of 33.76 is Neutral, 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 35 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $2.68B | 12.96 | 13.21% | 1.79% | 4.77% | -35.44% | |
68 Neutral | $7.28B | 9.92 | 13.23% | 1.37% | 9.67% | 96.43% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $8.14B | 16.03 | 16.36% | 1.75% | 1.68% | 9.91% | |
47 Neutral | $3.19B | 4,644.29 | 0.06% | 1.79% | 19.40% | -120.47% | |
47 Neutral | $1.50B | -42.03 | -3.00% | ― | 7.39% | 34.57% | |
46 Neutral | $173.59M | -3.18 | -160.65% | 4.88% | -3.95% | -47.70% |
* Industrials Sector Average
ALTG
Alta Equipment Group
5.25
1.34
34.27%
AL
Air Lease
65.00
25.11
62.94%
HRI
Herc Holdings
94.17
-16.14
-14.63%
MGRC
Mcgrath Rentcorp
111.53
11.81
11.84%
R
Ryder System
207.36
79.77
62.53%
CTOS
Custom Truck One Source
6.64
3.25
95.87%
Alta Equipment Group Corporate Events
Dividends
Alta Equipment Group Declares Quarterly Preferred Stock Dividend
Positive
Apr 3, 2026
On April 3, 2026, Alta Equipment Group Inc. announced that its board of directors approved a quarterly dividend of $625 per share on its 10% Series A Cumulative Perpetual Preferred Stock, equivalent to $0.625 per Depositary Share representing a 1/...
Business Operations and StrategyExecutive/Board Changes
Alta Equipment Group Reassigns Brubaker to COO Role
Neutral
Jan 7, 2026
On December 31, 2025, Alta Equipment Group Inc. appointed Craig Brubaker as Chief Operating Officer of its Material Handling segment, with the change effective immediately and ending his status as an executive officer and Section 16 officer of the...
Dividends
Alta Equipment Group Declares Quarterly Preferred Stock Dividend
Positive
Jan 5, 2026
On January 5, 2026, Alta Equipment Group Inc. announced that its board of directors approved a quarterly dividend of $625 per share on its 10% Series A Cumulative Perpetual Preferred Stock, equivalent to $0.625 per outstanding depositary share rep...
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.