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Alta Equipment Group (ALTG)
NYSE:ALTG
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Alta Equipment Group
(NYSE:ALTG)
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Rating:49Neutral
Price Target:
$5.00
▲(2.88% Upside)
Alta Equipment Group's overall stock score reflects significant financial challenges, including high leverage and declining revenues. While there are positive aspects such as a high dividend yield and successful cost reduction initiatives, these are overshadowed by ongoing profitability issues and bearish technical indicators.
Positive Factors
Strong October Sales
Robust October sales in the Construction segment indicate a potential recovery and growth opportunity, enhancing revenue stability in upcoming quarters.
Cost Reduction Initiatives
Successful cost reduction initiatives improve operational efficiency, providing Alta with better operating leverage and potential profitability as market conditions improve.
Stable Material Handling Backlog
A stable backlog in Material Handling ensures future revenue visibility, supporting Alta's ability to plan and allocate resources effectively over the next several quarters.
Negative Factors
High Leverage
High leverage poses financial risk, limiting Alta's flexibility to invest in growth opportunities and increasing vulnerability to economic downturns.
Declining Revenue
Declining revenue reflects operational difficulties and market challenges, potentially impacting Alta's ability to sustain growth and profitability long-term.
Negative Net Profit Margins
Negative net profit margins indicate ongoing profitability issues, which could hinder Alta's capacity to reinvest in the business and maintain competitive positioning.
Alta Equipment Group (ALTG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$156.66M
Dividend Yield4.69%
Average Volume (3M)207.81K
Price to Earnings (P/E)―
Beta (1Y)2.03
Revenue Growth-3.95%
EPS Growth-47.70%
CountryUS
Employees2,900
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)-1.31
Shares Outstanding32,235,283
10 Day Avg. Volume168,489
30 Day Avg. Volume207,812
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)2.80
Price to Sales (P/S)0.12
P/FCF Ratio-16.07
Enterprise Value/Market Cap8.85
Enterprise Value/Revenue0.76
Enterprise Value/Gross Profit2.94
Enterprise Value/Ebitda11.82
Forecast
1Y Price Target
$10.44Price Target Upside114.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 multiple key streams. The primary source comes from the sale and rental of heavy equipment and machinery, where the company offers both new and used equipment to meet customer needs. Additionally, Alta earns significant income from providing parts and maintenance services for the equipment it sells and rents. The company has established partnerships with major manufacturers, which not only enhances its product offerings but also strengthens its market position. Furthermore, Alta benefits from long-term rental agreements and service contracts, providing a steady cash flow. Overall, the combination of equipment sales, rentals, parts sales, and service contracts forms the backbone of Alta's revenue model.
Alta Equipment Group Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 26, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted several strong performance areas such as robust October sales in the Construction segment and stable Product Support revenues. However, these were balanced by challenges like reduced equipment sales, tariff impacts, and flat gross margins. The company's strategic cost reductions and positive outlook for Q4 and beyond provide optimism, but current challenges remain significant.Q3-2025 Updates
Positive Updates
Strong October Construction Equipment Sales
October saw the strongest month of the year for new equipment sales, predominantly within the Construction Equipment segment, totaling over $75 million, which is nearly 60% of the entire equipment sales in Q3.
Resilient Product Support Performance
Product Support revenues remained steady and were up sequentially versus Q2, acting as a stable cash flow stream despite a volatile equipment sales environment.
Successful Cost Reduction Initiatives
SG&A is down roughly $25 million year-to-date, driven by structural cost savings, improved efficiency, and disciplined execution, providing operating leverage as the market rebounds.
Stable Material Handling Backlog
The backlog in Material Handling remains over $100 million, providing visibility for the next several quarters despite muted volumes during the quarter.
Positive Outlook for Construction Segment
Permitting activity on large projects has accelerated, translating to greater deliveries early in Q4, with a record $2 billion road and bridge funding package in Michigan driving new bid activity.
Negative Updates
Reduced Equipment Sales
The company recorded a 5.8% organic reduction in revenue versus last year, mainly due to a decrease in equipment sales.
Material Handling Revenue Softness
Material Handling revenue was essentially flat year-over-year, with market softness primarily due to automotive and general manufacturing weakness in the Midwest and Canadian markets.
Impact of Tariffs on Master Distribution
Nearly all key metrics for the Master Distribution segment have been negatively impacted by tariffs, although mitigation measures have been implemented.
Overall Decrease in Rental Revenues
Rental revenues decreased $5.3 million year-over-year, mainly due to strategic decisions to reduce the size of the rent-to-sell fleet.
Flat Gross Margins on Equipment Sales
Gross margins on new and used equipment remain below historic levels, with only slight sequential improvement, indicating ongoing market oversupply.
Company Guidance
During Alta Equipment Group's third quarter 2025 earnings conference call, management provided several key metrics and insights into their financial performance and future outlook. Despite challenges in equipment sales, the company saw new equipment sales in October reach over $75 million, accounting for nearly 60% of Q3's total equipment sales, indicating a promising start to Q4. The Material Handling segment maintained a backlog over $100 million, providing visibility for future quarters. Alta's SG&A expenses decreased by approximately $25 million year-to-date, highlighting efficiency improvements. The Construction Equipment segment faced a $18.7 million decline in equipment sales compared to the previous year, but Q4 is expected to recover due to favorable conditions such as infrastructure funding and tax incentives. The company reported $41.7 million in adjusted EBITDA for the quarter and anticipates finishing the year with $168 to $172 million in adjusted EBITDA, and $105 to $110 million in free cash flow before rent-to-sell decisioning. Alta also divested its Dock and Door division to sharpen its focus on core dealership operations. Overall, the company remains optimistic about capturing future growth opportunities as market conditions improve.Alta Equipment Group Financial Statement Overview
Summary
Alta Equipment Group faces significant financial challenges, with declining revenues, high leverage, and profitability issues. The company needs to address its operational inefficiencies and manage its debt levels to improve its financial health. While there are some positive cash flow aspects, the overall financial position remains precarious.Income Statement
Alta Equipment Group's income statement shows a challenging financial position with declining revenue and negative net profit margins. The TTM (Trailing-Twelve-Months) data indicates a significant revenue decline of 37.1% and a net loss, reflecting operational difficulties. Despite a reasonable gross profit margin, the negative net profit margin and declining EBIT and EBITDA margins highlight profitability challenges.45
Neutral
Balance Sheet
The balance sheet reveals high leverage with a debt-to-equity ratio of 8.05 in the TTM period, indicating significant financial risk. The negative return on equity further underscores the company's struggles to generate returns for shareholders. The equity ratio is low, reflecting limited equity buffer against liabilities.40
Negative
Cash Flow
Cash flow analysis shows some improvement in operating cash flow, but free cash flow remains volatile and negative in prior periods. The operating cash flow to net income ratio is positive, suggesting some ability to generate cash from operations, but the free cash flow to net income ratio indicates challenges in converting profits into cash.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.82B | 1.88B | 1.88B | 1.57B | 1.21B | 873.60M |
| Gross Profit | 471.60M | 493.70M | 507.20M | 419.60M | 314.40M | 214.50M |
| EBITDA | 117.30M | 159.50M | 192.10M | 154.40M | 102.60M | 68.20M |
| Net Income | -79.20M | -62.10M | 8.90M | 9.30M | -20.80M | -24.00M |
Balance Sheet | ||||||
| Total Assets | 1.43B | 1.48B | 1.57B | 1.29B | 982.60M | 746.20M |
| Cash, Cash Equivalents and Short-Term Investments | 14.10M | 13.40M | 31.00M | 2.70M | 2.30M | 1.20M |
| Total Debt | 1.22B | 1.20B | 1.18B | 921.80M | 679.40M | 459.40M |
| Total Liabilities | 1.43B | 1.40B | 1.42B | 1.15B | 847.90M | 589.30M |
| Stockholders Equity | 2.90M | 77.60M | 149.70M | 139.80M | 134.70M | 156.90M |
Cash Flow | ||||||
| Free Cash Flow | -9.60M | -13.50M | -16.20M | -58.20M | -19.70M | -80.90M |
| Operating Cash Flow | 31.50M | 57.00M | 58.40M | 18.50M | 30.70M | -35.00M |
| Investing Cash Flow | -16.60M | -56.20M | -117.40M | -155.10M | -113.40M | -227.90M |
| Financing Cash Flow | -16.20M | -17.90M | 87.30M | 136.90M | 83.80M | 264.10M |
Alta Equipment Group Technical Analysis
Negative
4.86
Price Trends
5.44
Negative
6.51
Negative
6.06
Negative
Market Momentum
-0.06
Negative
41.55
Neutral
11.29
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 4.86 is below the 20-day moving average (MA) of 4.99, below the 50-day MA of 5.44, and below the 200-day MA of 6.06, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 41.55 is Neutral, neither overbought nor oversold. The STOCH value of 11.29 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $7.17B | 7.44 | 12.74% | 1.37% | 9.67% | 96.43% | |
73 Outperform | $7.73B | 16.25 | 16.26% | 1.80% | 1.68% | 9.91% | |
67 Neutral | $5.12B | -61.11 | -4.05% | 1.82% | 19.40% | -120.47% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $2.66B | 18.29 | 12.70% | 1.79% | 4.77% | -35.44% | |
50 Neutral | $1.35B | -53.84 | -3.00% | ― | 7.39% | 34.57% | |
49 Neutral | $156.66M | -1.93 | -160.65% | 4.69% | -3.95% | -47.70% |
* Industrials Sector Average
ALTG
Alta Equipment Group
4.86
-1.74
-26.36%
AL
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64.15
16.28
34.01%
HRI
Herc Holdings
153.83
-31.79
-17.13%
MGRC
Mcgrath Rentcorp
108.06
-1.86
-1.69%
R
Ryder System
191.56
37.14
24.05%
CTOS
Custom Truck One Source
5.96
1.21
25.47%
Alta Equipment Group Corporate Events
Dividends
Alta Equipment Group Declares Quarterly Dividend
Positive
Oct 3, 2025
On October 3, 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. This translates to a dividend of $0.625 for each Depositary Share, with a record date of October 15, 2025, and a payment date of October 31, 2025. This announcement underscores Alta’s commitment to providing returns to its shareholders and may enhance investor confidence in the company’s financial stability.
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.