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Alta Equipment Group (ALTG)
NYSE:ALTG
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Alta Equipment Group
(NYSE:ALTG)
53Neutral
Alta Equipment Group (ALTG) vs. S&P 500 (SPY)
Market Cap
$157.66M
Dividend Yield4.8%
Average Volume (3M)221.63K
Price to Earnings (P/E)―
Beta (1Y)1.74
Revenue Growth-0.01%
EPS Growth-1174.26%
CountryUS
Employees2,900
SectorIndustrials
Sector Strength78
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)-1.96
Shares Outstanding33,191,067
10 Day Avg. Volume140,416
30 Day Avg. Volume221,632
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap8.94
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.86
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.88Price Target Upside150.11% 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 improvements in cash flow generation. However, the company struggles with profitability, high leverage, and balance sheet risks due to a high debt-to-equity ratio. The financial performance reflects strengths in cash flow but significant challenges in profitability and financial stability.Income Statement
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
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.40
Cash Flow
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.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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
Neutral
4.75
Price Trends
4.78
Negative
5.92
Negative
6.51
Negative
Market Momentum
-0.10
Negative
54.68
Neutral
67.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALTG, the sentiment is Neutral. The current price of 4.75 is above the 20-day moving average (MA) of 4.30, below the 50-day MA of 4.78, and below the 200-day MA of 6.51, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 54.68 is Neutral, neither overbought nor oversold. The STOCH value of 67.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $4.27B | 11.81 | 5.31% | 249.66% | 4.08% | -8.61% | |
61 Neutral | $3.27B | 15.53 | 9.60% | 2.32% | 8.34% | -63.02% | |
60 Neutral | $4.98B | 303.00 | 1.28% | 0.26% | -0.77% | -94.12% | |
59 Neutral | $928.55M | ― | -3.76% | ― | -0.61% | -248.58% | |
56 Neutral | $3.33B | 36.43 | 15.74% | 1.21% | -3.52% | -46.60% | |
53 Neutral | $157.66M | ― | -54.64% | 4.80% | -0.01% | -1174.26% | |
47 Neutral | $28.97M | ― | -4.33% | ― | 19.51% | 29.43% |
* Industrials Sector Average
Performance Comparison
ALTG
Alta Equipment Group
4.75
-6.73
-58.62%
WSC
WillScot Mobile Mini Holdings
27.04
-11.17
-29.23%
HEES
H&E Equipment Services
90.38
42.70
89.56%
HRI
Herc Holdings
113.90
-31.58
-21.71%
FPAY
FlexShopper
1.34
0.25
22.94%
CTOS
Custom Truck One Source
4.20
0.32
8.25%
Alta Equipment Group Earnings Call Summary
Earnings Call Date:Mar 05, 2025
(Q4-2024)
| % Change Since: -6.86%|
Next Earnings Date:May 07, 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.Q4-2024 Updates
Positive Updates
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.
Negative Updates
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.