Alta Equipment Group (ALTG) AI Stock Analysis

• Market Cap: $266.52M
• Dividend Yield: 2.84%
• Average Volume (3M): 289.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.01
• Revenue Growth: -2.09%
• EPS Growth: -977.36%
• Country: US
• Employees: 2,900
• Sector: Industrials
• Sector Strength: 94
• Industry: Rental & Leasing Services
• EPS (TTM): -0.47
• Shares Outstanding: 33,191,067
• 10 Day Avg. Volume: 212,853
• 30 Day Avg. Volume: 289,539
• PEG Ratio: 0.24
• Price to Book (P/B): 4.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -142.72
• Enterprise Value/Market Cap: 2.26
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 1.23
• Enterprise Value/Ebitda: 0.94
• 1Y Price Target: $11.67
• Price Target Upside: 48.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 62 Neutral
• Price Target: $8.00 ▲(1.91%Upside)

The most significant factor affecting Alta Equipment Group's score is its financial performance, which is hampered by high leverage and profitability challenges. The positive technical indicators offer some optimism, suggesting potential stock price appreciation. However, valuation concerns and the strategic shift in capital allocation, including dividend suspension, weigh negatively on the overall score.

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 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 Money

Alta 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 Financial Statement Overview

Summary

Alta Equipment Group shows strong revenue growth, but significant challenges remain with profitability and high leverage. The company's considerable debt and negative free cash flow underscore potential risks, especially in adverse economic conditions. Improvements in operational efficiency and debt management are crucial for 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.

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.

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.

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
EBITDA	159.50M	192.10M	154.40M	102.60M	68.20M
Net Income	-62.10M	8.90M	9.30M	-20.80M	-24.00M
Balance Sheet
Total Assets	1.48B	1.57B	1.29B	982.60M	746.20M
Cash, Cash Equivalents and Short-Term Investments	13.40M	31.00M	2.70M	2.30M	1.20M
Total Debt	1.20B	1.18B	921.80M	679.40M	461.00M
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	-13.50M	-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: Positive
• Last Price: 7.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 7.85 is above the 20-day moving average (MA) of 7.52, above the 50-day MA of 6.35, and above the 200-day MA of 6.15, indicating a bullish trend. The MACD of 0.42 indicates Positive momentum. The RSI at 65.38 is Neutral, neither overbought nor oversold. The STOCH value of 56.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALTG.

Alta Equipment Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRI	73 Outperform	$4.66B	31.27	9.60%	2.42%	8.34%	-63.02%
WSC	64 Neutral	$5.70B	342.40	1.28%	0.45%	-0.77%	-94.12%
CTOS	63 Neutral	$1.32B	―	-3.76%	―	-0.61%	-248.58%
ALTG	62 Neutral	$266.52M	―	-73.72%	2.84%	-2.09%	-977.36%
Sector *	58 Neutral	HK$14.94B	4.62	-2.78%	5.07%	3.80%	-54.55%
FPAY	50 Neutral	$28.33M	―	-4.33%	―	19.51%	29.43%

Alta Equipment Group Corporate Events

Alta Equipment Group Declares Quarterly Dividend Announcement

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.

Alta Equipment Group Expands Stock Repurchase Program

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.