Education
About Us
Working with TipRanks
Follow Us
Alta Equipment Group (ALTG)
NYSE:ALTG
Top Page
Alta Equipment Group
(NYSE:ALTG)
Select Model
Select Model
Rating:48Neutral
Price Target:
$7.00
▼(-1.96% Downside)
Alta Equipment Group's overall stock score reflects significant financial challenges, including high leverage and declining revenues, which are the most impactful factors. While there is some positive sentiment from the earnings call and a reasonable dividend yield, these are overshadowed by the company's ongoing profitability issues and mixed technical indicators.
Alta Equipment Group (ALTG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$236.51M
Dividend Yield3.19%
Average Volume (3M)259.77K
Price to Earnings (P/E)―
Beta (1Y)2.04
Revenue Growth-3.46%
EPS Growth-222.37%
CountryUS
Employees2,900
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)-0.12
Shares Outstanding32,047,943
10 Day Avg. Volume271,185
30 Day Avg. Volume259,770
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap5.86
Enterprise Value/Revenue0.75
Enterprise Value/Gross Profit2.90
Enterprise Value/Ebitda8.20
Forecast
1Y Price Target
$12.17Price Target Upside70.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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 streams, primarily from the sale and rental of equipment. The company sells new and used equipment, which contributes significantly to its revenue, alongside rental services that provide customers with flexible access to machinery without the need for outright purchase. Additionally, Alta earns money through parts sales and service maintenance, which are crucial for maintaining equipment performance and longevity. Key partnerships with major manufacturers in the equipment industry bolster its product offerings and enable the company to expand its market reach. Furthermore, Alta's focus on providing comprehensive solutions and exceptional customer service enhances client retention and drives repeat business, thereby supporting its overall revenue generation.
Alta Equipment Group Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
Alta Equipment Group demonstrated strong performance in the Construction and Master Distribution segments, with significant sales growth and SG&A savings. However, challenges remain in the Material Handling segment and rental revenue, along with the impact of tariffs and a reduction in EBITDA guidance.Q2-2025 Updates
Positive Updates
Strong Performance in Construction Equipment Segment
The Construction Equipment segment showed robust demand for heavy earthmoving machines, with new and used equipment sales increasing by $21.5 million, driven by federal and state DOT infrastructure projects.
Master Distribution Segment Revenue Growth
The Master Distribution segment saw a 25% increase in total revenues to $20.9 million, supported by stronger dealer engagement and expanded channel activity.
SG&A Expense Reduction
Expense and inventory optimization initiatives resulted in SG&A savings of over $20 million year-to-date.
Share Repurchase Program
The company repurchased nearly 1.2 million shares at an average price of $5.64 per share under its $30 million buyback program.
Negative Updates
Decline in Rental Revenue
Construction rental revenue was down year-over-year due to strategic rightsizing of the rental fleet and divestiture of aerial fleet assets in Chicagoland.
Challenges in Material Handling Segment
Material Handling segment faced headwinds, particularly in Michigan and Illinois, with new and used equipment sales down $8.3 million year-over-year.
Impact of Tariffs on Master Distribution
The Master Distribution segment faced volatility due to global trade policies and exchange rates, impacting gross margins.
Reduction in Adjusted EBITDA Guidance
The top end of adjusted EBITDA guidance for fiscal year 2025 was reduced due to tariffs and continued drag in product support and rental departments.
Company Guidance
During the Alta Equipment Group's second-quarter 2025 earnings call, the company provided guidance based on several key financial metrics and industry trends. The company reported a revenue of $481.2 million, reflecting a slight year-over-year decline of 1.4% but a sequential increase of $58.2 million over Q1. New and used equipment sales in the Construction and Master Distribution segments increased by $24.7 million year-over-year, while the Material Handling segment saw an $8.3 million reduction. The company also highlighted a decrease in rental revenues by $7.4 million, largely due to strategic fleet rightsizing. Alta's adjusted EBITDA for the quarter was $48.5 million, with a full-year 2025 guidance now ranging between $171.5 million and $181.5 million. The company introduced a new annual guidance measure, expecting free cash flow before rent-to-sell decisioning to be between $105 million and $115 million. Alta's outlook for the remainder of the year remains positive, particularly with potential benefits from the "One Big Beautiful Bill" tax incentives, which could bolster equipment demand. The company also emphasized continued expense and inventory optimization, with SG&A down over $20 million year-to-date, and reported the repurchase of nearly 1.2 million shares under their buyback program. Overall, Alta remains optimistic about its diverse and resilient business model amidst macroeconomic uncertainties.Alta Equipment Group Financial Statement Overview
Summary
Alta Equipment Group shows strong revenue growth but faces challenges 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.45
Neutral
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.40
Negative
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.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.85B | 1.88B | 1.88B | 1.57B | 1.21B | 873.60M |
| Gross Profit | 478.40M | 493.70M | 507.20M | 419.60M | 314.40M | 214.50M |
| EBITDA | 169.10M | 159.50M | 192.10M | 154.40M | 102.60M | 68.20M |
| Net Income | -65.30M | -62.10M | 8.90M | 9.30M | -20.80M | -24.00M |
Balance Sheet | ||||||
| Total Assets | 1.44B | 1.48B | 1.57B | 1.29B | 982.60M | 746.20M |
| Cash, Cash Equivalents and Short-Term Investments | 13.20M | 13.40M | 31.00M | 2.70M | 2.30M | 1.20M |
| Total Debt | 353.60M | 1.20B | 1.18B | 921.80M | 679.40M | 461.00M |
| Total Liabilities | 1.39B | 1.40B | 1.42B | 1.15B | 847.90M | 589.30M |
| Stockholders Equity | 43.90M | 77.60M | 149.70M | 139.80M | 134.70M | 156.90M |
Cash Flow | ||||||
| Free Cash Flow | 49.30M | -13.50M | -10.80M | -50.70M | -19.70M | -84.30M |
| Operating Cash Flow | 109.60M | 57.00M | 63.80M | 26.00M | 30.70M | -38.40M |
| Investing Cash Flow | -27.20M | -56.20M | -122.80M | -162.60M | -113.40M | -224.50M |
| Financing Cash Flow | -73.60M | -17.90M | 87.30M | 136.90M | 83.80M | 264.10M |
Alta Equipment Group Technical Analysis
Negative
7.14
Price Trends
7.80
Negative
6.90
Positive
6.38
Positive
Market Momentum
-0.17
Positive
41.25
Neutral
47.71
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 7.14 is below the 20-day moving average (MA) of 7.74, below the 50-day MA of 7.80, and above the 200-day MA of 6.38, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 41.25 is Neutral, neither overbought nor oversold. The STOCH value of 47.71 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 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | 3.90B | 35.79 | 10.61% | 1.01% | -2.34% | -37.24% | |
66 Neutral | 1.35B | -37.41 | -2.31% | ― | 6.21% | -177.57% | |
50 Neutral | 4.08B | 142.37 | 1.20% | 2.31% | 11.41% | -92.67% | |
48 Neutral | $236.51M | ― | -77.23% | 3.19% | -3.46% | -222.37% | |
44 Neutral | 15.13M | -3.12 | -0.54% | ― | 19.51% | 29.43% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
ALTG
Alta Equipment Group
7.14
0.80
12.62%
WSC
WillScot Mobile Mini Holdings
20.83
-17.44
-45.57%
HRI
Herc Holdings
119.56
-37.11
-23.69%
FPAY
FlexShopper
0.69
-0.34
-33.01%
CTOS
Custom Truck One Source
5.97
2.37
65.83%
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.
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.