Alamo Group Inc (ALG) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Alamo Group Inc stock (ALG) is currently trading at $171.23. Alamo Group Inc PE ratio is 18.58. Alamo Group Inc PS ratio (Price-to-Sales) is 1.21. Analyst consensus price target for ALG is $211.40. WallStSmart rates ALG as Underperform.
- ALG PE ratio analysis and historical PE chart
- ALG PS ratio (Price-to-Sales) history and trend
- ALG intrinsic value — DCF, Graham Number, EPV models
- ALG stock price prediction 2025 2026 2027 2028 2029 2030
- ALG fair value vs current price
- ALG insider transactions and insider buying
- Is ALG undervalued or overvalued?
- Alamo Group Inc financial analysis — revenue, earnings, cash flow
- ALG Piotroski F-Score and Altman Z-Score
- ALG analyst price target and Smart Rating
Alamo Group Inc
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ALG Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Alamo Group Inc (ALG)
ALG trades 260% above its Graham fair value of $58.48, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Alamo Group Inc (ALG) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, price/sales, price/book. Concerns around return on equity and operating margin. Fundamentals are solid but monitor weak areas for improvement.
Alamo Group Inc (ALG) Key Strengths (4)
Growing significantly faster than its price suggests
103.30% of shares held by major funds and institutions
Paying $1.21 for every $1 of annual revenue
Trading at 1.69x book value, attractively priced
Supporting Valuation Data
Alamo Group Inc (ALG) Areas to Watch (6)
Revenue declining -3.00%, a shrinking business
Earnings declining -45.00%, profits shrinking
Very thin margins with limited operational efficiency
Low profitability relative to shareholder equity
Thin profit margins with limited profitability
Small-cap company with higher risk but more growth potential
Alamo Group Inc (ALG) Detailed Analysis Report
Overall Assessment
This company scores 50/100 in our Smart Analysis, earning a C- grade. Out of 10 metrics analyzed, 4 register as strengths (avg 9.0/10) while 6 fall into concern territory (avg 2.3/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on PEG Ratio, Institutional Own., Price/Sales. Valuation metrics including PEG Ratio (0.97), Price/Sales (1.21), Price/Book (1.69) suggest the stock is attractively priced.
The Bear Case
The primary concerns are Revenue Growth, EPS Growth, Operating Margin. Growth concerns include Revenue Growth at -3.00%, EPS Growth at -45.00%, which may limit upside. Profitability pressure is visible in Return on Equity at 9.58%, Operating Margin at 6.03%, Profit Margin at 6.47%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 9.58% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at -3.00% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (PEG Ratio, Institutional Own.) and negatives (Revenue Growth, EPS Growth). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
ALG Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
ALG's Price-to-Sales ratio of 1.21x trades 55% above its historical average of 0.78x (87th percentile), historically expensive. The current valuation is 27% below its historical high of 1.66x set in Nov 2017, and 425% above its historical low of 0.23x in Apr 2009. Over the past 12 months, the PS ratio has compressed from ~1.6x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for Alamo Group Inc (ALG) · INDUSTRIALS › FARM & HEAVY CONSTRUCTION MACHINERY
The Big Picture
Alamo Group Inc operates as a stable business with moderate growth and solid fundamentals. Revenue reached 1.6B with 300% decline year-over-year. Profit margins are thin at 6.5%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
ROE of 958.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 70M in free cash flow and 75M in operating cash flow. Earnings are translating into actual cash generation.
Revenue contracted 300% YoY. Worth determining whether this is cyclical or structural.
What to Watch Next
Margin expansion: can Alamo Group Inc push profit margins above 15% as the business scales?
Dividend sustainability with a current yield of 74.0%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor FARM & HEAVY CONSTRUCTION MACHINERY industry trends, competitive moves, and regulatory changes that could impact Alamo Group Inc.
Bottom Line
Alamo Group Inc offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Alamo Group Inc(ALG)
NYSE
INDUSTRIALS
FARM & HEAVY CONSTRUCTION MACH...
USA
Alamo Group Inc. designs, manufactures, distributes and services agricultural and infrastructure maintenance equipment for government and industrial use worldwide. The company is headquartered in Seguin, Texas.