# Alamo Group Inc. (ALG) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Industrials / Machinery. Price $173.56, market value $2.1 billion.

## Valuation
- **P/E (trailing): 20.8×** (5-yr avg 18.8×, 3-yr avg 18.9×). Alamo Group Inc. trades at 20.8× trailing earnings, close to its own five-year average of 18.8×. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 14.3×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 1.3×**. Each dollar of revenue is priced at 1.3×.
- **Price / book: 1.7×**. The shares trade at 1.7× book value; book value is a meaningful part of the valuation.
- **Free-cash-flow yield: 6.4%** (5-yr avg 4.0%). Free cash flow equals 6.4% of the market value, above its five-year average of 4.0%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 4.8%**. The inverse of the P/E: 4.8% of the price is earned each year.

## Profitability
- **Gross margin: 24.2%**. Alamo Group Inc. keeps 24.2% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 8.9%**. 8.9% of revenue is left after running the business.
- **Net margin: 6.5%**. 6.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 9.0%**. 9.0% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 11.2%**. Return on all capital, debt included, is 11.2%.
- **Return on assets: 6.3%**. Each dollar of assets produces 6.3% of profit.

## Growth
- **Revenue growth (1 yr): -1.5%** (3-yr 1.9%/yr, 5-yr 6.6%/yr). Revenue fell 1.5% over the last year, against 6.6% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -10.8%** (3-yr 0.2%/yr, 5-yr 12.0%/yr). Earnings per share fell 10.8%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 0.18**. Debt is 0.18 times equity: a conservative balance sheet.
- **Current ratio: 4.57** (quick 4.57). Current assets cover the next year's liabilities 4.57 times.
- **Altman Z-score: 5.66**. A Z-score of 5.66 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.76%** ($1.28 per share, trailing). Alamo Group Inc. yields 0.76%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 14%** (11% of free cash flow). 14% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 26**. 26 straight years of increases (the data covers 26 years, so this may be longer): a record very few companies hold.
- **Dividend growth (5 yr): 18.2%/yr** (1-yr 15.4%). The dividend has compounded at 18.2% a year over five years, doubling roughly every 4 years at that pace.

## Price and momentum
- **Total return (1 yr): -17.0%** (YTD 4.0%, 3-mo 16.4%). The shares are down 17.0% over twelve months including dividends.
- **From 52-week high: -21.1%** (19.1% above the low). Trading 21% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 65**. An RSI of 65 is neutral.
- **Beta (1 yr): 0.84** (volatility 32%). Beta of 0.84 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ALG · Page: https://foliofundamentals.com/stocks/alg

Not investment advice.