Alamo Group, Inc.

Valuation Analysis

About the Company

Alamo Group Inc. manufactures and sells industrial and vegetation management equipment for governmental, industrial, and agricultural uses worldwide. It operates in two segments, Vegetation Management and Industrial Equipment. The Vegetation Management segment offers tractor powered equipment such as rotary, finishing, flail, and disc mowers; rotary cutters; front end loaders, backhoes, tillers, posthole diggers, scraper blades, cultivators, subsoilers, and other tractor attachments and implements. This segment also provides commercial and residential zero turn mowers; hydraulic and mechanical boom and reach mowers; hedge and hedgerow cutters; industrial grass mowers; seedbed preparation equipment; and forestry and tree care tools, including chippers, stump grinders, mulchers, brush cutter

Alamo Group, Inc. Stock at a Glance

Alamo Group, Inc. (ALG) is currently trading at $153.74 with a market capitalization of $1.9B. The trailing P/E ratio stands at 18.39x, with a forward P/E of 12.78x. The 52-week range spans from $145.76 to $233.29; the current price is 34.1% below the yearly high. Year-over-year revenue growth stands at +6.7%. The net profit margin stands at 6.21%.

💰 Dividend

Alamo Group, Inc. pays an annual dividend of $1.28 per share, representing a yield of 0.83%. The payout ratio stands at 14.83%.

📊 Analyst Rating

5 analysts rate Alamo Group, Inc. (ALG) on consensus: None. The average price target is $209.80, implying +36.46% from the current price. Analyst price targets range from $188.00 to $225.00.

Alamo Group, Inc.: The Investment Case in Detail

Alamo Group, Inc. (ALG) operates in the Industrials — specifically Farm & Heavy Construction Machinery — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

Valuation in Context

With a PEG ratio of 0.92, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 9.64x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 12.78x is meaningfully below the trailing 18.39x — analysts expect earnings to step up; the next earnings release is the test.
• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.
• The analyst consensus price target implies 36.46% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to market-like volatility, elevated short interest (5.16%).

Trading Data

💵 Dividend Info

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