What are the investment risks for Alamo Group Inc (ALG)?

EPS growth 4.4% 5Y CAGR vs industry median 13.3% - slow grower trading at discount for a reason. Revenue scale 1.6B limits pricing power. Goodwill 214M (19% of equity) from acquisitions with intangibles totaling 362M - integration risk and potential impairment if synergies disappoint.

Alamo Group Inc

ALG

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Alamo Group Inc AI Insights

Informational only. Not investment advice.

As of 2025-12-12

Snapshot

Operating margin 10.1% TTM vs industry median 6.7% with ROA 7.6% vs median 3.2% - consistent operational outperformance in fragmented equipment sector.[Operating Margin TTM]
FCF of 150M TTM (9.3% of revenue) with debt/equity at 0.18 and 245M cash - fortress balance sheet enables opportunistic M&A.[Free Cash Flow TTM]
Working capital of 758M (47% of revenue) tied up in inventory 378M and receivables 335M - capital-intensive operations limit cash conversion.[Working Capital]

Watch Triggers

Inventory: Exceeds 400M or >25% of revenue — Signals demand weakness or supply chain issues; currently 378M (23% of revenue)
Operating Margin TTM: Falls below 8% — Would indicate pricing pressure or cost inflation eroding competitive advantage
Free Cash Flow TTM: Drops below 100M — Would constrain M&A optionality and signal working capital deterioration

Bull Case

Premium profitability (ROE 10.8%, ROIC 9.0% TTM) with minimal leverage (0.18 D/E) in cyclical industry positions ALG to acquire distressed competitors during downturns.

ROE TTMROIC TTMDebt to Equity

P/E 18.4x vs industry median 24.3x despite superior margins - valuation discount to peers with better fundamentals.

PE RatioOperating Margin TTM

Bear Case

EPS growth 4.4% 5Y CAGR vs industry median 13.3% - slow grower trading at discount for a reason. Revenue scale 1.6B limits pricing power.

EPS Growth 5yrTotal Revenue TTM

Goodwill 214M (19% of equity) from acquisitions with intangibles totaling 362M - integration risk and potential impairment if synergies disappoint.

GoodwillGoodwill and Other Intangible Assets

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

58%

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Forward Thesis

FCF generation to accelerate as infrastructure spending drives revenue without proportional working capital build.

1-3ymed

Asset turnover 1.05x above industry 0.72x median
Capex only 2% of revenue TTM
Net margin 7.2% vs median 4.4%

FCF 150M on 1.6B revenue TTMCash flow 182M vs capex 32MDebt/equity 0.18 provides expansion capacity

Valuation Context

Caveats

Public Strategies Rankings

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ALG Fundamentals

Manufacturing → Machinery Manufacturing

Metric	Value	YoY Growth	Industry Percentile
Market Cap	$2.33B		—
Enterprise Value	$2.29B		—
P/E Ratio	20		—
Total Revenue - TTM	$1.62B	-2.7%	—
Earnings Per Share (diluted) - TTM	$9.64	-2.9%	—
Operating Margin - TTM	10.1%	-0.4%	—
Net Margin - TTM	7.20%	+0.0%	—
Free Cash Flow - TTM	$149.92M	-3.3%	—
Return on Common Equity - TTM	0.11	-1.7%	—
Beta 5Y (Monthly)	unknown		—

ALG Dividend History

104 dividends

2026

$0.3400

01/16/26$0.3400

2025

$1.2000

10/15/25$0.3000

07/16/25$0.3000

04/16/25$0.3000

01/16/25$0.3000

2024

$1.0400

10/15/24$0.2600

07/16/24$0.2600

04/15/24$0.2600

01/12/24$0.2600

2023

$0.8800

10/13/23$0.2200

07/17/23$0.2200

04/14/23$0.2200

01/17/23$0.2200

2022

$0.7200

10/17/22$0.1800

07/15/22$0.1800

04/14/22$0.1800

01/14/22$0.1800

2021

$0.5600

10/14/21$0.1400

07/14/21$0.1400

04/14/21$0.1400

01/15/21$0.1400

2020

$0.3900

07/15/20$0.1300

04/14/20$0.1300

01/15/20$0.1300

2019

$0.4800

10/11/19$0.1200

07/15/19$0.1200

04/15/19$0.1200

01/16/19$0.1200

2018

$0.4400

10/12/18$0.1100

07/13/18$0.1100

04/13/18$0.1100

01/12/18$0.1100

2017

$0.4000

10/13/17$0.1000

07/13/17$0.1000

04/12/17$0.1000

01/11/17$0.1000

2016

$0.3600

10/12/16$0.0900

07/13/16$0.0900

04/13/16$0.0900

01/13/16$0.0900

2015

$0.3200

10/13/15$0.0800

07/14/15$0.0800

04/14/15$0.0800

01/14/15$0.0800

2014

$0.2800

10/14/14$0.0700

07/15/14$0.0700

04/15/14$0.0700

01/14/14$0.0700

2013

$0.2800

10/11/13$0.0700

07/15/13$0.0700

04/15/13$0.0700

01/14/13$0.0700

2012

$0.2400

10/15/12$0.0600

07/12/12$0.0600

04/12/12$0.0600

01/13/12$0.0600

2011

$0.2400

10/13/11$0.0600

07/13/11$0.0600

04/13/11$0.0600

01/14/11$0.0600

2010

$0.2400

10/13/10$0.0600

07/13/10$0.0600

04/14/10$0.0600

01/14/10$0.0600

2009

$0.2400

10/13/09$0.0600

07/13/09$0.0600

04/15/09$0.0600

01/14/09$0.0600

2008

$0.2400

10/14/08$0.0600

07/14/08$0.0600

04/16/08$0.0600

01/15/08$0.0600

2007

$0.2400

10/15/07$0.0600

07/12/07$0.0600

04/12/07$0.0600

01/12/07$0.0600

2006

$0.2400

10/16/06$0.0600

07/13/06$0.0600

04/12/06$0.0600

01/13/06$0.0600

2005

$0.2400

10/14/05$0.0600

07/13/05$0.0600

04/13/05$0.0600

01/13/05$0.0600

2004

$0.2400

10/13/04$0.0600

07/14/04$0.0600

04/14/04$0.0600

01/14/04$0.0600

2003

$0.2400

10/15/03$0.0600

07/16/03$0.0600

04/15/03$0.0600

01/15/03$0.0600

2002

$0.2400

10/16/02$0.0600

07/17/02$0.0600

04/15/02$0.0600

01/16/02$0.0600

2001

$0.2400

10/16/01$0.0600

07/18/01$0.0600

04/12/01$0.0600

01/16/01$0.0600

2000

$0.2400

10/16/00$0.0600

07/19/00$0.0600

04/13/00$0.0600

01/13/00$0.0600

ALG Stock Splits

No stock splits

ALG SEC Filings

Filing Date	Report Date	Report Type	Filing Link
11/06/25	09/30/25	10-Q	0000897077-25-000116
08/06/25	06/30/25	10-Q	0000897077-25-000104
05/08/25	03/31/25	10-Q	0000897077-25-000060
02/27/25	12/31/24	10-K	0000897077-25-000007
10/31/24	09/30/24	10-Q	0000897077-24-000112
07/31/24	06/30/24	10-Q	0000897077-24-000096
05/02/24	03/31/24	10-Q	0000897077-24-000063
02/22/24	12/31/23	10-K	0000897077-24-000009
11/02/23	09/30/23	10-Q	0000897077-23-000105
08/02/23	06/30/23	10-Q	0000897077-23-000094
05/04/23	03/31/23	10-Q	0000897077-23-000047
02/23/23	12/31/22	10-K	0000897077-23-000009
11/03/22	09/30/22	10-Q	0000897077-22-000121
08/03/22	06/30/22	10-Q	0000897077-22-000105
05/05/22	03/31/22	10-Q	0000897077-22-000056
02/24/22	12/31/21	10-K	0000897077-22-000007
11/03/21	09/30/21	10-Q	0000897077-21-000161
08/04/21	06/30/21	10-Q	0000897077-21-000116
05/06/21	03/31/21	10-Q	0000897077-21-000043
02/26/21	12/31/20	10-K	0000897077-21-000007
10/28/20	09/30/20	10-Q	0000897077-20-000142
07/30/20	06/30/20	10-Q	0000897077-20-000116
05/07/20	03/31/20	10-Q	0000897077-20-000064
02/28/20	12/31/19	10-K	0000897077-20-000011
10/31/19	09/30/19	10-Q	0000897077-19-000156
07/31/19	06/30/19	10-Q	0000897077-19-000127
05/01/19	03/31/19	10-Q	0000897077-19-000042
03/01/19	12/31/18	10-K	0000897077-19-000012
10/31/18	09/30/18	10-Q	0000897077-18-000108
08/01/18	06/30/18	10-Q	0000897077-18-000094
05/03/18	03/31/18	10-Q	0000897077-18-000028
03/01/18	12/31/17	10-K	0000897077-18-000010
10/31/17	09/30/17	10-Q	0000897077-17-000121
08/02/17	06/30/17	10-Q	0000897077-17-000106
05/04/17	03/31/17	10-Q	0000897077-17-000047
03/07/17	12/31/16	10-K	0000897077-17-000019
11/04/16	09/30/16	10-Q	0000897077-16-000193
08/05/16	06/30/16	10-Q	0000897077-16-000182
05/06/16	03/31/16	10-Q	0000897077-16-000102
03/04/16	12/31/15	10-K	0000897077-16-000097
11/06/15	09/30/15	10-Q	0000897077-15-000088
08/07/15	06/30/15	10-Q	0000897077-15-000068
05/08/15	03/31/15	10-Q	0000897077-15-000046
03/06/15	12/31/14	10-K	0000897077-15-000011
11/06/14	09/30/14	10-Q	0000897077-14-000071
08/08/14	06/30/14	10-Q	0000897077-14-000064
05/08/14	03/31/14	10-Q	0000897077-14-000033
03/11/14	12/31/13	10-K	0000897077-14-000007
11/08/13	09/30/13	10-Q	0000897077-13-000048
08/05/13	06/30/13	10-Q	0000897077-13-000040
05/03/13	03/31/13	10-Q	0000897077-13-000023
03/11/13	12/31/12	10-K	0000897077-13-000009
11/08/12	09/30/12	10-Q	0000897077-12-000033
08/09/12	06/30/12	10-Q	0000897077-12-000025
05/07/12	03/31/12	10-Q	0000897077-12-000011
03/12/12	12/31/11	10-K	0000897077-12-000004
11/04/11	09/30/11	10-Q	0000897077-11-000040
08/05/11	06/30/11	10-Q	0000897077-11-000020
05/06/11	03/31/11	10-Q	0001003297-11-000161
03/15/11	12/31/10	10-K	0001003297-11-000103
11/05/10	09/30/10	10-Q	0001003297-10-000268
08/06/10	06/30/10	10-Q	0001003297-10-000179
05/07/10	03/31/10	10-Q	0001003297-10-000114
03/15/10	12/31/09	10-K	0001003297-10-000062
11/09/09	09/30/09	10-Q	0001003297-09-000269
08/10/09	06/30/09	10-Q	0001003297-09-000176
05/08/09	03/30/09	10-Q	0001003297-09-000121
03/11/09	12/31/08	10-K	0001003297-09-000068
11/07/08	09/30/08	10-Q	0001003297-08-000238
08/11/08	06/30/08	10-Q	0001003297-08-000169
05/09/08	03/30/08	Unknown	--
03/12/08	12/31/07	10-K	0001003297-08-000054
11/06/07	09/30/07	10-Q	0001003297-07-000274
08/08/07	06/30/07	10-Q	0001003297-07-000202
05/08/07	03/30/07	Unknown	--
03/14/07	12/31/06	10-K	0001003297-07-000072
11/08/06	09/30/06	10-Q	0001003297-06-000419
08/09/06	06/30/06	10-Q	0001003297-06-000338
05/10/06	03/30/06	Unknown	--
03/16/06	12/31/05	10-K	0001003297-06-000101
11/10/05	09/30/05	10-Q	0001003297-05-000356
08/05/05	06/30/05	10-Q	0001003297-05-000248
05/06/05	03/30/05	Unknown	--
03/11/05	12/31/04	10-K	0001003297-05-000049
11/10/04	09/30/04	10-Q	0001003297-04-000439
08/05/04	06/30/04	10-Q	0001003297-04-000336
05/10/04	03/30/04	Unknown	--
03/15/04	12/31/03	10-K	0001003297-04-000130
11/12/03	09/30/03	4	0000897077-03-000044
08/11/03	06/30/03	10-Q	0001003297-03-000308
05/14/03	03/30/03	Unknown	--
03/19/03	12/31/02	10-K	0001003297-03-000058
11/14/02	09/30/02	10-Q	0001003297-02-000221
08/13/02	06/30/02	10-Q	0001003297-02-000160
05/15/02	03/30/02	Unknown	--
03/28/02	12/31/01	10-K	0000912057-02-012201
11/13/01	09/30/01	10-Q	0000912057-01-538774
08/14/01	06/30/01	10-Q	0000912057-01-528605
05/14/01	03/30/01	Unknown	--
03/30/01	12/31/00	8-K	0000897077-00-000018
11/13/00	09/30/00	10-Q	0000897077-00-000015
08/14/00	06/30/00	10-Q	0000897077-00-000008
05/15/00	03/30/00	Unknown	--