📊 ALG Key Takeaways
Is Alamo Group Inc. (ALG) a Good Investment?
Alamo Group exhibits a concerning operational deterioration masked by a strong balance sheet. Flat revenue combined with negative operating cash flow (-$23.5M) and declining earnings (-10.5% YoY) signal fundamental business challenges. While fortress-like liquidity and low leverage provide downside protection, the company's poor capital returns (ROE 2.5%, ROA 1.7%) and persistent cash burn indicate operational distress that requires improvement.
Alamo Group shows strong underlying fundamentals with solid operating profitability, robust free cash flow generation, and a very conservative balance sheet. The company’s liquidity is excellent and leverage is low, which provides resilience and flexibility. The main offset is muted growth quality, as revenue was flat and earnings declined year over year, so execution on margin stability and renewed top-line growth matters.
Why Buy Alamo Group Inc. Stock? ALG Key Strengths
- Fortress balance sheet with low debt/equity ratio of 0.23x and $195.2M cash position
- Excellent liquidity metrics: 4.32x current ratio and 2.45x quick ratio provide substantial financial flexibility
- Adequate interest coverage of 6.9x demonstrates manageable debt service burden
- Strong balance sheet with high liquidity, low debt-to-equity, and substantial cash reserves
- Healthy profitability profile with 24.8% gross margin, 9.5% operating margin, and strong interest coverage
- Solid cash generation with $146.92M in free cash flow and a 9.2% FCF margin
ALG Stock Risks: Alamo Group Inc. Investment Risks
- Critical negative operating cash flow of -$23.5M despite positive net income indicates severe cash conversion issues
- Revenue stagnation at 0% YoY growth with simultaneous 10.5% net income decline suggests market share loss or margin compression
- Severely depressed returns on capital: ROE of 2.5% and ROA of 1.7% demonstrate inefficient capital deployment
- Negative free cash flow of -$28.0M will erode the cash position if operational trends persist
- Revenue was flat year over year, indicating limited near-term growth momentum
- Net income and diluted EPS declined by about 10%, suggesting earnings pressure
- ROE of 9.0% is respectable but not especially strong relative to the company’s large equity base
Key Metrics to Watch
- Operating cash flow trend and root cause of cash burn relative to reported profitability
- Revenue growth inflection point and whether management can stabilize top-line
- Return on equity and asset deployment efficiency improvements
- Cash position depletion rate given ongoing negative free cash flow
- Revenue growth and order conversion trends
- Operating margin and free cash flow consistency
Alamo Group Inc. (ALG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 4.32x current ratio provides a solid financial cushion.
ALG Profit Margin, ROE & Profitability Analysis
ALG vs Industrial Sector: How Alamo Group Inc. Compares
How Alamo Group Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Alamo Group Inc. Stock Overvalued? ALG Valuation Analysis 2026
Based on fundamental analysis, Alamo Group Inc. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Alamo Group Inc. Balance Sheet: ALG Debt, Cash & Liquidity
ALG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Alamo Group Inc.'s revenue has grown significantly by 27% over the 5-year period, indicating strong business expansion. The most recent EPS of $11.36 reflects profitable operations.
ALG Revenue Growth, EPS Growth & YoY Performance
ALG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $391.0M | $29.2M | $2.41 |
| Q3 2025 | $401.3M | $25.4M | $2.10 |
| Q2 2025 | $416.3M | $28.3M | $2.35 |
| Q1 2025 | $391.0M | $31.8M | $2.64 |
| Q3 2024 | $401.3M | $27.4M | $2.28 |
| Q2 2024 | $416.3M | $28.3M | $2.35 |
| Q1 2024 | $411.8M | $32.1M | $2.67 |
| Q3 2023 | $368.8M | $25.8M | $2.16 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Alamo Group Inc. Dividends, Buybacks & Capital Allocation
ALG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Alamo Group Inc. (CIK: 0000897077)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778616483.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778616333.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778616206.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778616165.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778616108.xml | View → |
❓ Frequently Asked Questions about ALG
What is the AI rating for ALG?
Alamo Group Inc. (ALG) has a Combined AI Rating of HOLD from Claude (SELL) and ChatGPT (BUY) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ALG's key strengths?
Claude: Fortress balance sheet with low debt/equity ratio of 0.23x and $195.2M cash position. Excellent liquidity metrics: 4.32x current ratio and 2.45x quick ratio provide substantial financial flexibility. ChatGPT: Strong balance sheet with high liquidity, low debt-to-equity, and substantial cash reserves. Healthy profitability profile with 24.8% gross margin, 9.5% operating margin, and strong interest coverage.
What are the risks of investing in ALG?
Claude: Critical negative operating cash flow of -$23.5M despite positive net income indicates severe cash conversion issues. Revenue stagnation at 0% YoY growth with simultaneous 10.5% net income decline suggests market share loss or margin compression. ChatGPT: Revenue was flat year over year, indicating limited near-term growth momentum. Net income and diluted EPS declined by about 10%, suggesting earnings pressure.
What is ALG's revenue and growth?
Alamo Group Inc. reported revenue of $417.1M.
Does ALG pay dividends?
Alamo Group Inc. pays dividends, with $4.1M distributed to shareholders in the trailing twelve months.
Where can I find ALG SEC filings?
Official SEC filings for Alamo Group Inc. (CIK: 0000897077) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ALG's EPS?
Alamo Group Inc. has a diluted EPS of $2.41.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ALG a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Alamo Group Inc. has a HOLD rating with 76% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ALG stock overvalued or undervalued?
Valuation metrics for ALG: ROE of 2.5% (sector avg: 15%), net margin of 7.0% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy ALG stock in 2026?
Our dual AI analysis gives Alamo Group Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ALG's free cash flow?
Alamo Group Inc.'s operating cash flow is $-23.5M, with capital expenditures of $4.5M. FCF margin is -6.7%.
How does ALG compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 7.0% (avg: 10%), ROE 2.5% (avg: 15%), current ratio 4.32 (avg: 1.8).