Investment Thesis
Alta Equipment Group exhibits severe financial distress with negative stockholders' equity of -$8.8M, indicating the company is technically insolvent. The company is unprofitable with -$80.3M net income, dangerously low interest coverage of 0.3x, and deteriorating operating margins of 1.3%, creating substantial risk of covenant violations and potential bankruptcy.
ALTG-PA Strengths
- Positive operating cash flow of $33.0M provides short-term liquidity cushion
- Positive free cash flow of $23.8M demonstrates ability to generate cash despite losses
- Gross margin of 25.9% indicates reasonable product pricing power in core operations
ALTG-PA Risks
- Negative stockholders' equity of -$8.8M indicates technical insolvency and high bankruptcy risk
- Critical interest coverage ratio of 0.3x signals inability to service $484.5M long-term debt obligations
- Negative net income of -$80.3M with worsening EPS (-30.1% YoY) shows accelerating operational deterioration
- Net margin of -4.4% and operating margin of 1.3% demonstrate unprofitable business model
- Revenue declining 2.2% YoY despite negative net income indicates structural challenges
Key Metrics to Watch
- Stockholders' equity trend - critical to monitor for further deterioration
- Interest coverage ratio - current 0.3x level unsustainable for long-term debt servicing
- Operating margin progression - 1.3% margin must improve significantly to achieve profitability
- Debt covenant compliance status and refinancing runway
- Cash burn rate relative to operating cash flow sustainability
ALTG-PA Financial Metrics
ALTG-PA Profitability Ratios
ALTG-PA Balance Sheet & Liquidity
ALTG-PA 5-Year Financial Trend
5-Year Trend Summary: ALTA EQUIPMENT GROUP INC.'s revenue has grown significantly by 55% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.18 reflects profitable operations.
ALTG-PA Growth Metrics (YoY)
ALTG-PA Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $422.6M | -$27.7M | $-0.86 |
| Q2 2025 | $481.2M | -$6.1M | $-0.21 |
| Q1 2025 | $423.0M | -$11.9M | $-0.38 |
| Q3 2024 | $448.8M | $7.4M | $0.20 |
| Q2 2024 | $468.4M | $2.4M | $0.05 |
| Q1 2024 | $420.7M | $1.0M | $0.01 |
| Q3 2023 | $405.0M | $5.1M | $0.14 |
| Q2 2023 | $406.5M | $2.4M | $0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ALTG-PA Capital Allocation
ALTG-PA SEC Filings
Access official SEC EDGAR filings for ALTA EQUIPMENT GROUP INC. (CIK: 0001759824)