Alamo Group Inc. (ALG) stock analysis

In our weekly check, Alamo Group Inc. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 10, red flags: 2.

About Alamo Group Inc.

Alamo Group Inc. is an Industrials company (Farm & Heavy Construction Machinery) based in the United States, listed on NYSE as ALG.

What our checks show for ALG

Red flags

• The net margin is only 4.7%: little room if costs rise.
• The stock has fallen as much as 65% from a peak. Would you have held through that?

Warning signs

• Operating profit covers interest only 3.9 times: a weak year could make the payments hard.
• The net margin fell by 1.3 points over 5 years, to 4.7%: the company keeps less of each sale as profit.
• The gross margin fell by 2.2 points, to 22.9%: costs are rising faster than prices.
• Revenue grew only 2.8% a year over the last 3 years.
• Earnings per share fell 9.1% a year over the last 3 years.
• Net profit fell 8.7% a year over the last 3 years.
• A small company (market value $1.63 billion): usually riskier and followed by fewer analysts.
• Recovering from its deepest fall took about 1.7 years.
• Thinly traded (about 177 thousand shares a day): buying and selling can move the price.
• Return on capital (ROCE) is only 7.8%.

Strengths

• Net debt is only 0x a year of EBITDA: the balance sheet has room.
• Operating cash flow is 2.04x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 39.9% a year over the next years.
• Analysts expect the net margin to improve by 4.3 points from today's 4.7%.
• The dividend takes 20% of profit: there is a cushion.
• Pay in shares is only 4.7% of free cash flow.

Similar companies

HLIO · GRC · SXI · PSIX · PLOW · MTW

Questions

What grade does Alamo Group Inc. (ALG) have?

In our weekly check, Alamo Group Inc. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 10, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of ALG stock?

This week's biggest flags for Alamo Group Inc.: Thin margins, Deep past fall, Weak interest cover. In total 12 of 25 checks show a warning or a red flag.

What does Alamo Group Inc. do?

Alamo Group Inc. is an Industrials company (Farm & Heavy Construction Machinery) based in the United States, listed on NYSE as ALG.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-11-07

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