Alamo Group Inc. designs manufactures, and distributes equipment for infrastructure maintenance, agriculture and other applications. Products include truck and tractor mounted mowing and other vegetation maintenance equipment, street sweepers, snow removal equipment, excavators, vacuum trucks, other industrial equipment, agricultural implements and related aftermarket parts and services. The company was founded in 1955 and is based in Seguin, Texas.
ALG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ALG, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Alamo Group Inc ranked in the 71th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 255%. The most interesting components of our discounted cash flow analysis for Alamo Group Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 5.41 years, is 0.37% -- higher than 73.71% of stocks in our DCF forecasting set.
Alamo Group Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 18.03% of tickers in our DCF set.
As a business, Alamo Group Inc experienced a tax rate of about 17% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than 64.07% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
TISI, EME, ATI, MTW, and SPXC can be thought of as valuation peers to ALG, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
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Marc Gerstein on Seeking Alpha | September 22, 2020
An 18-year-old Alamo man accused of gunning down a man in January and dumping the 19-year-old’s body by a sugar cane field is scheduled to be arraigned Monday on an indictment charging him with murder. Continue reading ValleyMorningStar.com.
Alamo Group Inc. (ALG) Q2 2020 Earnings Conference Call July 30, 2020 15:00 ET Company Participants Ed Rizzuti - Vice President, General Counsel and Secretary Ron Robinson - President and Chief Executive Officer Dan Malone - Executive Vice President and Chief Financial Officer Richard Wehrle - Vice President, Treasurer and...