Of note is the ratio of Alamo Group Inc's sales and general administrative expense to its total operating expenses; 79.53% of US stocks have a lower such ratio.
With a year-over-year growth in debt of 171.81%, Alamo Group Inc's debt growth rate surpasses 91.18% of about US stocks.
Alamo Group Inc's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is -24.99%, greater than the shareholder yield of merely 15.8% of stocks in our set.
Stocks that are quantitatively similar to ALG, based on their financial statements, market capitalization, and price volatility, are GIII, WVVI, AMWD, INGR, and PGTI.
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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Alamo Group Inc. To summarize, we found that Alamo Group Inc ranked in the 66th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 140.5% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Alamo Group Inc, consider:
The compound growth rate in the free cash flow of Alamo Group Inc over the past 5.75 years is 0.24%; that's higher than 73.33% of free cash flow generating stocks in the Industrials sector.
Alamo Group Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 17.38% of tickers in our DCF set.
Alamo Group Inc's effective tax rate, as measured by taxes paid relative to net income, is at 18 -- greater than 70.21% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ALG, try PFIN, SLNG, NWPX, FELE, and TGH.
On the line with me today are Ron Robinson, President and Chief Executive Officer; Dan Malone, Executive Vice President, Chief Financial Officer; and Richard Wehrle, Vice President, Treasurer and Corporate Controller. Dan, please go ahead.
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