Last Updated: 13 Nov 2024
Executive Summary
Alamo Group Inc. (ALG) is a leading manufacturer of agricultural and infrastructure maintenance equipment. The company has a strong financial position, with a market capitalization of $2.37 billion and an EBITDA of $227.5 million. ALG's stock is currently trading at $192.28, which is below its 52-week high of $230.44. The company has a trailing PE ratio of 19.74 and a forward PE ratio of 3.89. ALG's dividend yield is 0.0053%.
Company Overview
Alamo Group Inc. was founded in 1969 and is headquartered in Seguin, Texas. The company designs, manufactures, distributes, and services agricultural and infrastructure maintenance equipment for government and industrial use worldwide. ALG's products include mowers, sweepers, snow blowers, and other equipment. The company has a global presence, with operations in North America, Europe, Asia, and Australia.
Fundamental Analysis
Alamo Group Inc. has a strong financial position. The company's revenue has grown steadily in recent years, from $1.3 billion in 2019 to $1.66 billion in 2023. ALG's net income has also grown steadily, from $102.5 million in 2019 to $134.9 million in 2023. The company's gross profit margin has remained stable at around 23%. ALG's operating margin has also remained stable at around 10%. The company's return on assets has improved from 6.3% in 2019 to 7.5% in 2023. ALG's return on equity has also improved from 10.2% in 2019 to 12.5% in 2023.
Technical Analysis
Alamo Group Inc.'s stock price has been trending down in recent months. The stock price is currently below its 50-day moving average of $178.02 and its 200-day moving average of $190.75. The stock's relative strength index (RSI) is currently at 30.36, which is below the oversold threshold of 30. This indicates that the stock is oversold and may be due for a rebound.
Short Term Outlook
In the short term, Alamo Group Inc.'s stock price is likely to continue to trend down. The stock is currently below its 50-day and 200-day moving averages, and its RSI is below the oversold threshold. However, the stock's fundamentals are strong, and the company is likely to continue to grow in the long term.
Long Term Outlook
In the long term, Alamo Group Inc.'s stock price is likely to rise. The company has a strong financial position, and its products are in high demand. The company is also likely to benefit from the growing demand for agricultural and infrastructure maintenance equipment.
Analyst Recommendations
Analysts are currently recommending a buy rating for Alamo Group Inc. stock. The average analyst target price is $215.50, which is 12% above the current stock price. Two analysts have a strong buy rating on the stock, two analysts have a buy rating, and zero analysts have a hold, sell, or strong sell rating.
