ScoreWhy is Alamo Group, Inc. ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 8.99
2
Flat results in Jun 25
- ROCE(HY) Lowest at 11.3%
- INTEREST(Q) At USD 3.68 MM has Grown at 15.34%
- INVENTORY TURNOVER RATIO(HY) Lowest at 3.19 times
3
With ROCE of 15.03%, it has a expensive valuation with a 2.36 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -17.10%, its profits have fallen by -14.3%
4
Below par performance in long term as well as near term
- Along with generating -17.10% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Alamo Group, Inc. should be less than 10%
- Overall Portfolio exposure to Automobiles should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Alamo Group, Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Alamo Group, Inc.
-16.83%
-0.35
27.37%
S&P 500
13.22%
0.64
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.69%
EBIT Growth (5y)
12.85%
EBIT to Interest (avg)
8.99
Debt to EBITDA (avg)
1.15
Net Debt to Equity (avg)
0.02
Sales to Capital Employed (avg)
1.31
Tax Ratio
22.76%
Dividend Payout Ratio
10.80%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
13.96%
ROE (avg)
11.91%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
22
Industry P/E
Price to Book Value
2.39
EV to EBIT
15.68
EV to EBITDA
11.79
EV to Capital Employed
2.36
EV to Sales
1.60
PEG Ratio
NA
Dividend Yield
0.53%
ROCE (Latest)
15.03%
ROE (Latest)
10.94%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 212.38 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 2.58 %
DIVIDEND PER SHARE(HY)
Highest at USD 4.29
DIVIDEND PAYOUT RATIO(Y)
Highest at 11.65%
RAW MATERIAL COST(Y)
Fallen by 0.58% (YoY
CASH AND EQV(HY)
Highest at USD 402.1 MM
NET SALES(Q)
Highest at USD 419.07 MM
OPERATING PROFIT(Q)
Highest at USD 60.93 MM
-6What is not working for the Company
ROCE(HY)
Lowest at 11.3%
INTEREST(Q)
At USD 3.68 MM has Grown at 15.34%
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.19 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.29 times
Here's what is working for Alamo Group, Inc.
Operating Cash Flow
Highest at USD 212.38 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Debt-Equity Ratio
Lowest at 2.58 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend per share
Highest at USD 4.29 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 419.07 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 60.93 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Cash and Eqv
Highest at USD 402.1 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Dividend Payout Ratio
Highest at 11.65%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by 0.58% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 13.85 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Alamo Group, Inc.
Interest
At USD 3.68 MM has Grown at 15.34%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Inventory Turnover Ratio
Lowest at 3.19 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 4.29 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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