Alamo Group Inc. (ALG) AI Stock Analysis

Alamo Group Inc. designs, manufactures, distributes, and services equipment for vegetation management and infrastructure maintenance across governmental, industrial, and agricultural markets. The company operates through two segments: Vegetation Management and Industrial Equipment. Its Vegetation Management Division provides hydraulically powered equipment such as tractor-mounted mowers, rotary and flail cutters, zero-turn radius mowers, and agricultural implements. The Industrial Equipment Division offers municipal and industrial products including truck-mounted sweepers, pothole patchers, leaf collection equipment, vacuum systems, snowplows, and high-pressure cleaning systems for public spaces, roadways, and airports.

Between FY2021 and FY2025, revenue increased from $1.33B to $1.60B, reflecting a 5-year revenue CAGR of 6.6%. After peaking at $1.69B in FY2023, revenue fell 3.6% in FY2024 and 1.5% in FY2025. Operating margin decreased from 11.7% in FY2023 to 9.5% in FY2025, and net income moved from $136.2M to $103.8M over the same timeframe. Free cash flow stood at $146.9M in FY2025. In the quarter ended June 30, 2026, revenue increased 7.6% year-over-year, while quarterly earnings declined 0.8%. Trailing twelve-month EPS was $8.34.

As of June 30, 2026, Alamo Group held $195.0M in cash and short-term investments against $273.1M in total debt, resulting in net debt of $78.1M. The company maintains strong liquidity with a current ratio of 4.39 and a debt-to-equity ratio of 0.23 on $1.19B of shareholders' equity. In FY2025, operating cash flow was $177.5M. The business allocated cash toward $30.6M in capital expenditures, $14.4M in dividends paid, and $3.0M in share buybacks.

Alamo Group trades at a trailing P/E of 18.1x and a forward P/E of 13.8x, compared to medians of 24.8x and 17.2x for US-listed Industrials. Its EV/EBITDA stands at 9.8x versus the peer median of 13.9x, and its price-to-sales multiple is 1.1x versus 1.5x. Over the past year, the stock fell 17.4%, trailing the S&P 500 (SPY) return of 16.8%. Over five years, the stock returned 5.6% compared to 83.0% for the S&P 500.

Alamo Group offers a forward annual dividend of $1.36 per share, representing a dividend yield of 0.90% with a payout ratio of 14.4%. The company has paid dividends for 34 consecutive years and delivered a 5-year annualized dividend growth rate of 18.2%. The last ex-dividend date was October 15, 2026.

Wall Street coverage includes 2 Strong Buy, 1 Buy, and 1 Hold ratings. The mean price target is $204.80, representing 35.9% upside from the October 16, 2026 closing price of $150.66. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $1.71B and EPS of $10.53. Alamo Group beat EPS estimates in 2 of the past 4 quarters, and its next earnings date is November 5, 2026.

This page is an AI-written research summary of Alamo Group Inc. (ALG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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