Alamo Group Inc. (ALG) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+23.1%

$188.15

vs $152.89 price

Levered DCF

$404.54

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

4.79

Safe zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	19.43×	19.19×	18.41×	16.5×	21.71×	28.1×	23.42×	12.27×
P/B	1.76×	2.19×	2.69×	2.14×	2.47×	2.56×	2.58×	1.78×
P/S	1.26×	1.37×	1.48×	1.11×	1.31×	1.4×	1.32×	0.89×
EV / EBITDA	9.74×	10.1×	10.81×	9.94×	12×	13.37×	14.96×	7.67×
Gross margin	24.8%	25.3%	26.8%	24.9%	25.1%	25.2%	24.4%	25.4%
Operating margin	9.5%	10.1%	11.7%	9.8%	8.8%	8.1%	8.5%	10.0%
Net margin	6.5%	7.1%	8.1%	6.7%	6.0%	5.0%	5.6%	7.3%
Current ratio	4.57×	4.51×	3.76×	3.82×	3.18×	3.28×	3.5×	4.49×
Debt / equity	0.19×	0.22×	0.26×	0.39×	0.39×	0.46×	0.78×	0.17×
Interest coverage	10.19×	8.02×	7.59×	10.35×	11.1×	5.99×	8.83×	18.4×
Dividend yield	0.7%	0.6%	0.4%	0.5%	0.4%	0.4%	0.4%	0.6%
Payout ratio	13.9%	10.7%	7.7%	8.4%	8.3%	10.6%	8.9%	7.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.0%	11.4%	14.6%	13.0%	11.4%	9.1%	11.1%	14.5%
Return on invested capital	8.0%	10.0%	12.7%	9.9%	8.3%	7.0%	6.6%	12.7%
Return on assets	6.5%	8.0%	9.7%	7.8%	6.7%	5.2%	5.2%	10.2%
Free cash flow yield	7.3%	8.3%	3.7%	-1.0%	1.4%	10.2%	3.9%	-1.5%
Earnings yield	5.1%	5.2%	5.4%	6.1%	4.6%	3.6%	4.3%	8.2%
Enterprise value	$1.9B	$2.3B	$2.7B	$1.9B	$2B	$1.9B	$1.9B	$952.8M
Net debt / EBITDA	-0.45×	0.13×	0.76×	1.33×	1.41×	1.71×	3.21×	0.41×
Cash conversion cycle (days)	145	146	160	159	146	138	162	142