Alamo Group Inc (ALG) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Alamo Group Inc stock $179, price $134, upside +34.0%, quality 60 out of 100. Rating: undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 4, 2026.
How to read this chart
60‑month range $106.81 – $230.19 · fair‑value band $131.34 – $223.88 · the $133.70 price screens below the $179.10 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 4, 2026.
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Alamo Group Inc. manufactures and sells industrial and vegetation management equipment for governmental, industrial, and agricultural uses worldwide. It operates in two segments, Vegetation Management and Industrial Equipment.
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The Vegetation Management segment offers tractor powered equipment such as rotary, finishing, flail, and disc mowers; rotary cutters; front end loaders, backhoes, tillers, posthole diggers, scraper blades, cultivators, subsoilers, and other tractor attachments and implements.
This segment also provides commercial and residential zero turn mowers; hydraulic and mechanical boom and reach mowers; hedge and hedgerow cutters; industrial grass mowers; seedbed preparation equipment; and forestry and tree care tools, including chippers, stump grinders, mulchers, brush cutters, flails, and debarkers, as well as remote control mowers and related replacement parts.
Its Industrial Equipment segment offers hydraulic telescoping booms; catch basin and roadway debris vacuum systems; sewer cleaners; vacuum trucks, combination sewer cleaners, hydro excavators, trenchers, and high pressure cleaning systems; truck mounted snow plows, blowers, dump bodies, spreaders, deicers, brine sprayers, snow throwers, and wing systems; salt spreaders; street sweepers, including mechanical broom and regenerative air models; leaf and debris collection equipment and replacement brooms; solid waste and recycling equipment; municipal tractors and attachments; asphalt patchers; underground construction forms; traffic control and crash attenuator trucks; industrial vacuum excavation units; trailer mounted and custom truck mounted systems; and related accessories and truck up fitting services.
The company serves the infrastructure building and maintenance, industrial construction, public works, land maintenance, agriculture, and tree care markets. Alamo Group Inc. was founded in 1955 and is headquartered in Seguin, Texas.
Stock analysis
Alamo Group Inc (ALG) currently trades at $133.70, while our model-based Fair Value estimate is $179.10, implying the stock looks roughly 25% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $197.50 per share, and 18 of the 26 models we run sit above the $133.70 price.
Bear case: the Asset-Based group reads lowest at $44.38, and 8 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $131.34 (bear) to $223.88 (bull), the price of $133.70 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 60/100 (solid quality), in the Industrials sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Alamo Group Inc reported revenue of $1.6B in FY2025 versus $1.3B in FY2021, a compound +4.7%/yr. Reported net income was $104M in FY2025, compounding +6.6%/yr from FY2021.
Key figures
Market cap $1.7B Small · P/E ratio 16.0 · P/S ratio 1.01 · EPS (TTM) $8.34 · Dividend yield 1.0% · Net margin 6.1% · Return on equity 8.8% · Return on assets (EBIT) 11.2% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 46 out of 100 (low confidence).
What moves the price
The share trades about 38% below its 52-week high and at its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at 10% fair-value upside, at 34%, ALG screens cheaper than that median.
Fair Value models
Bear$131.34Fair Value $179.10Bull$223.88
Price $133.70 · Upside +34.0%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($6.03 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, one officer or director sold shares worth $889,536 and none bought.
SaleEdward RizzutiEVP, Corp Dev, IR & Secretary3× since Mar 24, 2026: 5,852 shares, avg. $169.53$992,094Sep 4, 2026
BuyNina C GroomsDirector233 shares at $171.61$39,985Mar 24, 2026
SaleNina C GroomsDirector499 shares at $175.20$87,425Mar 11, 2026
BuyRobert Paul HureauPresident & CEO, Director3× since Nov 13, 2025: 1,518 shares, avg. $165.24$250,834Mar 9, 2026
Plus 13 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.67/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
−1.5%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+1.9%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.6%
Start year 2020 (pandemic). Over 10 years: +6.2% a year
Revenue growth 33 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+9.6%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+11.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+10.0%
Dividend (yield on the price)1.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.10.0% vs 9.5%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.8% → 10%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+1.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+4.3%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −1.3% a year for the price and +1.8% for the forecasts.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Farm & Heavy Construction Machinery · 145 stocks
Beats the industry median on 10/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score60 · Above median
Fair Value upside+34.0% · Above median
Profitability
Return on equity (12 months)8.8% · Below median
Return on assets6.5% · Above median
Net margin (12 months)6.1% · Below median
Operating margin (12 months)10.2% · Above median
Growth and dividend
Revenue growth (quarter YoY)7.6% · Below median
Dividend yield (12 months)1.0% · Below median
Balance sheet
Debt / equity0.17× · Above median
Valuation Multiplesvs Farm & Heavy Construction Machinery median · lower = cheaper
P/E (12 months)16.0× · Cheaper than median
P/B1.46× · Cheaper than median
P/S (12 months)1.01× · Cheaper than median
Price / free cash flow (fiscal year)11.4× · Cheaper than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Alamo Group Inc Fair Value". https://www.fairvalue-calculator.com/stock/ALG
Frequently asked questions
Is Alamo Group Inc (ALG) overvalued or undervalued?
As of Nov 4, 2026, our model estimates a fair value of $179.10 versus a price of $133.70, about +34% upside (undervalued).
What is the fair value of ALG?
Our model-based fair value for Alamo Group Inc is $179.10 (as of Nov 4, 2026), built from audited fundamentals. The current price: $133.70.
What is the quality score of ALG?
Alamo Group Inc has a Quality Score of 60/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Alamo Group Inc (ALG)?
Our model-based price target is the fair value of $179.10 (as of Nov 4, 2026) from 26 valuation models. Cautious scenario $131.34, optimistic scenario $223.88. It is a calculation from audited fundamentals, not an analyst target.
What is the Alamo Group Inc stock forecast for 2026?
Our models put fair value at $179.10, about +34% upside versus a price of $133.70 (undervalued). Cautious scenario $131.34, optimistic scenario $223.88. The calculation is refreshed regularly with new filings.
What is the revenue of Alamo Group Inc (ALG)?
Alamo Group Inc reported trailing-twelve-month revenue of about $1.7B (latest available figure, as of Nov 4, 2026).
Does Alamo Group Inc pay a dividend?
Alamo Group Inc currently shows a dividend yield of 0.96% relative to its recent price (as of Nov 4, 2026).
How much is the dividend of Alamo Group Inc (ALG) and when is the ex-dividend date?
Alamo Group Inc pays a dividend of $1.28 per share a year, a dividend yield of 1.0%. The last ex-dividend date was Oct 15, 2026. A dividend has been paid every year since at least 1993. The payout ratio is 14.1% of earnings (on adjusted earnings, reported 15.3%). Free cash flow covers the dividend 9.43 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Alamo Group Inc (ALG)?
For today's price to be fair in a discounted-cash-flow model, Alamo Group Inc would have to grow free cash flow by +1.1 % per year for five years (discount rate 11.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +6.6 % per year. As of Nov 4, 2026.
What discount rate (WACC) does the fair value of ALG use?
Our models discount Alamo Group Inc at 11.4 %: a base by market capitalisation (small), damped by beta 1.07, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Alamo Group Inc that is +1.1 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (11.4 %) and the same formula as our fair value.
How much growth has Alamo Group Inc (ALG) delivered so far?
Over the past 5 years revenue at Alamo Group Inc grew +6.6 % a year. The price currently implies free-cash-flow growth of +1.1 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Alamo Group Inc (ALG) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Alamo Group Inc (+1.1 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Alamo Group Inc (ALG)?
The free-cash-flow yield on the price is 9.07 %: that much free cash flow Alamo Group Inc produces per unit of market value. When it exceeds the discount rate of our models (11.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Alamo Group Inc (ALG)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Alamo Group Inc it is $179.10 per share (as of Nov 4, 2026), against a price of $133.70. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Alamo Group Inc stock overvalued or undervalued in 2026?
As of Nov 4, 2026, ALG trades below its calculated fair value: price $133.70, fair value $179.10, a gap of about +34% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of ALG?
No. The price is what the market pays today ($133.70); the fair value is what the company's own numbers justify ($179.10). For Alamo Group Inc the two are $45.40 per share apart. That gap is exactly why we show both numbers side by side.
How much is Alamo Group Inc worth?
The market values Alamo Group Inc at about $1.7B (market capitalisation, as of Nov 4, 2026). Per share that is $133.70; our models calculate a fair value of $179.10 per share.
What do the bullish and bearish scenarios say about ALG?
Our models span a range for Alamo Group Inc: cautious scenario $131.34, base $179.10, optimistic $223.88 per share (as of Nov 4, 2026, price $133.70). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of ALG?
Alamo Group Inc trades at a price-to-earnings ratio of 16.0 (as of Nov 4, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $179.10 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 14.3 (reported for FY2025: 15.6). Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, FY2025 ex one-offs: 20.6. Other multiples: PEG 0.8, P/B 1.5, P/S 1.0, EV/EBITDA 7.6.
What is the PEG ratio of ALG?
The PEG ratio of Alamo Group Inc is 0.80 (P/E divided by earnings growth, as of Nov 4, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Alamo Group Inc (ALG)?
Balance-sheet figures for Alamo Group Inc (as of Nov 4, 2026): return on equity 8.8%, debt of 0.17 per unit of equity. They feed the Quality Score of 60/100, which measures business quality independently of the share price.
How far is ALG from its 52-week high?
Alamo Group Inc trades at $133.70, about 38% below its 52-week high of $217.11 and at the low of $133.70 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $179.10 is for.
Which stocks are comparable to Alamo Group Inc?
From the same area (Industrials) we also value Caterpillar Inc, Deere & Company, PACCAR Inc, Daimler Truck Holding, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Alamo Group Inc stock attractive at the current price?
The data as of Nov 4, 2026: price $133.70, calculated fair value $179.10 (+34%), Quality Score 60/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of ALG calculated?
We run Alamo Group Inc through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $179.10 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Alamo Group Inc currently trades 25% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Alamo Group Inc (ALG)?
The closing price on Nov 6, 2026 was $133.70. Our model-based fair value is $179.10, about +34% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Alamo Group Inc right now?
Solid quality (60/100) at a price below fair value, the discount is the argument here, not the business quality. The price sits in the lower half of our model range, the side with the larger margin of safety. The data supports the verdict: every model runs on fully documented inputs.
Where does the earnings growth of Alamo Group Inc (ALG) come from?
Earnings per share at Alamo Group Inc grew +12.0 % a year from 2014 to 2025. Broken into its drivers: revenue per share +7.2 %, EBIT margin +3.5 %, tax rate +1.7 %, residual (interest, one-offs) −0.7 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Alamo Group Inc
How large is the market capitalisation of Alamo Group Inc (ALG)?
The market capitalisation of Alamo Group Inc is $1.7B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Alamo Group Inc (ALG)?
The price-to-sales ratio of Alamo Group Inc is 1.01 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Alamo Group Inc (ALG)?
Earnings per share at Alamo Group Inc are $8.34 (price ÷ EPS = P/E 16.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Alamo Group Inc (ALG)?
The dividend yield of Alamo Group Inc is 1.0% (payout 14.1%, on adjusted earnings, reported 15.3%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Alamo Group Inc (ALG)?
The net margin of Alamo Group Inc is 6.1% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Alamo Group Inc (ALG)?
The return on equity (ROE) of Alamo Group Inc is 8.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Alamo Group Inc (ALG)?
On an EBIT basis the return on assets of Alamo Group Inc is 11.2% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Alamo Group Inc (ALG)?
The operating margin of Alamo Group Inc is 10.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Alamo Group Inc (ALG)?
Revenue at Alamo Group Inc is growing +7.6% versus a year earlier (3y avg +1.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Alamo Group Inc (ALG)?
Earnings per share at Alamo Group Inc are growing −0.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Alamo Group Inc (ALG) hold?
Alamo Group Inc holds more cash than debt, $89.4M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Broad data
Nov 4, 2026