Alamo Stock Buy Hold or Sell Recommendation

ALG
 Stock
  

USD 134.42  0.16  0.12%   

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Alamo Group is 'Strong Hold'. Macroaxis provides Alamo buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Alamo positions. The advice algorithm takes into account all of Alamo's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Alamo's buy-and-hold perspective. Please continue to Alamo Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Alamo and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Alamo Group.

Execute Alamo Buy or Sell Advice

The Alamo recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Alamo Group. Macroaxis does not own or have any residual interests in Alamo Group or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Alamo's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell AlamoBuy Alamo
Strong Hold

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds of Distress

LowDetails

Economic Sensitivity

Almost mirrors the marketDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Alamo Group has a Risk Adjusted Performance of 0.0728, Jensen Alpha of 0.1132, Total Risk Alpha of 0.1207, Sortino Ratio of 0.0515 and Treynor Ratio of 0.0908
Macroaxis provides advice on Alamo Group to complement and cross-verify current analyst consensus on Alamo Group. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Alamo is not overpriced, please confirm all Alamo Group fundamentals, including its price to earning, net income, and the relationship between the shares owned by insiders and revenue . Given that Alamo Group has a price to earning of 21.85 X, we suggest you to validate Alamo Group market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Alamo Trading Alerts and Improvement Suggestions

Alamo Group has a strong financial position based on the latest SEC filings
Over 96.0% of the company shares are held by institutions such as insurance companies
On 1st of August 2022 Alamo paid $ 0.18 per share dividend to its current shareholders
Latest headline from www.einnews.com: Land Clearing Attachment Market is Increasing at a CAGR of 7.1 percent by 2032- Exclusive Report by Fact.MR - EIN News

Alamo current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Alamo analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Alamo analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price155.00
Target Median Price162.00
Target High Price184.00
Recommendation Mean2.00
Number Of Analyst Opinions3
Target Low Price119.00
Average Consensus Hold
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Alamo Returns Distribution Density

The distribution of Alamo's historical returns is an attempt to chart the future uncertainty of Alamo's future price movements. The chart of the probability distribution of Alamo stock daily returns describes the distribution of returns around its average expected value. We use Alamo Group price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Alamo returns is essential to provide solid investment advice for Alamo stock.
Mean Return0.11Value At Risk-3.86
Potential Upside3.25Standard Deviation2.08
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Alamo historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Alamo Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Alamo is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Alamo Group backward and forwards among themselves. Alamo's institutional investor refers to the entity that pools money to purchase Alamo's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Victory Capital Management IncCommon Shares654.9 K76.3 M
Allspring Global Investments Holdings LlcCommon Shares363.8 K42.4 M
Vaughan Nelson Investment Management LpCommon Shares255.4 K29.7 M
Granite Investment Partners LlcCommon Shares158 K18.4 M
Proshare Advisors LlcCommon Shares74.1 K8.6 M
Grace White IncCommon Shares69.1 KM
North Star Investment Management CorpCommon Shares22.4 K2.6 M
Note, although Alamo's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Alamo Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(12.72 M)(25.25 M)(29.06 M)(14.17 M)(15.6 M)(16.83 M)
Depreciation Amortization and Accretion20.46 M23.11 M29.96 M43.84 M44.48 M36.39 M
Net Cash Flow or Change in Cash and Cash Equivalents8.58 M8.67 M8.27 M7.88 M(8.08 M)(8.29 M)
Net Cash Flow Business Acquisitions and Disposals(188 K)(38.55 M)(400.78 M)(17.8 M)(16.02 M)(17.28 M)
Issuance Purchase of Equity Shares2.23 M2.12 M(2.16 M)749 K(281 K)(303.18 K)
Issuance Repayment of Debt Securities(10.02 M)25.22 M357 M(158.87 M)(16.09 M)(16.52 M)
Payment of Dividends and Other Cash Distributions(4.61 M)(5.12 M)(5.63 M)(6.12 M)(6.63 M)(7.15 M)
Net Cash Flow from Financing(12.4 M)22.21 M349.22 M(164.24 M)(23 M)(23.61 M)
Net Cash Flow from Investing(51.28 M)(25.36 M)(429.94 M)(14.17 M)(33.44 M)(36.08 M)
Net Cash Flow from Operations70.8 M12.91 M88.81 M184.33 M49.67 M60.8 M
Effect of Exchange Rate Changes on Cash1.45 M(1.09 M)172 K1.96 M(1.31 M)(1.34 M)
Share Based Compensation1.87 M2.45 M3.27 M4.12 M5.99 M6.46 M

Alamo Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Alamo or Industrials sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Alamo stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Alamo stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.11
β
Beta against DOW1.06
σ
Overall volatility
1.89
Ir
Information ratio 0.05

Alamo Volatility Alert

Alamo Group currently demonstrates below-average downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.11. However, we advise investors to further question Alamo Group expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Alamo's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Alamo's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Alamo Implied Volatility

Alamo's implied volatility" href="/stock-options/ALG/Alamo-Group">Alamo's implied volatility exposes the market's sentiment of Alamo Group stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Alamo's implied volatility" href="/stock-options/ALG/Alamo-Group">Alamo's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Alamo stock will not fluctuate a lot when Alamo's options" href="/stock-options/ALG/Alamo-Group">Alamo's options are near their expiration.

Alamo Fundamentals Vs Peers

Comparing Alamo's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Alamo's direct or indirect competition across all of the common fundamentals between Alamo and the related equities. This way, we can detect undervalued stocks with similar characteristics as Alamo or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Alamo's fundamental indicators could also be used in its relative valuation, which is a method of valuing Alamo by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Alamo to competition
FundamentalsAlamoPeer Average
Return On Equity11.87 %(0.31) %
Return On Asset5.93 %(0.14) %
Profit Margin5.87 %(1.27) %
Operating Margin11.91 %(5.51) %
Current Valuation1.85 B16.62 B
Shares Outstanding11.92 M571.82 M
Shares Owned by Insiders2.34 %10.09 %
Shares Owned by Institutions96.00 %39.21 %
Number of Shares Shorted146.43 K4.71 M
Price to Earning21.85 X28.72 X
Price to Book2.16 X9.51 X
Price to Sales1.09 X11.42 X
Revenue1.39 B9.43 B
Gross Profit334.51 M27.38 B
EBITDA165 M3.9 B
Net Income81.25 M570.98 M
Cash and Equivalents84.28 M2.7 B
Cash per Share7.05 X5.01 X
Total Debt390.76 M5.32 B
Debt to Equity0.54 %48.70 %
Current Ratio3.77 X2.16 X
Book Value Per Share58.68 X1.93 K
Cash Flow from Operations3.28 M971.22 M
Short Ratio2.99 X4.00 X
Earnings Per Share5.81 X3.12 X
Price to Earnings To Growth2.43 X4.89 X
Number of Employees4.3 K18.84 K
Beta0.98-0.15
Market Capitalization1.51 B19.03 B
Total Asset603.5 M29.47 B
Retained Earnings431.78 M9.33 B
Working Capital277.86 M1.48 B
Current Asset362.89 M9.34 B
   Exercise or conversion by Jeffery Leonard of 1000 shares of Alamo subject to Rule 16b-3 [view details]

Alamo Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Alamo . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution157.84
Daily Balance Of Power(0.06)
Rate Of Daily Change1.0
Day Median Price135.69
Day Typical Price135.27
Market Facilitation Index4.0E-4
Price Action Indicator(1.35)

About Alamo Buy or Sell Advice

When is the right time to buy or sell Alamo Group? Buying financial instruments such as Alamo Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Alamo investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables237.84 M209.28 M237.97 M202.64 M
Inventories267.67 M229.97 M320.92 M346.25 M

Use Investing Ideas to Build Portfolios

In addition to having Alamo in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Heavy Metals Thematic Idea Now

Heavy Metals
Heavy Metals Theme
Companies involved in mining, production, and distribution of various industrial metals and minerals. The Heavy Metals theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Heavy Metals Theme or any other thematic opportunities.
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Please continue to Alamo Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Alamo Group information on this page should be used as a complementary analysis to other Alamo's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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When running Alamo Group price analysis, check to measure Alamo's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Alamo is operating at the current time. Most of Alamo's value examination focuses on studying past and present price action to predict the probability of Alamo's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Alamo's price. Additionally, you may evaluate how the addition of Alamo to your portfolios can decrease your overall portfolio volatility.
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Is Alamo's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Alamo. If investors know Alamo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Alamo listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.091
Market Capitalization
1.6 B
Quarterly Revenue Growth YOY
0.14
Return On Assets
0.0629
Return On Equity
0.12
The market value of Alamo Group is measured differently than its book value, which is the value of Alamo that is recorded on the company's balance sheet. Investors also form their own opinion of Alamo's value that differs from its market value or its book value, called intrinsic value, which is Alamo's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Alamo's market value can be influenced by many factors that don't directly affect Alamo's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Alamo's value and its price as these two are different measures arrived at by different means. Investors typically determine Alamo value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alamo's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.