Alamo Stock Valuation

ALG
 Stock
  

USD 134.42  0.16  0.12%   

What is the value of Alamo today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Alamo, is its stock price multiplied by the total number of shares outstanding, calculating Alamo's enterprise value requires a different approach. It uses Alamo's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current year Free Cash Flow is expected to grow to about 44.8 M, whereas Enterprise Value is forecasted to decline to about 1.6 B.
Alamo Group shows a prevailing Real Value of $149.94 per share. The current price of the firm is $134.42. At this time, the firm appears to be undervalued. Our model approximates the value of Alamo Group from analyzing the firm fundamentals such as profit margin of 5.87 %, and Return On Equity of 11.87 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor purchasing undervalued instruments and exiting overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Alamo Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Alamo's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Alamo Most Recent Valuation Data

Price Book
2.18
EPS Estimate Next Quarter
2.16
Price Sales
1.12
Forward Annual Dividend Yield
0.0053
EBITDA
172.2 M
Dividend Share
0.64
Ex Dividend Date
2022-07-15
Undervalued
Today 134.42
Please note that Alamo's price fluctuation is very steady at this time. Calculation of the real value of Alamo Group is based on 3 months time horizon. Increasing Alamo's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Alamo Group is useful when determining the fair value of the Alamo stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Alamo. Since Alamo is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Alamo Stock. However, Alamo's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
121.12
Downside
149.94
Real Value
151.81
Upside
Estimating the potential upside or downside of Alamo Group helps investors to forecast how Alamo stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Alamo more accurately as focusing exclusively on Alamo's fundamentals will not take into account other important factors:
Earnings
Estimates (1)
LowProjected EPSHigh
6.856.856.85
Details
Hype
Prediction
LowEstimated ValueHigh
132.73134.60136.47
Details
2 Analysts
Consensus
LowTarget PriceHigh
150.00168.00186.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Alamo's intrinsic value based on its ongoing forecasts of Alamo's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Alamo's closest peers. When choosing an evaluation method for Alamo Group, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Alamo Valuation Drivers Correlation

Many accounts on the financial statements of Alamo Group are highly interrelated and sometimes correlated. Consequently, when conducting Alamo's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Alamo
Click cells to compare fundamentals

Alamo Valuation Trend

Knowing Alamo's actual value is paramount for traders to make sound investment determinations. Alamo's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Alamo's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Alamo's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Alamo Market Cap

Alamo Group is number one stock in market capitalization category among related companies. Market capitalization of Farm & Heavy Construction Machinery industry is presently estimated at about 1.64 Trillion. Alamo adds roughly 1.51 Billion in market capitalization claiming only tiny portion of equities under Farm & Heavy Construction Machinery industry.
Capitalization  Revenue  Valuation  Total debt  Workforce

Alamo Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Alamo's current stock value. Our valuation model uses many indicators to compare Alamo value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Alamo competition to find correlations between indicators driving Alamo's intrinsic value. More Info.
Alamo Group is number one stock in five year return category among related companies. It is number one stock in beta category among related companies totaling about  2.28  of Beta per Five Year Return. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Alamo by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Alamo's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Alamo's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Alamo's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Alamo and how it compares across the competition.

About Alamo Valuation

The equity valuation mechanism determines the current worth of Alamo Group on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Alamo Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Alamo Group based exclusively on its fundamental and basic technical indicators. By analyzing Alamo's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Alamo's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Alamo. We calculate exposure to Alamo's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Alamo's related companies.
Fiscal Year End
December
Industry
Farm & Heavy Construction Machinery
Concentration
Construction Machinery & Heavy Trucks
Full Time Employees
4.2 K
Service Category
Machinery
Employer Id Number
74-1621248
Last ReportedProjected for 2022
Gross Profit334.5 M303.8 M
Profit Margin 0.06  0.06 
Alamo Group Inc. designs, manufactures, distributes, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural uses worldwide. The company was founded in 1955 and is headquartered in Seguin, Texas. Alamo operates under Farm Heavy Construction Machinery classification in the United States and is traded on New York Stock Exchange. It employs 4300 people.

Alamo Quarterly Enterprise Value

1.68 Billion

Alamo's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Alamo's value is low or high relative to the company's performance and growth projections. Determining the market value of Alamo can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Alamo represents a small ownership stake in the entity. As a stockholder of Alamo, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Alamo Dividends Analysis For Valuation

The current year Dividend Yield is expected to grow to 0.004192, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (7.2 M). . The current year Price to Earnings Ratio is expected to grow to 22.35, whereas Accumulated Retained Earnings Deficit are forecasted to decline to about 548.3 M.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-6.6 M-7.2 M
Dividend Yield 0.0036  0.004192 
Dividends per Basic Common Share 0.56  0.51 
There are various types of dividends Alamo can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Alamo shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Alamo Group directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Alamo pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Alamo by the value of the dividends paid out.

Alamo Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Alamo does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio1.92
Earnings Quarterly Growth5.80%
Revenue Growth16.30%
Payout Ratio8.78%
Enterprise Value To Ebitda11.24
Earnings Growth5.40%
Enterprise Value To Revenue1.34

Alamo Current Valuation Indicators

Valuation refers to the process of determining the present value of Alamo Group and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Alamo we look at many different elements of the entity such as Alamo's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Alamo's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Alamo's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Alamo, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Alamo's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Alamo's worth.
Please continue to Trending Equities. 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

Complementary Tools for Alamo Stock analysis

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.