Latest Ratios: P/E Ratio 19.2x · EV/EBITDA 9.8x · ROE 9.6%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.0B | $2.0B | $2.2B | $2.5B | $1.7B | $1.8B | $1.6B | $1.5B | $909M | $1.3B | $880M |
| Enterprise Value | $1.9B | $1.9B | $2.3B | $2.7B | $1.9B | $2.0B | $1.9B | $1.9B | $961M | $1.4B | $933M |
| P/E Ratio → | 19.17 | 19.54 | 19.31 | 18.50 | 16.58 | 21.80 | 28.27 | 23.56 | 12.37 | 29.78 | 21.99 |
| P/S Ratio | 1.25 | 1.26 | 1.37 | 1.49 | 1.12 | 1.31 | 1.40 | 1.32 | 0.90 | 1.45 | 1.04 |
| P/B Ratio | 1.73 | 1.76 | 2.20 | 2.70 | 2.15 | 2.48 | 2.57 | 2.60 | 1.79 | 2.94 | 2.27 |
| P/FCF | 13.64 | 13.80 | 12.11 | 26.97 | — | 71.87 | 9.82 | 25.82 | — | 23.01 | 13.38 |
| P/OCF | 11.28 | 11.42 | 10.67 | 19.21 | 116.30 | 35.25 | 8.86 | 16.68 | 70.44 | 18.62 | 11.65 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.21 | 1.39 | 1.60 | 1.29 | 1.49 | 1.61 | 1.68 | 0.95 | 1.48 | 1.10 |
| EV / EBITDA | 9.80 | 9.93 | 10.41 | 11.01 | 9.98 | 12.28 | 13.51 | 15.08 | 7.73 | 12.39 | 10.56 |
| EV / EBIT | 12.62 | 12.55 | 13.32 | 13.46 | 13.11 | 16.52 | 19.59 | 19.75 | 9.50 | 15.25 | 13.80 |
| EV / FCF | — | 13.19 | 12.27 | 28.99 | — | 81.40 | 11.25 | 32.82 | — | 23.61 | 14.19 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 24.8% | 24.8% | 25.3% | 26.8% | 24.9% | 25.1% | 25.2% | 24.4% | 25.4% | 25.7% | 24.3% |
| Operating Margin | 9.5% | 9.5% | 10.1% | 11.7% | 9.8% | 8.8% | 8.1% | 8.5% | 10.0% | 9.7% | 8.0% |
| Net Profit Margin | 6.5% | 6.5% | 7.1% | 8.1% | 6.7% | 6.0% | 5.0% | 5.6% | 7.3% | 4.9% | 4.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.6% | 9.6% | 11.9% | 15.8% | 13.7% | 12.0% | 9.6% | 11.7% | 15.4% | 10.6% | 10.7% |
| ROA | 6.8% | 6.8% | 8.1% | 10.0% | 8.1% | 6.9% | 5.0% | 6.5% | 10.8% | 7.4% | 6.9% |
| ROIC | 10.8% | 10.8% | 11.4% | 13.7% | 11.2% | 9.7% | 7.7% | 9.3% | 14.5% | 14.4% | 11.0% |
| ROCE | 11.5% | 11.5% | 13.4% | 17.1% | 13.9% | 11.8% | 9.4% | 11.4% | 17.4% | 17.5% | 13.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.19 | 0.19 | 0.22 | 0.26 | 0.39 | 0.39 | 0.46 | 0.78 | 0.17 | 0.13 | 0.18 |
| Debt / EBITDA | 1.13 | 1.13 | 1.04 | 0.98 | 1.57 | 1.70 | 2.09 | 3.56 | 0.69 | 0.55 | 0.79 |
| Net Debt / Equity | — | -0.08 | 0.03 | 0.20 | 0.33 | 0.33 | 0.38 | 0.70 | 0.10 | 0.08 | 0.14 |
| Net Debt / EBITDA | -0.46 | -0.46 | 0.14 | 0.77 | 1.33 | 1.44 | 1.72 | 3.22 | 0.41 | 0.32 | 0.60 |
| Debt / FCF | — | -0.61 | 0.16 | 2.02 | — | 9.53 | 1.44 | 7.00 | — | 0.61 | 0.81 |
| Interest Coverage | 10.38 | 10.38 | 8.28 | 7.71 | 10.35 | 11.40 | 6.04 | 8.87 | 18.40 | 18.34 | 11.43 |
Net cash position: cash ($310M) exceeds total debt ($220M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 4.57 | 4.57 | 4.51 | 3.76 | 3.82 | 3.18 | 3.28 | 3.50 | 4.49 | 3.87 | 4.16 |
| Quick Ratio | 2.82 | 2.82 | 2.70 | 1.99 | 1.97 | 1.51 | 1.74 | 1.86 | 2.74 | 2.34 | 2.44 |
| Cash Ratio | 1.42 | 1.42 | 1.04 | 0.24 | 0.25 | 0.22 | 0.32 | 0.26 | 0.34 | 0.25 | 0.21 |
| Asset Turnover | — | 1.00 | 1.12 | 1.20 | 1.16 | 1.11 | 1.04 | 0.92 | 1.40 | 1.43 | 1.53 |
| Inventory Turnover | 3.15 | 3.15 | 3.54 | 3.27 | 3.23 | 3.12 | 3.59 | 3.16 | 4.26 | 4.36 | 4.71 |
| Days Sales Outstanding | — | 66.81 | 68.51 | 78.21 | 76.80 | 65.56 | 67.59 | 81.78 | 82.53 | 82.32 | 73.60 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.7% | 0.7% | 0.6% | 0.4% | 0.5% | 0.4% | 0.4% | 0.4% | 0.6% | 0.3% | 0.5% |
| Payout Ratio | 13.9% | 13.9% | 10.7% | 7.7% | 8.4% | 8.3% | 10.6% | 8.9% | 7.0% | 10.4% | 10.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.2% | 5.1% | 5.2% | 5.4% | 6.0% | 4.6% | 3.5% | 4.2% | 8.1% | 3.4% | 4.5% |
| FCF Yield | 7.3% | 7.2% | 8.3% | 3.7% | — | 1.4% | 10.2% | 3.9% | — | 4.3% | 7.5% |
| Buyback Yield | 0.2% | 0.1% | 0.1% | 0.0% | 0.0% | 0.1% | 0.0% | 0.3% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.9% | 0.9% | 0.6% | 0.5% | 0.6% | 0.5% | 0.4% | 0.7% | 0.6% | 0.4% | 0.5% |
| Shares Outstanding | — | $12M | $12M | $12M | $12M | $12M | $12M | $12M | $12M | $12M | $12M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying ALG stock.
Alamo Group Inc.'s current P/E ratio is 19.2x. The historical average is 17.9x. This places it at the 63th percentile of its historical range.
Alamo Group Inc.'s current EV/EBITDA is 9.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.2x.
Alamo Group Inc.'s return on equity (ROE) is 9.6%. The historical average is 9.7%.
Based on historical data, Alamo Group Inc. is trading at a P/E of 19.2x. This is at the 63th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Alamo Group Inc.'s current dividend yield is 0.73% with a payout ratio of 13.9%.
Alamo Group Inc. has 24.8% gross margin and 9.5% operating margin.
Alamo Group Inc.'s Debt/EBITDA ratio is 1.1x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Margin compression from cost inflation
Metrics are mathematically derived from official filings.
Margin Squeeze Amid Cost Pressures
Gross margin slipped to 24.6% in Q2 2026 from 26.2% in early 2024, while operating margin hovered near 10%, per reported financials, indicating persistent input cost inflation and competitive bidding pressures.
The 160 basis point decline in gross margin over the period suggests that Alamo's pricing power is being tested as steel and component costs rise. Operating margin at 10.2% in Q2 2026 remains below the 11.4% seen in Q1 2025, reflecting sticky SG&A costs that are not fully offsetting revenue growth. This margin compression appears structural rather than temporary, as the company's high-variable cost model leaves limited room for cost absorption without volume growth.
Return on Capital Stalls Near Cycle Lows
ROIC dipped to 2.7% in Q2 2026 from 3.1% in Q1 2024, while ROE fell to 2.6% from 3.4%, based on reported figures, indicating that capital efficiency is not improving despite a fortress balance sheet.
The decline in ROIC and ROE is driven by both margin compression and a growing asset base from acquisitions, as goodwill rose 34% since Q4 2024. The company is deploying capital into intangible-heavy acquisitions that may not yet be generating returns commensurate with their cost, as evidenced by the stagnant ROIC. Investors should monitor whether recent bolt-on acquisitions can be integrated to lift returns above the current sub-3% level, which is below the cost of capital.
Working Capital Drag Intensifies
Cash conversion cycle lengthened to 147 days in Q2 2026 from 162 days in Q4 2024, as DSO rose to 71 days and DIO to 115 days, according to financial statements, indicating slower cash collection and higher inventory absorption.
The 15-day deterioration in CCC suggests that Alamo is holding more inventory and taking longer to collect receivables, which ties up cash and reduces operational efficiency. DPO has increased to 39 days, but this is insufficient to offset the rise in DSO and DIO, indicating that the company is extending payment terms to suppliers while customers delay payments. This trend may reflect softer demand or a deliberate strategy to support dealers, but it warrants monitoring as it could pressure free cash flow if it persists.
Minimal Debt Masks Strategic Flexibility
Debt-to-equity stands at 0.23 in Q2 2026, down from 0.34 in Q1 2024, with interest coverage of 9.68x, as reported in financial statements, indicating a fortress balance sheet with ample borrowing capacity.
Alamo's conservative leverage profile provides significant financial flexibility to pursue acquisitions or weather a downturn, as interest coverage remains comfortable. The low debt levels suggest that the company is not reliant on external financing, which is a competitive advantage in a rising rate environment. However, the underutilized balance sheet may indicate a lack of organic growth investment, as evidenced by the flat revenue trend, and investors should watch for deployment of this capacity.
Liquidity Buffer Remains Robust
Current ratio improved to 4.39 in Q2 2026 from 4.29 in Q1 2024, with quick ratio at 2.48, based on reported figures, indicating a strong liquidity position that can absorb operational shocks.
The high current and quick ratios suggest that Alamo has ample short-term assets to cover liabilities, even if inventory becomes less liquid. Cash of $195.0 million, though down from $309.7 million in Q4 2025, still provides a substantial buffer. This liquidity, combined with minimal debt, positions the company to withstand a prolonged demand downturn or fund strategic initiatives without external financing.
P/E Misleads on Cyclicality
The P/E ratio of 19.64 may overstate cyclicality, as Alamo's municipal and governmental revenue is largely non-discretionary, per industry analysis, suggesting a more defensive profile than the multiple implies.
Investors often apply a cyclical multiple to Alamo due to its agricultural exposure, but a significant portion of its Vegetation Management segment is tied to government infrastructure maintenance, which is less discretionary. The forward P/E of 16.49 already reflects some de-rating, but the market may still be underpricing the stability of this revenue stream. A more appropriate valuation metric might be EV/EBITDA, which at 10.06 is below the peer average, or a dividend-adjusted FCF yield, given the company's strong cash generation relative to earnings.