Latest Ratios: P/E Ratio 19.3x · EV/EBITDA 9.9x · 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 → | 19.34 | 19.54 | 19.31 | 18.50 | 16.58 | 21.80 | 28.27 | 23.56 | 12.37 | 29.78 | 21.99 |
| P/S Ratio | 1.26 | 1.26 | 1.37 | 1.49 | 1.12 | 1.31 | 1.40 | 1.32 | 0.90 | 1.45 | 1.04 |
| P/B Ratio | 1.75 | 1.76 | 2.20 | 2.70 | 2.15 | 2.48 | 2.57 | 2.60 | 1.79 | 2.94 | 2.27 |
| P/FCF | 13.76 | 13.80 | 12.11 | 26.97 | — | 71.87 | 9.82 | 25.82 | — | 23.01 | 13.38 |
| P/OCF | 11.39 | 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 | 9.90 | 9.93 | 10.41 | 11.01 | 9.98 | 12.28 | 13.51 | 15.08 | 7.73 | 12.39 | 10.56 |
| EV / EBIT | 12.75 | 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 | 0.1% | 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 |
Municipal budget cycle sensitivity
Based on current market data, Alamo Group trades at a P/E of 19.65 and an EV/EBITDA of 10.06, suggesting that investors are pricing the company as a defensive industrial play rather than a high-growth manufacturer, despite the recent volatility in its top-line performance metrics.
The forward P/E of 16.06 implies that the market anticipates a stabilization in earnings, likely discounting the recent revenue contraction. Compared to peers like Astec Industries, Alamo's valuation appears to benefit from its fortress balance sheet, which provides a valuation floor that more levered industrial competitors lack.
According to historical financial data, Alamo's ROIC has trended in a narrow range between 1.6% and 3.2% over the last ten quarters, indicating that the company's serial acquisition strategy may be diluting the overall return on invested capital relative to its core operational efficiency.
The persistent gap between ROIC and the company's cost of capital warrants investigation into whether recent bolt-on acquisitions are generating sufficient incremental returns. Investors should monitor if management can improve asset utilization, as the current ROIC levels suggest that the company is struggling to compound capital effectively in the current environment.
As reported in recent quarterly filings, the cash conversion cycle has remained elevated, peaking at 171 days in 2024Q3, which highlights the significant working capital drag caused by high inventory levels and the lumpy nature of municipal equipment delivery schedules across the company's diverse brand portfolio.
The high days inventory outstanding, which reached 121 days in 2025Q4, suggests that Alamo carries substantial stock to meet specialized municipal requirements, tying up liquidity. This inefficiency appears structural, as the company must maintain a wide array of parts to support its niche equipment, limiting the potential for rapid cash cycle optimization.
Based on the latest balance sheet figures, Alamo maintains a debt-to-equity ratio of 0.19, which, as noted in financial statements, positions the company as one of the most conservatively capitalized firms in the industrial sector, offering significant protection against interest rate volatility and potential credit market tightening.
This minimal leverage provides management with substantial dry powder to pursue opportunistic acquisitions during industry downturns, a key differentiator from more levered peers. While the lack of debt may be perceived as capital inefficiency, it serves as a critical risk-mitigation tool given the cyclical nature of municipal and agricultural equipment demand.
The most commonly misapplied metric for Alamo is the standard P/E ratio, which fails to account for the significant amortization of intangible assets resulting from the company's aggressive acquisition strategy, thereby obscuring the true cash-generative capacity of its underlying municipal and vegetation management business segments.
Analysts should instead prioritize EV/EBITDA or P/FCF to better capture the company's operational performance, as these metrics are less distorted by non-cash accounting charges. Relying solely on P/E risks underestimating the company's defensive value, as it ignores the recurring nature of aftermarket parts revenue that characterizes its niche market dominance.
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 19.3x. The historical average is 17.9x. This places it at the 67th percentile of its historical range.
Alamo Group Inc.'s current EV/EBITDA is 9.9x. 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 19.3x. This is at the 67th 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 0.72% 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.