Alamo Group Inc. cash flow to debt ratio of 80.60% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Alamo Group Inc.'s free cash flow has decreased 20.49% from $184.78M last year to $146.92M, signaling decreasing performance

Alamo Group Inc.'s debt to equity ratio is 0.23, which means that the company's assets are healthy financed, signaling financial stability.

Alamo Group Inc.'s debt has increased relative to shareholder equity from 0.22 last year to 0.23 today, signaling weakened financials

Alamo Group Inc. has a net cash position, so leverage is healthy.

Alamo Group Inc.'s interest coverage ratio of 5.04 indicates that earnings with good margin can cover interest payments on company debt

Alamo Group Inc.'s profit margin has decreased (14.60%) in the last year from 7.12% to 6.08%, signaling decreasing performance

Alamo Group Inc.'s short-term assets of $998.09M exceed its short-term liabilities of $218.37M

Alamo Group Inc.'s return on assets of 5.86% is higher than the 5.00% threshold, indicating efficient asset utilization

Alamo Group Inc.'s return on equity of 8.70%, is lower than 15.00%, indicating bad performance

Alamo Group Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Alamo Group Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Alamo Group Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Alamo Group Inc. has a free cash flow yield of 7.15%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Alamo Group Inc.'s yearly earnings has decreased 10.46% since last year from $115.93M to $103.80M, signaling decreasing performance

Alamo Group Inc.'s yearly revenue has decreased 1.52% since last year from $1.63B to $1.60B, signaling decreasing performance

ROIC 7.27% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Alamo Group Inc.'s 3-year revenue CAGR of 1.95% is positive, indicating growing revenue over the past 3 years

Alamo Group Inc. had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Alamo Group Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Alamo Group Inc. is overvalued relative to its fair value price of 134.40 based on Discounted Cash Flow model

Alamo Group Inc. has an earnings yield of 4.96%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Alamo Group Inc. is overvalued relative to its fair value price of 121.26 based on EBITDA multiple model

Alamo Group Inc. has an EV/EBITDA ratio of 9.93x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Alamo Group Inc. is undervalued relative to its fair value price of 221.82 based on Earnings Fair Value model

Alamo Group Inc. has a PEG-ratio over 1 which is considered overvalued

Alamo Group Inc. has a price-to-book ratio of 1.72x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Alamo Group Inc. has a price-to-sales ratio of 1.23x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue