Alamo Group Inc. (ALG) Stock

Alamo Group Inc. (ALG) is a Industrials stock trading at $162.45 (as of 2026-08-20), with a market capitalization of $1.98B and a trailing P/E of 19.6. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Alamo Group Inc. designs, manufactures, distributes, and services equipment for vegetation management and infrastructure maintenance. Its Vegetation Management Division produces tractor-, truck-, and hydraulically powered mowing and cutting equipment and replacement parts, serving governmental, industrial, and agricultural customers worldwide.

Understand Alamo Group Inc.: how it makes money

Alamo Group designs, manufactures, distributes, and services vegetation management and infrastructure maintenance equipment, and it makes money by selling hydraulically and tractor-mounted mowing and cutting equipment, related replacement parts, and related equipment support for governmental, industrial, and agricultural customers.

Profit is driven by converting contract demand into delivered equipment and replacement parts over time, with Remaining Performance Obligations (backlog) signaling how much future work is already contracted across its two operating divisions.

Revenue by segment (latest quarter)
IndustrialEq	$0.2B
VegMgmt	$0.2B

Business quality (Mixed): Demand visibility via Remaining Performance Obligations appears important, and near-term order momentum looks mixed by division (vegetation book-to-bill above 1, industrial below 1). The key investor question is whether that backlog converts to continued deliveries while maintaining reasonable operating profitability (operating margin 10.1%).

Valuation: At 18× earnings, ALG trades 46% below the Machinery average (34×). Note: one-time items can distort reported P/E.

Bull case

Backlog visibility: Remaining Performance Obligations are reported at USD_B 0.91, providing a read on contracted future work.
Positive vegetation demand signal: The Book To Bill Ratio Vegetation Management Division is 1.1, which suggests vegetation orders are running ahead of what is being recognized in revenue.

Bear case

Industrial demand signal below 1: The Book To Bill Ratio Industrial Equipment Division is 0.85, which suggests industrial orders are trailing revenue recognition pace.
Margins could be sensitive to order mix and volume: The company reports a gross margin of 25.1% and an operating margin of 10.1%, so weaker demand in any division could pressure profitability if costs do not flex down.

Valuation — source: SEC EDGAR (first-party)
Price	$162.45
Market Cap	$1.98B
P/E Ratio	19.6
EV / EBITDA	10.2
Price / Book	1.66
Price / Sales	1.19
FCF Yield	6.8%
DCF Value (model)	$169.44
DCF Upside vs Price	4.3%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$1.60B
Net Margin	6.5%
Revenue Growth (YoY)	7.6%
EPS Growth (YoY)	-0.8%
FCF Growth (YoY)	156.3%

Financial Health — source: SEC EDGAR
Altman Z-Score	5.38 (safe)

Valuation vs Sector & Industry
Stock P/E	19.6
Sector P/E (Industrials)	25.9
Industry P/E (Machinery)	32.3
vs Sector	-24.4%
vs Industry	-39.4%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	BlackRock, Inc. ($264.75M)
Institutional Holders Tracked	10
Congressional Trades (recent)	1

Company
Sector	Industrials
Industry	Machinery
CEO	Robert Hureau
Employees	3,750
Country	US
IPO Date	1993-03-19

Related Companies (Business model: Industrials / Capital Goods (Heavy Machinery + Diversified Industrials); 8 closest by market cap; US-domiciled)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.