Alamo Group Intrinsic Value – ALAMO GROUP Reports 51.6% Increase in Revenue and 14.7% Increase in Net Income for FY2022 Q4
March 3, 2023
Earnings report
Alamo Group Intrinsic Value – ALAMO GROUP ($NYSE:ALG) recently reported their earnings results for the fourth quarter of FY2022 ending December 31, 2022 on February 23, 2023. The company’s total revenue for the quarter was USD 29.2 million, an impressive 51.6% increase compared to the same quarter of the previous year. Net income for the quarter was USD 386.6 million, a 14.7% increase year over year.
These impressive results are a testament to ALAMO GROUP’s successful strategies and growth plans despite the challenging economic climate. Investors and analysts will be looking to further analyze these results to see what strategies were behind this success as well as where the company plans to take its operations in the future. Overall, ALAMO GROUP’s impressive financial results are a hopeful pointer for their future prospects.
Share Price
This increase in revenue is largely attributed to a surge in demand for the company’s products due to the ongoing global recovery from the pandemic-related economic downturn.
Additionally, ALAMO GROUP has made significant investments in research and development over the last few years which have enabled them to introduce new products that have helped drive increased demand and profit margins. The company also reported improved operational efficiencies, which have allowed them to reduce costs and thereby improve margins. This has resulted in higher earnings for shareholders and a better dividend policy, further boosting investor confidence in ALAMO GROUP. Going forward, ALAMO GROUP is looking to maintain their strong fiscal performance and achieve further growth through strategic partnerships, expansion into new markets and continued investment in research and development initiatives. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Alamo Group. More…
| Total Revenues | Net Income | Net Margin |
| 1.51k | 101.93 | 6.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Alamo Group. More…
| Operations | Investing | Financing |
| 14.53 | -31.74 | 24.45 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Alamo Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.31k | 523.15 | 65.92 |
Key Ratios Snapshot
Some of the financial key ratios for Alamo Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.6% | 16.2% | 9.8% |
| FCF Margin | ROE | ROA |
| -1.1% | 12.2% | 7.1% |
Analysis – Alamo Group Intrinsic Value
At GoodWhale, we have undertaken an analysis of ALAMO GROUP‘s fundamentals and have come to the conclusion that its intrinsic value is around $154.5. This figure was calculated using our proprietary Valuation Line. Currently, ALAMO GROUP stock is trading at a mere $161.9, thus indicating that it is slightly overvalued by 4.8%. This suggests that now may not be the best time to invest, but investors may be able to secure better returns when the share price depreciates to a price that is more in line with its intrinsic value. More…
Peers
Its main competitors are Teikoku Sen-I Co Ltd, Weihai Guangtai Airport Equipment Co Ltd, and Action Construction Equipment Ltd.
– Teikoku Sen-I Co Ltd ($TSE:3302)
Teikoku Sen-I Co Ltd is a Japanese company that specializes in the production of electric motors and generators. The company has a market cap of 41.61B as of 2022 and a return on equity of 6.72%. The company’s products are used in a variety of applications, including automotive, industrial, and consumer electronics.
– Weihai Guangtai Airport Equipment Co Ltd ($SZSE:002111)
Weihai Guangtai Airport Equipment Co Ltd is an airport equipment manufacturer based in Weihai, China. The company has a market cap of 5.25B as of 2022 and a Return on Equity of -3.02%. Weihai Guangtai Airport Equipment Co Ltd manufactures and sells airport ground support equipment, including baggage tugs, belt loaders, and other equipment. The company also provides maintenance and repair services for its products.
– Action Construction Equipment Ltd ($BSE:532762)
Action Construction Equipment Ltd is an Indian company that manufactures and sells construction equipment. The company has a market cap of $35.55 billion as of 2022 and a return on equity of 15.17%. Action Construction Equipment Ltd is a leading manufacturer of construction equipment in India with a market share of over 60%. The company’s products include excavators, backhoe loaders, motor graders, and wheel loaders.
Summary
Alamo Group Inc. (NYSE: ALG) is a company that specializes in the design, manufacture, distribution and service of high quality, cost effective agricultural, turf care and maintenance equipment for governmental, industrial and consumer markets. In the most recent quarter, ALG reported total revenue of USD 29.2 million, a 51.6% increase versus the same quarter a year ago. Net income rose 14.7% to USD 386.6 million compared to the same quarter a year before, indicating strong profitability and cost control efforts. From an investing standpoint, the company has been able to deliver impressive growth and profitability over the last year and appears to have a solid outlook going forward.
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