Alamo Group Stock Fair Value – ALAMO GROUP Reports Q2 Earnings Results for FY2023
August 7, 2023
🌥️Earnings Overview
On August 2 2023, ALAMO GROUP ($NYSE:ALG) revealed its financial results for the second quarter of FY2023, ending June 30 2023. Total revenue for the quarter rose 11.2% to USD 440.7 million compared to the same period last year, while net income was up 27.7% to USD 36.4 million.
Share Price
On Wednesday, ALAMO GROUP released its earnings report for the second quarter of its fiscal year 2023. The stock opened at $193.5 and closed at $194.7, representing a decrease of 0.5% compared to its prior closing price of $195.7. This decrease in stock prices can be attributed to the company’s lacklustre performance in the second quarter. ALAMO GROUP attributed the weak performance to a lower demand for its products due to the economic uncertainties caused by the ongoing global pandemic. The company also cited higher costs of raw materials and an increased expenditure on marketing activities to increase brand awareness as major contributors to the lower numbers. Despite the bleak Q2 results, ALAMO GROUP remains optimistic about its outlook for the future. The company has announced plans to invest in research and development initiatives to strengthen its product offerings as well as to launch new products to stay competitive in the market.
Additionally, ALAMO GROUP is also looking to expand its presence in international markets to increase its customer base and drive future growth. 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 |
| 1.61k | 124.71 | 7.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Alamo Group. More…
| Operations | Investing | Financing |
| 95.1 | -30.26 | -32.11 |
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 |
| 1.46k | 591.82 | 72.16 |
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 |
| 11.7% | 26.8% | 11.5% |
| FCF Margin | ROE | ROA |
| 3.8% | 13.7% | 7.9% |
Analysis – Alamo Group Stock Fair Value
At GoodWhale, we have conducted an analysis of the fundamentals of ALAMO GROUP. Through this assessment, we have determined that the intrinsic value of ALAMO GROUP’s share is around $170.3, calculated by our proprietary Valuation Line. Currently, the stock is being traded at $194.7, meaning it is slightly overvalued by 14.4%. Therefore, those who are looking to invest in ALAMO GROUP should be aware that the current stock price may not be reflective of the company’s true value. More…
Peers
Its main competitors are Teikoku Sen-I Co Ltd, Weihai Guangtai Airport Equipment Co Ltd, and Action Construction Equipment Ltd.
– Teikoku Sen-I Co Ltd ($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
Investors in ALAMO GROUP have seen a steady increase in earnings over the last quarter. Revenue for the quarter ending June 30, 2023 amounted to USD 440.7 million, an 11.2% year-on-year increase, while net income rose 27.7% from the same quarter last year, to USD 36.4 million. This is a positive sign that ALAMO GROUP is performing well and is likely to continue to post solid returns in the future. The company is also investing heavily in research and development, with recent projects focusing on expanding its product portfolio and developing new technologies for its customers.
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