Alamo Group Inc. (ALG) intrinsic value & 10-year financials

Alamo Group Inc. (ALG) has a Graham intrinsic value of $181.57 per share. At $150.66 on Oct 17, 2026, the stock trades 17% below that value. Over the last 10 fiscal years revenue grew 7.4% a year to $1.6B, with an average return on invested capital of 11.0%.

Graham intrinsic value
$181.57
Share price (Oct 17, 2026)
$150.66
Price vs Graham value
17% below
Market cap
$1.8B
Revenue (FY2025)
$1.6B
Revenue growth (10-yr CAGR)
7.4%
ROIC (10-yr avg)
11.0%
Free cash flow (FY2025)
$146.9M

ALG 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $1.6B $103.8M $8.59 $146.9M 9.5% 10.8%
FY2024 $1.6B $115.9M $9.63 $184.8M 10.1% 11.8%
FY2023 $1.7B $136.2M $11.36 $93.4M 11.7% 14.3%
FY2022 $1.5B $101.9M $8.54 -$16.6M 9.8% 11.4%
FY2021 $1.3B $80.2M $6.75 $24.4M 8.8% 9.6%
FY2020 $1.2B $56.6M $4.78 $166.5M 8.0% 7.4%
FY2019 $1.1B $62.9M $5.33 $57.5M 8.5% 9.2%
FY2018 $1.0B $73.5M $6.25 -$13.7M 10.0% 15.1%
FY2017 $912.4M $44.3M $3.79 $57.3M 9.7% 10.3%
FY2016 $844.7M $40.0M $3.46 $65.8M 8.0% 9.9%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

ALAMO GROUP INC has demonstrated mature, steady growth, with revenue compounding at 7.4% annually over the past decade.

ALAMO GROUP INC returns on capital have been average, hovering around 11.0% ROIC over the decade.

ALAMO GROUP INC has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, ALAMO GROUP INC is modeled at 8.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $181.57 per share.

ALG stock: frequently asked questions

What is the intrinsic value of Alamo Group Inc. (ALG) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 8.0% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, ALG's intrinsic value is about $181.57 per share.

Is ALG stock undervalued?

At $150.66 (close on Oct 17, 2026), ALG trades 17% below its Graham value of $181.57. On Graham's terms that leaves a margin of safety. A formula is a starting point for research, not a recommendation.

How fast has Alamo Group Inc. grown?

Revenue went from $844.7M in fiscal 2016 to $1.6B in fiscal 2025, a compound annual growth rate of 7.4%. Net income was $103.8M in fiscal 2025.

Does Alamo Group Inc. generate free cash flow?

Alamo Group Inc. generated $146.9M of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 8 of the last 10 reported years.

What is ALG's return on invested capital?

Average ROIC over the last 10 fiscal years was 11.0%, and average return on equity was 12.1%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this ALG data come from?

From Alamo Group Inc.'s annual 10-K filings on SEC EDGAR, most recently filed Aug 3, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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