Stock fact sheet · data as of
Alamo Group Inc. (ALG): fair value, margin of safety and Wheel Score
Industrials · Industrial - Machinery · United States · Blend
Is ALG undervalued?
Alamo Group Inc. (ALG) closed at 152.62 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 237.97, which puts the price 36% below it. 5 of the 9 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
The 9 models disagree widely: DDM gives 20.01 while GLS Growth gives 512.80. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files ALG under Blend.
Nine valuation models for ALG
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 180.09 | +18% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 136.26 | -11% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 326.17 | +114% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 131.19 | -14% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 512.80 | +236% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 297.83 | +95% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 444.29 | +191% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 20.01 | -87% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 93.07 | -39% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 44.38 | -71% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 188.00 | +23% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: ALG passes 4 of the nine Piotroski tests. Our screens drop the stock at the health rule; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is 5.2 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are moderate - ROIC 7.6%, ROE 9.0%, ROA 6.5% - with debt at 0.19 times equity and a free-cash-flow yield of 7.3%.
The dividend yield is 0.89% with a payout ratio of 15% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Wholegood Units 80%, Parts 16%, Other Revenue 5% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 4 / 9 | ROIC | 7.6% |
|---|---|---|---|
| GLS Moat | 5.2 / 10 | ROE | 9.0% |
| Debt / equity | 0.19 | ROA | 6.5% |
| Free-cash-flow yield | 7.3% | Payout ratio | 15% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 71: Good
ALG scores 71 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 25/25), Piotroski health (9/20), the GLS moat (8/15), the option premium on offer (20/20) and how easily the stock trades (10/20). Health (9/20) is the part holding the score back.
Implied volatility is 36% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 135 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 130k shares a day on a market cap of $1.9B, with a beta of 1.08; the Stability part of the Wheel Score gives that 10 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 36% margin of safety | |
| Health | 9 / 20 | Piotroski 4/9 | |
| Moat | 8 / 15 | moat 5.2/10 | |
| Premium | 20 / 20 | implied volatility 36% | |
| Stability | 10 / 20 | 130k shares/day, $1.9B cap, beta 1.08 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 5 Nov 2026 (after the close), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Industrial - Machinery
The 12 companies below are the closest to Alamo Group Inc. by market cap within the Industrial - Machinery industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| MFP Midera Food Processing, Inc. | 40.59 | 13.58 | -199% | 35Weak | $1.8B |
| GRC The Gorman-Rupp Company | 72.14 | 72.39 | +0% | 70Good | $1.9B |
| EPAC Enerpac Tool Group Corp. | 35.07 | 47.54 | +26% | 86Prime | $1.8B |
| ATS ATS Corporation | 18.09 | 17.64 | -3% | 67Good | $1.8B |
| HLIO Helios Technologies, Inc. | 67.86 | 38.79 | -75% | 59Fair | $2.2B |
| KAI Kadant Inc. | 258.72 | 176.98 | -46% | 54Fair | $3.1B |
| TNC Tennant Company | 65.66 | 30.28 | -117% | 43Weak | $1.1B |
| CXT Crane NXT, Co. | 54.27 | 42.09 | -29% | 53Fair | $3.1B |
| PSIX Power Solutions International, Inc. | 46.61 | 85.18 | +45% | 66Good | $1.1B |
| SXI Standex International Corporation | 273.48 | 129.49 | -111% | 49Weak | $3.4B |
| MWA Mueller Water Products, Inc. | 21.65 | 26.66 | +19% | 83Prime | $3.4B |
| BMI Badger Meter, Inc. | 126.88 | 125.37 | -1% | 71Good | $3.7B |
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Start free See the Sunday ScanQuestions about ALG
Is ALG undervalued right now?
By the GLS models, yes: at 152.62 the stock is 36% below the average fair value of 237.97 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of ALG and what does it mean?
ALG scores 71 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for ALG?
237.97 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Alamo Group Inc. report earnings next?
The next earnings report is due on 5 Nov 2026 (after the close), 20 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does ALG have listed options, and how liquid are they?
Yes. The nightly snapshot found 242 listed contracts with 135 open interest across all expiries and implied volatility of 36% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.