Alamo Net Income vs. EBITDA

ALG Stock  USD 193.35  2.60  1.33%   
Considering Alamo's profitability and operating efficiency indicators, Alamo Group may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Alamo's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1992-03-31
Previous Quarter
28.3 M
Current Value
27.4 M
Quarterly Volatility
8.7 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Alamo's EV To Sales is most likely to increase slightly in the upcoming years. The Alamo's current Sales General And Administrative To Revenue is estimated to increase to 0.15, while Operating Cash Flow Sales Ratio is projected to decrease to 0.05. At this time, Alamo's Net Income is most likely to increase significantly in the upcoming years. The Alamo's current Income Tax Expense is estimated to increase to about 40.9 M, while Total Other Income Expense Net is forecasted to increase to (21.7 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.260.2685
Sufficiently Down
Very volatile
Net Profit Margin0.08460.0806
Sufficiently Up
Slightly volatile
Operating Profit Margin0.08860.1172
Way Down
Very volatile
Pretax Profit Margin0.08110.1036
Significantly Down
Very volatile
Return On Assets0.07190.0966
Way Down
Slightly volatile
Return On Equity0.120.146
Significantly Down
Slightly volatile
For Alamo profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Alamo to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Alamo Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Alamo's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Alamo Group over time as well as its relative position and ranking within its peers.
  

Alamo's Revenue Breakdown by Earning Segment

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Is Construction Machinery & Heavy Transportation Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Alamo. If investors know Alamo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Alamo listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.22)
Dividend Share
1
Earnings Share
9.94
Revenue Per Share
138.895
Quarterly Revenue Growth
(0.04)
The market value of Alamo Group is measured differently than its book value, which is the value of Alamo that is recorded on the company's balance sheet. Investors also form their own opinion of Alamo's value that differs from its market value or its book value, called intrinsic value, which is Alamo's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Alamo's market value can be influenced by many factors that don't directly affect Alamo's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Alamo's value and its price as these two are different measures arrived at by different means. Investors typically determine if Alamo is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alamo's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Alamo Group EBITDA vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Alamo's current stock value. Our valuation model uses many indicators to compare Alamo value to that of its competitors to determine the firm's financial worth.
Alamo Group is rated below average in net income category among its peers. It also is rated below average in ebitda category among its peers totaling about  1.83  of EBITDA per Net Income. At this time, Alamo's Net Income is most likely to increase significantly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Alamo by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Alamo EBITDA vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Alamo

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
136.16 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Alamo

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
249.19 M
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

Alamo EBITDA Comparison

Alamo is currently under evaluation in ebitda category among its peers.

Alamo Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Alamo, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Alamo will eventually generate negative long term returns. The profitability progress is the general direction of Alamo's change in net profit over the period of time. It can combine multiple indicators of Alamo, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-54.5 M-51.8 M
Operating Income198 M207.9 M
Income Before Tax175.1 M183.9 M
Total Other Income Expense Net-22.8 M-21.7 M
Net Income136.2 M143 M
Income Tax Expense39 M40.9 M
Net Income Applicable To Common Shares117.2 M123.1 M
Net Income From Continuing Ops133.8 M140.5 M
Non Operating Income Net Other71.1 K67.5 K
Interest Income1.7 M2.7 M
Net Interest Income-22.6 M-21.5 M
Change To NetincomeM2.9 M
Net Income Per Share 11.42  11.99 
Income Quality 0.96  1.52 
Net Income Per E B T 0.78  0.54 

Alamo Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Alamo. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Alamo position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Alamo's important profitability drivers and their relationship over time.

Use Alamo in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Alamo position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Alamo will appreciate offsetting losses from the drop in the long position's value.

Alamo Pair Trading

Alamo Group Pair Trading Analysis

The ability to find closely correlated positions to Alamo could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Alamo when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Alamo - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Alamo Group to buy it.
The correlation of Alamo is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Alamo moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alamo Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Alamo can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Alamo position

In addition to having Alamo in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Defense Thematic Idea Now

Defense
Defense Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Defense theme has 16 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Defense Theme or any other thematic opportunities.
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When determining whether Alamo Group is a strong investment it is important to analyze Alamo's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Alamo's future performance. For an informed investment choice regarding Alamo Stock, refer to the following important reports:
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You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
To fully project Alamo's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Alamo Group at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Alamo's income statement, its balance sheet, and the statement of cash flows.
Potential Alamo investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Alamo investors may work on each financial statement separately, they are all related. The changes in Alamo's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Alamo's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.