Alamo GroupMEX:ALG 82 Current Ratio is 4.32 as of Mar. 2026, which is 1% above its 10-year median of 4.28. GuruFocus rates MEX:ALG with a GF Score™ of 82/100 and a GF Value™ of MXN3,946.62. The stock has 2 warning signs investors should review. Among 211 Farm & Heavy Construction Machinery companies, Alamo Group ranks better than 89.57% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Alamo Group's current ratio for the quarter that ended in Mar. 2026 was 4.32.
Alamo Group has a current ratio of 4.32. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Alamo Group's Current Ratio or its related term are showing as below:
MEX:ALG'
s Current Ratio Range Over the Past 10 Years
Min: 3.18 Med: 4.28 Max: 4.83
Current: 4.32
During the past 13 years, Alamo Group's highest Current Ratio was 4.83. The lowest was 3.18. And the median was 4.28.
MEX:ALG's Current Ratio is ranked better than 89.57% of 211
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 1.81
vs MEX:ALG: 4.32
Alamo Group (MEX:ALG) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Alamo Group Current Ratio Related Terms
Alamo Group Current Ratio Historical Data
* Premium members only.
The historical data trend for Alamo Group's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:ALG vs BLBD, ASTE, LNN: Current Ratio Comparison
For the Farm & Heavy Construction Machinery subindustry, Alamo Group's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alamo Group Current Ratio vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Alamo Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Alamo Group's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Alamo Group (MEX:ALG) has a Current Ratio of 4.32 as of Mar. 2026. This is near median its historical median of 4.28. Over the past decade, Alamo Group's Current Ratio has ranged from 3.18 to 4.83. According to the industry distribution chart, Alamo Group ranks #22 out of 211 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 10.4%.
Is Alamo Group's Current Ratio too high?
Alamo Group's current Current Ratio of 4.32 is near median its 10-year median of 4.28. Over the past 10 years, this metric has ranged from a low of 3.18 to a high of 4.83. The Farm & Heavy Construction Machinery industry median Current Ratio is 1.81. Alamo Group's value of 4.32 is 138.7% above this industry median. Based on the distribution chart, Alamo Group ranks #22 out of 211 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position relative to peers. Overall, Alamo Group has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does Alamo Group's Current Ratio compare to BLBD and ASTE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Alamo Group ranks #22 out of 211 companies for Current Ratio. This places Alamo Group in the top 10% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.81. Alamo Group's value of 4.32 is 138.7% above this benchmark. Historically, Alamo Group's own Current Ratio has ranged from 3.18 to 4.83 over the past decade. While the company's 10-year median is 4.28 vs. the industry median of 1.81, Alamo Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Farm & Heavy Construction Machinery company?
The median Current Ratio among Farm & Heavy Construction Machinery companies is 1.81, based on 211 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alamo Group's current Current Ratio of 4.32 is 138.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Farm & Heavy Construction Machinery industry, the median Current Ratio is 1.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alamo Group's current Current Ratio is 4.32, which is near median its own 10-year median of 4.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alamo Group stock overvalued right now?
Alamo Group (MEX:ALG) has a current Current Ratio of 4.32. The stock's GF Value™ is MXN3,946.62, compared to a current price of MXN3,500.00 — trading 11.3% below its estimated fair value. The current Current Ratio is 4.32, which is near median its 10-year median of 4.28 and 138.7% above the Farm & Heavy Construction Machinery industry median of 1.81. Alamo Group's overall GF Score™ is 82/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Alamo Group (MEX:ALG), the current Current Ratio is 4.32 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Alamo Group (MEX:ALG) Overvalued in 2026?
Based on GuruFocus' analysis, Alamo Group stock appears to be undervalued.
The current stock price of MXN3,500.00 is trading 11.3% below its estimated GF Value™ of MXN3,946.62.
Key valuation signals for MEX:ALG:
Current Ratio: 4.32 (near median its 10-year median of 4.28)
GF Value™: MXN3,946.62 vs. price of MXN3,500.00 (11.3% below fair value)
Industry Position: 138.7% above the Farm & Heavy Construction Machinery median (#22 of 211)
No single metric tells the full story. See the MEX:ALG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alamo Group Inc is engaged in the design, manufacture, and servicing of high-quality vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural use. Its products include agricultural implements, tree and branch chippers, forestry/wood recycling equipment, street and parking lot sweepers, leaf and debris collection equipment, truck-mounted highway attenuator trucks, vacuum trucks, hydro-excavation equipment, telescopic boom excavators, snow removal equipment, etc. The company's reportable segments are Vegetation Management, which generates the maximum revenue, and Industrial Equipment. Geographically, the company generates maximum revenue from the United States, followed by Canada, France, the UK, Brazil, the Netherlands, and other regions.
82GF Score
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