Alamo GroupMEX:ALG 82 Gross Margin % is 25.12% as of Mar. 2026, which is 0% below its 10-year median of 25.16. 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 210 Farm & Heavy Construction Machinery companies, Alamo Group ranks worse than 56.19% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Alamo Group's Gross Profit for the
three
months ended in Mar. 2026 was MXN1,890 Mil. Alamo Group's Revenue for the
three
months ended in Mar. 2026 was MXN7,522 Mil. Therefore, Alamo Group's Gross Margin % for the quarter that ended in Mar. 2026 was 25.12%.
The historical rank and industry rank for Alamo Group's Gross Margin % or its related term are showing as below:
MEX:ALG'
s Gross Margin % Range Over the Past 10 Years
Min: 24.28 Med: 25.16 Max: 26.85
Current: 24.53
During the past 13 years, the highestGross Margin % of Alamo Group was 26.85%. The lowest was 24.28%. And the median was 25.16%.
MEX:ALG's Gross Margin % is ranked worse than 56.19% of 210
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 25.66
vs MEX:ALG: 24.53
Alamo Group had a gross margin of 25.12% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Alamo Group was 0.10% per year.
Alamo Group (MEX:ALG) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Alamo Group had a gross margin of 25.12% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Alamo Group Gross Margin % Related Terms
Alamo Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Alamo Group's Gross Margin % 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: Gross Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Alamo Group's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Alamo Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Alamo Group's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Alamo Group (MEX:ALG) has a Gross Margin % of 25.12% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Alamo Group and its competitors. This is near median its historical median of 25.16. Over the past decade, Alamo Group's Gross Margin % has ranged from 24.28 to 26.85. According to the industry distribution chart, Alamo Group ranks #118 out of 210 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 56.2%.
Is Alamo Group's Gross Margin % too high?
Alamo Group's current Gross Margin % of 25.12% is near median its 10-year median of 25.16. Over the past 10 years, this metric has ranged from a low of 24.28 to a high of 26.85. The Farm & Heavy Construction Machinery industry median Gross Margin % is 25.66. Alamo Group's value of 25.12% is 2.1% below this industry median. Based on the distribution chart, Alamo Group ranks #118 out of 210 companies in the Farm & Heavy Construction Machinery industry, which is below the industry midpoint. 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 Gross Margin % compare to BLBD and ASTE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Alamo Group ranks #118 out of 210 companies for Gross Margin %. This places Alamo Group in the lower half of its industry. The industry median Gross Margin % is 25.66. Alamo Group's value of 25.12% is 2.1% below this benchmark. Historically, Alamo Group's own Gross Margin % has ranged from 24.28 to 26.85 over the past decade. While the company's 10-year median is 25.16 vs. the industry median of 25.66, Alamo Group has consistently been below 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 Gross Margin % for a Farm & Heavy Construction Machinery company?
The median Gross Margin % among Farm & Heavy Construction Machinery companies is 25.66, based on 210 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alamo Group's current Gross Margin % of 25.12% is 2.1% below 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Alamo Group and its competitors. For the Farm & Heavy Construction Machinery industry, the median Gross Margin % is 25.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alamo Group's current Gross Margin % is 25.12%, which is near median its own 10-year median of 25.16. 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 Gross Margin % of 25.12%. 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 Gross Margin % is 25.12%, which is near median its 10-year median of 25.16 and 2.1% below the Farm & Heavy Construction Machinery industry median of 25.66. 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 Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Alamo Group (MEX:ALG), the current Gross Margin % is 25.12% 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:
Gross Margin %: 25.12% (near median its 10-year median of 25.16)
GF Value™: MXN3,946.62 vs. price of MXN3,500.00 (11.3% below fair value)
Industry Position: 2.1% below the Farm & Heavy Construction Machinery median (#118 of 210)
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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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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