ALG (Alamo Group) Margin of Safety % (DCF FCF Based): -57.80% (As of Jun. 24, 2026)


ALG Alamo Group Inc ALG
82 GF Score
Price $164.18
GF Value $185.48
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Alamo Group Margin of Safety % (DCF FCF Based)?

Alamo Group ALG +3.20% 82 Margin of Safety % (DCF FCF Based) is -57.80% as of Jun. 24, 2026. GuruFocus rates ALG with a GF Score™ of 82/100 and a GF Value™ of $185.48 (Modestly Undervalued). The stock has 2 warning signs investors should review.

Margin of Safety % (DCF FCF Based) = (Intrinsic Value: DCF (FCF Based) - Current Price) / Intrinsic Value: DCF (FCF Based).

Note: Discounted FCF model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-24), Alamo Group's Predictability Rank is 5-Stars. Alamo Group's intrinsic value calculated from the Discounted FCF model is $154.29 and current share price is $164.175. Consequently,

Alamo Group's Margin of Safety % (DCF FCF Based) using Discounted FCF model is -57.80%.

ALG vs BLBD, ASTE, LNN: Margin of Safety % (DCF FCF Based) Comparison

For the Farm & Heavy Construction Machinery subindustry, Alamo Group's Margin of Safety % (DCF FCF Based), along with its competitors' market caps and Margin of Safety % (DCF FCF Based) 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 Margin of Safety % (DCF FCF Based) vs Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Alamo Group's Margin of Safety % (DCF FCF Based) distribution charts can be found below:

* The bar in red indicates where Alamo Group's Margin of Safety % (DCF FCF Based) falls into.


ALG
82GF Score
Alamo Group Inc ALG
Margin of Safety % (DCF FCF Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Alamo Group Margin of Safety % (DCF FCF Based) Calculation

Alamo Group's Margin of Safety % (DCF FCF Based) for today is calculated as

Margin of Safety % (DCF FCF Based)=(Intrinsic Value: DCF (FCF Based)-Current Price)/Intrinsic Value: DCF (FCF Based)
=(104.04-164.175)/104.04
=-57.80 %

* 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.

The intrinsic value is calculated from the Discounted FCF model with default parameters. The calculation method is the same as Discounted Earnings model except free cash flow are used in the calculation instead of earnings per share.

What does a Margin of Safety % (DCF FCF Based) of -57.80% mean?
Alamo Group (ALG) has a Margin of Safety % (DCF FCF Based) of -57.80% as of Jun. 24, 2026. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on Alamo Group.
Is Alamo Group's Margin of Safety % (DCF FCF Based) too high?
Alamo Group's current Margin of Safety % (DCF FCF Based) is -57.80%. Overall, Alamo Group has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alamo Group's Margin of Safety % (DCF FCF Based) compare to BLBD and ASTE?
Alamo Group's Margin of Safety % (DCF FCF Based) of -57.80% can be compared against companies in the Farm & Heavy Construction Machinery industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF FCF Based) for a Farm & Heavy Construction Machinery company?
A good Margin of Safety % (DCF FCF Based) depends on the Farm & Heavy Construction Machinery industry context. However, Margin of Safety % (DCF FCF Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF FCF Based) mean?
A high Margin of Safety % (DCF FCF Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on Alamo Group. Alamo Group's current Margin of Safety % (DCF FCF Based) is -57.80%. 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?
Based on GuruFocus' analysis, Alamo Group (ALG) is currently considered Modestly Undervalued. The stock's GF Value™ is $185.48, compared to a current price of $164.18 — trading 11.5% below its estimated fair value. The current Margin of Safety % (DCF FCF Based) is -57.80%. 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 Margin of Safety % (DCF FCF Based) calculated?
Margin of Safety % (DCF FCF Based) is calculated from a company's financial statements. For Alamo Group (ALG), the current Margin of Safety % (DCF FCF Based) is -57.80% as of Jun. 24, 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 (ALG) Overvalued in 2026?

Based on GuruFocus' analysis, Alamo Group stock appears to be undervalued. The current stock price of $164.18 is trading 11.5% below its estimated GF Value™ of $185.48. GuruFocus considers Alamo Group to be Modestly Undervalued.

Key valuation signals for ALG:

  • Margin of Safety % (DCF FCF Based): -57.80%
  • GF Value™: $185.48 vs. price of $164.18 (11.5% below fair value)
  • GF Score™: 82/100 with 2 warning signs

No single metric tells the full story. See the ALG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Alamo Group Business Description

Address 1627 East Walnut, Seguin, TX, USA, 78155
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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Margin of Safety % (DCF FCF Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$164.18
Price
$185.48
GF Value