Alamo GroupMEX:ALG 82 Operating Margin % is 10.11% as of Mar. 2026, which is 5% above its 10-year median of 9.59. 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 209 Farm & Heavy Construction Machinery companies, Alamo Group ranks better than 61.24% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Alamo Group's Operating Income for the
three
months ended in Mar. 2026 was MXN760 Mil. Alamo Group's Revenue for the
three
months ended in Mar. 2026 was MXN7,522 Mil. Therefore, Alamo Group's Operating Margin % for the quarter that ended in Mar. 2026 was 10.11%.
Good Sign:
Alamo Group Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Alamo Group's Operating Margin % or its related term are showing as below:
MEX:ALG'
s Operating Margin % Range Over the Past 10 Years
Min: 8 Med: 9.59 Max: 11.72
Current: 9.16
MEX:ALG's Operating Margin % is ranked better than 61.24% of 209
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 6.91
vs MEX:ALG: 9.16
Alamo Group's 5-Year Average Operating Margin % Growth Rate was 3.90% per year.
Alamo Group's Operating Income for the
three
months ended in Mar. 2026 was MXN760 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was MXN2,741 Mil.
Alamo Group (MEX:ALG) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Alamo Group Operating Margin % Related Terms
Alamo Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Alamo Group's Operating 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: Operating Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Alamo Group's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Alamo Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Alamo Group's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Alamo Group's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Operating Margin % of 10.11% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Alamo Group and its competitors. This is near median its historical median of 9.59. Over the past decade, Alamo Group's Operating Margin % has ranged from 8.00 to 11.72. According to the industry distribution chart, Alamo Group ranks #81 out of 209 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 38.8%.
Is Alamo Group's Operating Margin % too high?
Alamo Group's current Operating Margin % of 10.11% is near median its 10-year median of 9.59. Over the past 10 years, this metric has ranged from a low of 8.00 to a high of 11.72. The Farm & Heavy Construction Machinery industry median Operating Margin % is 6.91. Alamo Group's value of 10.11% is 46.3% above this industry median. Based on the distribution chart, Alamo Group ranks #81 out of 209 companies in the Farm & Heavy Construction Machinery industry, which is above 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 Operating Margin % compare to BLBD and ASTE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Alamo Group ranks #81 out of 209 companies for Operating Margin %. This puts Alamo Group in the upper half of its industry. The industry median Operating Margin % is 6.91. Alamo Group's value of 10.11% is 46.3% above this benchmark. Historically, Alamo Group's own Operating Margin % has ranged from 8.00 to 11.72 over the past decade. While the company's 10-year median is 9.59 vs. the industry median of 6.91, 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 Operating Margin % for a Farm & Heavy Construction Machinery company?
The median Operating Margin % among Farm & Heavy Construction Machinery companies is 6.91, based on 209 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alamo Group's current Operating Margin % of 10.11% is 46.3% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Alamo Group and its competitors. For the Farm & Heavy Construction Machinery industry, the median Operating Margin % is 6.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alamo Group's current Operating Margin % is 10.11%, which is near median its own 10-year median of 9.59. 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 Operating Margin % of 10.11%. 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 Operating Margin % is 10.11%, which is near median its 10-year median of 9.59 and 46.3% above the Farm & Heavy Construction Machinery industry median of 6.91. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Alamo Group (MEX:ALG), the current Operating Margin % is 10.11% 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:
Operating Margin %: 10.11% (near median its 10-year median of 9.59)
GF Value™: MXN3,946.62 vs. price of MXN3,500.00 (11.3% below fair value)
Industry Position: 46.3% above the Farm & Heavy Construction Machinery median (#81 of 209)
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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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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