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Alamo GroupFRA:AL3 +0.74%82 Return-on-Tangible-Equity is 17.91% as of Jun. 2026, which is 20% below its 10-year median of 22.37. GuruFocus rates FRA:AL3 with a GF Score™ of 82/100 and a GF Value™ of €154.82. The stock has 2 warning signs investors should review. Among 199 Farm & Heavy Construction Machinery companies, Alamo Group ranks better than 64.82% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Alamo Group's annualized net income for the quarter that ended in Jun. 2026 was €107 Mil. Alamo Group's average shareholder tangible equity for the quarter that ended in Jun. 2026 was €600 Mil. Therefore, Alamo Group's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 17.91%.
The historical rank and industry rank for Alamo Group's Return-on-Tangible-Equity or its related term are showing as below:
FRA:AL3'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 13.7 Med: 22.37 Max: 28.33
Current: 13.7
During the past 13 years, Alamo Group's highest Return-on-Tangible-Equity was 28.33%. The lowest was 13.70%. And the median was 22.37%.
FRA:AL3's Return-on-Tangible-Equity is ranked better than 64.82% of 199
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.27
vs FRA:AL3: 13.70
Alamo Group (FRA:AL3) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Alamo Group Return-on-Tangible-Equity Related Terms
Alamo Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Alamo Group's Return-on-Tangible-Equity 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.
FRA:AL3 vs BLBD, ASTE, LNN: Return-on-Tangible-Equity Comparison
For the Farm & Heavy Construction Machinery subindustry, Alamo Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Alamo Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Alamo Group's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 17.91% mean?
Alamo Group (FRA:AL3) has a Return-on-Tangible-Equity of 17.91% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Alamo Group and its competitors. This is 20% below median its historical median of 22.37. Over the past decade, Alamo Group's Return-on-Tangible-Equity has ranged from 13.70 to 28.33. According to the industry distribution chart, Alamo Group ranks #70 out of 199 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 35.2%.
Is Alamo Group's Return-on-Tangible-Equity too high?
Alamo Group's current Return-on-Tangible-Equity of 17.91% is 20% below median its 10-year median of 22.37. Over the past 10 years, this metric has ranged from a low of 13.70 to a high of 28.33. The Farm & Heavy Construction Machinery industry median Return-on-Tangible-Equity is 9.27. Alamo Group's value of 17.91% is 93.2% above this industry median. Based on the distribution chart, Alamo Group ranks #70 out of 199 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 Return-on-Tangible-Equity compare to BLBD and ASTE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Alamo Group ranks #70 out of 199 companies for Return-on-Tangible-Equity. This puts Alamo Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 9.27. Alamo Group's value of 17.91% is 93.2% above this benchmark. Historically, Alamo Group's own Return-on-Tangible-Equity has ranged from 13.70 to 28.33 over the past decade. While the company's 10-year median is 22.37 vs. the industry median of 9.27, 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 Return-on-Tangible-Equity for a Farm & Heavy Construction Machinery company?
The median Return-on-Tangible-Equity among Farm & Heavy Construction Machinery companies is 9.27, based on 199 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alamo Group's current Return-on-Tangible-Equity of 17.91% is 93.2% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Alamo Group and its competitors. For the Farm & Heavy Construction Machinery industry, the median Return-on-Tangible-Equity is 9.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alamo Group's current Return-on-Tangible-Equity is 17.91%, which is 20% below median its own 10-year median of 22.37. 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 (FRA:AL3) has a current Return-on-Tangible-Equity of 17.91%. The stock's GF Value™ is €154.82, compared to a current price of €136.00 — trading 12.2% below its estimated fair value. The current Return-on-Tangible-Equity is 17.91%, which is 20% below median its 10-year median of 22.37 and 93.2% above the Farm & Heavy Construction Machinery industry median of 9.27. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Alamo Group (FRA:AL3), the current Return-on-Tangible-Equity is 17.91% as of Jun. 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 (FRA:AL3) Overvalued in 2026?
Based on GuruFocus' analysis, Alamo Group stock appears to be undervalued.
The current stock price of €136.00 is trading 12.2% below its estimated GF Value™ of €154.82.
Key valuation signals for FRA:AL3:
Return-on-Tangible-Equity: 17.91% (20% below median its 10-year median of 22.37)
GF Value™: €154.82 vs. price of €136.00 (12.2% below fair value)
Industry Position: 93.2% above the Farm & Heavy Construction Machinery median (#70 of 199)
No single metric tells the full story. See the FRA:AL3 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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