Alamo GroupMEX:ALG 82 ROA % is 7.01% as of Mar. 2026, which is 2% below its 10-year median of 7.18. 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 212 Farm & Heavy Construction Machinery companies, Alamo Group ranks better than 73.11% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Alamo Group's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN2,105 Mil.
Alamo Group's average Total Assets over the quarter that ended in Mar. 2026 was MXN30,039 Mil. Therefore, Alamo Group's annualized ROA % for the quarter that ended in Mar. 2026 was 7.01%.
The historical rank and industry rank for Alamo Group's ROA % or its related term are showing as below:
MEX:ALG'
s ROA % Range Over the Past 10 Years
Min: 4.95 Med: 7.18 Max: 10.8
Current: 6.33
During the past 13 years, Alamo Group's highest ROA % was 10.80%. The lowest was 4.95%. And the median was 7.18%.
MEX:ALG's ROA % is ranked better than 73.11% of 212
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 3.81
vs MEX:ALG: 6.33
Alamo Group (MEX:ALG) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Alamo Group ROA % Related Terms
Alamo Group ROA % Historical Data
* Premium members only.
The historical data trend for Alamo Group's ROA % 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.
For the Farm & Heavy Construction Machinery subindustry, Alamo Group's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Alamo Group's ROA % distribution charts can be found below:
* The bar in red indicates where Alamo Group's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Alamo Group (MEX:ALG) has a ROA % of 7.01% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Alamo Group and its competitors. This is near median its historical median of 7.18. Over the past decade, Alamo Group's ROA % has ranged from 4.95 to 10.80. According to the industry distribution chart, Alamo Group ranks #57 out of 212 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 26.9%.
Is Alamo Group's ROA % too high?
Alamo Group's current ROA % of 7.01% is near median its 10-year median of 7.18. Over the past 10 years, this metric has ranged from a low of 4.95 to a high of 10.80. The Farm & Heavy Construction Machinery industry median ROA % is 3.81. Alamo Group's value of 7.01% is 84% above this industry median. Based on the distribution chart, Alamo Group ranks #57 out of 212 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 ROA % compare to BLBD and ASTE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Alamo Group ranks #57 out of 212 companies for ROA %. This puts Alamo Group in the upper half of its industry. The industry median ROA % is 3.81. Alamo Group's value of 7.01% is 84% above this benchmark. Historically, Alamo Group's own ROA % has ranged from 4.95 to 10.80 over the past decade. While the company's 10-year median is 7.18 vs. the industry median of 3.81, 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 ROA % for a Farm & Heavy Construction Machinery company?
The median ROA % among Farm & Heavy Construction Machinery companies is 3.81, based on 212 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alamo Group's current ROA % of 7.01% is 84% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Alamo Group and its competitors. For the Farm & Heavy Construction Machinery industry, the median ROA % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alamo Group's current ROA % is 7.01%, which is near median its own 10-year median of 7.18. 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 ROA % of 7.01%. 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 ROA % is 7.01%, which is near median its 10-year median of 7.18 and 84% above the Farm & Heavy Construction Machinery industry median of 3.81. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Alamo Group (MEX:ALG), the current ROA % is 7.01% 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:
ROA %: 7.01% (near median its 10-year median of 7.18)
GF Value™: MXN3,946.62 vs. price of MXN3,500.00 (11.3% below fair value)
Industry Position: 84% above the Farm & Heavy Construction Machinery median (#57 of 212)
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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