Alamo GroupMEX:ALG 82 ROE % is 10.06% as of Mar. 2026, which is 15% below its 10-year median of 11.80. 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 204 Farm & Heavy Construction Machinery companies, Alamo Group ranks better than 56.37% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Alamo Group's annualized net income for the quarter that ended in Mar. 2026 was MXN2,105 Mil. Alamo Group's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was MXN20,917 Mil. Therefore, Alamo Group's annualized ROE % for the quarter that ended in Mar. 2026 was 10.06%.
The historical rank and industry rank for Alamo Group's ROE % or its related term are showing as below:
MEX:ALG'
s ROE % Range Over the Past 10 Years
Min: 8.99 Med: 11.8 Max: 15.85
Current: 8.99
During the past 13 years, Alamo Group's highest ROE % was 15.85%. The lowest was 8.99%. And the median was 11.80%.
MEX:ALG's ROE % is ranked better than 56.37% of 204
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 7.315
vs MEX:ALG: 8.99
Alamo Group (MEX:ALG) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Alamo Group ROE % Related Terms
Alamo Group ROE % Historical Data
* Premium members only.
The historical data trend for Alamo Group's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Alamo Group's ROE % distribution charts can be found below:
* The bar in red indicates where Alamo Group's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Alamo Group (MEX:ALG) has a ROE % of 10.06% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Alamo Group and its competitors. This is 15% below median its historical median of 11.80. Over the past decade, Alamo Group's ROE % has ranged from 8.99 to 15.85. According to the industry distribution chart, Alamo Group ranks #89 out of 204 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 43.6%.
Is Alamo Group's ROE % too high?
Alamo Group's current ROE % of 10.06% is 15% below median its 10-year median of 11.80. Over the past 10 years, this metric has ranged from a low of 8.99 to a high of 15.85. The Farm & Heavy Construction Machinery industry median ROE % is 7.32. Alamo Group's value of 10.06% is 37.5% above this industry median. Based on the distribution chart, Alamo Group ranks #89 out of 204 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 ROE % compare to BLBD and ASTE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Alamo Group ranks #89 out of 204 companies for ROE %. This puts Alamo Group in the upper half of its industry. The industry median ROE % is 7.32. Alamo Group's value of 10.06% is 37.5% above this benchmark. Historically, Alamo Group's own ROE % has ranged from 8.99 to 15.85 over the past decade. While the company's 10-year median is 11.80 vs. the industry median of 7.32, 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 ROE % for a Farm & Heavy Construction Machinery company?
The median ROE % among Farm & Heavy Construction Machinery companies is 7.32, based on 204 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alamo Group's current ROE % of 10.06% is 37.5% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Alamo Group and its competitors. For the Farm & Heavy Construction Machinery industry, the median ROE % is 7.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alamo Group's current ROE % is 10.06%, which is 15% below median its own 10-year median of 11.80. 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?
Alamo Group (MEX:ALG) has a current ROE % of 10.06%. 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 ROE % is 10.06%, which is 15% below median its 10-year median of 11.80 and 37.5% above the Farm & Heavy Construction Machinery industry median of 7.32. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Alamo Group (MEX:ALG), the current ROE % is 10.06% 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:
ROE %: 10.06% (15% below median its 10-year median of 11.80)
GF Value™: MXN3,946.62 vs. price of MXN3,500.00 (11.3% below fair value)
Industry Position: 37.5% above the Farm & Heavy Construction Machinery median (#89 of 204)
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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