Alamo Group Inc. (ALG) exhibits 24.8% gross margins and 14.3% return on invested capital within Industrials (Industrial Machinery/Components), balanced against a 8.3x enterprise multiple and 4.8% implied options volatility.
Sustained 24.8% gross profitability converts into 9.5% operating margin and 14.3% ROIC, outpacing sector cost of capital.
ROIC: 14.3% // GM: 24.8%YoY revenue trajectory of -1.5% paired with 8.23% free cash flow yield supports self-funded R&D and capital return.
REV YOY: -1.5% // FCF YLD: 8.23%Altman Z-Score of 5.14 and Piotroski F-Score of 5/9 indicate low near-term refinancing stress.
ALTMAN Z: 5.14 // F-SCORE: 5/9Trading at 17.2x trailing P/E (16.0x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 17.2x // EV/EBITDA: 8.3xOptions market prices a ±5.2% implied move with a 0.85 put/call ratio around $146.74 max pain.
IMPL MOVE: ±5.2% // P/C: 0.85Elevated industry capital intensity and customer concentration in Industrial Machinery/Components require continuous execution to defend 6.5% net margins.
NET MARGIN: 6.5% // D/E: 0.45x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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