Alamo Group: Long-term investors benefit from dividends and EPS growth

Alamo Group: Long-term investors benefit from dividends and EPS growth

In the world of the stock exchange, everything revolves around returns and growth. The Alamo Group Inc. (NYSE: ALG) investors have just been happy, because the share has increased by impressive 9.1 percent last week. But how does the image appear in the long term? The share price has increased by 74 percent in the past five years, but this growth remains behind the wider market. Over the past year, the course only recorded an increase of 3.7 percent.

In a week in which the company's market value has grown by $ 189 million, the question arises as to what drives this course development. Do the underlying corporate numbers do what they promise?

The financial figures in detail

In the past five years, Alamo Group has achieved an annual growth of the profit per share (EPS) of 11 percent. This is in accordance with the annual price growth of 12 percent, which indicates that investor's mood has been relatively stable for the company. On the whole, the course has developed in accordance with the EPS.

An important aspect when considering investment dates is the difference between the overall return for shareholders (Total Shaleholder Return, TSR) and the pure price development of the share. The TSR for Alamo Group has been 79 percent in the past five years and thus exceeds the course return, which is mainly due to the dividend payments. These dividends make up a significant part of growth and offer shareholders a profitable perspective.

Market development and investigation

In the current year, the total returns for the Alamo Group shareholders are 4.2 percent, which is still behind the general market development. In retrospect for the past five years, the company has recorded an annual return of 12 percent. Maybe this is a short breather in the course of the course, while the management implements the company's growth strategy.

It is also important for many investors to keep an eye on the transactions of corporate insiders. These can provide valuable information on which direction the company could develop.

Current information and deeper insights into the economic key figures from Alamo Group can be found at simplywall.st . It remains to be seen how the yield situation and further developments will affect the share price.