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What Is Alta Equipment Group Inc.?
~1.5 mins read
“Alta Equipment Group Inc.” is a US company traded on the New York Stock Exchange under the ticker “ALTG” for its common stock and “ALTG PRA” for its preferred stock.
The company operates in the rental and leasing services industry. It has a dealership business model and sells, rents, and provides parts and service support for several categories of specialized equipment, including lift trucks and other material handling equipment, heavy and compact earthmoving equipment, crushing and screening equipment, environmental processing equipment, cranes and aerial work platforms, paving and asphalt equipment, other construction equipment, and allied products.
Alta Equipment Group Inc. currently operates in Michigan, the Midwest, New York, New England, Florida, Nevada, and the Canadian provinces of Ontario and Quebec. As of December 31, 2023, it had 85 stores. Since 2020, it has made 16 acquisitions aimed at territorial infill and expansion.
These acquisitions are reflected on the balance sheet of the company as goodwill (the excess purchase price of another company) and are increasing year over year.
The comany revenues come from five sources: new and used equipment sales, parts sales, service revenues, rental revenues, and rental equipment sales. Equipment sales make up approximately half of revenue, whereas rental revenues accounted for 10.78% of sales in 2023.
In addition to having physical stores and locations, Alta Equipment Group Inc. also provides services and showcases its product line through its website:
www.altg.com
According to MarketBeat, its competitors include the following companies:
DXP Enterprises (DXPE)
MRC Global (MRC)
Global Industrial (GIC)
Northwest Pipe (NWPX)
CompX International (CIX)
Hudson Technologies (HDSN)
Park-Ohio (PKOH)
Manitowoc (MTW)
GrafTech International (EAF)
Graham (GHM)
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Alta Equipment Group Inc.s Cash Flow Statements, 2019-2023
~1.5 mins read
In this article, we’ll take a closer look at Alta Equipment Group Inc.’s KPIs from the cash flow statement, and the first one will be its cash flows for the past five years:
The company’s cash from operating activities is showing an upward trend, while investing activities do not provide the cash at all due to huge expenditures on property, equipment, and acquisitions.
Cash from financing activities, on the other hand, is always positive because the company borrows money. The company uses credit lines, long-term borrowings, and floor plan financing.
Both capital expenditures and dividends at Alta Equipment Group Inc. are increasing. While it’s good when dividends are growing, capital expenditures should decline, or at least stay at the same level.
Stock repurchases and issuances rarely occur, as you can see on the chart. Despite the lack of benefits for shareholders from stock buybacks, this situation ultimately benefits the company and its shareholders in the long run, as the company actively engages in growth and expansion, making use of available resources.
Alta Equipment Group Inc.’s free cash flow is constantly negative due to CAPEX being higher than cash from operating activities, but its overall trend is also heading in the right direction, as you can see in the picture.
Its CAPEX to net income ratio is too high; it far exceeds 25%, which is considered desirable by investors, but again, the company spends a lot of resources on growth and expansion, so in the future this ratio might stabilize.
In conclusion, Alta Equipment Group Inc.’s cash flow statement showed that the company is getting better year over year in some aspects, such as dividends, cash from operating activities, etc., but it also revealed that the company relies heavily on debt to sustain itself.
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