Consumer Discretionary • NYSE
According to Zyberno, ALTA EQUIPMENT GROUP INC. (ALTG) shows a Value Trap signal — POOR BUSINESS (18/100) with an apparent Margin of Safety of +89.8%, but a Brina Gap of -54.4% reveals the current price still assumes faster growth than the business can deliver.
According to Zyberno's DCF model, ALTA EQUIPMENT GROUP INC. (ALTG) trades at $5.89 against an estimated intrinsic value per share of $57.71 — a +89.8% Margin of Safety based on Owner Earnings of $60.80M TTM, projected at 45.4% growth for 10 years with a 2.5% terminal growth rate. The Brina Gap of -54.4% weakens the case: based on the company's ROIC (2.8%) and reinvestment rate (-1,166.5%), the business can fundamentally grow at -32.4% — but the current enterprise value implies the market expects 22.0%. This places ALTG in the Value Trap quadrant of the Brina Matrix — a value-trap signal where the apparent discount is undermined by overpriced growth expectations. Zyberno's model translates this into a 5-year expected return of 81.1% annually.
Over the trailing twelve months, ALTG generated $60.80M in Owner Earnings. Capital was deployed as follows: $4.30M paid as dividends, $10.50M invested in capital expenditures. Reinvestment rate: -1,166.5%. Owner Earnings have grown at 45.4% annually over the trailing five years using log-linear regression.