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Stock impact report

3 Profitable Stocks We Approach with Caution [Yahoo! Finance]

Alta Equipment Group Inc. Class A (ALTG) 
Company Research Source: Yahoo! Finance
Just because a business is in the green today doesn't mean it will thrive tomorrow. A business making money today isn't necessarily a winner, which is why we analyze companies across multiple dimensions at StockStory. That said, here are three profitable companies to steer clear of and a few better alternatives. Alta (ALTG) Trailing 12-Month GAAP Operating Margin: 1.2% Founded in 1984, Alta Equipment Group (NYSE:ALTG) is a provider of industrial and construction equipment and services across the Midwest and Northeast United States. Why Do We Avoid ALTG? 3.7% annual revenue growth over the last two years was slower than its industrials peers Cash-burning tendencies make us wonder if it can sustainably generate shareholder value 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings Alta is trading at $7.51 per share, or 1.4x forward EV-to-EBITDA. Read our free research report to see why you should thi Show less Read more
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