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ALLIANCE ENTERTAINMENT HOLDI (AENT) Stock Fundamental Analysis

NASDAQ:AENT - Nasdaq - US01861F1021 - Common Stock - Currency: USD

5.92  -0.2 (-3.27%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to AENT. AENT was compared to 15 industry peers in the Distributors industry. While AENT seems to be doing ok healthwise, there are quite some concerns on its profitability. AENT has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year AENT was profitable.
AENT had a positive operating cash flow in the past year.
In multiple years AENT reported negative net income over the last 5 years.
AENT had negative operating cash flow in 4 of the past 5 years.
AENT Yearly Net Income VS EBIT VS OCF VS FCFAENT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2020 2021 2022 2023 2024 0 10M 20M 30M 40M 50M

1.2 Ratios

AENT has a Return On Assets (2.13%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 9.59%, AENT is in line with its industry, outperforming 42.86% of the companies in the same industry.
AENT has a Return On Invested Capital (7.68%) which is in line with its industry peers.
Industry RankSector Rank
ROA 2.13%
ROE 9.59%
ROIC 7.68%
ROA(3y)2.2%
ROA(5y)0.65%
ROE(3y)3.56%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
AENT Yearly ROA, ROE, ROICAENT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2020 2021 2022 2023 2024 0 2 4 6

1.3 Margins

Looking at the Profit Margin, with a value of 0.77%, AENT is in line with its industry, outperforming 50.00% of the companies in the same industry.
AENT's Operating Margin of 1.83% is in line compared to the rest of the industry. AENT outperforms 50.00% of its industry peers.
Looking at the Gross Margin, with a value of 11.62%, AENT is doing worse than 71.43% of the companies in the same industry.
Industry RankSector Rank
OM 1.83%
PM (TTM) 0.77%
GM 11.62%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
AENT Yearly Profit, Operating, Gross MarginsAENT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2020 2021 2022 2023 2024 2 4 6 8 10

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4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AENT is destroying value.
AENT has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, AENT has a worse debt to assets ratio.
AENT Yearly Shares OutstandingAENT Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M
AENT Yearly Total Debt VS Total AssetsAENT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2023 2024 100M 200M 300M

2.2 Solvency

An Altman-Z score of 3.90 indicates that AENT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.90, AENT is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
The Debt to FCF ratio of AENT is 2.20, which is a good value as it means it would take AENT, 2.20 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.20, AENT is doing good in the industry, outperforming 64.29% of the companies in the same industry.
A Debt/Equity ratio of 1.13 is on the high side and indicates that AENT has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.13, AENT is doing worse than 78.57% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for AENT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 1.13
Debt/FCF 2.2
Altman-Z 3.9
ROIC/WACC0.53
WACC14.39%
AENT Yearly LT Debt VS Equity VS FCFAENT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2020 2021 2022 2023 2024 0 20M 40M 60M 80M 100M

2.3 Liquidity

AENT has a Current Ratio of 1.34. This is a normal value and indicates that AENT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of AENT (1.34) is worse than 71.43% of its industry peers.
AENT has a Quick Ratio of 1.34. This is a bad value and indicates that AENT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AENT (0.60) is worse than 64.29% of its industry peers.
Industry RankSector Rank
Current Ratio 1.34
Quick Ratio 0.6
AENT Yearly Current Assets VS Current LiabilitesAENT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 2024 50M 100M 150M

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 168.07% over the past year.
AENT shows a strong growth in Revenue. In the last year, the Revenue has grown by 57.17%.
EPS 1Y (TTM)168.07%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%114.59%
Revenue 1Y (TTM)57.17%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.99%

3.2 Future

The Earnings Per Share is expected to grow by 137.17% on average over the next years. This is a very strong growth
Based on estimates for the next years, AENT will show a small growth in Revenue. The Revenue will grow by 0.09% on average per year.
EPS Next Y350%
EPS Next 2Y137.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.96%
Revenue Next 2Y0.09%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

AENT Yearly Revenue VS EstimatesAENT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M 1B
AENT Yearly EPS VS EstimatesAENT Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 0 0.2 -0.2 0.4 -0.4 -0.6

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5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 34.82 indicates a quite expensive valuation of AENT.
64.29% of the companies in the same industry are cheaper than AENT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.47. AENT is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 12.90, which indicates a correct valuation of AENT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AENT indicates a somewhat cheap valuation: AENT is cheaper than 78.57% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AENT to the average of the S&P500 Index (92.74), we can say AENT is valued rather cheaply.
Industry RankSector Rank
PE 34.82
Fwd PE 12.9
AENT Price Earnings VS Forward Price EarningsAENT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as AENT.
Based on the Price/Free Cash Flow ratio, AENT is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 6.46
EV/EBITDA 15.97
AENT Per share dataAENT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

4.3 Compensation for Growth

AENT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as AENT's earnings are expected to grow with 137.17% in the coming years.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y137.17%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

AENT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ALLIANCE ENTERTAINMENT HOLDI

NASDAQ:AENT (2/5/2025, 10:31:13 AM)

5.92

-0.2 (-3.27%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)09-19 2024-09-19/amc
Earnings (Next)N/A N/A
Inst Owners0.24%
Inst Owner Change91.33%
Ins Owners93.83%
Ins Owner Change0%
Market Cap301.68M
Analysts82.86
Price Target8.16 (37.84%)
Short Float %4.68%
Short Ratio1.45
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)33.33%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 34.82
Fwd PE 12.9
P/S 0.27
P/FCF 6.46
P/OCF 6.43
P/B 3.43
P/tB N/A
EV/EBITDA 15.97
EPS(TTM)0.17
EY2.87%
EPS(NY)0.46
Fwd EY7.75%
FCF(TTM)0.92
FCFY15.48%
OCF(TTM)0.92
OCFY15.54%
SpS21.64
BVpS1.73
TBVpS-0.27
PEG (NY)0.1
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.13%
ROE 9.59%
ROCE 9.72%
ROIC 7.68%
ROICexc 7.84%
ROICexgc 15.68%
OM 1.83%
PM (TTM) 0.77%
GM 11.62%
FCFM 4.23%
ROA(3y)2.2%
ROA(5y)0.65%
ROE(3y)3.56%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover2.79
Health
Industry RankSector Rank
Debt/Equity 1.13
Debt/FCF 2.2
Debt/EBITDA 3.88
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 1.67
Cash Conversion 182.52%
Profit Quality 553.28%
Current Ratio 1.34
Quick Ratio 0.6
Altman-Z 3.9
F-Score6
WACC14.39%
ROIC/WACC0.53
Cap/Depr(3y)5.39%
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)168.07%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%114.59%
EPS Next Y350%
EPS Next 2Y137.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)57.17%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.99%
Revenue Next Year0.96%
Revenue Next 2Y0.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y500.04%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y2494.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2504.62%
OCF growth 3YN/A
OCF growth 5YN/A