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ALLIANCE ENTERTAINMENT HOLDI (AENT) Stock Fundamental Analysis

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

4.07  +0.01 (+0.25%)

Fundamental Rating

3

AENT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 15 industry peers in the Distributors industry. AENT scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. AENT has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year AENT was profitable.
In the past year AENT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: AENT reported negative net income in multiple years.
In the past 5 years AENT reported 4 times negative operating cash flow.
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 (1.64%) which is comparable to the rest of the industry.
AENT has a Return On Equity of 6.90%. This is comparable to the rest of the industry: AENT outperforms 46.67% of its industry peers.
The Return On Invested Capital of AENT (7.59%) is comparable to the rest of the industry.
Industry RankSector Rank
ROA 1.64%
ROE 6.9%
ROIC 7.59%
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 0.62%, AENT is in line with its industry, outperforming 53.33% of the companies in the same industry.
With a Operating Margin value of 1.77%, AENT perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
AENT's Gross Margin of 11.46% is on the low side compared to the rest of the industry. AENT is outperformed by 66.67% of its industry peers.
Industry RankSector Rank
OM 1.77%
PM (TTM) 0.62%
GM 11.46%
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

AENT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for AENT has been increased compared to 1 year ago.
AENT has a worse debt/assets ratio than last year.
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 3.54 indicates that AENT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.54, AENT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of AENT is 1.93, which is an excellent value as it means it would take AENT, only 1.93 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.93, AENT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
AENT has a Debt/Equity ratio of 0.84. This is a neutral value indicating AENT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.84, AENT is doing worse than 66.67% of the companies in the same industry.
Although AENT does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.84
Debt/FCF 1.93
Altman-Z 3.54
ROIC/WACC0.53
WACC14.24%
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 1.24. This is a normal value and indicates that AENT is financially healthy and should not expect problems in meeting its short term obligations.
AENT has a worse Current ratio (1.24) than 66.67% of its industry peers.
A Quick Ratio of 0.77 indicates that AENT may have some problems paying its short term obligations.
AENT has a Quick ratio (0.77) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.24
Quick Ratio 0.77
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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3

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 180.02% over the past year.
The Revenue has decreased by -5.00% in the past year.
EPS 1Y (TTM)180.02%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-20.74%
Revenue 1Y (TTM)-5%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-7.5%

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
The Revenue is expected to grow by 0.09% on average over the next years.
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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6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 31.31 indicates a quite expensive valuation of AENT.
AENT's Price/Earnings is on the same level as the industry average.
AENT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 8.87, which indicates a very decent valuation of AENT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AENT indicates a rather cheap valuation: AENT is cheaper than 93.33% of the companies listed in the same industry.
AENT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 31.31
Fwd PE 8.87
AENT Price Earnings VS Forward Price EarningsAENT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AENT is on the same level as its industry peers.
AENT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AENT is cheaper than 80.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.8
EV/EBITDA 11.86
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.
AENT's earnings are expected to grow with 137.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y137.17%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for AENT!.
Industry RankSector Rank
Dividend Yield N/A

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ALLIANCE ENTERTAINMENT HOLDI

NASDAQ:AENT (3/7/2025, 8:03:44 PM)

4.07

+0.01 (+0.25%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)02-13 2025-02-13/amc
Earnings (Next)N/A N/A
Inst Owners0.8%
Inst Owner Change230.94%
Ins Owners93.83%
Ins Owner Change0.59%
Market Cap207.41M
Analysts82.86
Price Target8.16 (100.49%)
Short Float %5.94%
Short Ratio1.61
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 31.31
Fwd PE 8.87
P/S 0.19
P/FCF 4.8
P/OCF 4.79
P/B 2.17
P/tB N/A
EV/EBITDA 11.86
EPS(TTM)0.13
EY3.19%
EPS(NY)0.46
Fwd EY11.28%
FCF(TTM)0.85
FCFY20.84%
OCF(TTM)0.85
OCFY20.87%
SpS21.01
BVpS1.88
TBVpS-0.24
PEG (NY)0.09
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.64%
ROE 6.9%
ROCE 9.61%
ROIC 7.59%
ROICexc 7.69%
ROICexgc 17.16%
OM 1.77%
PM (TTM) 0.62%
GM 11.46%
FCFM 4.04%
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 Turnover2.67
Health
Industry RankSector Rank
Debt/Equity 0.84
Debt/FCF 1.93
Debt/EBITDA 3.31
Cap/Depr 1.16%
Cap/Sales 0.01%
Interest Coverage 1.65
Cash Conversion 178%
Profit Quality 655.19%
Current Ratio 1.24
Quick Ratio 0.77
Altman-Z 3.54
F-Score6
WACC14.24%
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)180.02%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-20.74%
EPS Next Y350%
EPS Next 2Y137.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-5%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-7.5%
Revenue Next Year0.96%
Revenue Next 2Y0.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y62.17%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y2362.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2366.23%
OCF growth 3YN/A
OCF growth 5YN/A