ALLIANCE ENTERTAINMENT HOLDI (AENT)
US01861F1021 - Common Stock
We assign a fundamental rating of 3 out of 10 to AENT. AENT was compared to 14 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.
1. Profitability
1.1 Basic Checks
AENT had positive earnings in the past year.
AENT had a positive operating cash flow in the past year.
In multiple years AENT reported negative net income over the last 5 years.
In the past 5 years AENT reported 4 times negative operating cash flow.
1.2 Ratios
AENT has a Return On Assets of 1.34%. This is in the lower half of the industry: AENT underperforms 61.54% of its industry peers.
Looking at the Return On Equity, with a value of 5.23%, AENT is doing worse than 61.54% of the companies in the same industry.
AENT's Return On Invested Capital of 6.77% is in line compared to the rest of the industry. AENT outperforms 53.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.34% | ||
| ROE | 5.23% | ||
| ROIC | 6.77% |
ROA(3y)2.2%
ROA(5y)0.65%
ROE(3y)3.56%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
AENT's Profit Margin of 0.42% is in line compared to the rest of the industry. AENT outperforms 46.15% of its industry peers.
Looking at the Operating Margin, with a value of 1.50%, AENT is in line with its industry, outperforming 53.85% of the companies in the same industry.
Looking at the Gross Margin, with a value of 11.71%, AENT is doing worse than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.5% | ||
| PM (TTM) | 0.42% | ||
| GM | 11.71% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AENT 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.
2.2 Solvency
An Altman-Z score of 4.16 indicates that AENT is not in any danger for bankruptcy at the moment.
AENT has a Altman-Z score (4.16) which is comparable to the rest of the industry.
The Debt to FCF ratio of AENT is 1.57, which is an excellent value as it means it would take AENT, only 1.57 years of fcf income to pay off all of its debts.
AENT has a better Debt to FCF ratio (1.57) than 69.23% of its industry peers.
A Debt/Equity ratio of 0.97 indicates that AENT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.97, AENT is doing worse than 76.92% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 1.57 | ||
| Altman-Z | 4.16 |
ROIC/WACC0.45
WACC14.91%
2.3 Liquidity
AENT has a Current Ratio of 1.33. 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 (1.33) than 76.92% of its industry peers.
AENT has a Quick Ratio of 1.33. 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 (0.67) is worse than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
AENT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 145.10%, which is quite impressive.
Looking at the last year, AENT shows a very strong growth in Revenue. The Revenue has grown by 131.75%.
EPS 1Y (TTM)145.1%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%142.52%
Revenue 1Y (TTM)131.75%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-4.13%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y350%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.96%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 48.44 indicates a quite expensive valuation of AENT.
Based on the Price/Earnings ratio, AENT is valued a bit more expensive than 61.54% of the companies in the same industry.
AENT is valuated expensively when we compare the Price/Earnings ratio to 30.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.87 indicates a reasonable valuation of AENT.
Based on the Price/Forward Earnings ratio, AENT is valued cheaper than 84.62% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.28, AENT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.44 | ||
| Fwd PE | 11.87 |
4.2 Price Multiples
AENT's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, AENT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4 | ||
| EV/EBITDA | 12.15 |
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.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
AENT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALLIANCE ENTERTAINMENT HOLDI
NASDAQ:AENT (11/4/2024, 8:00:00 PM)
4.36
+0.71 (+19.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap222.19M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.44 | ||
| Fwd PE | 11.87 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.34% | ||
| ROE | 5.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.5% | ||
| PM (TTM) | 0.42% | ||
| GM | 11.71% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover3.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)145.1%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y350%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)131.75%
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y