Education
About Us
Working with TipRanks
Follow Us
Alliance Entertainment Holding (AENT)
NASDAQ:AENT
RESEARCH TOOLSreports
Top Page
Alliance Entertainment Holding
(NASDAQ:AENT)
60Neutral
Alliance Entertainment Holding (AENT) vs. S&P 500 (SPY)
Market Cap
$189.56M
Dividend YieldN/A
Average Volume (3M)71.02K
Price to Earnings (P/E)28.7
Beta (1Y)0.64
Revenue Growth-5.00%
EPS GrowthN/A
CountryUS
Employees657
SectorCommunication Services
Sector Strength78
IndustryEntertainment
Share Statistics
EPS (TTM)0.13
Shares Outstanding50,957,370
10 Day Avg. Volume43,964
30 Day Avg. Volume71,023
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.19
Price to Cash Flow (P/CF)2.00
P/FCF Ratio1.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Alliance Entertainment Holding Business Overview & Revenue Model
Company DescriptionAlliance Entertainment Holding Corporation operates as a wholesaler, distributor, and e-commerce provider for the entertainment industry worldwide. It offers vinyl records, video games, digital video discs, blu-rays, toys, compact discs, collectibles, and other entertainment and consumer products. The company also provides third party logistics products and services. It distributes its physical media, entertainment products, hardware, and accessories through multi-channel strategy. The company was founded in 1990 and is headquartered in Plantation, Florida.
How the Company Makes MoneyAlliance Entertainment Holding makes money through a robust revenue model centered around the distribution and wholesale of entertainment products. The company earns revenue by purchasing products from content producers or manufacturers and selling them to retail partners at a markup. Key revenue streams include supplying physical media such as CDs, DVDs, and Blu-rays, as well as digital distribution services. A significant portion of its earnings is derived from partnerships and contracts with major retailers, including both independent stores and large retail chains. Additionally, the company benefits from economies of scale and efficient logistics operations, which help reduce costs and improve profit margins. Strategic partnerships with entertainment content creators and the expansion into digital distribution channels are critical factors contributing to its financial performance.
Alliance Entertainment Holding Financial Statement Overview
Summary
Alliance Entertainment Holding shows a stable financial position with effective cash management, but faces challenges in revenue growth and profitability. The balance sheet reveals manageable leverage, but declining stockholders' equity indicates concerns about financial stability. Strong cash flow performance supports short-term stability.Income Statement
Alliance Entertainment Holding shows a mixed performance in the income statement. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 11.45%, indicating moderate efficiency in managing production costs. The net profit margin for TTM is around 0.62%, which suggests limited profitability. Revenue has decreased over the past years, with a significant decline from 2022 to 2023, but a slight recovery in the latest TTM data. EBIT and EBITDA margins also show a fluctuating trend, highlighting operational challenges.60
Neutral
Balance Sheet
The balance sheet reveals a moderate financial structure with some areas of concern. The debt-to-equity ratio for the TTM is approximately 0.29, indicating manageable leverage. The equity ratio stands at about 23.78%, suggesting a reasonable portion of assets financed by equity. However, the decline in stockholders' equity compared to total liabilities raises concerns about financial stability. ROE for the TTM period is around 6.90%, reflecting modest returns for equity holders.55
Neutral
Cash Flow
Cash flow analysis indicates a strong position with positive free cash flow generation. The TTM free cash flow is substantial at $17.42 million, indicating effective cash management. The operating cash flow to net income ratio is approximately 2.65, suggesting strong cash generation relative to net income. The free cash flow to net income ratio is also robust, highlighting efficient conversion of income into cash.75
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.07B | 1.10B | 1.16B | 1.42B | 1.32B | 775.60M | Gross Profit |
| 122.66M | 128.89M | 103.93M | 182.38M | 182.68M | 119.11M | EBIT |
| 18.79M | 14.14M | -32.75M | 42.10M | 47.91M | 9.26M | EBITDA |
| 19.51M | 19.98M | -26.12M | 50.36M | 63.15M | 25.05M | Net Income Common Stockholders |
| 6.60M | 4.58M | -35.40M | 28.62M | 34.18M | 5.36M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.49M | 1.13M | 865.00K | 1.47M | 4.03M | 1.33M | Total Assets |
| 401.72M | 340.81M | 389.53M | 473.04M | 388.96M | 276.83M | Total Debt |
| 28.20M | 109.83M | 148.68M | 148.66M | 72.04M | 56.31M | Net Debt |
| 25.71M | 108.70M | 147.81M | 147.19M | 68.01M | 54.98M | Total Liabilities |
| 306.17M | 253.18M | 310.00M | 364.11M | 308.66M | 223.91M | Stockholders Equity |
| 95.55M | 87.63M | 79.53M | 108.93M | 80.30M | 52.92M |
| Cash Flow | Free Cash Flow | ||||
| 17.42M | 55.59M | 2.56M | -83.60M | 74.07M | 24.69M | Operating Cash Flow |
| 17.49M | 55.77M | 3.39M | -83.55M | 74.72M | 27.39M | Investing Cash Flow |
| -7.54M | -117.00K | -824.00K | -50.00K | -66.06M | -5.26M | Financing Cash Flow |
| -21.12M | -55.39M | -3.16M | 81.04M | -5.98M | -23.35M |
Alliance Entertainment Holding Technical Analysis
Negative
3.72
Price Trends
4.57
Negative
5.35
Negative
3.92
Negative
Market Momentum
-0.23
Negative
39.10
Neutral
28.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AENT, the sentiment is Negative. The current price of 3.72 is below the 20-day moving average (MA) of 3.80, below the 50-day MA of 4.57, and below the 200-day MA of 3.92, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 39.10 is Neutral, neither overbought nor oversold. The STOCH value of 28.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AENT.
Alliance Entertainment Holding Risk Analysis
Alliance Entertainment Holding disclosed 64 risk factors in its most recent earnings report. Alliance Entertainment Holding reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Alliance Entertainment Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.04T | 34.45 | 24.29% | ― | 10.99% | 91.61% | |
73 Outperform | $682.63B | 35.40 | 22.23% | 0.97% | 5.07% | 25.86% | |
61 Neutral | $15.31B | 16.93 | 31.63% | 5.19% | -4.43% | -24.58% | |
60 Neutral | $189.56M | 28.75 | 7.17% | ― | -5.00% | ― | |
59 Neutral | $27.87B | 0.90 | -19.24% | 4.15% | 2.11% | -44.59% | |
54 Neutral | $47.22B | 11.70 | 29.12% | 4.30% | -0.79% | -0.90% | |
53 Neutral | $375.25M | ― | -1.52% | ― | -7.84% | 88.34% |
* Communication Services Sector Average
Performance Comparison
AENT
Alliance Entertainment Holding
3.35
1.27
61.06%
FLWS
1-800 Flowers
5.90
-4.64
-44.02%
AMZN
Amazon
190.26
9.29
5.13%
BBY
Best Buy Co
73.61
-4.60
-5.88%
TGT
Target
104.36
-68.14
-39.50%
WMT
Walmart
87.79
28.46
47.97%
Alliance Entertainment Holding Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -28.19% | Next Earnings Date: May 26, 2025
Earnings Call Sentiment Positive
The earnings call highlighted key strategic partnerships and growth in certain segments like vinyl and physical movies. Cost reductions and financial flexibility improvements were also emphasized. However, challenges such as a decline in net revenue and net income were noted. The overall sentiment leans towards a positive outlook due to strategic initiatives and growth opportunities outweighing the challenges.Highlights
Exclusive Distribution Partnership with Paramount
Alliance Entertainment secured an exclusive home entertainment license agreement with Paramount, effective January 1, 2025, for DVD, BluRay, and UHD formats in the U.S. and Canada, expected to significantly impact financial performance with releases like Gladiator 2.
Growth in Vinyl and Physical Movie Sales
Vinyl sales grew 12% to $109 million and physical movie sales surged 23% to $86 million year-over-year, driven by demand for 4K UHD and collectible editions.
Strategic Acquisition of Handmade by Robots
The acquisition of Handmade by Robots strengthens Alliance Entertainment's position in the collectibles market with plans for new character releases in mid-2025.
Successful Cost Reductions
Operating expenses declined 6% year-over-year to $27.5 million, with distribution and fulfillment costs down 18% due to automation and warehouse consolidation.
Improved Financial Flexibility
Revolver balance reduced by 31% year-over-year to $70 million, improving liquidity availability from $19 million to $50 million.
Lowlights
Decline in Net Revenue
Net revenue for Q2 fiscal year '25 decreased to $393.7 million from $425.6 million in the prior year period.
Decrease in Net Income
Net income for Q2 fiscal year '25 was $7.1 million compared to $8.9 million in Q2 fiscal year '24, impacted by a $2.5 million noncash charge related to the revaluation of warrant liabilities.
Company Guidance
During the Alliance Entertainment Fiscal 2025 Second Quarter Financial Results Conference Call, the company provided several guidance metrics. For the fiscal second quarter ended December 31, 2024, net revenue was reported at $393.7 million, a decrease from the previous year's $425.6 million. Vinyl sales increased by 12% to $109 million, while physical movie sales surged by 23% to $86 million. Gross margin dollars were $42.3 million, with a percentage of 10.7%. Operating expenses decreased by 6% to $27.5 million, and net income was $7.1 million, a slight reduction from the prior year's $8.9 million. Excluding a noncash charge, net income would have been $9.6 million. Adjusted EBITDA was $16.1 million, down from $17.9 million. For the first half of fiscal 2025, net revenue was $622.7 million compared to $652.3 million in the first half of fiscal 2024. The company's balance sheet showed a reduction in revolver balance from $101 million to $70 million, and liquidity availability increased from $19 million to $50 million. These metrics indicate a focus on strategic growth, cost reduction, and operational efficiency.Alliance Entertainment Holding Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Alliance Entertainment Highlights Q2 Fiscal 2025 Achievements
Positive
Feb 13, 2025
Alliance Entertainment reported its second quarter fiscal 2025 results, highlighting strategic investments and partnerships that set the stage for a strong second half outlook. The company reduced revolver debt by 31%, improved balance sheet and liquidity, and achieved higher-margin direct-to-consumer sales accounting for 42% of gross revenue. Notable achievements include the acquisition of Handmade by Robots, securing exclusive distribution rights with Paramount Pictures, and strategic retail partnerships. Despite a decline in net revenues and gross profit compared to the previous year, operational efficiencies and cost management led to a net income of $7.1 million. Alliance remains focused on leveraging exclusive content and expanding high-demand product categories to drive long-term shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.