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Alliance Entertainment Holding (AENT)
NASDAQ:AENT
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Alliance Entertainment Holding
(NASDAQ:AENT)
Rating:66Neutral
Price Target:
$3.00
▲(3.45%Upside)
Alliance Entertainment Holding (AENT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$147.78M
Dividend YieldN/A
Average Volume (3M)29.66K
Price to Earnings (P/E)12.5
Beta (1Y)1.11
Revenue Growth-3.43%
EPS GrowthN/A
CountryUS
Employees657
SectorCommunication Services
Sector Strength90
IndustryEntertainment
Share Statistics
EPS (TTM)0.04
Shares Outstanding50,957,370
10 Day Avg. Volume22,150
30 Day Avg. Volume29,660
Financial Highlights & Ratios
PEG Ratio-0.83
Price to Book (P/B)1.35
Price to Sales (P/S)0.00
P/FCF Ratio2.99
Enterprise Value/Market Cap1.57
Enterprise Value/Revenue0.05
Enterprise Value/Gross Profit1.89
Enterprise Value/Ebitda2.75
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 (AENT) is a leading distributor and wholesaler in the entertainment industry, specializing in the distribution of music, movies, and consumer electronics. The company operates across multiple sectors, providing a wide array of products that cater to retailers, e-commerce platforms, and other institutional clients. Alliance Entertainment's core services include the procurement, warehousing, and distribution of physical and digital media products, ensuring efficient supply chain management and delivery to its extensive network of partners.
How the Company Makes MoneyAlliance Entertainment Holding makes money primarily through the distribution and wholesale of entertainment products. Its revenue model is built on sourcing a diverse range of media and consumer electronics from manufacturers and labels, which it then sells to retailers and online platforms. Key revenue streams include the sale of physical media such as CDs, DVDs, and vinyl records, as well as digital media distribution. The company benefits from significant partnerships with major entertainment providers and retailers, enhancing its product offerings and market reach. Additionally, Alliance Entertainment generates income from providing logistics and supply chain services, leveraging its infrastructure to add value beyond mere product distribution.
Alliance Entertainment Holding Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q3-2025)
| % Change Since: 12.40%|
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with significant improvements in profitability, operational efficiency, and strategic partnerships. However, flat revenue growth and challenges in the gaming sector are notable concerns. Overall, the positive developments and strong financial management suggest a promising future for the company.Q3-2025 Updates
Positive Updates
Improved Profitability and Margins
Adjusted EBITDA rose to $26.4 million with an increase in margins to 2.5% from 2.2% in fiscal 2024. Earnings per share increased to $0.24, nearly tripling from $0.09 last year.
Successful Paramount Partnership
The exclusive license agreement with Paramount Pictures, effective January 1, 2025, has already shown meaningful contributions to revenue and is expected to have a significant impact in fiscal 2026.
Operational Efficiency Gains
Automation and warehouse optimization have led to a 10.2% reduction in distribution and fulfillment costs year-over-year, with new systems delivering significant annualized savings.
Reduction in Debt and Improved Liquidity
Over the past year, the company reduced revolver debt and improved liquidity, while maintaining strong supplier relationships and inventory efficiency.
Growth in Direct-to-Consumer Fulfillment
Direct-to-consumer fulfillment accounted for 40% of gross revenue, up from 33% last year, reflecting increased adoption by retail partners.
Negative Updates
Flat Revenue Growth
Net revenue for the third quarter was $213 million, a slight increase from $211.2 million in the prior year, indicating flat topline growth.
Decline in Gaming Revenue
Gaming revenue faced challenges due to limited hardware allocation from Microsoft and delayed software releases, impacting overall category performance.
Year-over-Year Revenue Decline
For the nine-month period ended March 31, 2025, net revenue declined to $835.7 million from $863.5 million, primarily due to timing of shipments and product mix.
Company Guidance
During the Alliance Entertainment Fiscal 2025 Third Quarter Financial Results Conference Call, key financial metrics highlighted included a net revenue of $213 million for the quarter, a slight increase from $211.2 million in the same quarter of fiscal 2024. The company reported a 3.7% rise in gross profit year-over-year to $29.1 million, with a gross margin improvement to 13.6% from 13.2% in the prior year period. Adjusted EBITDA experienced a significant 66% increase year-over-year to $4.9 million, up from $2.9 million. For the nine-month period ending March 31, 2025, net revenue was $835.7 million compared to $863.5 million the previous year, with adjusted EBITDA rising nearly 10% to $24.4 million from $22.2 million. The company also achieved a marked improvement in net income, which rose to $9.3 million or $0.18 per share, representing a 349% increase. Additionally, inventory balance declined to $93.2 million, and accounts payable increased to $139.6 million, indicating improved working capital management.Alliance Entertainment Holding Financial Statement Overview
Summary
Alliance Entertainment's financial performance is characterized by strong cash flow generation and manageable leverage, despite challenges in revenue growth and profitability. The income statement reveals mixed efficiency and profitability, while the balance sheet suggests some financial stability concerns. Cash flow remains a strong point, providing a buffer against operational pressures.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 | ||||
| 1.64M | 1.13M | 865.00K | 1.47M | 4.03M | 1.33M | Total Assets |
| 324.02M | 340.81M | 389.53M | 473.04M | 388.96M | 276.83M | Total Debt |
| 98.36M | 109.83M | 148.68M | 148.66M | 72.04M | 56.31M | Net Debt |
| 96.72M | 108.70M | 147.81M | 147.19M | 68.01M | 54.98M | Total Liabilities |
| 238.90M | 253.18M | 310.00M | 364.11M | 308.66M | 223.91M | Stockholders Equity |
| 85.13M | 87.63M | 79.53M | 108.93M | 80.30M | 52.92M |
| Cash Flow | Free Cash Flow | ||||
| 43.22M | 55.59M | 2.56M | -83.60M | 74.07M | 24.69M | Operating Cash Flow |
| 43.28M | 55.77M | 3.39M | -83.55M | 74.72M | 27.39M | Investing Cash Flow |
| -7.53M | -117.00K | -824.00K | -50.00K | -66.06M | -5.26M | Financing Cash Flow |
| -35.92M | -55.39M | -3.16M | 81.04M | -5.98M | -23.35M |
Alliance Entertainment Holding Technical Analysis
Neutral
2.90
Price Trends
2.97
Negative
3.99
Negative
3.97
Negative
Market Momentum
-0.03
Negative
52.58
Neutral
56.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AENT, the sentiment is Neutral. The current price of 2.9 is above the 20-day moving average (MA) of 2.68, below the 50-day MA of 2.97, and below the 200-day MA of 3.97, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 52.58 is Neutral, neither overbought nor oversold. The STOCH value of 56.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $147.78M | 12.50 | 12.96% | ― | -3.43% | ― | |
61 Neutral | $14.28B | 5.89 | -4.20% | 3.70% | 2.73% | -35.75% | |
58 Neutral | $71.01M | ― | 154.70% | ― | 11.43% | 26.78% | |
56 Neutral | $55.93M | ― | -29.22% | ― | 39.86% | 3.86% | |
49 Neutral | $132.76M | ― | -13.48% | ― | 36.15% | -144.64% | |
47 Neutral | $46.32M | ― | -540.12% | ― | -7.36% | 18.52% | |
43 Neutral | $38.45M | ― | -270.84% | ― | 88.72% | -85.53% |
* Communication Services Sector Average
Performance Comparison
AENT
Alliance Entertainment Holding
2.90
-0.08
-2.68%
CNVS
Cineverse
3.80
2.82
287.76%
AGAE
Allied Gaming & Entertainment
2.59
1.92
286.57%
RDI
Reading International
1.42
-0.09
-5.96%
LVO
LiveOne
0.74
-0.99
-57.23%
ANGH
Anghami Inc.
0.58
-0.50
-46.30%
Alliance Entertainment Holding Corporate Events
Executive/Board ChangesM&A TransactionsBusiness Operations and Strategy
Alliance Entertainment Ends Asset Purchase Agreement
Negative
Apr 25, 2025
On April 25, 2025, Thomas Finke announced his resignation from the Board of Directors of Alliance Entertainment Holding Corporation, effective May 1, 2025. Additionally, on April 24, 2025, the company terminated its Asset Purchase Agreement with Diamond Comic Distributors, Inc., ending plans to acquire Diamond’s assets through a bankruptcy process, which may impact the company’s strategic direction and market positioning.
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.