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Albany International (AIN)
NYSE:AIN
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Albany International
(NYSE:AIN)
54Neutral
Positive Factors
Operational Management
Management asserts that Q3's challenges are being addressed with greater operational rigor, and a new management team is in place.
Synergy and Cost Containment
Heimbach should 'catch up' Q3's sales slip in Q4, and MC's synergy capture and cost containment actions remain on track.
Negative Factors
Cost and Profitability Issues
The Gulfstream program is facing elevated scrap and labor costs, which negatively affect profitability during its ramp-up and development phase.
Defense Program Challenges
The ramp of AEC’s largest defense program, CH-53K, continues to be challenged, with a $13.3mn charge booked related to the program due to labor inefficiencies and increased material costs.
Demand Uncertainty
Demand for the LEAP and 787 programs appears uncertain, impacting the decision to adjust production levels.
Albany International (AIN) vs. S&P 500 (SPY)
Market Cap
$2.31B
Dividend Yield1.44%
Average Volume (3M)187.65K
Price to Earnings (P/E)26.7
Beta (1Y)1.18
Revenue Growth7.20%
EPS Growth-21.29%
CountryUS
Employees5,400
SectorConsumer Cyclical
Sector Strength50
IndustryApparel & Luxury
Share Statistics
EPS (TTM)2.80
Shares Outstanding30,900,000
10 Day Avg. Volume309,080
30 Day Avg. Volume187,651
Financial Highlights & Ratios
PEG Ratio17.11
Price to Book (P/B)N/A
Price to Sales (P/S)1.87
Price to Cash Flow (P/CF)7.40
P/FCF Ratio9.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$83.33Price Target Upside14.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Albany International Business Overview & Revenue Model
Company DescriptionAlbany International Corp. engages in textiles and materials processing. It operates through the Machine Clothing and Albany Engineered Composites segments. The Machine Clothing segment supplies fabrics used in the manufacturing process in the pulp, corrugator, nonwovens, fiber cement, building products, and tannery and textile industries. The Engineered Composites segment provides composite structures to customers in the commercial and defense aerospace industries. The firm offers regular fabric, consultative, diagnostic, and project specific services. The company was founded on March 8, 1895 and is headquartered in Rochester, NH.
How the Company Makes MoneyAlbany International makes money through its two main business segments. The Machine Clothing segment generates revenue by producing custom-designed fabrics and belts essential for the manufacturing process in the paper and pulp industry, providing critical components to enhance productivity and efficiency. The Albany Engineered Composites segment contributes to revenue through the development and sale of advanced composite structures, primarily used in the aerospace industry for commercial and military aircraft. Significant partnerships with major aerospace manufacturers, along with long-term contracts, bolster the company's earnings. The company's revenue streams are diversified across multiple geographies and customer bases, ensuring a stable financial performance.
Albany International Financial Statement Overview
Summary
Albany International's financial performance shows mixed results. Although past profitability metrics were strong, the absence of current revenue and profit data is concerning. The balance sheet is solid with a good equity base, but declining cash reserves could pose future challenges. Cash flow management appears effective, but the lack of recent data limits a full evaluation.Income Statement
Albany International experienced a decline in total revenue from the previous year, with no revenue reported in the most recent period. The company's gross profit and net income were similarly not reported. This indicates potential challenges in revenue generation. Although EBIT and EBITDA margins were healthy in prior years, the absence of current data raises concerns about profitability.45
Neutral
Balance Sheet
The company's balance sheet shows a solid equity position with a Debt-to-Equity ratio of approximately 0.34. Stockholders' equity forms a substantial part of total assets, indicating a robust financial structure. However, a decline in total assets and cash equivalents over the years suggests potential liquidity issues.70
Positive
Cash Flow
Albany International has demonstrated stable free cash flow generation over the years. However, the free cash flow growth rate from the previous period shows a notable increase, signaling effective cash management. The operating cash flow to net income ratio is strong, but the lack of current period data limits a comprehensive assessment.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 977.90M | 1.23B | 1.15B | 1.03B | 929.24M | 900.61M | Gross Profit |
| 380.31M | 401.78M | 417.37M | 389.78M | 378.39M | 371.07M | EBIT |
| 175.69M | 131.36M | 172.36M | 181.02M | 178.01M | 166.08M | EBITDA |
| 248.78M | 131.36M | 257.82M | 218.71M | 251.10M | 223.47M | Net Income Common Stockholders |
| 126.44M | 87.62M | 111.12M | 95.76M | 118.48M | 98.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 115.28M | 115.28M | 173.42M | 291.78M | 302.04M | 241.32M | Total Assets |
| 1.65B | 1.65B | 1.84B | 1.64B | 1.56B | 1.55B | Total Debt |
| 387.20M | 387.20M | 514.86M | 444.93M | 350.00M | 398.01M | Net Debt |
| 271.92M | 271.92M | 341.44M | 153.15M | 47.96M | 156.69M | Total Liabilities |
| 699.75M | 699.75M | 867.69M | 774.71M | 678.46M | 730.07M | Stockholders Equity |
| 943.54M | 943.54M | 961.37M | 863.05M | 873.97M | 816.07M |
| Cash Flow | Free Cash Flow | ||||
| 92.95M | 138.19M | 63.63M | 31.87M | 163.78M | 97.86M | Operating Cash Flow |
| 159.55M | 218.44M | 148.06M | 128.21M | 217.47M | 140.25M | Investing Cash Flow |
| -66.60M | -80.18M | -217.90M | -96.35M | -53.70M | -42.39M | Financing Cash Flow |
| -1.73M | -183.83M | -52.64M | -23.65M | -99.64M | -60.67M |
Albany International Technical Analysis
Negative
72.85
Price Trends
79.07
Negative
78.94
Negative
82.22
Negative
Market Momentum
-2.08
Positive
38.06
Neutral
37.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIN, the sentiment is Negative. The current price of 72.85 is below the 20-day moving average (MA) of 76.80, below the 50-day MA of 79.07, and below the 200-day MA of 82.22, indicating a bearish trend. The MACD of -2.08 indicates Positive momentum. The RSI at 38.06 is Neutral, neither overbought nor oversold. The STOCH value of 37.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AIN.
Albany International Risk Analysis
Albany International disclosed 36 risk factors in its most recent earnings report. Albany International 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
Albany International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $74.79B | 21.76 | 110.24% | 2.28% | -1.30% | 20.26% | |
67 Neutral | $7.04B | 13.94 | 6.82% | ― | -2.68% | ― | |
64 Neutral | $13.38B | 17.01 | 11.63% | 0.11% | 0.14% | -5.38% | |
63 Neutral | $4.84B | 11.86 | 43.49% | 0.31% | -3.75% | 13.76% | |
60 Neutral | $5.04B | 39.99 | 3.24% | 1.62% | -8.66% | -82.83% | |
59 Neutral | $12.41B | 10.34 | 1.32% | 3.61% | 1.65% | -18.04% | |
54 Neutral | $2.31B | 26.69 | 9.20% | 1.44% | 7.20% | -21.29% |
* Consumer Cyclical Sector Average
Performance Comparison
AIN
Albany International
72.42
-18.23
-20.11%
CMC
Commercial Metals Company
44.49
-8.00
-15.24%
ITW
Illinois Tool Works
250.37
-8.58
-3.31%
MHK
Mohawk
110.92
-6.03
-5.16%
TXT
Textron
71.99
-20.19
-21.90%
VNT
Vontier
32.10
-10.50
-24.65%
Albany International Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -7.57% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed performance. While Albany International achieved record revenues and strong cash flow, the AEC segment faced significant challenges leading to decreased revenues and profitability. The company is focusing on operational improvements and strategic initiatives, such as share repurchases and balancing the tax rate, to mitigate these issues. Despite these efforts, the financial headwinds and program-specific challenges in AEC weigh heavily on the overall outlook.Highlights
Record Revenues
Albany International reported record revenues of nearly $1.25 billion for the full fiscal year 2024, driven by organic growth at AEC and the Heimberg acquisition.
Strong Free Cash Flow
The company generated $59 million in free cash flow in Q4 and $137 million for the full year, highlighting strong cash management and operational performance.
Share Repurchase Program
Albany International initiated a share repurchase program, buying back $15 million worth of shares in Q4, with a new program authorized up to $250 million.
Machine Clothing Segment Performance
Machine clothing segment exhibited stable performance with a focus on consolidating operations and discontinuing unprofitable product lines, leading to improved bottom-line performance.
Strong Balance Sheet
The company maintains a strong balance sheet with over $115 million in cash and $482 million borrowing capacity, supporting its growth strategy.
Lowlights
Decreased AEC Revenues
AEC segment revenues decreased to $99 million from $132 million in Q4 2023, largely due to EAC adjustments and lower LEAP revenues.
Decline in Gross Profit
Consolidated gross profit decreased to $90 million from $120 million in the prior year, impacted by EAC adjustments and lower gross margins at Heimberg.
Increased Tax Rate
The effective tax rate for the quarter increased to 28% from 22.6% in the prior year, due to a shift in taxable income to higher rate jurisdictions.
Reduced EPS
GAAP diluted EPS decreased to $0.56 per share in Q4 2024 from $0.97 in the same period last year, largely due to EAC adjustments.
Challenges in AEC Programs
Additional EAC adjustments were necessary due to challenges in the CH-53K and Gulfstream programs, impacting margins and profitability.
Company Guidance
In the Albany International earnings call for the fourth quarter of 2024, several key metrics and guidance for 2025 were discussed. The company reported record revenues for the year at nearly $1.25 billion, driven by organic growth and the Heimberg acquisition. Free cash flow for the fourth quarter was $59 million, contributing to a full-year total of $137 million. A share repurchase program was initiated, with $15 million of shares repurchased in Q4, and a new $250 million program was authorized. For 2025, the company projects LEAP revenues of approximately $150 million and consolidated adjusted EBITDA growth of about 8%, despite foreign exchange headwinds. Expected EPS for 2025 is in the range of $3.00 to $3.40. The company has a strong cash position, with a balance of over $115 million and $482 million of borrowing capacity. The AEC backlog at year-end was $1.4 billion, providing visibility into business performance beyond 2025. The focus for 2025 includes growth in the machine clothing segment, leveraging opportunities in advanced air mobility, and maintaining a disciplined capital allocation strategy with $1 billion in dry powder for organic and inorganic growth opportunities.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.