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Allient (ALNT)
NASDAQ:ALNT
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Allient
(NASDAQ:ALNT)
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Rating:72Outperform
Price Target:
$59.00
▼(-3.12% Downside)
Allient's overall stock score reflects strong earnings call performance and positive technical indicators, despite moderate financial performance and high valuation concerns. The company's strategic initiatives and market momentum are key strengths, while valuation metrics suggest caution.
Positive Factors
Revenue Growth
The significant revenue growth in Q3 indicates strong demand in industrial markets, particularly in power quality solutions, supporting long-term business expansion.
Margin Expansion
Consistent margin expansion reflects improved operational efficiency and pricing power, enhancing profitability and competitive positioning.
Cash Flow Strength
Strong cash flow growth underscores Allient's ability to generate cash efficiently, supporting reinvestment and debt reduction efforts.
Negative Factors
Revenue Decline
A decline in trailing twelve-month revenue suggests potential challenges in maintaining consistent growth, impacting long-term revenue stability.
Operational Efficiency
Low EBIT margin indicates inefficiencies in operations, which could hinder profitability improvements and competitiveness in the long run.
Program Cancellation
The cancellation of a key defense program impacts future revenue streams and backlog, posing a risk to growth in the defense segment.
Allient (ALNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.00B
Dividend Yield0.22%
Average Volume (3M)144.48K
Price to Earnings (P/E)52.9
Beta (1Y)1.53
Revenue Growth-2.88%
EPS Growth26.14%
CountryUS
Employees2,525
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.59
Shares Outstanding16,943,497
10 Day Avg. Volume109,066
30 Day Avg. Volume144,484
Financial Highlights & Ratios
PEG Ratio-0.65
Price to Book (P/B)1.52
Price to Sales (P/S)0.76
P/FCF Ratio12.48
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue1.72
Enterprise Value/Gross Profit5.37
Enterprise Value/Ebitda12.87
Forecast
1Y Price Target
$58.00Price Target Upside-4.76% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Allient Business Overview & Revenue Model
Company DescriptionAllient Inc., together with its subsidiaries, designs, manufactures, and sells precision and specialty controlled motion components and systems for various industries worldwide. It offers brush and brushless DC motors, brushless servo and torque motors, coreless DC motors, integrated brushless motor-drives, gearmotors, gearing, modular digital servo drives, motion controllers, optical encoders, active and passive filters, input/output modules, industrial communications gateways, light-weighting technologies, and other controlled motion-related products. The company sells its products to end customers and original equipment manufacturers in vehicle, medical, aerospace and defense, and industrial markets through direct sales force, authorized manufacturers' representatives, and distributors. The company was formerly known as Allied Motion Technologies Inc. and changed its name to Allient Inc. in August 2023. Allient Inc. was incorporated in 1962 and is headquartered in Amherst, New York.
How the Company Makes MoneyAllient generates revenue primarily through a subscription-based model for its software services, which allows clients to access its cloud platforms and data analytics tools on a recurring basis. Additionally, the company earns income from consulting services that assist clients in implementing digital transformation strategies. Key revenue streams include licensing fees for proprietary technology, support and maintenance contracts, and professional services for system integration and customization. Strategic partnerships with major technology firms enhance Allient's offerings, enabling it to expand its market reach and drive additional revenue through joint ventures and collaborative projects.
Allient Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 10, 2026
Earnings Call Sentiment Positive
The earnings call reflected strong financial performance with significant revenue growth, record gross margin, and improved debt position. However, challenges such as the cancellation of a key defense program and tariff impacts were noted. The positive aspects of the financial performance and strategic growth initiatives outweigh the negative elements.Q3-2025 Updates
Positive Updates
Double-Digit Revenue Growth
Q3 revenue increased by $13.5 million year-over-year, reaching $138.7 million, driven by strong demand in industrial markets.
Record Gross Margin
Gross margin expanded to a record 33.3%, marking the fifth consecutive quarter of margin expansion.
Significant Debt Reduction
Debt declined by $12 million sequentially in Q3, totaling nearly $34 million year-to-date, improving the leverage ratio to 2.1x from 3 at the end of 2024.
Strong Cash Flow
Year-to-date operating cash flow was $43.1 million, a 46% increase from the previous year.
Industrial Market Performance
Industrial market revenue advanced 20%, led by strong demand for power quality solutions in data centers.
Negative Updates
Cancellation of M10 Booker Tank Program
The cancellation by the U.S. Army resulted in a $5 million hit to bookings and affected future backlog.
Tariffs Impact
Tariffs resulted in a net quarterly impact of approximately $385,000, primarily affecting the power quality business.
Distribution Channel Sales Decline
Distribution channel sales were down 6%, though they represent a smaller share of the overall mix.
Company Guidance
During the call, Allient provided guidance that highlighted strong financial performance and strategic progress in the third quarter of 2025. The company reported a significant year-over-year revenue increase of $13.5 million, reaching $138.7 million, driven by robust demand in the industrial market, notably in power quality solutions for data centers. Allient achieved record gross margin of 33.3%, up 190 basis points from the previous year, and operating income improved to $12.2 million, a 350 basis point increase year-over-year. The company emphasized its successful execution of the Simplify to Accelerate Now program, delivering $10 million in annualized savings in 2024 with expectations of an additional $6 million to $7 million in 2025. Allient's net income more than tripled to $6.5 million, with an adjusted net income of $9.9 million. The company also reported strong cash flow, with year-to-date operating cash flow up 46% to $43.1 million and a debt reduction of $34 million year-to-date, lowering the leverage ratio to 2.1x. The guidance underscored Allient's focus on long-term growth drivers and strategic initiatives to enhance value and profitability.Allient Financial Statement Overview
Summary
Allient demonstrates moderate financial health with stable profitability and a solid cash flow position. However, challenges in revenue growth and low operational efficiency are areas for improvement. The balance sheet reflects a sound capital structure, though enhanced returns on equity could drive better shareholder value.Income Statement
The TTM revenue shows a slight decline of 2.62% from the previous year, pointing to potential challenges in revenue growth. The gross profit margin for TTM is 30.61%, and the net profit margin is 1.90%, indicating moderate profitability. However, the EBIT margin is relatively low at 5.48%, suggesting room for improvement in operational efficiency.Balance Sheet
The debt-to-equity ratio stands at 0.90, reflecting a balanced leverage strategy. Return on equity for TTM is 3.60%, which is lower than ideal, indicating room for enhancing shareholder returns. The equity ratio of 46.48% suggests a solid equity base, ensuring stability.Cash Flow
The free cash flow has grown 20.70% in TTM, showcasing strong cash generation capabilities. The operating cash flow to net income ratio of 4.74 indicates efficient cash conversion. Free cash flow to net income ratio is 3.95, reflecting robust cash flow relative to profits.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 533.13M | 529.97M | 578.63M | 502.99M | 403.52M | 366.69M |
| Gross Profit | 170.54M | 165.69M | 183.68M | 157.26M | 121.06M | 108.58M |
| EBITDA | 71.10M | 56.05M | 67.15M | 56.86M | 44.46M | 38.48M |
| Net Income | 18.66M | 13.17M | 24.10M | 17.39M | 24.09M | 13.64M |
Balance Sheet | ||||||
| Total Assets | 585.08M | 575.78M | 597.54M | 588.35M | 470.79M | 349.20M |
| Cash, Cash Equivalents and Short-Term Investments | 39.48M | 36.10M | 31.90M | 30.61M | 22.46M | 23.13M |
| Total Debt | 213.57M | 249.13M | 243.49M | 258.85M | 176.28M | 139.72M |
| Total Liabilities | 290.91M | 310.93M | 345.97M | 372.88M | 283.02M | 206.14M |
| Stockholders Equity | 294.17M | 264.85M | 251.57M | 215.47M | 187.76M | 143.06M |
Cash Flow | ||||||
| Free Cash Flow | 44.86M | 32.17M | 33.44M | -10.31M | 11.69M | 15.47M |
| Operating Cash Flow | 50.83M | 41.85M | 45.04M | 5.60M | 25.40M | 24.84M |
| Investing Cash Flow | -5.97M | -34.91M | -22.61M | -60.01M | -60.97M | -24.10M |
| Financing Cash Flow | -32.81M | -843.00K | -21.32M | 63.60M | 35.83M | 7.49M |
Allient Technical Analysis
Positive
60.90
Price Trends
54.26
Positive
50.72
Positive
41.36
Positive
Market Momentum
1.29
Negative
65.94
Neutral
75.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALNT, the sentiment is Positive. The current price of 60.9 is above the 20-day moving average (MA) of 55.85, above the 50-day MA of 54.26, and above the 200-day MA of 41.36, indicating a bullish trend. The MACD of 1.29 indicates Negative momentum. The RSI at 65.94 is Neutral, neither overbought nor oversold. The STOCH value of 75.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALNT.
Allient Risk Analysis
Allient disclosed 32 risk factors in its most recent earnings report. Allient reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Allient Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.01B | 154.35 | 2.64% | ― | -6.13% | -76.92% | |
72 Outperform | $1.00B | 52.87 | 6.58% | 0.22% | -2.88% | 26.14% | |
70 Neutral | $599.78M | 24.00 | 11.03% | 1.07% | 22.35% | 2.59% | |
67 Neutral | $553.34M | 69.90 | 2.37% | ― | -7.46% | -39.98% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $518.42M | -78.93 | -27.91% | ― | 3.02% | 90.87% | |
49 Neutral | $918.53M | -8.51 | -88.03% | ― | -5.13% | -37.34% |
* Technology Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.