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Allient (ALNT)
NASDAQ:ALNT
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Allient
(NASDAQ:ALNT)
Rating:74Outperform
Price Target:
$43.00
▲(9.47%Upside)
Allient (ALNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$664.97M
Dividend Yield0.31%
Average Volume (3M)152.43K
Price to Earnings (P/E)67.9
Beta (1Y)1.42
Revenue Growth-10.99%
EPS Growth-61.37%
CountryUS
Employees2,525
SectorTechnology
Sector Strength86
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.46
Shares Outstanding16,928,886
10 Day Avg. Volume197,115
30 Day Avg. Volume152,431
Financial Highlights & Ratios
PEG Ratio-0.96
Price to Book (P/B)2.50
Price to Sales (P/S)0.00
P/FCF Ratio-52.14
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue0.35
Enterprise Value/Gross Profit4.85
Enterprise Value/Ebitda2.89
Forecast
1Y Price Target
$40.00Price Target Upside1.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Allient Business Overview & Revenue Model
Company DescriptionAllient (ALNT) is a technology-driven company specializing in the design and manufacturing of sophisticated motion control and power technology solutions. The company serves various sectors, including aerospace, defense, medical, and industrial automation, providing high-performance products that enhance precision and efficiency in critical applications.
How the Company Makes MoneyAllient generates revenue through the sale of its advanced motion control and power technology products. The company caters to a diverse customer base across multiple industries, which helps mitigate risks associated with dependency on a single sector. Allient's revenue model is primarily based on direct sales of its products and customized solutions tailored to specific client needs. Additionally, the company may engage in strategic partnerships and collaborations with leading firms in its sectors to enhance its product offerings and expand its market reach, thereby contributing to its overall earnings.
Allient Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 77.74%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call reveals a company experiencing sequential improvement in financial metrics and strong order momentum, although it faces challenges with year-over-year revenue declines and supply chain issues related to tariffs. The strategic shift to higher-margin opportunities and improvement in cash flow and debt position are positive, but continued softness in the vehicle sector and external economic pressures remain concerns.Q1-2025 Updates
Positive Updates
Sequential Growth Across Key Metrics
Revenue increased 9% sequentially, gross margin expanded 70 basis points to 32.2%, operating margin rose 130 basis points to 6.6%, and adjusted EPS increased nearly 50% from Q4 to $0.46 per share.
Strong Order Momentum
Total orders increased 17% sequentially and 13% year-over-year, resulting in a healthy book-to-bill ratio of 1.04x.
Aerospace and Defense Sector Growth
The aerospace and defense sector saw a 25% increase year-over-year, reflecting timing of key defense and space program deliverables.
Improved Cash Flow and Debt Reduction
Operating cash flow was $13.9 million, up 52% year-over-year, and net debt decreased by $13.6 million, improving the leverage ratio to 2.91x.
Negative Updates
Year-over-Year Revenue Decline
First quarter revenue was $132.8 million, down 9% year-over-year due to demand softness in the vehicle and industrial markets, compounded by an unfavorable $1.8 million FX impact.
Vehicle Revenue Decline
Vehicle revenue declined 34% year-over-year, reflecting continued softness in power sports demand and a strategic shift from lower-margin programs.
Challenges with Tariffs and Supply Chain
Mitigation strategies are in place to address tariff and supply chain issues due to China's export restrictions on rare-earth magnets, with potential incremental tariff-related costs of approximately $3 million for the remainder of the year.
Company Guidance
During the Allient, Inc. First Quarter Fiscal Year 2025 Financial Results Call, management reported solid sequential growth across several key metrics: revenue increased by 9% to $132.8 million, gross margin expanded by 70 basis points to 32.2%, and operating margin rose by 130 basis points to 6.6%. Adjusted EPS saw a significant increase of nearly 50% from the previous quarter, reaching $0.46 per share. The company also achieved a 160 basis point improvement in adjusted EBITDA margin, reaching 13.2% of revenue, and operating cash flow improved by 52% year-over-year to $13.9 million. The net debt decreased by $13.6 million, bringing it to $174.4 million, while the leverage ratio improved to 2.91x. Despite challenging year-over-year comparisons due to demand softness in the industrial automation and vehicle markets, Allient's strategic initiatives, including its Simplify to Accelerate NOW program, contributed to these positive results. The company also reported a 17% sequential increase in total orders, leading to a healthy book-to-bill ratio of 1.04x.Allient Financial Statement Overview
Summary
Allient demonstrates moderate financial health with stable profitability and a solid cash flow position. The free cash flow growth highlights strong cash generation, but 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.72
Positive
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.68
Positive
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.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 516.06M | 529.97M | 578.63M | 502.99M | 403.52M | 366.69M |
| Gross Profit | 157.94M | 165.69M | 171.37M | 157.26M | 121.06M | 108.58M |
| EBITDA | 56.24M | 56.05M | 67.15M | 48.06M | 43.53M | 37.84M |
| Net Income | 9.82M | 13.17M | 24.10M | 17.39M | 24.09M | 13.64M |
Balance Sheet | ||||||
| Total Assets | 586.90M | 575.78M | 597.54M | 588.35M | 470.79M | 349.20M |
| Cash, Cash Equivalents and Short-Term Investments | 47.75M | 36.10M | 31.90M | 30.61M | 22.46M | 23.13M |
| Total Debt | 246.91M | 249.13M | 243.49M | 258.85M | 176.28M | 139.72M |
| Total Liabilities | 314.07M | 310.93M | 345.97M | 372.88M | 283.02M | 206.14M |
| Stockholders Equity | 272.83M | 264.85M | 251.57M | 215.47M | 187.76M | 143.06M |
Cash Flow | ||||||
| Free Cash Flow | 38.83M | 32.17M | 33.44M | -10.31M | 11.69M | 15.47M |
| Operating Cash Flow | 46.60M | 41.85M | 45.04M | 5.60M | 25.40M | 24.84M |
| Investing Cash Flow | -7.47M | -34.91M | -22.61M | -60.01M | -60.97M | -24.10M |
| Financing Cash Flow | -22.57M | -843.00K | -21.32M | 63.60M | 35.83M | 7.49M |
Allient Technical Analysis
Positive
39.28
Price Trends
34.91
Positive
28.76
Positive
26.12
Positive
Market Momentum
1.51
Positive
61.66
Neutral
59.67
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 39.28 is above the 20-day moving average (MA) of 38.44, above the 50-day MA of 34.91, and above the 200-day MA of 26.12, indicating a bullish trend. The MACD of 1.51 indicates Positive momentum. The RSI at 61.66 is Neutral, neither overbought nor oversold. The STOCH value of 59.67 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
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $538.58M | 25.33 | 10.42% | 1.11% | 17.89% | -23.37% | |
74 Outperform | $664.97M | 67.94 | 3.64% | 0.31% | -10.99% | -61.37% | |
64 Neutral | $1.52B | ― | -56.81% | ― | 28.04% | 64.81% | |
58 Neutral | €2.95B | 11.66 | -8.77% | 2.74% | 5.06% | -52.33% | |
55 Neutral | $373.89M | ― | -135.21% | ― | -41.76% | 5.56% | |
51 Neutral | $255.14M | ― | -67.89% | ― | 16.47% | 27.22% |
* Technology Sector Average
Performance Comparison
ALNT
Allient
39.74
11.06
38.56%
LYTS
Lsi Industries
18.83
2.91
18.28%
MVIS
Microvision
1.50
0.38
33.93%
KULR
KULR Technology Group
6.61
4.24
178.90%
OUST
Ouster
28.30
14.34
102.72%
Allient Corporate Events
Executive/Board ChangesShareholder Meetings
Allient Holds Annual Stockholders’ Meeting on May 7
Neutral
May 12, 2025
Allient Inc. held its annual stockholders’ meeting on May 7, 2025, where key decisions were made regarding the company’s governance and executive compensation. The stockholders elected six director nominees, approved executive compensation, decided on an annual frequency for future advisory votes on executive compensation, and ratified Deloitte & Touche LLP as the independent registered public accounting firm for the 2025 fiscal year.
The most recent analyst rating on (ALNT) stock is a Buy with a $28.0000 price target. To see the full list of analyst forecasts on Allient stock, see the ALNT Stock Forecast page.
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.