Allient (ALNT) AI Stock Analysis

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Allient

(NASDAQ:ALNT)

Rating:77Outperform

Price Target:

$48.00

▲(9.09% Upside)

Allient's strong earnings performance and positive technical indicators are the primary drivers of its stock score. The company's robust growth in key sectors and effective debt management are significant strengths. However, the high P/E ratio and low dividend yield suggest valuation concerns, and financial performance indicates areas for operational improvement.

Allient (ALNT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$783.46M

Dividend Yield0.26%

Average Volume (3M)184.61K

Price to Earnings (P/E)53.9

Beta (1Y)1.38

Revenue Growth-8.69%

EPS Growth-27.10%

CountryUS

Employees2,525

SectorTechnology

Sector Strength94

IndustryHardware, Equipment & Parts

Share Statistics

EPS (TTM)0.57

Shares Outstanding16,946,976

10 Day Avg. Volume248,276

30 Day Avg. Volume184,608

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.00

Enterprise Value/Revenue1.51

Enterprise Value/Gross Profit4.79

Enterprise Value/Ebitda12.69

Forecast

1Y Price Target

$44.67

Price Target Upside1.52% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

Allient Business Overview & Revenue Model

Company DescriptionAllient (ALNT) is a technology company focused on delivering innovative solutions in the fields of artificial intelligence, machine learning, and data analytics. The company operates primarily in the technology sector, providing a suite of software products and services designed to enhance operational efficiency, improve decision-making, and drive business transformation for its clients across various industries.

How the Company Makes MoneyAllient generates revenue through a multi-faceted business model that includes software licensing, subscription services, and consulting fees. The primary revenue streams consist of recurring income from subscription-based products, which provide clients with ongoing access to Allient's software solutions and regular updates. Additionally, the company earns revenue from consulting services, where experts work directly with clients to tailor solutions to their specific needs. Significant partnerships with other tech companies and industry leaders enhance Allient's market reach, enabling it to offer integrated solutions that further drive sales and customer retention.

Allient Earnings Call Summary

Earnings Call Date:Aug 06, 2025

(Q2-2025)

% Change Since: 9.70%|

Next Earnings Date:Oct 29, 2025

Earnings Call Sentiment Positive

The earnings call presented a strong overall performance with record gross margins, profitability, and cash flow, as well as growth in key markets like aerospace and defense. However, challenges such as vehicle market softness, rare earth material constraints, and increased interest expenses were noted.

Q2-2025 Updates

Positive Updates

Record Gross Margin and Profitability

Gross margin reached a record 33.2%, up 100 basis points sequentially and 330 basis points from a year ago, driven by a favorable mix, higher volumes, and continued improvement in operating discipline. Net income increased by 58% from Q1 and nearly fivefold year-over-year.

Strong Cash Flow and Debt Reduction

Generated $24.5 million in operating cash during the quarter, which enabled further debt reduction. Lowered net debt by $35.8 million year-to-date, bringing the leverage ratio down to 2.3x compared with 3x at the end of last year.

Aerospace and Defense Growth

Aerospace and Defense grew 13%, reflecting strong execution and a healthy pipeline of opportunities, contributing significantly to overall growth.

Revenue Growth and Market Diversification

Revenue for the second quarter was $139.6 million, a 3% increase year-over-year and up 5% sequentially, driven by continued strength in aerospace and defense, industrial markets, and medical applications.

Negative Updates

Challenges in Vehicle Market

Vehicle revenue was down 7% due to ongoing softness in powersports, although there was some sequential sales improvement.

Rare Earth Material Supply Constraints

Faced challenges with supply constraints in heavy rare earth materials, impacting revenue and creating a need for accelerated shipments from customers.

Interest Expense Increase

Interest expense increased despite lower debt levels due to the expiration of favorable interest rate swaps and a higher spread on the amended credit facility.

Company Guidance

During the Allient Inc. Second Quarter Fiscal Year 2025 financial results call, the company reported robust financial performance with significant metrics highlighted. Revenue for the quarter increased by 5% sequentially and 3% year-over-year, totaling $139.6 million, driven by strong demand in data center infrastructure, aerospace and defense, and medical applications. Gross margin reached a record 33.2%, improving by 100 basis points sequentially and 330 basis points year-over-year. The company achieved meaningful EBITDA growth, with net income rising 58% from Q1 and nearly fivefold from the previous year. Operating cash flow was a record $24.5 million, enabling a $20 million reduction in debt. The company continues to focus on its Simplify to Accelerate NOW program, targeting $6 million to $7 million in annualized savings. Despite a book-to-bill ratio of 0.97, indicating slightly less than one-to-one orders to shipments, demand remains steady across key sectors, and the company expects ongoing benefits from its transformation initiatives.

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

Positive

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

Positive

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

Positive

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	519.60M	529.97M	578.63M	502.99M	403.52M	366.69M
Gross Profit	163.62M	165.69M	171.37M	157.26M	121.06M	108.58M
EBITDA	61.76M	56.05M	67.15M	48.06M	43.53M	37.84M
Net Income	14.29M	13.17M	24.10M	17.39M	24.09M	13.64M
Balance Sheet
Total Assets	588.06M	575.78M	597.54M	588.35M	470.79M	349.20M
Cash, Cash Equivalents and Short-Term Investments	49.91M	36.10M	31.90M	30.61M	22.46M	23.13M
Total Debt	226.74M	249.13M	243.49M	258.85M	176.28M	139.72M
Total Liabilities	299.00M	310.93M	345.97M	372.88M	283.02M	206.14M
Stockholders Equity	289.06M	264.85M	251.57M	215.47M	187.76M	143.06M
Cash Flow
Free Cash Flow	32.99M	32.17M	33.44M	-10.31M	11.69M	15.47M
Operating Cash Flow	38.40M	41.85M	45.04M	5.60M	25.40M	24.84M
Investing Cash Flow	-5.42M	-34.91M	-22.61M	-60.01M	-60.97M	-24.10M
Financing Cash Flow	-16.35M	-843.00K	-21.32M	63.60M	35.83M	7.49M

Allient Technical Analysis

Technical Analysis Sentiment

Positive

Last Price44.00

Price Trends

50DMA

37.96

Positive

100DMA

31.44

Positive

200DMA

27.86

Positive

Market Momentum

MACD

1.91

Negative

RSI

63.90

Neutral

STOCH

74.08

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 44 is above the 20-day moving average (MA) of 40.89, above the 50-day MA of 37.96, and above the 200-day MA of 27.86, indicating a bullish trend. The MACD of 1.91 indicates Negative momentum. The RSI at 63.90 is Neutral, neither overbought nor oversold. The STOCH value of 74.08 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 (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALNT	77 Outperform	$783.46M	53.89	5.15%	0.26%	-8.69%	-27.10%
LYTS	72 Outperform	$581.49M	27.12	10.42%	1.02%	17.89%	-23.37%
Sector *	68 Neutral	¥241.26B	15.54	6.62%	2.44%	9.22%	2.43%
OUST	58 Neutral	$1.66B	―	-46.96%	―	26.37%	38.13%
KULR	50 Neutral	$204.57M	―	-67.89%	―	16.47%	27.22%
MVIS	43 Neutral	$343.10M	―	-115.11%	―	-71.30%	17.62%

* Technology Sector Average

Performance Comparison

ALNT

Allient

44.00

23.19

111.44%

LYTS

Lsi Industries

19.38

4.64

31.48%

MVIS

Microvision

1.14

0.18

18.75%

KULR

KULR Technology Group

5.27

3.55

206.40%

OUST

Ouster

35.05

27.04

337.58%

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.Date of analysis: Aug 11, 2025