Alliance Entertainment Holding (AENT) AI Stock Analysis

• Market Cap: $150.32M
• Dividend Yield: N/A
• Average Volume (3M): 61.49K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 1.15
• Revenue Growth: -5.00%
• EPS Growth: N/A
• Country: US
• Employees: 657
• Sector: Communication Services
• Sector Strength: 79
• Industry: Entertainment
• EPS (TTM): 0.13
• Shares Outstanding: 50,957,370
• 10 Day Avg. Volume: 67,845
• 30 Day Avg. Volume: 61,493
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.19
• Price to Cash Flow (P/CF): 2.00
• P/FCF Ratio: 1.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Alliance Entertainment Holding's overall score reflects stable financial management, strong cash flows, and positive strategic initiatives. However, challenges in revenue growth and profitability, alongside technical indicators suggesting bearish trends, result in a moderate stock score. Valuation concerns add further caution.

Alliance Entertainment Holding Business Overview & Revenue Model

Company Description

Alliance Entertainment Holding (AENT) is a leading distributor and wholesaler of entertainment products, specializing in music, movies, video games, electronics, and related accessories. Serving a wide array of retail partners, the company offers an extensive catalog of physical and digital content, catering to both traditional brick-and-mortar stores and emerging digital platforms. With a strategic focus on comprehensive distribution services, AENT plays a pivotal role in connecting content producers with consumers across multiple channels.

How the Company Makes Money

Alliance Entertainment Holding makes money through a robust revenue model centered around the distribution and wholesale of entertainment products. The company earns revenue by purchasing products from content producers or manufacturers and selling them to retail partners at a markup. Key revenue streams include supplying physical media such as CDs, DVDs, and Blu-rays, as well as digital distribution services. A significant portion of its earnings is derived from partnerships and contracts with major retailers, including both independent stores and large retail chains. Additionally, the company benefits from economies of scale and efficient logistics operations, which help reduce costs and improve profit margins. Strategic partnerships with entertainment content creators and the expansion into digital distribution channels are critical factors contributing to its financial performance.

Alliance Entertainment Holding Financial Statement Overview

Summary

Alliance Entertainment Holding shows a stable financial position with effective cash management, but faces challenges in revenue growth and profitability. The balance sheet reveals manageable leverage, but declining stockholders' equity indicates concerns about financial stability. Strong cash flow performance supports short-term stability.

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.

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.

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.

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
2.49M	1.13M	865.00K	1.47M	4.03M	1.33M
	Total Assets
401.72M	340.81M	389.53M	473.04M	388.96M	276.83M
	Total Debt
28.20M	109.83M	148.68M	148.66M	72.04M	56.31M
	Net Debt
25.71M	108.70M	147.81M	147.19M	68.01M	54.98M
	Total Liabilities
306.17M	253.18M	310.00M	364.11M	308.66M	223.91M
	Stockholders Equity
95.55M	87.63M	79.53M	108.93M	80.30M	52.92M
Cash Flow		Free Cash Flow
17.42M	55.59M	2.56M	-83.60M	74.07M	24.69M
	Operating Cash Flow
17.49M	55.77M	3.39M	-83.55M	74.72M	27.39M
	Investing Cash Flow
-7.54M	-117.00K	-824.00K	-50.00K	-66.06M	-5.26M
	Financing Cash Flow
-21.12M	-55.39M	-3.16M	81.04M	-5.98M	-23.35M

Alliance Entertainment Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AENT, the sentiment is Negative. The current price of 2.95 is below the 20-day moving average (MA) of 3.42, below the 50-day MA of 4.04, and below the 200-day MA of 3.91, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 39.53 is Neutral, neither overbought nor oversold. The STOCH value of 53.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AENT.

Alliance Entertainment Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNVS	62 Neutral	$41.23M	―	-29.22%	―	39.86%	3.86%
AENT	60 Neutral	$150.32M	22.80	7.17%	―	-5.00%	―
Sector *	58 Neutral	$26.42B	2.90	-10.89%	4.33%	2.18%	-46.94%
LVO	55 Neutral	$69.66M	―	154.70%	―	11.43%	26.78%
AGAE	49 Neutral	$40.58M	―	-13.48%	―	36.15%	-144.64%
RDI	35 Underperform	$37.96M	―	-245.80%	―	-5.48%	-14.32%
ANGH	33 Underperform	$16.79M	―	-80.27%	―	13.03%	19.07%

Alliance Entertainment Holding Corporate Events

Alliance Entertainment Highlights Q2 Fiscal 2025 Achievements

Alliance Entertainment reported its second quarter fiscal 2025 results, highlighting strategic investments and partnerships that set the stage for a strong second half outlook. The company reduced revolver debt by 31%, improved balance sheet and liquidity, and achieved higher-margin direct-to-consumer sales accounting for 42% of gross revenue. Notable achievements include the acquisition of Handmade by Robots, securing exclusive distribution rights with Paramount Pictures, and strategic retail partnerships. Despite a decline in net revenues and gross profit compared to the previous year, operational efficiencies and cost management led to a net income of $7.1 million. Alliance remains focused on leveraging exclusive content and expanding high-demand product categories to drive long-term shareholder value.