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Allient (ALNT)
NASDAQ:ALNT
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Allient
(NASDAQ:ALNT)
65Neutral
Allient (ALNT) vs. S&P 500 (SPY)
Market Cap
$398.55M
Dividend Yield0.51%
Average Volume (3M)79.19K
Price to Earnings (P/E)29.8
Beta (1Y)1.51
Revenue Growth-8.41%
EPS Growth-47.10%
CountryUS
Employees2,287
SectorTechnology
Sector Strength46
IndustryHardware & Equipment
Share Statistics
EPS (TTM)0.80
Shares Outstanding16,844,835
10 Day Avg. Volume88,997
30 Day Avg. Volume79,186
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.75
Price to Cash Flow (P/CF)8.00
P/FCF Ratio10.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$31.50Price Target Upside29.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Allient Business Overview & Revenue Model
Company DescriptionAllied Motion Technologies, Inc. engages in the provision of motion control products, marketed to original equipment manufacturers and end users. The firm's activities include designing, manufacturing and selling of motors, electronic motion controls, gearing and optical encoders. It offers brush and brushless DC motors, coreless DC motors, integrated brushless motor-drives, gear motors, gearing, modular digital servo drives, motion controllers, incremental and absolute optical encoders, and associated motion control-related products to the automotive, medical, aerospace and defense, as well as in electronics and industrial markets. The company was founded in 1962 and is headquartered in Amherst, NY.
How the Company Makes MoneyAllient generates revenue through the sale of its advanced technology products and engineering services. The company engages in long-term contracts with clients in the aerospace and defense sectors, providing custom solutions that meet industry-specific needs. Revenue streams include direct sales of products, such as components and systems, as well as service contracts for maintenance and engineering support. Allient also benefits from strategic partnerships and collaborations that enable it to expand its market reach and offer comprehensive solutions. These partnerships often lead to joint ventures or co-development agreements that further contribute to the company's earnings.
Allient Financial Statement Overview
Summary
Allient presents a robust financial profile with consistent revenue growth and strong gross margins. However, declining net profit margins and operating efficiency indicate areas for improvement. The balance sheet is stable with moderate leverage, and the cash flow statement suggests healthy cash generation, though with some recent pressure on free cash flow growth.Income Statement
Allient demonstrated a strong gross profit margin and consistent revenue growth year-over-year. The gross profit margin for 2024 was approximately 31.3%, reflecting efficient cost management. However, the net profit margin decreased to around 2.5% in 2024 from 4.2% in 2023, indicating increased operating expenses or non-operational costs. EBIT and EBITDA margins also declined, suggesting pressure on operational efficiency.75
Positive
Balance Sheet
The company maintains a moderate debt-to-equity ratio of 0.92, showing balanced leverage. Return on Equity (ROE) for 2024 was approximately 5%, down from 9.6% in 2023, indicating reduced profitability relative to equity. The equity ratio stands at 46%, indicating a solid equity base relative to total assets, which provides stability.70
Positive
Cash Flow
Operating cash flow is stable, with a slight decrease in 2024. The free cash flow to net income ratio is strong, indicating good cash generation relative to earnings. However, the free cash flow growth rate was negative, reflecting challenges in maintaining cash generation levels amid capital expenditures.65
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 437.81M | 529.97M | 578.63M | 502.99M | 403.52M | 366.69M | Gross Profit |
| 124.70M | 165.69M | 171.37M | 157.26M | 121.06M | 108.58M | EBIT |
| 27.85M | 30.04M | 46.59M | 31.66M | 26.03M | 22.99M | EBITDA |
| 44.83M | 30.04M | 67.15M | 48.06M | 43.53M | 37.84M | Net Income Common Stockholders |
| 14.62M | 13.17M | 24.10M | 17.39M | 24.09M | 13.64M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 36.10M | 36.10M | 31.90M | 30.61M | 22.46M | 23.13M | Total Assets |
| 575.78M | 575.78M | 597.54M | 588.35M | 470.79M | 349.20M | Total Debt |
| 249.13M | 243.59M | 243.49M | 258.85M | 176.28M | 139.72M | Net Debt |
| 213.03M | 207.49M | 211.59M | 228.24M | 153.82M | 116.59M | Total Liabilities |
| 310.93M | 310.93M | 345.97M | 372.88M | 283.02M | 206.14M | Stockholders Equity |
| 264.85M | 264.85M | 251.57M | 215.47M | 187.76M | 143.06M |
| Cash Flow | Free Cash Flow | ||||
| -5.54M | 32.17M | 33.44M | -10.31M | 11.69M | 15.47M | Operating Cash Flow |
| 8.64M | 41.85M | 45.04M | 5.60M | 25.40M | 24.84M | Investing Cash Flow |
| -106.01M | -34.91M | -22.61M | -60.01M | -60.97M | -24.10M | Financing Cash Flow |
| 104.48M | -843.00K | -21.32M | 63.60M | 35.83M | 7.49M |
Allient Technical Analysis
Negative
24.26
Price Trends
25.05
Negative
24.13
Negative
23.45
Positive
Market Momentum
-0.56
Positive
45.31
Neutral
29.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALNT, the sentiment is Negative. The current price of 24.26 is below the 20-day moving average (MA) of 24.48, below the 50-day MA of 25.05, and above the 200-day MA of 23.45, indicating a neutral trend. The MACD of -0.56 indicates Positive momentum. The RSI at 45.31 is Neutral, neither overbought nor oversold. The STOCH value of 29.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $113.86B | 31.29 | 20.23% | 1.29% | 7.25% | 18.36% | |
72 Outperform | $63.07B | 27.01 | 9.66% | 1.88% | 10.29% | 22.72% | |
71 Outperform | $136.07B | 24.17 | 33.10% | 2.10% | 5.05% | 2.73% | |
69 Neutral | $29.19B | 32.60 | 26.22% | 1.98% | -11.28% | -23.69% | |
65 Neutral | $398.55M | 29.84 | 5.10% | 0.51% | -8.41% | -47.10% | |
65 Neutral | $152.08B | 40.20 | 7.57% | 0.51% | -13.50% | -17.25% | |
58 Neutral | $21.69B | 10.11 | -18.01% | 2.37% | 4.81% | -23.86% |
* Technology Sector Average
Performance Comparison
ALNT
Allient
24.26
-9.22
-27.54%
DHR
Danaher
210.26
-40.34
-16.10%
ETN
Eaton
294.56
-11.31
-3.70%
EMR
Emerson Electric Company
112.39
2.36
2.14%
HON
Honeywell International
208.65
11.65
5.91%
ROK
Rockwell Automation
260.03
-16.57
-5.99%
Allient Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: 2.19% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The call highlighted significant improvements in operational efficiencies and cash flow, with promising growth in aerospace and defense and opportunities in data center expansion. However, challenges in revenue, vehicle markets, and inventory management were notable. The company's strategic initiatives and debt reduction efforts indicate a positive outlook, but current market challenges suggest a balanced sentiment.Highlights
Improved Operational Efficiencies
The Simplify to Accelerate Now initiatives delivered $10 million in annualized savings in 2024, improving cost structure and overall agility, with an additional $6 million to $7 million in savings targeted for 2025.
Positive Order Momentum
Orders increased 15% sequentially, resulting in a book-to-bill ratio of nearly one, driven by demand in power quality and defense.
Successful Acquisition and Debt Reduction
The acquisition of SNC was successful, adding capabilities to the power technology pillar. Total debt was reduced by $16 million over the year.
Aerospace and Defense Growth
Aerospace and defense sales increased 20% due to the timing of certain defense and space programs, indicating promising future opportunities.
Strong Cash Flow and Improved Cash Position
Generated nearly $42 million in operating cash flow, ending the year with $36 million in cash, up 13% from previous levels.
Data Center Expansion Opportunities
Anticipated continued strength in data center expansion, aligning with long-term macro trends, supporting emerging growth opportunities.
Lowlights
Revenue Decline
Fourth-quarter revenue was $122 million, a decrease from the same period last year, with foreign currency exchange fluctuations being nominally unfavorable.
Challenges in Vehicle Markets
Sales in vehicle markets decreased by 46%, primarily due to reduced demand for powersports and a strategic focus on margin-enhancing applications.
Industrial Market Decline
Despite strong performance in power quality sales, industrial market sales declined 11%, affected by inventory destocking by the largest customer.
Inventory Management Challenges
Inventory levels remained elevated due to extended supplier lead times and significant inventory destocking by the largest customer.
Company Guidance
During the Allient Inc. fourth-quarter fiscal year 2024 financial results call, the company provided several key metrics and guidance for the upcoming year. The fourth-quarter revenue was reported at $122 million with a gross margin of 31.5%, while the full-year revenue reached $530 million. Despite a challenging market environment, orders increased by 15% sequentially, resulting in a book-to-bill ratio of nearly one. Allient generated $42 million in operating cash flow and ended the year with $36 million in cash, while reducing total debt by $16 million to $224 million. The company aims to achieve an additional $6 million to $7 million in annual savings in 2025 through its "Simplify to Accelerate Now" initiatives. For 2025, Allient anticipates a gradual improvement in order flow, particularly in the data center and defense sectors, with a projected effective tax rate between 21% and 23%. Adjusted EBITDA for the fourth quarter was $14.1 million, representing 11.6% of revenue, and the company expects continued margin improvement through ongoing simplification efforts and strategic investments.Allient Corporate Events
Executive/Board Changes
Allient’s Heidrive GmbH Extends Leadership Contract to 2027
Neutral
Jan 10, 2025
Allient, Inc.’s subsidiary, Heidrive GmbH, has amended the employment agreement with Helmut D. Pirthauer, extending his term as Vice President and Group President until December 31, 2027. The amendment outlines salary adjustments and performance-based bonuses, potentially impacting the compensation structure and incentivizing leadership performance.
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.