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Allient (ALNT)
NASDAQ:ALNT
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Allient
(NASDAQ:ALNT)
66Neutral
Allient (ALNT) vs. S&P 500 (SPY)
Market Cap
$356.43M
Dividend Yield0.57%
Average Volume (3M)90.90K
Price to Earnings (P/E)26.5
Beta (1Y)1.36
Revenue Growth-8.41%
EPS Growth-47.10%
CountryUS
Employees2,525
SectorTechnology
Sector Strength55
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.80
Shares Outstanding16,948,471
10 Day Avg. Volume122,073
30 Day Avg. Volume90,902
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.76
Price to Cash Flow (P/CF)8.10
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 Upside48.94% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
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 makes money primarily through the sale of its advanced electronic components and systems to a diverse range of industries. The company's revenue model is centered around designing and manufacturing tailored solutions that meet the specific needs of its clients, often involving long-term contracts and partnerships. Key revenue streams include the production and sale of custom power supplies and motion control systems. Additionally, Allient benefits from its strategic partnerships with major players in the defense and aerospace sectors, which contribute significantly to its earnings. The company's ability to innovate and provide high-quality, reliable products allows it to maintain a strong market position and command premium prices for its offerings.
Allient Financial Statement Overview
Summary
Allient shows consistent revenue growth and strong gross margins. However, declining net profit margins and operational efficiency indicate areas for improvement. The balance sheet is stable with moderate leverage, and cash flow suggests healthy generation, despite 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 | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 529.97M | 578.63M | 502.99M | 403.52M | 366.69M | Gross Profit |
| 165.69M | 171.37M | 157.26M | 121.06M | 108.58M | EBIT |
| 30.04M | 46.59M | 31.66M | 26.03M | 22.99M | EBITDA |
| 30.04M | 67.15M | 48.06M | 43.53M | 37.84M | Net Income Common Stockholders |
| 13.17M | 24.10M | 17.39M | 24.09M | 13.64M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 36.10M | 31.90M | 30.61M | 22.46M | 23.13M | Total Assets |
| 575.78M | 597.54M | 588.35M | 470.79M | 349.20M | Total Debt |
| 243.59M | 243.49M | 258.85M | 176.28M | 139.72M | Net Debt |
| 207.49M | 211.59M | 228.24M | 153.82M | 116.59M | Total Liabilities |
| 310.93M | 345.97M | 372.88M | 283.02M | 206.14M | Stockholders Equity |
| 264.85M | 251.57M | 215.47M | 187.76M | 143.06M |
| Cash Flow | Free Cash Flow | |||
| 32.17M | 33.44M | -10.31M | 11.69M | 15.47M | Operating Cash Flow |
| 41.85M | 45.04M | 5.60M | 25.40M | 24.84M | Investing Cash Flow |
| -34.91M | -22.61M | -60.01M | -60.97M | -24.10M | Financing Cash Flow |
| -843.00K | -21.32M | 63.60M | 35.83M | 7.49M |
Allient Technical Analysis
Negative
21.15
Price Trends
23.67
Negative
24.46
Negative
23.05
Negative
Market Momentum
-0.79
Negative
41.36
Neutral
64.94
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 21.15 is below the 20-day moving average (MA) of 21.97, below the 50-day MA of 23.67, and below the 200-day MA of 23.05, indicating a bearish trend. The MACD of -0.79 indicates Negative momentum. The RSI at 41.36 is Neutral, neither overbought nor oversold. The STOCH value of 64.94 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $484.43M | 21.09 | 11.40% | 1.24% | 10.45% | -15.98% | |
66 Neutral | $356.43M | 26.52 | 5.10% | 0.57% | -8.41% | -47.10% | |
58 Neutral | $11.04B | 9.83 | -6.56% | 3.16% | 7.59% | -10.43% | |
56 Neutral | $375.82M | ― | -53.83% | ― | 33.41% | 81.07% | |
49 Neutral | $486.22M | ― | -3.50% | ― | -4.57% | 84.12% | |
49 Neutral | $291.56M | ― | -134.07% | ― | -35.31% | -2.18% | |
46 Neutral | $346.96M | ― | -63.44% | ― | 9.23% | 51.61% |
* Technology Sector Average
Performance Comparison
ALNT
Allient
21.15
-7.81
-26.97%
FARO
Faro Technologies
24.76
6.44
35.15%
LYTS
Lsi Industries
15.72
1.89
13.67%
MVIS
Microvision
1.19
-0.27
-18.49%
KULR
KULR Technology Group
1.28
0.87
212.20%
OUST
Ouster
6.91
-0.08
-1.14%
Allient Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -10.80% | 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.