Alliance Entertainment Holding Corp (AENTW) stock analysis
Close on Oct 30, 2026Market cap $512.73MP/E 17.8Yield –
StockData Score
Prices as of Oct 30, 2026How the score works
Weak7 of 30 checks passed
Alliance Entertainment passes 7 of the 30 checks behind our score; 12 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 2/6
- Growth
- 0/6
- Past performance
- 3/6
- Financial health
- 2/6
- Dividend
- 0/6
What stands out
Return on capital over 10%
Return on invested capital was 17.3%, above the 10% that usually covers the cost of capital.
Interest well covered
Operating income covers interest expense 5.6 times.
P/E below its 5-year median
Alliance Entertainment's P/E of 17.8 is below its own 5-year median of 19.5.
P/E below the industry
Alliance Entertainment's P/E of 17.8 is below the Wholesale Trade-durable Goods median of 21.6.
What to watch
Margin of safety under 20%
The price is 15.3% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $4.62 is above our fair value estimate of $4.01.
Return on equity under 15%
Return on equity was 11.9% over the last twelve months and averaged 5.2% over five years; we look for 15% on both.
Revenue growing under 10% a year
Revenue grew -45.6% a year over the last three fiscal years, short of the 10% we look for.
Valuation2/6
P/E below its 5-year median
Alliance Entertainment's P/E of 17.8 is below its own 5-year median of 19.5.
P/E below the industry
Alliance Entertainment's P/E of 17.8 is below the Wholesale Trade-durable Goods median of 21.6.
EV/EBITDA above its 5-year median
Alliance Entertainment's EV/EBITDA of 17.6 is above its 5-year median of 9.1.
P/B above the industry
Alliance Entertainment's price-to-book of 4.40 is above the Wholesale Trade-durable Goods median of 2.08.
Trading above fair value
The share price of $4.62 is above our fair value estimate of $4.01.
Margin of safety under 20%
The price is 15.3% above fair value, so there is no margin of safety.
Growth0/6
Revenue growing under 10% a year
Revenue grew -45.6% a year over the last three fiscal years, short of the 10% we look for.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew 0.0% over the last twelve months; the Wholesale Trade-durable Goods median is 1.1%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin slipping
Gross margin was -36813% over the last twelve months, against -34367% a year earlier.
Past performance3/6
Return on equity under 15%
Return on equity was 11.9% over the last twelve months and averaged 5.2% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 17.3%, above the 10% that usually covers the cost of capital.
Return on equity below the industry
Alliance Entertainment's return on equity of 11.9% is below the Wholesale Trade-durable Goods median of 17.7%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 484% over the last twelve months, against a 5-year average of 178%.
Net margin above the industry
Alliance Entertainment's net margin of 484% is above the Wholesale Trade-durable Goods median of 6.7%.
Financial health2/6
Debt level
Needs debt and equity figures.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt coverage
Needs operating cash flow.
Interest well covered
Operating income covers interest expense 5.6 times.
Short-term assets cover short-term debts
Current assets are 1.34 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is 1.75; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Alliance Entertainment has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$4.01
The share price is 15% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 21.0× | 19.5× | 21.6× | $5.46 | 40% |
| EV/EBITDA | 12.1× | 9.1× | 13.4× | $3.17 | 35% |
| P/B | 2.2× | 2.6× | 2.1× | $2.34 | 10% |
| Earnings power | 7.5% cost of equity | – | – | $3.20 | 15% |
| Fair value | $4.01 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 19.5
- Wholesale Trade-durable Goods median 21.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
High risk
- Average value traded per day
- $162.38K
- Value traded per 1% price move
- $36.02K
Downside
High risk
- Typical loss in a bad month
- 33.9%
- Volatility (annualized)
- 66%
- Sharpe ratio, 1 year
- -0.59
- Beta to the S&P 500 (5Y)
- 0.47
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2021 to 2026
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | 0.0% | -45.6% | – | – | |
| Operating income | -9.7% | – | – | – | |
| Net income | -13.4% | – | – | – | |
| EPS, diluted | -13.3% | – | – | – |
Returns and balance sheet
6 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2021 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | – | – | 11.9% | |
| Return on assets | – | – | 3.4% | |
| Current ratio | 6.42 | 6.42 | 1.34 | |
| Interest coverage | – | – | 5.6× | |
| Inventory turnover | – | – | 8.7× | |
| Capex to revenue | – | – | 39.8% | |
| Diluted shares | – | – | 51M |
Where the cash went
Fiscal 2022 to 2026, five years combined
Alliance Entertainment generated $171.22M from operations and spent $2.19M on capital expenditure, dividends and share buybacks. 100% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 483.6% | 0.01× | 3.45× | 11.9% |
| FY2025 | 558.4% | 0.01× | 3.68× | 15.8% |
| FY2024 | 54.5% | 0.02× | 4.37× | 5.5% |
| FY2023 | -210.7% | 0.04× | 4.58× | -37.6% |
| FY2022 | 2.0% | 4.80× | 3.12× | 30.2% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero$13.06M
- Cash generatingOperating cash flow above zero-$1.70M
- Return on assets improvedROA up on the prior year4.4% → 3.6%
- Earnings backed by cashOperating cash flow above net income-$1.70M vs $13.06M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose1.26 → 1.34
- No dilutionShare count did not rise51M → 51M
- Gross margin improvedGross margin up on the prior year-34366.85% → -36813.41%
- More efficientAsset turnover rose0.01 → 0.01