Albany International Corp (AIN) stock analysis

P/E below its 5-year median

Albany International's P/E of 22.1 is below its own 5-year median of 25.9.

P/E above the industry

Albany International's P/E of 22.1 is above the Consumer discretionary median of 19.6.

EV/EBITDA below its 5-year median

Albany International's EV/EBITDA of 9.8 is below its 5-year median of 17.6.

P/B above the industry

Albany International's price-to-book of 2.49 is above the Consumer discretionary median of 2.00.

Trading below fair value

The share price of $68.46 is below our fair value estimate of $75.67.

Margin of safety under 20%

The price is 9.5% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 4.6% 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 faster than the industry

Revenue grew 14.2% over the last twelve months; the Consumer discretionary median is 4.8%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 34.2% over the last twelve months, against 20.4% a year earlier.

Return on equity under 15%

Return on equity was 11.6% over the last twelve months and averaged 7.9% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 9.1%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Albany International's return on equity of 11.6% is above the Consumer discretionary median of 5.6%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 6.7% over the last twelve months, against a 5-year average of 6.8%.

Net margin above the industry

Albany International's net margin of 6.7% is above the Consumer discretionary median of 1.4%.

High debt

Debt is 54.0% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 48.8% five years ago to 54.0%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 29.7% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.41 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.54; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Albany International paid dividends worth 1.6% of the share price over the last twelve months.

Yield below Treasuries

The 1.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Albany International yields 1.6%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 35.7% of net income.

Covered by free cash flow

Dividends take 45.2% of free cash flow.