Allient (ALNT) AI Stock Analysis

• Market Cap: $876.84M
• Dividend Yield: 0.24%
• Average Volume (3M): 201.18K
• Price to Earnings (P/E): 60.3
• Beta (1Y): 1.35
• Revenue Growth: -8.69%
• EPS Growth: -27.10%
• Country: US
• Employees: 2,525
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.57
• Shares Outstanding: 16,946,976
• 10 Day Avg. Volume: 295,846
• 30 Day Avg. Volume: 201,181
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 1.51
• Enterprise Value/Gross Profit: 4.79
• Enterprise Value/Ebitda: 12.69
• 1Y Price Target: $47.50
• Price Target Upside: -6.86% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: $58.00 ▲(13.73% Upside)

Allient's overall stock score is driven by strong technical indicators and positive earnings call highlights, including record profitability and cash flow. However, the high P/E ratio and challenges in revenue growth and operational efficiency weigh on the valuation and financial performance scores.

Positive Factors

Cash Generation

Strong cash generation enhances financial flexibility, allowing Allient to invest in growth opportunities and reduce debt, supporting long-term stability.

Gross Margin Improvement

Improved gross margins indicate better cost management and pricing power, contributing to sustained profitability and competitive positioning.

Aerospace and Defense Growth

Growth in aerospace and defense sectors reflects strong demand and execution, positioning Allient well in a lucrative and expanding market.

Negative Factors

Revenue Decline

Declining revenue indicates potential challenges in market demand or competitive pressures, which could impact long-term growth prospects.

Supply Chain Challenges

Supply chain issues, especially in critical materials, can disrupt operations and increase costs, affecting Allient's ability to meet demand efficiently.

Interest Expense Increase

Rising interest expenses can strain profitability and cash flow, reducing financial flexibility and potentially impacting future investments.

Allient Business Overview & Revenue Model

Company Description

Allient 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 Money

Allient generates revenue through a multi-faceted business model that includes software licensing, subscription services, and consulting fees. The primary revenue streams consist of recurring income from subscription-based products, which provide clients with ongoing access to Allient's software solutions and regular updates. Additionally, the company earns revenue from consulting services, where experts work directly with clients to tailor solutions to their specific needs. Significant partnerships with other tech companies and industry leaders enhance Allient's market reach, enabling it to offer integrated solutions that further drive sales and customer retention.

Allient Financial Statement Overview

Summary

Allient demonstrates moderate financial health with stable profitability and a solid cash flow position. However, challenges in revenue growth and low operational efficiency are areas for improvement. The balance sheet reflects a sound capital structure, though enhanced returns on equity could drive better shareholder value.

Income Statement

The TTM revenue shows a slight decline of 2.62% from the previous year, pointing to potential challenges in revenue growth. The gross profit margin for TTM is 30.61%, and the net profit margin is 1.90%, indicating moderate profitability. However, the EBIT margin is relatively low at 5.48%, suggesting room for improvement in operational efficiency.

Balance Sheet

The debt-to-equity ratio stands at 0.90, reflecting a balanced leverage strategy. Return on equity for TTM is 3.60%, which is lower than ideal, indicating room for enhancing shareholder returns. The equity ratio of 46.48% suggests a solid equity base, ensuring stability.

Cash Flow

The free cash flow has grown 20.70% in TTM, showcasing strong cash generation capabilities. The operating cash flow to net income ratio of 4.74 indicates efficient cash conversion. Free cash flow to net income ratio is 3.95, reflecting robust cash flow relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	519.60M	529.97M	578.63M	502.99M	403.52M	366.69M
Gross Profit	163.62M	165.69M	171.37M	157.26M	121.06M	108.58M
EBITDA	61.76M	56.05M	67.15M	48.06M	43.53M	37.84M
Net Income	14.29M	13.17M	24.10M	17.39M	24.09M	13.64M
Balance Sheet
Total Assets	588.06M	575.78M	597.54M	588.35M	470.79M	349.20M
Cash, Cash Equivalents and Short-Term Investments	49.91M	36.10M	31.90M	30.61M	22.46M	23.13M
Total Debt	226.74M	249.13M	243.49M	258.85M	176.28M	139.72M
Total Liabilities	299.00M	310.93M	345.97M	372.88M	283.02M	206.14M
Stockholders Equity	289.06M	264.85M	251.57M	215.47M	187.76M	143.06M
Cash Flow
Free Cash Flow	32.99M	32.17M	33.44M	-10.31M	11.69M	15.47M
Operating Cash Flow	38.40M	41.85M	45.04M	5.60M	25.40M	24.84M
Investing Cash Flow	-5.42M	-34.91M	-22.61M	-60.01M	-60.97M	-24.10M
Financing Cash Flow	-16.35M	-843.00K	-21.32M	63.60M	35.83M	7.49M

Allient Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALNT, the sentiment is Positive. The current price of 51 is above the 20-day moving average (MA) of 46.90, above the 50-day MA of 46.13, and above the 200-day MA of 33.26, indicating a bullish trend. The MACD of 1.73 indicates Negative momentum. The RSI at 59.52 is Neutral, neither overbought nor oversold. The STOCH value of 73.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALNT.

Allient Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LYTS	77 Outperform	$711.93M	29.45	11.21%	0.87%	22.09%	-5.26%
ALNT	75 Outperform	$876.84M	60.32	5.15%	0.24%	-8.69%	-27.10%
DAKT	67 Neutral	$966.24M	4,536.36	4.36%	―	-7.67%	7.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VPG	61 Neutral	$472.07M	―	-0.39%	―	-11.47%	-106.18%
KOPN	55 Neutral	$667.50M	―	-173.01%	―	13.03%	77.68%
BKSY	50 Neutral	$893.71M	―	-105.30%	―	-1.21%	-112.08%

Allient Corporate Events

Allient Inc. Reports Strong Earnings Amid Market Challenges

Allient Inc. recently held its earnings call, revealing a strong overall performance marked by record gross margins, profitability, and cash flow. The company showcased growth in key markets such as aerospace and defense, although it acknowledged challenges in the vehicle market, rare earth material constraints, and increased interest expenses.

Allient Inc. Reports Strong Earnings Growth

Allient Inc. is a company engaged in designing, manufacturing, and selling precision motion, control, power, and structural composites, primarily serving the industrial, vehicle, medical, and aerospace and defense markets.